Dover (DOV) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 grew 10–10.1% year-over-year to $2.05–$2.1 billion, driven by strong demand in secular growth markets, acquisitions, and improved portfolio conditions.

• Bookings surged 23.8–24% to $2.5 billion, with a book-to-bill ratio of 1.2 across all segments, indicating robust demand and strong visibility for future growth.

• Adjusted EPS rose 11% year-over-year to $2.28, with management reaffirming full-year guidance and targeting double-digit adjusted EPS growth.

• Balance sheet remains strong, supporting ongoing share repurchases, capacity expansions, and productivity investments.

• All five segments maintained book-to-bill ratios above one, supporting a positive outlook.

Financial highlights

• Free cash flow was $131–$131.2 million (6–6.4% of revenue), up over $21.9 million year-over-year, despite higher capital expenditures.

• Adjusted segment EBITDA increased 11% to $495 million, with margin up to 24.1%.

• Gross profit increased 7.1% to $798.1 million; gross margin declined 110 bps to 38.9% due to mix.

• Operating earnings rose 3.2% to $305.9 million.

• Net debt to net capitalization ratio decreased to 18.0%.

Outlook and guidance

• Full-year 2026 revenue growth expected at 5–7% (3–5% organic), with adjusted EPS guidance of $10.45–$10.65, representing double-digit growth at the midpoint.

• Effective tax rate projected at 20–21%; capex planned at $190–$210 million.

• Free cash flow expected at 14–16% of revenue.

• Seasonality expected to be consistent, with Q2 and Q3 typically being the strongest quarters for profits.

• Demand signals remain constructive, supporting a positive outlook for the remainder of 2026.