Dover (DOV) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 delivered the highest organic growth rate of the year at 5%, with Q4 revenue up 9% to $2.1B and strong bookings momentum across all segments.

• Full-year 2025 revenue reached $8.1B, up 4% all-in and 2% organically, with adjusted EPS up 16% to $9.61 and adjusted earnings from continuing operations up 15%.

• Book-to-bill ratio was 1.02 in Q4, supporting continued demand into 2026.

• Capital allocation included $700M in acquisitions and over $500M in share repurchases, maintaining balance sheet flexibility.

• GAAP net income and EPS declined year-over-year due to a prior-year gain on the De-Sta-Co disposition.

Financial highlights

• Q4 adjusted segment EBITDA margin was 24.8%, up 60 bps year-over-year; full-year margin was 25.1%, up 140 bps.

• Free cash flow for 2025 was $1.12B (13.8% of revenue), up nearly $200M year-over-year; Q4 FCF was $487M (23% of revenue).

• 2025 capital spending increased by over $50M, focused on growth capacity and productivity investments; CapEx for 2025 was $220M (2.7% of revenue).

• Reported earnings from continuing operations were $1.1B for the year, up 15% year-over-year.

• Bookings for Q4 grew 10% year-over-year to $2.1B; full-year bookings rose 6% to $8.14B.

Outlook and guidance

• 2026 adjusted EPS guidance is $10.45–$10.65, representing double-digit growth at the midpoint; GAAP EPS expected at $8.95–$9.15.

• 2026 revenue growth projected at 5–7% all-in (3–5% organic); free cash flow expected at 14–16% of revenue.

• Organic growth guidance for 2026 is 4%, with potential for upward revision as visibility improves.

• Capex for 2026 guided at $190M–$210M; effective tax rate projected at 20–21%.

• Management expects continued margin improvement from restructuring and productivity initiatives.