10-QPeriod: Q3 FY2025

DOVER Corp Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 23, 2025For Securities:DOV

Summary

Dover Corporation (DOV) reported a solid third quarter for 2025, with total revenue increasing by 4.8% year-over-year to $2.08 billion. This growth was driven by a combination of acquisitions (3.0%), favorable foreign currency translation (1.3%), and a modest organic revenue increase (0.5%). Profitability improved significantly, with gross profit rising by 9.2% and gross profit margin expanding by 160 basis points to 40.1%. Operating earnings saw a strong increase of 13.0%, indicating effective cost management and operational efficiencies. While earnings from continuing operations saw a slight decrease of 3.1% to $303.3 million, this was primarily due to a significant gain on dispositions recognized in the prior year. Excluding discontinued operations, net earnings were $302.0 million. The company also generated robust operating cash flow of $794.1 million for the first nine months of 2025, an increase from the prior year, and maintained a healthy free cash flow of $630.8 million. Strategic acquisitions in the Pumps & Process Solutions and Clean Energy & Fueling segments continue to be a key growth driver, alongside solid performance in Imaging & Identification. However, the Engineered Products and Climate & Sustainability Technologies segments experienced revenue declines, warranting close monitoring.

Financial Statements
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Key Highlights

  • 1Total revenue increased 4.8% to $2.08 billion in Q3 2025, driven by acquisitions, foreign currency, and organic growth.
  • 2Gross profit increased 9.2% to $833.6 million, with gross profit margin expanding 160 basis points to 40.1%.
  • 3Operating earnings rose 13.0% to $377.2 million, showcasing improved operational efficiency.
  • 4Net earnings for the quarter were $302.0 million, though earnings from continuing operations decreased 3.1% due to prior year gains on dispositions.
  • 5Strong operating cash flow of $794.1 million generated in the first nine months of 2025, up significantly from the prior year.
  • 6Strategic acquisitions continue to bolster growth, particularly in the Pumps & Process Solutions and Clean Energy & Fueling segments.
  • 7While overall performance is positive, revenue declined in the Engineered Products and Climate & Sustainability Technologies segments.

Frequently Asked Questions

Revenue growth in Q3 2025 was primarily driven by acquisition-related contributions (3.0%), a favorable impact from foreign currency translation (1.3%), and a 0.5% organic revenue increase. Key acquisitions were in the Pumps & Process Solutions and Clean Energy & Fueling segments.

Dover's profitability showed improvement. Gross profit increased by 9.2% and gross profit margin expanded by 160 basis points to 40.1%. Operating earnings also saw a substantial increase of 13.0%. While net earnings were slightly down year-over-year due to a prior year gain on dispositions, the underlying operational performance was strong.

The strongest performing segments were Pumps & Process Solutions (revenue up 16.6%) and Clean Energy & Fueling (revenue up 8.1%), both benefiting from acquisitions and organic growth. The Imaging & Identification segment also showed positive growth. However, the Engineered Products segment (revenue down 5.5%) and Climate & Sustainability Technologies segment (revenue down 5.2%) experienced revenue declines.

Dover generated strong operating cash flow of $794.1 million for the first nine months of 2025, an increase from the prior year. The company also reported a healthy free cash flow of $630.8 million for the same period. The net debt to net capitalization ratio increased to 16.5% primarily due to acquisitions and a decrease in cash balances.