DOV earnings analysis
What we found in DOV's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Dover delivered Q2 revenue of $2.190 billion, up 6.9% year over year and up from $2.05 billion in Q1, with all five segments posting growth. Gross margin expanded to 40.2%, operating earnings rose 10.5% to $391.787 million, and GAAP diluted EPS from continuing operations increased to $2.31 from $2.03. Demand indicators were favorable, with bookings up 16.1% to $2.3 billion, while six-month free cash flow improved to $319.577 million; offsets include Climate & Sustainability Technologies margin pressure and a $219.4 million working-capital build.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth accelerated to 6.9%
- Q2 revenue rose $140.4 million, or 6.9%, year over year to $2.190 billion, led by 4.8% organic growth, 1.2% acquisition growth, and a 0.9% foreign-exchange benefit. Revenue also increased from $2.05 billion in Q1 2026.
- Margin expansion drove 13.8% EPS growth
- Gross margin expanded 30 basis points year over year to 40.2%, while operating earnings increased 10.5% to $391.787 million; calculated operating margin was 17.9%. GAAP diluted EPS from continuing operations rose $0.28 to $2.31 from $2.03.
- Broad-based segment growth
- All five segments grew revenue, led by Climate & Sustainability Technologies at 9.4% and Clean Energy & Fueling at 8.9%. Clean Energy & Fueling segment earnings increased 19.3% to $128.546 million and its margin expanded 190 basis points to 21.6%.
- Orders signal favorable demand
- Bookings increased $322.8 million, or 16.1%, to $2.3 billion. Climate & Sustainability Technologies bookings climbed 45.8% to $560.272 million, producing a 1.23 book-to-bill ratio.
- Cash conversion improved
- Six-month operating cash flow increased $57.4 million to $427.168 million and free cash flow increased $58.9 million to $319.577 million, equal to 7.5% of revenue. Capital expenditures were $107.591 million, or roughly 2.5% of six-month revenue.
- Liquidity and leverage strengthened
- Cash and equivalents increased to $1.756 billion from $1.677 billion at year-end, while total debt declined to $3.260 billion from $3.328 billion. Net debt to net capitalization improved to 16.3% from 18.2%.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Climate segment margins compressed
- Climate & Sustainability Technologies revenue grew 9.4% to $455.097 million, but segment earnings fell 1.9% to $75.826 million and margin contracted 190 basis points to 16.7%, reflecting footprint-consolidation timing and retail-refrigeration ramp costs.
- Working-capital investment increased
- Adjusted working capital increased $219.4 million, or 12.4%, to $1.988 billion: receivables increased $151.0 million and inventory rose $148.5 million. Management attributes the inventory build to higher expected deliveries over the next several quarters.
- Restructuring charges remain elevated
- Q2 restructuring and other costs rose to $24.635 million from $23.210 million, including $17.012 million of restructuring charges. Management says additional programs beyond announced actions may be implemented during 2026.
- Interest-cost headwind increased
- Net interest expense increased 64.1% to $14.536 million in Q2, driven by lower interest income and interest on €550.0 million of 3.50% notes issued in Q4 2025.
- No material risk-factor updates
- The filing reports no material changes to risk factors from the 2025 10-K. Financial leverage remains manageable, but total debt was $3.260 billion as of June 30, 2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.31
- Gross margin
- 40.2%
- Operating margin
- 17.9%
- Segment
- Engineered Products: Q2 revenue $283.481 million, up 2.7% year over year; segment margin 20.4%.
- Segment
- Clean Energy & Fueling: Q2 revenue $594.959 million, up 8.9% year over year; segment margin 21.6%.
- Segment
- Imaging & Identification: Q2 revenue $305.101 million, up 4.5% year over year; segment margin 27.9%.
- Segment
- Pumps & Process Solutions: Q2 revenue $552.709 million, up 6.2% year over year; segment margin 32.4%.
- Segment
- Climate & Sustainability Technologies: Q2 revenue $455.097 million, up 9.4% year over year; segment margin 16.7%.
What they said about what is next.
The 10-Q does not provide numeric revenue or EPS guidance. Management expects constructive or positive second-half demand trends across segments and estimates 2026 capital expenditures of $190.0 million to $210.0 million.
The filing reads better than the one before it.
What came before.
- 10-Q · April 23, 2026
- Dover reported Q1 2026 revenue of $2,053,623,000, up 10.1% year-over-year driven by 5.3% organic growth; diluted earnings from continuing operations were $1.76 per share (flat YoY). Gross margin compressed 110 basis…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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