Thu, Apr 24, 10:38 AM (29 days ago)
**Dover Corporation (DOV) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1.87 billion, a 0.9% decrease YoY due to disposition-related decline (2.7%) and foreign currency translation impact (1.1%), partially offset by acquisition-related growth (2.4%) and organic revenue growth (0.5%). - **Profit Margins:** Gross profit margin increased to 40.0% (up 300 basis points YoY) driven by strategic pricing, positive product mix, and cost actions. Operating margin was 16.0%. - **Earnings:** Net earnings were $230.8 million, a 63.5% decrease YoY primarily due to the absence of the prior year's gain on disposition. Earnings per share (EPS) from continuing operations were $1.73, down 59.8% YoY. - **Cash Flow:** Operating cash flow was $157.5 million, a $11.0 million increase YoY. Free cash flow was $109.3 million, representing 5.9% of revenue and 45.7% of earnings from continuing operations. **Segment Performance:** - **Engineered Products:** Revenue declined 23.5% YoY due to disposition-related decline and lower volumes in North America vehicle service and aerospace and defense. Segment earnings decreased 29.5%. - **Clean Energy & Fueling:** Revenue increased 10.4% YoY driven by acquisition-related growth and organic growth. Segment earnings increased 22.9%. - **Imaging & Identification:** Revenue increased 1.2% YoY driven by organic growth and acquisition-related growth. Segment earnings increased 10.9%. - **Pumps & Process Solutions:** Revenue increased 6.0% YoY driven by organic growth and acquisition-related growth. Segment earnings increased 27.4%. - **Climate & Sustainability Technologies:** Revenue decreased 4.5% YoY due to organic revenue decline and foreign currency translation impact. Segment earnings increased 2.7%. **Trends and Uncertainties:** - **Organic Growth:** Organic revenue growth was 0.5% YoY, with varying performance across segments. - **Acquisitions:** Completed one acquisition for $29.3 million in Q1 2025. - **Share Repurchases:** Repurchased 200,000 shares for $40.7 million in Q1 2025. - **Restructuring:** Incurred $9.4 million in restructuring and other costs, primarily related to headcount reductions and exit costs. **Future Operations Impact:** - Dover expects to continue strategic pricing, productivity initiatives, and cost actions to drive margin expansion. - The company will focus on organic growth, strategic acquisitions, and share repurchases to enhance shareholder value. - Dover will monitor economic conditions, customer demand, and competitive factors to navigate market uncertainties.