01—Abstract
Summary
Summary of the 10-K filed February 10, 2023. Cited figures are marked; the original filing is the authoritative source.
Dover Corporation reported consolidated revenue of $8.5 billiona for the year ended December 31, 2022, a 7.6% increase from the prior year, driven by solid demand and strategic pricing initiatives that largely offset inflationary cost pressures.
The company experienced strong organic revenue growth in Engineered Products and Climate & Sustainability Technologies segments, while Clean Energy & Fueling saw a slight organic decline and Imaging & Identification revenue decreased slightly, impacted by foreign currency translation. Net earnings for 2022 were $1.07 billionb, a decrease from $1.12 billion in 2021, primarily due to the absence of significant gains on dispositions recorded in the prior year. Dover continues to focus on its strategy of achieving organic sales growth, improving returns on capital through operational enhancements and digital investments, and generating strong free cash flow.
The company repurchased approximately $500 millionc of its stock under an accelerated share repurchase agreement and increased its dividend for the 67th consecutive year, demonstrating a commitment to shareholder returns. Despite ongoing supply chain constraints and labor availability issues, Dover remains focused on operational excellence and portfolio optimization.
02—Key points
Key Highlights
- Consolidated revenue increased by 7.6% to $8.5 billion in 2022, primarily driven by organic growth and strategic pricing, which helped offset inflationary pressures.
- Net earnings decreased by 5.2% to $1.07 billion in 2022 compared to $1.12 billion in 2021, largely due to the absence of significant gains from prior year dispositions.
- The Engineered Products segment showed strong performance with a 14.8% revenue increase, driven by robust demand in vehicle service and industrial automation.
- The Clean Energy & Fueling segment revenue grew 14.0%, with acquisition-related growth offsetting a slight organic decline, attributed to construction delays and macroeconomic caution in certain markets.
- Dover generated $584.8 million in free cash flow in 2022, though this was lower than the $944.4 million in 2021, due to increased investments in working capital.
- The company repurchased approximately $500 million of its common stock through an accelerated share repurchase program and continued its history of increasing dividends.
- Backlog decreased to $3.0 billion by the end of 2022 from $3.2 billion in the prior year, reflecting normalizing lead times and a return to historical order patterns.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, Dover Corp kept $0.14.
- Revenue$7.84B100.0%
- Cost of revenue−$4.94B63.0%
- Gross profit$2.90B37.0%
- Operating costs−$1.63B20.7%
- Operating income$1.28B16.3%
- Interest, other & tax−$214.3M2.7%
- Net income$1.07B13.6%
04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 10, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $7.84B$7.91B | −0.8% |
| Cost of Revenue | $4.94B$4.94B | 0.0% |
| Gross Profit | $2.90B$2.97B | −2.2% |
| R&D Expenses | $151.35M$157.83M | −4.1% |
| SG&A Expenses | $1.63B$1.69B | −3.7% |
| Operating Income | $1.28B$1.28B | −0.1% |
| Interest Expense | $116.46M$106.32M | +9.5% |
| Net Income | $1.07B$1.12B | −5.2% |
| EPS (Basic) | $7.47$7.81 | −4.4% |
| EPS (Diluted) | $7.42$7.74 | −4.1% |
| Shares Outstanding (Basic) | 142.68M143.92M | −0.9% |
| Shares Outstanding (Diluted) | 143.59M145.27M | −1.2% |
05—Questions
Frequently Asked Questions
What was Dover's overall financial performance in 2022?
In 2022, Dover Corporation reported consolidated revenue of $8.5 billion, a 7.6% increase from the prior year, primarily driven by organic growth and pricing initiatives. Net earnings were $1.07 billion, a slight decrease from $1.12 billion in 2021, mainly due to the absence of significant gains from dispositions recorded in the prior year. The company generated $584.8 million in free cash flow.
How did the different business segments perform in 2022?
The Engineered Products segment experienced strong revenue growth of 14.8%, driven by robust demand. Clean Energy & Fueling saw a 14.0% revenue increase, with acquisitions driving growth while organic revenue slightly declined due to market conditions. Imaging & Identification revenue decreased by 3.4%, impacted by currency translation, though organic growth in marking and coding was positive. Pumps & Process Solutions had a 1.1% revenue increase, supported by pricing and demand in key areas, but saw a decline in COVID-19 vaccine production components. Climate & Sustainability Technologies reported an 8.1% revenue increase, with strong organic growth across its end markets.
What is Dover's strategy for growth and shareholder returns?
Dover's strategy focuses on achieving organic sales growth above GDP, improving returns on capital through operational excellence and digital investments, and generating strong free cash flow. The company actively manages its portfolio through strategic acquisitions and dispositions. To return capital to shareholders, Dover has a consistent history of increasing its dividend (67th consecutive year) and has engaged in opportunistic share repurchases, including a significant accelerated share repurchase program in 2022.
06—Continue