Dover Caps Strong 2025 with Robust Q4, Eyes Double-Digit Growth in 2026
Dover Corporation (NYSE: DOV) concluded its fiscal 2025 on a high note, with executives expressing confidence in the company's trajectory during its fourth-quarter earnings call. The industrial conglomerate reported broad-based organic growth, a significant acceleration in new orders, and healthy margin expansion, setting a positive tone for 2026.
"We had a strong finish to the year, driven by secular growth trends and a notable recovery in several of our key markets," stated President and CEO Richard J. Tobin. The company's Q4 organic revenue grew 5%, marking the strongest quarterly performance of 2025. Tobin highlighted particular strength in the Pumps & Process Solutions and Climate & Sustainability Technologies segments, alongside improving conditions in retail fueling and refrigeration.
Underlying demand appears robust. Consolidated bookings surged more than 10% in the fourth quarter, resulting in a book-to-bill ratio of 1.02—a seasonally high figure indicating more orders are coming in than products being shipped. This momentum contributed to a 60-basis-point year-over-year improvement in segment EBITDA margins, reaching 24.8%. For the quarter, adjusted earnings per share climbed 14% to $9.61, surpassing the company's own raised guidance.
CFO Chris Woeneker pointed to disciplined cash generation, with Q4 free cash flow hitting $487 million (23% of revenue), the year's strongest quarter. Full-year free cash flow rose by nearly $200 million to 14% of revenue, as improved earnings more than offset increased capital expenditures.
Looking ahead, Dover issued 2026 adjusted EPS guidance of $10.45 to $10.65, implying double-digit growth at the midpoint. Management characterized current demand trends as "solid and broad-based," with no single end market posing a material near-term threat. The guidance assumes a positive price/cost relationship, despite acknowledging rising commodity inputs.
The company's capital allocation strategy remains focused on a three-pronged approach: organic investment, strategic acquisitions, and shareholder returns. In 2025, Dover deployed $700 million across four acquisitions, primarily in its Pumps segment, and initiated a $500 million accelerated share repurchase program. Tobin emphasized that while the company maintains a healthy acquisition pipeline, it is not dependent on large, transformational deals, favoring instead a steady "bolt-on" strategy alongside organic growth investments.
Market Voices:
"This is a textbook execution story," says Michael Reed, portfolio manager at Horizon Capital. "Dover is demonstrating that a diversified industrial model, when managed for productivity and secular growth trends, can deliver consistent margin expansion and cash flow. The guidance suggests management sees the momentum continuing."
"The numbers look good on the surface, but I'm deeply skeptical," counters Sarah Chen, independent analyst and frequent market commentator. "A 5% organic growth rate isn't exactly explosive, and their 'broad-based' demand claim feels like a hedge. They're celebrating a 1.02 book-to-bill? That's barely above water. This feels like a company coasting on past decisions while the macro winds are at its back—for now. Wait until the next downturn to see how resilient this 'algorithm' really is."
"The free cash flow conversion is the real headline here," notes David Park, a veteran industrial sector analyst. "Turning higher earnings into even higher cash flow is a sign of operational discipline. Their increased capex for automation and capacity, coupled with a steady M&A pipeline, shows they're reinvesting for the future, not just buying back stock. It's a balanced, long-term approach."
Dover Corporation is a diversified global manufacturer headquartered in Downers Grove, Illinois, with operations in fluid handling, precision components, refrigeration, product identification, and automation solutions.