10-QPeriod: Q2 FY2026

DOVER Corp Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 23, 2026For Securities:DOV

Summary

Dover Corporation reported solid financial performance for the second quarter and first half of 2026. Revenue increased by 6.9% year-over-year for the quarter and 8.4% for the first half, driven by a combination of organic growth across all segments, strategic acquisitions, and favorable foreign currency translation. The company demonstrated strong operational execution, evidenced by an increase in gross profit and improved gross profit margins in the quarter, along with a decrease in SG&A as a percentage of revenue. Profitability also saw a significant boost, with earnings from continuing operations up 11.6% for the quarter and 6.1% for the first half. This was fueled by higher operating earnings resulting from robust revenue growth, effective pricing strategies, and benefits from ongoing restructuring initiatives. The company's financial condition remains strong, with a healthy free cash flow generation of $319.6 million for the first half of the year and a decreasing net debt to net capitalization ratio, indicating effective financial management and capacity for future investments.

Key Highlights

  • 1Total revenue for Q2 2026 increased by 6.9% to $2.19 billion, and for the first six months by 8.4% to $4.24 billion, driven by organic growth, acquisitions, and favorable currency translation.
  • 2Gross profit increased by 7.6% for Q2 and 7.4% for the first six months, with gross profit margin improving by 30 basis points to 40.2% in the quarter.
  • 3Earnings from continuing operations grew by 11.6% to $312.5 million ($2.31 diluted EPS) in Q2 and by 6.1% to $551.3 million ($4.06 diluted EPS) in the first six months.
  • 4Strong performance in key segments like Clean Energy & Fueling (revenue up 8.9% in Q2) and Pumps & Process Solutions (revenue up 6.2% in Q2, with 4.9% from acquisitions).
  • 5Bookings increased significantly by 16.1% in Q2, indicating robust future demand across multiple segments.
  • 6Free cash flow for the first six months totaled $319.6 million, an increase of $58.9 million year-over-year, reflecting improved operating earnings.
  • 7The net debt to net capitalization ratio improved to 16.3% as of June 30, 2026, down from 18.2% at the end of 2025, indicating reduced leverage.

Frequently Asked Questions

Revenue growth in the second quarter of 2026 was primarily driven by a combination of organic revenue growth of 4.8% across all segments, acquisition-related growth of 1.2%, and a favorable impact from foreign currency translation of 0.9%. Pricing actions also favorably impacted revenue.

For the first six months of 2026, earnings from continuing operations increased by 6.1% to $551.3 million, or $4.06 diluted earnings per share, compared to $519.4 million, or $3.76 diluted earnings per share, in the prior year comparable period. This growth was primarily fueled by strong revenue performance, partially offset by an unfavorable portfolio mix, and increases in employee compensation, benefits, and interest expenses.

Dover Corporation maintains a strong financial position with sufficient liquidity. Operating cash flow and access to capital markets are expected to meet funding requirements, including acquisitions and capital expenditures. The company anticipates capital expenditures for 2026 to be between $190.0 million and $210.0 million. Free cash flow for the first six months of 2026 was $319.6 million, and the net debt to net capitalization ratio improved to 16.3% as of June 30, 2026.

The company incurred $24.6 million in restructuring and other costs in Q2 2026, primarily related to headcount reductions and exit costs. Acquisition-related growth was noted, particularly in the Pumps & Process Solutions segment due to recent acquisitions like Sikora AG and ipp Pump Products GmbH. One immaterial acquisition was completed in the Engineered Products segment during the first half of 2026.