10-KPeriod: FY2021

DOVER Corp Annual Report, Year Ended Dec 31, 2021

Filed February 11, 2022For Securities:DOV

Summary

Dover Corporation reported strong financial performance in its 2021 10-K filing, with revenues reaching $7.9 billion, an increase of 18.3% year-over-year. This growth was driven by robust organic demand across all five operating segments, supplemented by strategic acquisitions and favorable foreign currency translation. The company highlighted significant organic revenue growth in Pumps & Process Solutions (26.6%) and Climate & Sustainability Technologies (22.0%), demonstrating the successful execution of its strategic priorities. Dover's strategic focus on achieving organic sales growth above GDP, improving returns on capital, and generating strong free cash flow appears to be yielding positive results. The company also actively manages its portfolio through disciplined acquisitions and divestitures, as evidenced by its significant acquisition activity in 2021. Despite facing inflationary pressures and supply chain disruptions, Dover managed to expand its gross profit margin to 37.6%, reflecting effective pricing strategies and operational efficiencies.

Financial Highlights

55 data points
Beta

Revenue

$7.91B

37.6% Gross Margin

Net Income

$1.12B

14.2% Net Margin

EPS (Diluted)

$7.74

Total Assets

$10.40B

Cash & Equivalents

$385.50M

Free Cash Flow

$944.40M

Financial Statements
Beta
Revenue$7.91B
Cost of Revenue$4.94B
Gross Profit$2.97B
R&D Expenses$157.83M
SG&A Expenses$1.69B
Operating Income$1.28B
Interest Expense$106.32M
Net Income$1.12B
EPS (Basic)$7.81
EPS (Diluted)$7.74
Shares Outstanding (Basic)143.92M
Shares Outstanding (Diluted)145.27M

Key Highlights

  • 1Dover Corporation achieved a 18.3% year-over-year revenue increase, reaching $7.9 billion in 2021, driven by broad-based organic growth across all segments.
  • 2The Pumps & Process Solutions segment led growth with a 29.1% revenue increase, including 26.6% organic growth, driven by strong demand in biopharma and hygienic markets.
  • 3Climate & Sustainability Technologies also showed robust performance with a 22.2% revenue increase, including 22.0% organic growth, benefiting from favorable trends in beverage packaging and energy-efficient solutions.
  • 4The company actively pursued its growth strategy through significant acquisition activity in 2021, deploying $1.125 billion across nine businesses.
  • 5Dover maintained a strong financial position, generating $944.4 million in free cash flow for 2021, representing 11.9% of revenue.
  • 6The company demonstrated effective cost management and pricing strategies, resulting in an expansion of gross profit margin to 37.6% from 37.0% in the prior year.
  • 7Dover continued its commitment to shareholder returns by increasing its annual dividend for the 66th consecutive year and repurchasing shares.

Frequently Asked Questions

Dover's revenue growth in 2021 was primarily driven by strong organic demand across all five operating segments, with notable contributions from the Pumps & Process Solutions and Climate & Sustainability Technologies segments. Strategic acquisitions and favorable foreign currency translation also contributed to the overall revenue increase. The company also benefited from strategic pricing initiatives, which helped offset inflationary pressures.

Dover addressed inflationary pressures, particularly in material and logistics costs, through strategic pricing initiatives and by focusing on productivity actions. While supply chain disruptions and labor availability issues presented challenges, the company proactively managed inventory levels and sought alternative sourcing to mitigate impacts on its operations and ability to meet customer demand.

Dover's strategy involves disciplined portfolio enhancement through acquisitions and divestitures. In 2021, the company completed nine acquisitions totaling over $1.1 billion, focusing on businesses that complement its existing operations and strategic growth areas. The company also continuously evaluates its portfolio for opportunities to divest businesses that may have limited future value creation potential.

In 2021, Dover generated $944.4 million in free cash flow. The company prioritizes deploying free cash flow towards high-return organic investments, strategic acquisitions, and returning capital to shareholders through dividends and opportunistic share repurchases. The company continued its 66-year history of increasing its annual dividend per share and actively repurchased shares under its authorized program.