DOVER Corp (DOV) Q1 2025 Earnings Summary

Executive Summary

Q1 2025 delivered strong profitability despite flat top line: adjusted EPS rose 19% to $2.05, adjusted segment EBITDA margin reached 24.0%, and total segment earnings margin was 22.0% . Revenue declined 1% to $1.87B (+0.5% organic after FX and M&A), primarily due to prior-year disposition effects and currency .
Versus consensus, Dover posted a modest beat on adjusted EPS ($2.05 vs $1.98*) and slight misses on revenue ($1.866B vs $1.876B*) and EBITDA ($393M vs $399M*) as reported by S&P Global; book-to-bill was above one across all five segments, underpinning Q2 visibility .
Management modestly trimmed 2025 guidance to GAAP EPS $8.04–$8.24 and adjusted EPS $9.20–$9.40 (from $8.16–$8.36 / $9.30–$9.50), citing tariff uncertainty and mechanical top-down adjustments; FX could be a tailwind offset, and pricing actions are underway to mitigate tariffs .
Key catalysts: secular growth in single-use biopharma components and thermal connectors (liquid cooling for data centers) and strength in CO2 refrigeration systems; backlog already covers a majority of Q2 revenue .

What Went Well and What Went Wrong

What Went Well

Margin performance was exceptional: adjusted segment EBITDA margin up 240 bps YoY to 24.0%, with four of five segments expanding >100 bps, driven by mix shift to high-margin platforms and structural cost actions .
Secular growth engines accelerated: double-digit organic in single-use biopharma components and triple-digit growth in thermal connectors for data center liquid cooling; imaging and identification grew organically with robust margin execution .
“Q1 was a good quarter… Adjusted EPS up 19%… record Q1 adjusted EBITDA margin at 24%… book-to-bill north of 1 across all five segments” — CEO Richard Tobin .

What Went Wrong

Top line was slightly lower: revenue down 1% to $1.87B (total -0.9% including FX, M&A, dispositions), with Engineered Products revenue down YoY and continued weakness in food retail door cases and engineering services within Climate & Sustainability Technologies .
Vehicle Services (Engineered Products) faced tariff exposure and pricing actions that weighed on volume; management is cautious on potential second-half project “drift” as customers digest tariff developments .
Adjusted EPS beat was not broad-based: revenue and EBITDA modestly missed S&P Global consensus*, indicating demand normalization and FX/disposition headwinds despite mix and cost offsets . Values retrieved from S&P Global*.

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Billions)	$1.984	$1.930	$1.866
GAAP Diluted EPS – Continuing Ops ($)	$2.26	$1.72	$1.73
Adjusted Diluted EPS – Continuing Ops ($)	$2.27	$2.20	$2.05
Total Segment Earnings Margin (%)	22.6%	22.2%	22.0%
Adjusted Segment EBITDA Margin (%)	24.4%	24.2%	24.0%

Consensus vs Actual (Q1 2025)

Metric	Consensus	Actual
Adjusted EPS ($)	1.98*	2.05
Revenue ($USD Billions)	1.876*	1.866
EBITDA ($USD Millions)	399*	393*
Values retrieved from S&P Global*.

Segment Revenue ($USD Millions)

Segment	Q3 2024	Q4 2024	Q1 2025
Engineered Products	$296.1	$288.2	$254.6
Clean Energy & Fueling	$500.7	$528.0	$491.1
Imaging & Identification	$284.0	$288.8	$280.1
Pumps & Process Solutions	$472.5	$479.1	$493.6
Climate & Sustainability Tech	$431.1	$347.5	$347.9
Intersegment Eliminations	$(0.8)	$(1.8)	$(1.3)
Total	$1,983.5	$1,929.9	$1,866.1

Segment Earnings Margin (%)

Segment	Q3 2024	Q4 2024	Q1 2025
Engineered Products	19.1%	20.8%	17.3%
Clean Energy & Fueling	19.9%	19.6%	17.4%
Imaging & Identification	27.2%	27.3%	27.7%
Pumps & Process Solutions	29.3%	29.7%	30.6%
Climate & Sustainability Tech	17.6%	12.9%	15.0%
Total Segment Earnings Margin	22.6%	22.2%	22.0%

KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
Total Consolidated Bookings ($USD Millions)	$1,852.9	$1,939.5	$1,989.6
Free Cash Flow ($USD Millions)	$315.5	$385.0	$109.3
CFO (% Revenue)	17.8%	22.7%	8.4%
FCF (% Revenue)	15.9%	20.0%	5.9%

Guidance Changes

Metric	Period	Previous Guidance (Jan 30, 2025)	Current Guidance (Apr 24, 2025)	Change
GAAP EPS (Continuing Ops)	FY 2025	$8.16–$8.36	$8.04–$8.24	Lowered
Adjusted EPS (Continuing Ops)	FY 2025	$9.30–$9.50	$9.20–$9.40	Lowered
Revenue Growth	FY 2025	2%–4% (organic 3%–5%)	2%–4% (all-in and organic)	Slightly trimmed
Free Cash Flow (% Revenue)	FY 2025	14%–16%	14%–16%	Maintained
Dividend per Share	Q2 payout	$0.515 declared (payable Jun 16)	$0.515 declared	Maintained

Management attributed the trim to tariff uncertainty and chose a “mechanical” top-down cut; FX tailwind at current rates could offset the reduction .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Data center liquid cooling (thermal connectors)	Positive contribution noted alongside biopharma, CO2; bookings robust	Shipments strong; bookings growth >100% YoY in Q4; capacity expanded; short-cycle dynamics	Triple-digit YoY growth; segment mix and margins benefited	Strengthening
Single-use biopharma components	Secular growth driver; strong production performance	Robust shipments; inventory cleared; broad-based demand	Double-digit organic growth continues; margin leverage	Strengthening
CO2 refrigeration systems	Strong bookings and expected double-digit growth	Record U.S. volumes; positive exit margins; capacity-disciplined growth	Strong volumes; positive mix lifts CST margins despite top-line softness	Improving
European heat pumps	Headwinds; bottoming expected	Inventory clearance strategy in Q4; sequential order improvement; recovery expected in 2025	First YoY growth in heat exchangers since Fall 2023; sequential improvement vs Q4	Early recovery
Tariffs & macro	Not a focus	Proximity manufacturing reduces exposure; no pre-buy behavior seen	Pricing actions and supplier sharing to offset; modest guidance trim for potential project drift; FX tailwind possible	Manageable with price/mix
Capital deployment/M&A	ESG divestiture; strong balance sheet	Cash-rich; interest income guidance; pipeline active (proprietary deals)	Announced definitive agreement to acquire SIKORA (€550M) to join MAAG in PPS	Active, accretive focus

Management Commentary

“Adjusted EBITDA margin was up 240 basis points to 24%, a record result for Q1… book-to-bill north of 1 across all 5 segments… we are very encouraged by the start of the year” — Richard Tobin .
“Demand and order trends were broad-based… strength in single-use biopharma components, thermal connectors, and CO2 systems… a majority of our second quarter revenue is already in our backlog” — Q1 press release .
“We have modestly trimmed our revenue and EPS guidance ranges… purely a top-down mechanical adjustment… uncertainty in the tariff environment will have some impact on medium-term demand. FX at current spot rates could offset the trim.” — Richard Tobin .

Q&A Highlights

Tariff mitigation: Dover is pushing pricing and negotiating supplier cost sharing, prioritizing volume risk over price-cost risk; management trimmed guidance mechanically by ~$0.10 EPS on ~1% revenue to reflect potential project drift .
Bookings cadence: Expect book-to-bill above 1 in Q2; bookings are lumpy near quarter-end but momentum remained positive through Q1 .
Segment specifics: Thermal connectors growth over 100% YoY; Clean Energy & Fueling expected to lead margin accretion in 2025; PPS margins may vary with mix (Maag’s comps) .
FX and corporate costs: FX could offset the Q1 guidance trim; high Q1 corporate costs are not expected to repeat .
Capex vs consumables: Focus watch on customer capex projects for potential delays; flow businesses trending well .

Estimates Context

Q1 2025 adjusted EPS: $2.05 vs consensus $1.98* — beat driven by mix and structural cost actions . Values retrieved from S&P Global*.
Q1 2025 revenue: $1.866B vs consensus $1.876B* — slight miss amid FX headwinds and Engineered Products softness . Values retrieved from S&P Global*.
Q1 2025 EBITDA: $393M* vs consensus $399M* — slight miss; segment mix still delivered 24% adjusted segment EBITDA margin . Values retrieved from S&P Global*.
Management indicated Q2 is largely in backlog and internal plan aligns near consensus, supporting near-term visibility .

Key Takeaways for Investors

Margin-led story with secular growth tailwinds: Mix toward biopharma, data center cooling, and CO2 systems is driving sustained margin expansion despite modest top-line pressure .
Guidance trim looks prudent and potentially reversible: Pricing actions, supplier negotiations, and FX tailwinds could offset tariff uncertainty into 2H; watch tariff clarity and project cadence .
Clean Energy & Fueling and PPS are the margin engines: Expect DCEF to lead 2025 margin accretion; PPS maintains >30% segment earnings margin with secular platforms .
Backlog supports Q2 execution: Book-to-bill above 1 across segments; a majority of Q2 revenue already in backlog, reducing near-term forecast risk .
Engineered Products is smaller and being reshaped: Post ESG and De-Sta-Co dispositions, segment is ~15% of portfolio; vehicle services tariff exposure warrants monitoring .
Cash generation and balance sheet optionality: FCF target maintained at 14%–16% of revenue; cash and interest income provide dry powder for accretive M&A (e.g., SIKORA) .
Near-term trading: Focus on tariff headlines and Q2 bookings cadence; medium-term thesis centers on secular platforms, mix-led margin expansion, and disciplined capital deployment .

Other Relevant Q1 2025 Materials

Earnings press release and investor supplement (Apr 24) .
Earnings call transcript (Apr 24) .
Dividend declaration: $0.515 per share payable Jun 16 (May 2) .
Earnings release date announcement (Apr 10) .
Post-Q1 strategic update: Definitive agreement to acquire SIKORA (€550M) to join MAAG in PPS (May 5) .