Dover (DOV) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $1.87 billion, down 1% year-over-year, with organic revenue up 1% and strong book-to-bill ratios across all segments.

• Adjusted EPS from continuing operations rose 19% to $2.05, while reported/GAAP EPS fell 60% due to prior-year gains on dispositions.

• Margin performance was robust, with adjusted EBITDA margin reaching a Q1 record of 24%, driven by high-margin platforms, cost management, and productivity actions.

• Organic bookings increased for the sixth consecutive quarter, with a book-to-bill ratio above 1.0 in all segments, supporting revenue visibility.

• Portfolio construction, new product launches, and cost/productivity initiatives are enhancing profitability and resilience.

Financial highlights

• Free cash flow was $109 million (5.9% of revenue), up $3 million year-over-year, aided by higher earnings and improved working capital.

• Adjusted segment EBITDA margin increased 240 bps year-over-year to 24.0%, with adjusted segment EBITDA reaching $448 million.

• Gross profit margin improved to 40.0% from 37.0% year-over-year, driven by pricing, mix, and productivity.

• Net earnings from continuing operations were $239 million, down 60% year-over-year due to prior-year gain on dispositions.

• Cash and cash equivalents stood at $1.8 billion at quarter-end.

Outlook and guidance

• 2025 adjusted EPS guidance: $9.20–$9.40, representing 11–13% growth; GAAP EPS guidance: $8.04–$8.24.

• Full-year organic revenue growth expected at 2%–4%; free cash flow as a percentage of revenue guided at 14%–16%.

• Capex for 2025 estimated at $170–$190 million, funded by cash and internal resources.

• Guidance was modestly trimmed to reflect demand uncertainty in the second half due to tariff negotiations, but Q2 is expected to be strong based on backlog.

• Pricing actions are in place to offset tariff costs, with volume risk in the second half.