Dover (DOV) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose to $2.18 billion, with organic growth of 5% and all-in revenue up 4%; four of five segments posted top-line growth.

• Adjusted EPS increased 15% year-over-year to $2.36, and GAAP net earnings rose 16% to $282 million.

• Bookings for Q2 were $2.2 billion, up 15–16% organically year-over-year, supporting a constructive outlook.

• Portfolio actions included two clean energy acquisitions and the announced $2B sale of the Environmental Solutions Group, shifting focus toward higher-margin, less cyclical businesses.

• Sale of De-Sta-Co contributed a significant non-recurring gain to 2024 results.

Financial highlights

• Q2 2024 reported revenue was $2,178M, up $78M from Q2 2023; organic revenue growth contributed $100M.

• Adjusted segment earnings margin rose to 22.1% (up 190–200 bps year-over-year); gross margin up to 37.7%.

• Adjusted free cash flow was 10% of revenue in Q2, up $64M year-over-year; free cash flow for Q2 was $162.8M (7.5% of revenue).

• Adjusted net earnings margin improved to 15.0% from 13.7% in Q2 2023.

• Book-to-bill ratio was 1.00, with all-in bookings up 15% year-over-year.

Outlook and guidance

• 2024 adjusted EPS guidance raised to $9.05–$9.20; GAAP EPS expected at $10.80–$10.95.

• Full-year revenue growth projected at 3–4% (2–3% organic); adjusted free cash flow guidance reaffirmed at 13–15% of revenue.

• Guidance includes Environmental Solutions Group for the full year; plan to reissue guidance excluding ESG after Q3.

• Expectation for strong segment volumes and margin performance to continue through 2024.

• Capital expenditures for 2024 estimated at $160–$170 million, funded by cash and internal resources.