Dover (DOV) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 7% year-over-year to $2.19 billion, with 5% organic growth and all five segments posting positive organic growth; bookings increased 16% to $2.33 billion, extending strong order momentum and providing improved visibility for the second half.

• Adjusted EPS rose 12% to $2.74, driven by top-line momentum and margin accretion; reported EPS increased 14% to $2.31.

• Free cash flow for the first half of 2026 reached $320 million (8% of revenue), up 23% year-over-year, representing 7.5% of revenue and 58% of earnings from continuing operations.

• Secular growth markets now represent about 25% of the portfolio, up from 20% at the end of Q1, contributing to top-line performance.

• Balance sheet remains strong, supporting ongoing investments in capacity expansion, productivity, and an active M&A pipeline in attractive end markets.

Financial highlights

• Adjusted EBITDA margin expanded 80 basis points to 25.9%, with adjusted segment EBITDA up 10% year-over-year.

• Gross profit for Q2 2026 increased 7.6% to $880.6 million; gross margin improved 30 bps to 40.2%.

• Operating earnings rose 10.5% to $391.8 million; operating margin expanded to 17.9% due to price/cost dynamics and restructuring benefits.

• Year-to-date free cash flow reached $320 million, up $59 million from the prior year.

• Net debt to net capitalization ratio decreased to 16.3% at June 30, 2026.

Outlook and guidance

• Full-year 2026 adjusted EPS guidance raised to $10.55–$10.75 (GAAP EPS $8.94–$9.14), with expected revenue growth of 6–8% (organic 4–6%).

• Free cash flow as a percentage of revenue projected at 14–16%.

• Capital expenditures for 2026 are projected to range from $190 million to $210 million.

• Guidance assumes a dollar/euro exchange rate of 1.14.

• Management expects constructive demand trends to continue in the second half of 2026 across most segments.