10-QPeriod: Q2 FY2021

DOVER Corp Quarterly Report for Q2 Ended Jun 30, 2021

Filed July 20, 2021For Securities:DOV

Summary

Dover Corporation (DOV) reported strong financial results for the second quarter and first half of 2021, demonstrating a significant recovery from the prior year's COVID-19 impacts. Revenue surged by 35.5% year-over-year in Q2 to $2.03 billion, driven by a broad-based 29.7% organic growth across all segments, complemented by a favorable foreign currency translation and modest acquisition contributions. Net earnings more than doubled to $264.5 million ($1.82 diluted EPS), reflecting improved operational efficiencies, pricing initiatives, and cost management. The company's diversified segments, including Engineered Products, Fueling Solutions, Imaging & Identification, Pumps & Process Solutions, and Refrigeration & Food Equipment, all experienced robust growth. Notably, the Pumps & Process Solutions segment saw a remarkable 104.8% increase in segment earnings. The backlog also increased significantly to $2.6 billion, indicating continued demand. Management highlighted ongoing efforts in restructuring and efficiency improvements, while also acknowledging inflationary pressures on materials, labor, and logistics, which are being offset by pricing actions and productivity gains.

Financial Highlights

46 data points
Beta

Revenue

$2.03B

38.0% Gross Margin

Net Income

$264.51M

13.0% Net Margin

EPS (Diluted)

$1.82

Total Assets

$9.63B

Cash & Equivalents

$601.36M

Free Cash Flow

$218.10M

Financial Statements
Beta
Revenue$2.03B
Cost of Revenue$1.26B
Gross Profit$772.17M
SG&A Expenses$428.04M
Operating Income$344.13M
Interest Expense$26.66M
Net Income$264.51M
EPS (Basic)$1.84
EPS (Diluted)$1.82
Shares Outstanding (Basic)143.94M
Shares Outstanding (Diluted)145.12M

Key Highlights

  • 1Strong revenue growth of 35.5% YoY in Q2 2021 to $2.03 billion, with organic growth of 29.7% across all segments.
  • 2Net earnings more than doubled YoY in Q2 2021 to $264.5 million, translating to diluted EPS of $1.82.
  • 3All five operating segments demonstrated significant year-over-year revenue and earnings growth, driven by market recovery and improved demand.
  • 4Bookings increased by 68.2% YoY to $2.4 billion in Q2 2021, leading to a substantial increase in backlog to $2.6 billion.
  • 5The company completed four strategic acquisitions in H1 2021 for $88.5 million, enhancing capabilities in key segments.
  • 6Gross profit margin improved by 120 basis points in Q2 2021 to 38.0%, demonstrating effective pricing and productivity measures.
  • 7Free cash flow for the first six months of 2021 increased to $364.0 million, reflecting strong operational cash generation.

Frequently Asked Questions

Dover Corporation's revenue significantly increased by 35.5% to $2.03 billion in the second quarter of 2021, compared to $1.50 billion in the same period of 2020. This growth was primarily driven by a robust 29.7% organic revenue increase across all segments, alongside a favorable foreign currency translation and contributions from recent acquisitions.

Net earnings for the second quarter of 2021 more than doubled, rising to $264.5 million from $124.8 million in the prior year quarter. Diluted earnings per share (EPS) increased to $1.82 from $0.86 year-over-year, reflecting the strong operational performance and recovery.

The strong performance was driven by a widespread recovery in market conditions and demand following the impacts of COVID-19 in the prior year. This translated into significant organic revenue growth across all five operating segments. The company also benefited from effective pricing initiatives, productivity improvements, and cost management actions, which helped to offset increased material, labor, and logistics costs.

In the first half of 2021, Dover Corporation generated $437.3 million in cash from operating activities. The company used $151.2 million for investing activities, primarily for acquisitions totaling $81.2 million, and $200.2 million for financing activities, including $142.7 million in dividends paid and $21.6 million for share repurchases. Free cash flow for the period was $364.0 million.