Dover (DOV) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 grew 10% year-over-year to $2.05–$2.1 billion, driven by secular growth markets, acquisitions, and portfolio strength.

• Bookings reached $2.5 billion, up 24% year-over-year, with a book-to-bill ratio of 1.2 across all segments.

• Adjusted EPS rose 11% year-over-year to $2.28, with full-year double-digit adjusted EPS growth reaffirmed.

• Free cash flow increased to $131 million, representing 6%–6.4% of revenue.

• Balance sheet remains strong, supporting share repurchases, capacity expansions, and an active M&A pipeline.

Financial highlights

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

• Gross profit rose to $798 million, but gross margin declined 110 bps to 38.9% due to mix.

• Operating earnings increased to $305.9 million.

• Free cash flow as a percentage of adjusted earnings was 42%–54.9%.

• Capital expenditures for 2026 are estimated at $190–$210 million.

Outlook and guidance

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

• Adjusted EPS guidance for 2026 is $10.45–$10.65; GAAP EPS guidance is $8.92–$9.12.

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

• Effective tax rate projected at 20%–21%.

• Seasonality expected, with Q2 and Q3 as the strongest quarters for profits.