Slides
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Earnings Conference Call Third Quarter 2025 October 23, 2025 – 8:30am CT
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2 Forward-Looking Statements and Non-GAAP Measures We want to remind everyone that our comments may contain forward-looking statements that are inherently subject to uncertainties and risks, including general economic conditions and conditions in the particular markets in which we operate, changes in customer demand and capital spending, competitive factors and pricing pressures, our ability to develop and launch new products in a cost-effective manner, and our ability to realize synergies from newly acquired businesses. We caution everyone to be guided in their analysis of Dover Corporation by referring to the documents we file from time to time with the SEC, including our Annual Report on Form 10-K, and our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, for a list of factors that could cause our results to differ from those anticipated in any such forward-looking statements. We would also direct your attention to our website, dovercorporation.com, where considerably more information can be found. In addition to financial measures based on U.S. GAAP, Dover provides supplemental non-GAAP financial information. Management uses non-GAAP measures in addition to GAAP measures to understand and compare operating results across periods, make resource allocation decisions, and for forecasting and other purposes. Management believes these non-GAAP measures reflect results in a manner that enables, in many instances, more meaningful analysis of trends and facilitates comparison of results across periods and to those of peer companies. These non-GAAP financial measures have no standardized meaning presented in U.S. GAAP and may not be comparable to other similarly titled measures used by other companies due to potential differences between the companies in calculations. The use of these non-GAAP measures has limitations and they should not be considered as substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP. Reconciliations and definitions are included either in this presentation or in Dover’s earnings release and investor supplement for the quarter, which are available on Dover’s website. We do not provide a reconciliation of forward-looking free cash flow to the most directly comparable GAAP financial measure because we are not able to provide a meaningful or accurate compilation of reconciling items. This is due to the inherent difficulty in accurately forecasting the timing and amounts of the items that would be excluded from the most directly comparable GAAP financial measure or are out of our control. For the same reasons, we are unable to address the probable significance of unavailable information which may be material.
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3 No change +10c(4) All-in(2): (1) Non-GAAP measures (definitions and/or reconciliations in appendix) (2) See performance measures definitions in appendix All in: Organic growth(1) : +8% to $2.0B +15% to $2.62Adjusted EPS(1)(3): ▪ Top line growth driven by secular- growth-exposed end markets and strategic acquisitions ▪ Strong order trends drive confidence in outlook ▪ 62% Adjusted Segment EBITDA conversion(1) with year-over-year margin improvement across all five segments ▪ 15+% adjusted EPS growth in Q3 and year-to-date ▪ Raised adjusted EPS guidance, +15% full year growth at the midpoint Q3 and YTD 2025 Performance Highlights Revenue Bookings(2) Adjusted Segment EBITDA(1) Free Cash Flow(1) Earnings Per Share FY ’25 Guidance Update Q3 ‘25 Q3 CommentaryYTD ‘25 26.1% +170 bps 25.1% +170 bps +5% to $2.1B +1% +3% to $6.0B +1% +5% to $6.0B % of Revenue: Y-o-Y bps Δ: $M: % of Revenue: +17% to $7.10 Revenue growth: Adj EPS(1)(3): From To +4-6% $9.35 - $9.55 +4-6% $9.50 - $9.60 (3) From continuing operations (4) At midpoint $370M 18% $631M 11%
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4 Summary Corporate Q3 and Year to Date Results Q3 2025 YTD 2025 Q3 Highlights Revenue change (Y-o-Y) All-in Organic(1) +5% +1% +3% +1% ▪ FX impact: +1%;acquisitions: +3% Bookings change (Y-o-Y) All-in(2) +8% +5% ▪ Y-o-Y bookings(2) growth in 7 of the last 8 quarters Adjusted Segment EBITDA Margin(1) Margin % Y-o-Y bps Δ 26% +170 bps 25% +170 bps ▪ +$58M Y-o-Y ▪ Y-o-Y change: +12% Earnings From Continuing Ops Reported Adjusted(1)(3) $303M $361M $823M $981M ▪ Reported Y-o-Y change: -3% ▪ Adjusted(1) Y-o-Y change: +15% Diluted EPS Reported Adjusted(1)(3) $2.20 $2.62 $5.96 $7.10 ▪ Reported Y-o-Y change: -3% ▪ Adjusted(1) Y-o-Y change: +15% Free Cash Flow(1) (% of) Revenue Adj. Earnings(1) 18% 102% 11% 64% ▪ FCF(1) up $55M Y-o-Y (1) Non-GAAP measures (definitions and/or reconciliations in appendix) (2) See performance measures definitions in appendix (3) Q3 2025 adjusted earnings and EPS from continuing operations exclude $45M and $0.33 of purchase accounting expenses, respectively, and $13M and $0.10 of restructuring costs, respectively
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5 Segment Revenue ($M) / Y-o-Y Organic(1) ∆ % Adj. Segment EBITDA(1) % / bps ∆ Y-o-Y Performance Commentary DEP $280 -7% 23% +180 bps ▪ Lower volumes in vehicle services partially offset by strength in aerospace & defense ▪ Margin up on cost actions, operational execution, and improved mix DCEF $541 +5% 24% +200 bps ▪ Strong shipments in clean energy components, fluid transport, and North America retail fueling ▪ Margin up on favorable mix of below ground fueling equipment, productivity, and restructuring benefits DII $299 +3% 29% +10 bps ▪ Growth in core marking and coding equipment and serialization software ▪ Continued positive margin trajectory from productivity and ongoing structural cost actions DPPS $551 +6% 33% +130 bps ▪ Solid growth in single-use biopharma components, thermal connectors, and precision components. Sequential improvement in polymer processing shipments ▪ Margin up on volume growth and higher mix of biopharma / thermal connectors DCST $409 -7% 21% +120 bps ▪ Growth in CO2 systems, beverage can-making, and global heat exchangers. Lower volumes in food retail door cases and services ▪ Year-to-date global CO2 up 30+%, driving positive mix dynamics; year-to-date refrigerated door cases and services down ~30% (1) Non-GAAP (definitions and/or reconciliations in appendix) All Five Segments Increased Comparable Margins in Q3 Q3 2025
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6 (1) Includes stock-based compensation, non-cash charges, and changes in other current and non-current assets and liabilities (2) Non-GAAP measures (definitions and/or reconciliations in appendix) Note: Numbers may not add due to rounding Year-to-Date Free Cash Flow $M YTD 2025 YTD 2024 ∆ Net earnings 812 1,261 (449) Loss (earnings) from discontinued operations, net 11 (100) 111 Gain on dispositions (5) (598) 593 D&A 280 251 29 Change in working capital (156) (103) (53) Change in other(1) (149) (63) (86) Cash flow from operations 794 649 145 Capex (163) (114) (49) Free cash flow(2) 631 535 96 FCF % of Revenue(2) 10.5% 9.2% FCF % of adj. earnings from continuing operations(2) 64.3% 63.3%
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7 Bookings Momentum Continuing in 2025 (1) See performance measure definitions in appendix Q3 Bookings(1) Detail by Segment -4% +0% +4% +14% +25% +DD growth in aerospace & defense components; slower in vehicle aftermarket Growth in clean energy and fluid transfer components; lower in vehicle wash Stable book-and-ship business Strong growth in biopharma, thermal, and precision components; Strong momentum in Sikora +DD growth across all major business units; first quarterly growth in refrigerated door cases since Q2 ‘24 Bookings Commentary Consolidated Last Twelve Months’ Bookings(1) Growth Y-o-Y Growth(1) $M B-t-B(1) DPPS DCST DII DCEF DEP 0.98 0.94 0.98 0.93 1.02 -2% Q3 -12% Q4 -12% Q1 -14% Q2 -12% Q3 -7% Q4 -4% Q1 3% Q2 6% Q3 7% Q4 6% Q1 5% Q2 5% Q3 2022 2023 2024 2025
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8 Over 20% of Annualized Revenue Tied to Secular Growth End Markets Power / AI Infrastructure Single-Use Biopharma CO2 Systems ▪ Tailwinds across broader gas complex and US energy infrastructure investment ▪ Growing demand for LNG exports ▪ Significant demand for gas turbine components; corresponding robust midstream pipeline buildout slated for ’26 and beyond Gas Infrastructure ▪ Solid outlook in new biopharma therapies (e.g., cell and gene therapy) driving long-term growth trajectory in biological drug production ▪ Secular shift toward single-use manufacturing given lower risk of contamination, lower operational costs, and higher changeover efficiency ▪ Leading market position in European natural refrigerant systems for grocers ▪ Economic tailwinds driving broad-based US adoption of natural refrigerants (e.g., CO2) ▪ First mover advantage and largest install base in the US with strong outlook Electrical Infrastructure Liquid Cooling ▪ Leading provider of solutions for measurement, inspection, and control technologies for polymer-coated wires and cables ▪ Directly exposed to growing demands for energy / electric infrastructure investment ▪ Strong demand for liquid cooling applications in high performance computing and data centers ▪ Key partnerships with high- profile OEMs and contract manufacturers ~15% Year-to-Date Growth(1) ~50% Year-to-Date Growth ~40% Year-to-Date Growth (1) Includes pro forma year-to-date growth from SIKORA (acquired in Q2 ‘25), which is up 30% vs. the comparable period in ’24
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9 Center-Led Functions and Ongoing Productivity Programs Enable Long-Term Margin Accretion Trajectory Productivity / Restructuring Programs DEP Reshoring of a key product line DCEF Footprint rationalization in 2 businesses to eliminate 6 rooftops DII Facility upgrade in Eastern Europe DCST Footprint and fixed cost optimization of a product line Multiple Ongoing rightsizing and restructuring projects ~$70M total cash restructuring costs (’25 and ’26) 40 20 60 2026E 2027E Total Incremental Carryover Benefit by Year $M Dover Business Services ~650 FTEs Dover Digital ~100 FTEs India Innovation Center ~750 FTEs eCommerce Data / Info Management AP / AR / Travel Tax DBS represents the most compelling near-term opportunity to leverage AI Center-led functions are fully-developed; will provide attractive scale and scope benefits as Dover continues to grow organically and through acquisition ~$85M Total Gross Annual Spend
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10 2025 Full Year Guidance and Segment Outlook Segment Q4 Commentary DEP ▪ Double-digit growth in aerospace & defense components ▪ Improving sequential outlook in vehicle service on market recovery and competitive dynamics in North America DCEF ▪ Growth in clean energy components, fluid transport, and North America retail fueling ▪ Lower volumes in vehicle wash and APAC / LATAM fueling DII ▪ Continued steady outlook in core marking & coding equipment and consumables ▪ Growth in serialization software DPPS ▪ Strong growth in biopharma components, thermal connectors, and precision components ▪ Sequential improvement in polymer processing equipment DCST ▪ Significant growth in CO2 refrigeration systems and heat exchangers ▪ Growth in refrigerated door cases on improved bookings rates Q4 Outlook (1) Non-GAAP measures (definitions and/or reconciliations in appendix). 2025 Full Year Guidance Revenue Growth EPS from Continuing Operations Other Items 4% - 6% ▪ Adjusted EPS(1): $9.50 - $9.60 ▪ GAAP EPS: $8.06 - $8.16 ▪ Effective Tax Rate: 20% - 21% ▪ FCF(1) % Revenue: 14% - 16% ▪ Capex: $190 - $210
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11 Appendix
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12 Organic Revenue Growth
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13 Bookings Note: Numbers may not add due to rounding
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14 Reconciliation of Earnings from Continuing Operations to Total Segment Earnings and Total Adjusted Segment EBITDA Note: Numbers may not add due to rounding
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15 Note: Numbers may not add due to rounding Reconciliation of Segment Earnings to Adjusted Segment EBITDA by Segment
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16 Reconciliation of Earnings from Continuing Operations to Adjusted Earnings from Continuing Operations and Adjusted EPS from Continuing Operations Note: Numbers may not add due to rounding
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17 Reconciliation of Free Cash Flow and EPS from Continuing Operations to Adjusted EPS from Continuing Operations Note: Numbers may not add due to rounding
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18 Non-GAAP Definitions Definitions of Non-GAAP Measures: The items described in our definitions herein, unless otherwise noted, relate solely to our continuing operations. Adjusted Earnings From Continuing Operations: is defined as earnings from continuing operations adjusted for the effect of purchase accounting expenses, restructuring and other costs, and gain/loss on dispositions. Adjusted Diluted Earnings Per Share From Continuing Operations (or Adjusted Earnings Per Share From Continuing Operations): is defined as adjusted earnings from continuing operations divided by weighted average diluted shares outstanding. Adjusted Segment EBITDA: is defined as segment earnings plus other depreciation and amortization expense, which relates to property, plant, and equi pment and intangibles, and excludes amounts related to purchase accounting expenses and restructuring and other costs/benefits. Adjusted Segment EBITDA Margin: is defined as adjusted segment EBITDA divided by revenue. Free Cash Flow: is defined as net cash provided by operating activities minus capital expenditures. Organic Revenue Growth: is defined as revenue growth excluding the impact of foreign currency exchange rates and the impact of acquisitions and dis positions. Adjusted Segment EBITDA Conversion: is defined as the change in total adjusted segment EBITDA divided by the change in revenue. The tables included in this presentation provide reconciliations of the non -GAAP measures used in this presentation to the most directly comparable U.S. GAAP measures. Further information regarding management’s use of these non-GAAP measures is included in Dover’s earnings release and investor s upplement for the quarter.
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19 Performance Measure Definitions Definitions of Performance Measures: The items described in our definitions herein, unless otherwise noted, relate solely to our continuing operations. Bookings represent total orders received from customers in the current reporting period and exclude de -bookings related to orders received in prior periods, if any. This metric is an important measure of performance and an indicator of revenue order trends. Book-to-Bill is a ratio of the amount of bookings received from customers during a period divided by the amount of revenue recorded during that same period. This metric is a useful indicator of demand. We use the above operational metrics in monitoring the performance of the business. We believe the operational metrics are us eful to investors and other users of our financial information in assessing the performance of our segments.