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Image source: The Motley Fool. Oct. 22, 2026 - President and Executive Chief Executive Officer - Richard J. Tobin - Senior Vice President and chief financial officer - Christopher Woenker - Vice President, Investor Relations - Jack Dickens Operator: Thank you for your continued patience. Your meeting will begin shortly. If at any time you need assistance, please press 0, and a member of our team will be happy to assist. Good morning, and welcome to Dover's Third Quarter 26 Earnings Conference Call. Speaking today are Richard J. Tobin, President and Executive Chief Executive Officer Christopher Woenker, Senior Vice President and chief financial officer and Jack Dickens, Vice President, Investor Relations. After the speakers' remarks, there will be a Q&A session. If you would like to ask a question during this time, press star and then the number 1 on your telephone keypad. If you would like to withdraw your question, please press star 2. As a reminder, ladies and gentlemen, this conference call is being recorded, and your participation implies consent to our recording of this call. If you do not agree with this term, please disconnect at this time. Thank you. I would now like to turn our call over to Mr. Jack Dickens, Please go ahead, sir. Jack Dickens: Thank you, Leslie. Good morning, everyone, and thank you for joining our call. An audio version of this call will be available on our website through November 12, a replay link of the webcast will be archived for 90 days. Our comments today will include forward-looking statements based on current expectations, Actual results and events could differ from those statements due to a number of risks and uncertainties. Which are discussed in our SEC filings. We assume no obligation to update our forward-looking statements. With that, I will turn the call over to Richard. Richard Joseph Tobin: Thanks, Jack. Good morning, everyone. Let's get started on slide 3. Overall, it is a solid quarter. Organic growth accelerated to 7% led by our secular growth markets. And supported by durable demand across the majority of the portfolio. Bookings were the highlight in the quarter. Orders were up 16% year over year, with growth in all 5 segments. Book to bill was 1.03 for the quarter. Our backlog is up 35% versus this time last year. Which supports our confidence in the forecast and provides very good momentum heading into 2027. Adjusted EPS was $2.88 per share, up 10% in the quarter. We remained active on the capital--on capital deployment, announcing 2 bolt-on acquisitions that add complementary capabilities. Low cost manufacturing, and geographic breadth to our businesses. We also repurchased over 330 million of our shares in the quarter. We are narrowing our full year guidance towards the upper end of the range with organic growth of 5% to 6% and adjusted EPS from $10.60 to $10.75 per share representing double digit growth consistent with our long term algorithm. Let's go to slide 5. Our secular growth markets now represent over 25% of our total revenue, up from 18% in 2024. Across the top of the slide, we show our expected growth rates in each of these markets this year. In total, markets are a material driver of our overall revenue growth in 2026, and we expect that trend to continue in 2027. We have purposely built these platforms through R&D spending and new product development in our legacy businesses as well as through targeted M&A. Our business model is unique. It allows us to pursue a variety of high growth business opportunities across a range of secular themes, several of our businesses participating in more than 1. We have been able to deliver this growth by proactively adding capacity and advance the market, which has allowed us to capture leadership positions. This has been particularly important in energy transition and power generation, CO2 systems, data centers, and cryogenic components serving the energy and space markets. We have continued to invest in additional capacity in 2026 behind this demand strength, some of which we will detail in a subsequent slide. These organic and inorganic investmentss have delivered high returns and invested capital despite the proactive upfront investments as the result of high growth rates and margin profiles of these sectors. These businesses are technically demanding mission critical applications where Dover tends to win. The vast majority of our acquisition capital over the past 5 years has been deployed in these markets and they remain our top priorities from both an organic and inorganic investments. Going to slide 6. This slide underscores the breadth and duration of our order book Trailing 12 month bookings were up 16%, well ahead of revenue growth at 8% and trailing book to bill has climbed to 1.08. Every segment has grown bookings faster than revenue over the past 12 months, That sustained order momentum has underpinned the top line acceleration we are seeing in 2026, and it gives us confidence in our outlook going forward. Importantly, our backlog is 35% higher than it was at this point last year and is up sequentially from Q2 with roughly half scheduled to ship in 2027. This gives us a solid foundation heading into next year with revenue visibility well ahead of where we would expect to be at this point in the planning cycle. Moving to slide 7. Engineered Products was down 2% organically. Demand for aerospace and defense components remained strong but was more than offset by lower volumes in European vehicle services. Margin was stable on favorable mix and cost controls. Clean Energy and fueling grew 12% organically, with solid shipments and new orders in clean energy components, fluid transport, and North American retail fueling, which posted its strongest quarter in years. Demand for our cryogenic components in LNG and space launch infrastructure remains healthy. with several recent high profile project wins. Margin was roughly flat as volume leverage was offset by production ramp in cryogenic product lines where demand is running ahead of capacity. We are actively expanding that capacity with additional output coming online in the first quarter of 2027. Imaging and ID grew 2% organically led by double digit growth in serialization software and solid performance in core marking and coding consumables and equipment margins expanded 400 basis points to 33%. Driven by volume leverage on largely fixed cost base and software growth in consumables, favorable geographic mix, and foreign currency translation. Pumps and Process Solutions grew 1% organically with growth in AI and energy infrastructure single use biopharma and industrial pumps, that was partially offset by lower volumes in polymer processing equipment where quoting activity is high. Margin expanded 70 basis points to 34% on solid conversion in industrial pumps and precision components and a higher mix of biopharma revenue. Climate and sustainability technologies accelerated to 18% organic growth in the quarter, Shipments and order rates in brazed plate heat exchangers remain robust across all geographies and major end markets with notable strength and liquid cooling for data centers, which was initially concentrated in The US, but we are now seeing meaningful acceleration in Europe and Asia. Lead times remain extended, and we are actively investing to double our global capacity for large heat exchangers through 2027. CO2 refrigeration systems posted quarterly revenue and posted record quarterly revenue with September reaching its highest output of the year in refrigerated door cases. The investments we have added in the Richmond Virginia facility are ramping up. Line rates exiting third quarter were 15% higher than the second quarter. We expect an another sequential increase in line rates and output in the fourth quarter. We also completed the consolidation of the door frame production in Sylmar, California at the end of the quarter. Segment margin was 18%. Margins in heat exchangers were robust as volumes outrun the significant investments in capacity build with direct labor less than 10% of its cost basis, this business converts incremental volume exceptionally well. Those gains in heat exchangers were offset by cost of ramping production simultaneously across CO2 systems specialty cases, and refrigerated door cases, ahead of higher demand and shipment rates in 2027. Which is reflected in our backlog. Heat exchangers should continue to benefit from volume leverage in 2027 with a good portion of Q1 revenue already in backlog. In food retail, we have absorbed $40 million in costs year to date from investments and extra labor costs associated with the production ramp along with duplicate fixed costs of running 2 facilities for the throughput of 1. As line rates continue to ramp, and as the roll off of fixed costs accelerates in the balance of the year, margins in climate and sustainability technologies are poised to improve meaningfully in 2027. Pass it over to Christopher. Christopher Woenker: Thanks, Richard. Good morning, everyone. Let's go to our cash flow statement on slide 8. Year to date free cash flow was $703 million or 11% of revenue, up $72 million over the prior year. Driven primarily by increased operating cash conversion which more than offset working capital investments to support accelerating top line growth. Third quarter free cash flow was $383 million or 17% of revenue. We have taken up our full year CapEx guide for the year to reflect the organic investments we are making behind demand strength. Free cash flow accelerated in the third quarter consistent with historical trends and we expect a further increase in the fourth quarter which is historically our highest cash generating quarter. Our full year free cash flow guidance remains on track at 14% to 16% of revenue. With that, let me turn it back to Richard. Richard Joseph Tobin: Okay, I am on slide 9. Organic investment remains our highest return use of capital. On the left, are our most meaningful projects. In support of our organic revenue trajectory, we have greenfield expansions underway in below-ground retail fueling cryogenic components, and flow meters in The US, and single use biopharma components in Asia along with capacity investments in radio frequency equipment for space, printer and ink production, and specialty cases in CO2 systems and large heat exchangers. Many of these projects will be online by the end of the first quarter of 2027. On the productivity side, we are optimizing our vehicle services footprint, extracting synergies from our polymer processing acquisition, and have now completed the footprint consolidation in food retail. These actions generate substantial carryover restructuring benefits which we will quantify when we provide full year guidance in January. On the right side of the slide are the bolt on acquisitions we announced in the quarter. Clarin, which we closed in August, adds extrusion dies and feed block to our Maag polymer processing platform along with more than 300 thousand square-foot of US manufacturing capacity close to The US petrochemical and space launch infrastructure. Lichtung, which we signed and expect to close in the fourth quarter, gives our clean energy segment a low cost state of the art cryogenics components manufacturing presence in India. Both businesses carry excess capacity that other Dover companies will leverage as manufacturing hubs in highly strategic locations. Moving to slide 10. Our balance sheet remains a competitive advantage and our capital allocation priorities are unchanged. Organic investment generates our highest returns, and we are guiding full year CapEx of $200 to $220 million with the capacity and productivity projects I just covered delivering attractive returns into next year. We have committed approximately $80 million to our 2 announced acquisitions and our pipeline remains active for bolt on opportunities in high priority markets. We have also repurchased approximately $400 million of shares year to date, including $330 million in the third quarter. With over $3 billion of dry powder at quarter end. We have the ample flexibility to play offense and capital allocation. And a near term bias towards returning capital to shareholders. Let's finish with slide 11. We are moving our full year guidance towards the upper end of the range. Our focus is on finishing the year strong and our order book gives us confidence in the forecast with momentum carrying into 2027. Alongside a constructive demand backdrop and a strong order book, we will benefit from carryover restructuring savings contributions from completed acquisitions, a lower share count, and a roll off of transition costs in food retail. We look forward to closing up the year strong and are confident as we enter 2027 from a position of strength. Over to you, Jack. Jack Dickens: Leslie, we can go right to the Q&A. Operator: Thank you. Star, then the number 1 on your telephone keypad. If you would like to withdraw your question, please press star 2. We ask that participants limit themselves to 1 question and 1 clarifying question. Our first question comes from Steve Tusa with Wells Fargo. Please go ahead. Your line is now open. Steve Tusa: Good morning, guys. Steve. Just on the backlog, I think it is, like, a little bit above $3 billion now if I kind of go back and do the math. and I think you said 50% of that is, like, shippable for next year. Is there anything in kind of the non backlog business that you look out to next year that you would be like, worried about being unsustainable or dropping off at all? Richard Joseph Tobin: I would characterize it this way, I guess. Where we have been capacity constrained is what is driving the backlog into 2027. So the duration of the demand is a good indicator because customers are basically getting in line to reserve that capacity. It is not overly influenced from some of our more traditional long cycle businesses. Mods pretty much is a bottom, same with Belvac. So it is not those numbers are not influenced by those 2 businesses. So that is actually upside. To backlog build as we go into 2027. And then our traditional, short-cycle businesses we do not have a lot of visibility into next year, and we will just book and ship as we normally do between now and the end of the year. Steve Tusa: Right. And is there any reason for the growth to slow materially in Q4? I know you kind of guided that. Number. The midpoint is a bit of a slowing. Is there anything that stands out? I mean, orders have been pretty good. Book to bill above 1.0 seasonally. Richard Joseph Tobin: Yeah. Not really other than the fact that Q4 is not always in our control. Right? We have got the orders. We can make the orders, then it becomes a question at the end of the year. Whether those orders get called off by our customers or is everybody play a kind of a managing the working capital game at the end of the year. So we are always a little bit cautious because December could go almost either way in any given year, but there is nothing based on the trajectory that we see that. that is any slowing. it is pure calendarization. Steve Tusa: 1 more. Just on the buyback, you have done $100 million or something like that. Are you done with that? Or is there still some of that to do? You have ton of cash, ton of capacity. Can you chew through some of that? Richard Joseph Tobin: I think in-- I think in corporate speak, we said that our bias was still on capital return. So take that for what it is. Steve Tusa: Brett. I do not understand all corporate speak, but that. that is pretty clear. So I appreciate that. Thank you. Richard Joseph Tobin: Brett. Thanks. Operator: Thank you. Our next question comes from Nigel Coe Wolfe Research. Please go ahead. Nigel Coe: Thanks. Good morning. Rich, maybe Rich, can you just kind of give us a little sense on the dual cost you called out, I think, $40 million of investment and dual cost that is now behind us. Richard Joseph Tobin: Maybe give us a sense on how you see CST margins in the fourth quarter, but more importantly, going into 2027. And you said a 20% margin target in the past for that segment. Nigel Coe: Are we on track for that in 2020. Yeah. Richard Joseph Tobin: Just for clarity's sake. it is the year to date headwind costs of the plant closure and the redundant labor that we have had to run as a result of that, and that is year to date. Okay? So that number will actually go up between now and the end of the year because as line rates come up, we will absorb that extra labor and then we will begin to flip it over into productivity. So that is the $40 million. Nigel Coe: Yeah. Richard Joseph Tobin: I mean, I think that we are well on track to meeting the targets that we put on that sector because of 2 things. Number 1, that the carryover of not having those costs of consolidation between the 2 years is an add-back. The volume across the segment goes up. And so the incremental margin of the fixed cost goes up along with it. So I think that. that is why I said that we can expect a material change in 2027 in the margin of that particular segment. Nigel Coe: But no numbers. Oh, come on. Nigel, we are gonna give you guidance when we get to the to the end of the year, but it is material. Richard Joseph Tobin: Okay. Nigel Coe: You have said 20% in the past. Just trying to get a sense on? But maybe can we just talk about the PPS orders Not PPS, CST orders. Been strong for a long time now. no sign of a slowdown. I am just wondering maybe if you can just, like, try and give us another second level detail on SWEP versus CO2 versus core refrigeration. And I do want to get a sense on 1 number, which is 3% growth in data center this year is impressive. But I would think it would be even more impressive just given the growth in the market. And I am wondering if there is any capacity constraints within SWEP that maybe gets released in 2027. Richard Joseph Tobin: Well, yeah. I mean, I think that if you go on the slide of our capital investments and if you go back and read the transcript of what I said, yeah, we have been capacity constrained all year. It does not seem to be preventing the actual build outs but everybody's trying to get in front of securing the supply. there is a lot of signaling effect in there. But we are basically ramping to double capacity into the main product line that is been growing. This is SWEP now. that is been sent into data centers That will change over time. Because there will be a shift between the central cooling system demand, which we see it now, into more CDU mix into the future, and we are taking that into consideration. In terms of the backlog, I do not wanna say 50, but it is dominated by CO2 systems demand and SWEP. Okay, thanks, Richard. Nigel Coe: Thanks. Operator: Thank you. Our next question comes from Mike Halloran with Baird. Please go ahead. Your line is open. Mike Halloran: Hey. Good morning, everyone. Richard Joseph Tobin: Hi, Mike. Mike Halloran: Hey. So back to the backlog. Question on some level. what is the normal conversion ratio at this point? You know, half your backlog shippable next year, what does that normally look like? And maybe any thoughts on the times you are seeing in the industry and if those are starting to extend? Richard Joseph Tobin: If it is higher than average that we would see at this time. So let me go back and read the transcripts. We would expect in a, let's call it, normal year for book to bill to come down in Q3 just because the order of magnitudes of shipments. But because of the secular growth nature of some of these businesses, some of these businesses that we are in, that customers in certain segments are securing supply, so trying to secure capacity. And so that they are ordering well in advance of what we would normally expect. And that is why we gave you the backlog figures, and that is why we tried to monetize how much of that is 2027 because that in general terms, would not look like that except for the pace of the growth rate in some of those segments. Mike Halloran: No. That makes sense. And you know, on the buyback side, M&A side, obviously, certainly makes sense that you are pushing more on the capital return side short term. But maybe what is just happening on the M&A side of things Are you getting priced out of deals at this point? Has the activity slowed? Maybe just thoughts there. Richard Joseph Tobin: Yeah. I mean, the activity naturally slows in Q4. Very little comes to the market at the end of the year. So whatever has come to market is. Has come to market. Not to get into certain deals. Look, we have got return criteria that we stick to. So there are some things that we did not get that we would have liked to get, but the purchase price that those assets sold for were above that criteria. At the end of the day, we will see in 2027, but we have got a ton on our plate of organic investment which is probably gonna drive as much revenue growth as kind of bolt on acquisitions would do. So we retain a posture of optionality, meaning that we will participate in M&A. We got a. We have got some interesting stuff in the pipeline. But with all the cash that we are producing, we carried into this year, all the cash that we are gonna produce this year, that clearly that our stance is now on capital return. Mike Halloran: Thank you. Appreciate it. Richard Joseph Tobin: Thanks. Operator: Thank you. Our next question is from Joe O'Dea from Vertical Research. Joe O'Dea: Hi. Good morning. Could you talk a little bit about pricing and what might be in the pipeline just with respect to the inflationary backdrop? Looks like the price this quarter was pretty similar to the second quarter, maybe a little bit tougher comp. But are you out in the market and need to do anything more on the price side? Richard Joseph Tobin: I mean, depends. Next year Yeah. It depends, Joe. I mean, we are actually. Have moved up pricing decisions this year. And have been introducing pricing which in a stable year of low inflation environment, we kind of wait to the beginning of the year. We have actually accelerated that in certain instances. Depending on exposure to a variety of different things, whether it is commodity group metals or other things. So, I think we are on the front foot of getting ahead of what anybody's view about price cost is going into 2027. I think we are actually probably a full quarter in front of getting in front of that. Joe O'Dea: And then just another 1 on the food retail and the production ramp costs. As we think about full year being somewhere above $40 million, how much of that can we think about as being nonrepeat? Is there is there carryover associated with it or do you think that those are all kinda contained costs that you will be able to leverage next year? It will-- Richard Joseph Tobin: So that the speed is coming down as the volumes go up Right? You get the fixed-cost. Fixed cost absorption benefit. The balance of it is productivity. So it is just winding out extra labor costs as you stabilize the line rates. So we would expect that to progressively get better over the balance of the year. And then probably finish up by the end of Q1. But I do not expect you know, the 40 the 40 or whatever it ends up being at the end of this year flows through in total. Going into next year. Unless volume drops. And based on our backlog right now, we see no indication of volume dropping in 2020. Got it. Joe O'Dea: Thank you. Richard Joseph Tobin: Welcome. Operator: Thank you. Our next question comes from Scott Davis with Melius Research. Please go ahead. Your line is open. Scott Davis: Hey. Good morning, guys. Richard Joseph Tobin: Scott? Scott Davis: Rich, what happens in retail fueling when prices. When fuel prices are up this much? Does that create a little bit more cash flow for these for these guys to invest in their businesses? Seems like that you know, it is been a while since we have had a big jump like this. But what does what does $6 diesel and $4 gas do for these folks. Richard Joseph Tobin: Yeah. Not to talk about our customers, profitability, which many of which are publicly traded. You know, at the end of the day, earnings spread on fueling products have been up substantially over the past 18 to 24 months. And I do not expect that to narrow. The better news. So that is-- so that is great. We like healthy customers that are that are making a lot of money. Number 1. And number 2, the good part of what we have seen about the CapEx is there is supply constraints in that particular market. And that is just lengthening the duration of what we believe the demand cycle is So we knew we were coming into a CapEx cycle for a variety of different reasons. We now believe that is going to extend we called it out a year and a half ago as a 3-year cycle. it is probably gonna we could probably argue that it is gonna be at least 4. Scott Davis: And is that an area where you are able to get price because of that supply chain dislocation? Richard Joseph Tobin: it is it is. In terms of the amount of market participants, it is a market that we like. Yeah. Scott Davis: Makes sense. All right. Thank you. Best of luck. Richard Joseph Tobin: Thanks. Operator: Thank you. Our next question comes from Andy Kaplowitz Citigroup. Please go ahead. Your line is open. Andy Kaplowitz: Good morning, everyone. Richard Joseph Tobin: Hi, Andy. So Richard, DII margin, I think, was the best margin that segment has recorded. I know you mentioned mix productivity effects, but I think you have been working on structural cost actions in that segment. So we think about DII's margins even more sustainable you know, closer to Q3 rates or maybe it was more of a onetime bump? Look, I would look at year to date at the end of the day because it is our most global business. there is a lot running through that some of our other businesses do not have to deal with, especially FX. And then mix because of the disproportionate difference in margin between the consumables and the equipment. So it will move around for that, having said that, if you go back and take a look over a 3- to 5-year period, we have steadily marched up the margin in that business through a variety of different measures. We are making some pretty significant investments We built a brand new plant in Poland. This past year, and we are gonna finish up on basically rebuilding our ink production in 2027. So we expect some productivity to come out of that. So. Yeah. I mean, I would not get all excited about this quarter's margin, but if you look at on a year to date basis, that is entirely sustainable. Andy Kaplowitz: that is great. And maybe a similar question on clean energy and fueling. If I look at Q3, year over year margin was a little bit more difficult than the first half. I know you talked about Cryospace production ramp impacting margin. But maybe update us on the platform you have created in that business, that journey. I think you talked about 25% margin. Where is that? Richard Joseph Tobin: Look, we are tracking there, but we have been the opportunities that we found on the cryo side, over the past 18 months which is driving the top line is requiring a lot of investment on our part. So that has got a little bit of a dilutive effect, but we will take that trade off any day. Right? Because it is driving the top line and there are these are businesses with secular growth that once we go through the build phase, we can expect what we saw in SWEP over the last couple years where we had margins that were down because investment was running ahead of the revenue. Now we have got the revenue in SWEP. And so the incremental margin is robust. We would expect that same kind of trajectory, and that is the reason that we put that slide in. About all the organic investments that we are making is it is not only to kind of explain what we think about the durability of the revenue increase, but to give you a signal that we are gonna invest here. there is some cost of making those investments. But we believe over time, the return on invested capital there, will be excellent. Andy Kaplowitz: Appreciate all the color, Richard. Thanks. Operator: Thank you. Our next question comes from Brett Linzey, Mizuho. Please go ahead. Your line is open. Brett Linzey: Your line is open. Operator: Think we have to move on. We will move to our next question. Our next question comes from Amit Mehrotra with UBS. Please go ahead. Your line is open. Amit Mehrotra: Thank you, operator. Hi, Richard. I just-- maybe 1 quick 1. Schwepp lead times, last time I checked in, they were, like, 25 weeks. Is that still the case? And I think that is where most of your copper exposure is. Obviously, copper's come off a little bit, but sort of hit all time highs in September. I think you have a material pass through on that, so no issue on price cost. Maybe you can enlighten me on that. But maybe there is a margin issue as copper rises in that business. Maybe you can talk about those 2 things. Richard Joseph Tobin: Yeah. Alright. Let's deal with copper first. I think that it is. We do have copper exposure there, but it is built into the pricing mechanism with our supplier contracts. In SWEP. I do not know what lead times are off the top of my head. I mean, we are bringing on additional capacity. Sequentially through the year, but with a with a pretty big jump this quarter going into Q1. Then it becomes a big debate of, well, the lead times keep going out because the orders keep coming in advance of capacity build. Does that wind down in 2027? Hard to say. Right now, we do not see it. But we are bringing on more capacity because the fact that we have. We believe in the durability of the demand. Amit Mehrotra: But it is not measured in years. it is measured in quarters. Right? Richard Joseph Tobin: Yeah. Yeah. No. No. We are not. it is not it is not in this. Amit Mehrotra: So I guess just my follow-up question, my clarifying question is then If I think about the order in dollar terms, over the last 3 quarters. So this year, sort of averaged $2.3 to $2.4 billion depending on the quarter. that is about 9% to 10% higher than the average quarterly revenue of this year. I. I am sure you are gonna tell me to curb my enthusiasm, but is that the wrong way to think about maybe the organic growth opportunity next year? Richard Joseph Tobin: Let me answer it this way. We have given you book to bill against my own advice. We gave you the number of the backlog increase We. To get into the high level math, when you do not know what the duration is of the timing of those orders, Yeah. it is a fool's game. I am sure Jack can give you all kinds of clarifying questions. But I cannot go there right now. Amit Mehrotra: I guess that was my question that was my question about lead time. Right? So, I mean, lead times are Look. Richard Joseph Tobin: I mean, we are we are not losing share because of lead times. Right? Because we. Generally speaking, we are in very concentrated markets from a supply base. So those who bring on the capacity proactively tend to win. And that is why we have been investing in advance of some of this demand to the detriment of margins, by the way, But it is. But they end up being good investments once they roll over and absorb the fixed cost. So we can see that in SWEP. Right now. Excellent. Amit Mehrotra: Okay. Thank you for answering my questions. Appreciate it. Richard Joseph Tobin: Thanks. Operator: Thank you. Our next question is from Andrew Obin, Bank of America. Please go ahead. Your line is open. David Ridley Lane: This is David Ridley Lane on for Andrew. Clean energy and fueling, there is a comment that you are planning a greenfield expansion in below-ground retail fueling. Know that there is a regulatory or replacement cycle there for underground tanks, but adding capacity expansion suggests that you think this is a kind of a multiyear durable cycle. Is that the right interpretation? Richard Joseph Tobin: Yeah. I think I answered it a minute ago to Scott. There is capacity constraints underground equipment to come into compliance on tanks. And that and because there is capacity, which by the way, we do not supply, what that is doing is lengthening the duration of the demand because you cannot get the tanks to do the work. Right? What we are expanding in is all of the products that are around that, where we see robust demand and our margins are quite good. So that is the way I would answer it. David Ridley Lane: Thank you. And, just a quick follow-up. Have you been hearing any impact from higher interest rates from any of your more capital planning type businesses. Is that something that is come up to your level? Richard Joseph Tobin: None. David Ridley Lane: that is very clear. Thank you very much. Richard Joseph Tobin: Thanks. Operator: Thank you. Our next question is from Joe Ritchie with Goldman Sachs. Please go ahead. Your line is open. Joe Ritchie: Thank you. Richard Joseph Tobin: So, Rich, look, slide 9 is great. Right? Gives you gives you a lot of detail on your capacity expansions, organic investments, etcetera. I guess the question I have is as we are getting closer and closer to 2027, like, how much does this set you up for growth beyond 2027 based on what you know today? Or do you think there is going to possibly be additional capacity expansion beyond what you have already announced? Well, I hope we have additional capacity expansion. But the capacities that we are laying in are for multiyear, especially the greenfields. Right? I mean, we are building greenfield is a building a new site. And we would never capacitize a new site for the next 12 months unless because you never get the return on capital there. So they have all been sized on the initial investment for a multiyear duration. So in a way, if we have the same slide again next year, and there are additional capacity on top of it, it is a great sign because it is just more demand than we have sized the initial investment. So right now Yeah. that is these investments, we believe that we can capture our share of the market of the growth rates that I think that we showed you on slide 5. Joe Ritchie: Got it. Okay. that is that is super helpful. And then going back to the question earlier about the $40 million potentially going higher as the year progresses. I guess quick math, right, taking a look at your revenues year to date in CST, I would play that equates to roughly 300 basis points if I am doing the math right. So I guess the question I have the question I have is you get into 2027. When would you expect to see a turn in CST margins and starting to. Obviously, you know, you have been taking on these extra costs this throughout the year and will continue. But I am just curious when you would expect the return based on what you know today. Richard Joseph Tobin: I think that we will beat our comp in Q1. Okay. it is best. that is that is absolute. Joe Ritchie: Okay. Thanks. Richard Joseph Tobin: Thanks. Operator: Thank you. Our next question is from Andrew Buscaglia with BNP Paribas. Please go ahead. Your line is now open. Analyst: Hey, guys. Thanks for taking my question. Richard Joseph Tobin: Sure. If you could, you know, just kinda tying this all together, I get sort of get the sense. You know, your outlook for 2027 and. Or your confidence in 2027 has proven and improved in the last few months. I mean, just based on some of these higher growth markets and, like, the visibility you have Is-- am I am I right in that is the core reason you are kind of sounding better on 2027 or sounding positive on 2027? Or slide 6 sort of suggests, like, your underlying just kinda core markets are seeing some improvements cyclically. So I guess where is more of the confidence coming from? Is that high-growth stuff or, like, that core business Yeah. Well, I mean, the slides are put in there for a reason, and it is the trajectory growth rates on where we have been investing, have I mean, we are looking at, I do not know, what did we say? 500 basis points of improvement over the over the past 24 or not even 24 months, 20 months. Yep. So that we are good there. And we have a data point in terms of orders and backlog earlier this year than we would have in a normal year. So growth, you know, where we have chosen to participate those markets are performing well. And the customers that we have across the broader portfolio are beginning to order into 2027 for a variety of reasons. That we usually are kind of cautious until we get into you know, giving full year guidance because usually, we do not have that kind of visibility. Yeah. that is the sense I get. Okay. And then, just on the heat exchanger side, you know, you talked about. You sort of said you hope you have more capacity investments because that means things are probably going well. What are what are capacity requirements for heat exchangers, in your opinion, And then just given them really strong growth we are seeing in that data center cooling side, what is the competitive dynamics there? that is that is always been sort of a risk that you know, you are not alone in identifying this growth in and Sure. Yeah. So can you kinda comment on that too, please? Yeah. Everybody wants to be in data centers. I see the M&A presentations all the time. Look. This is a. that is a highly automated process. You need to make capacity decisions 18 months in advance before them coming online. So this is not a. This is not a hire a bunch of people and get bigger throughput. it is actually very few people in the process. And so it is a very highly engineered probably 1 of the most highly engineered products that we have in the entire portfolio. it is a very concentrated market. But those competitors that we have if you went and looked, are also announcing capacity expansion. So I do not you I think that we have done a very good job of proactively investing in capacity in advance of the market to the detriment of margins in the past. So we will get our fair share here. But I cannot disagree with you. I mean, everybody wants to be in data center, so you gotta be we are going to find out altogether about the duration of the demand. Right? Now, I do not think we are getting over our skis just because our backlog says what it is, and we believe there is gonna be a conversion into more CDU mix than we see now. But I think that we are positioned competitively and from a capacity point of view appropriately. Fair enough. Thank you. Operator: Thank you. Our final question comes from Brandon Noss, Morgan Stanley. Please go ahead. Your line is open. Analyst: Hey, good morning, everybody. Richard Joseph Tobin: Brandon, good morning. Analyst: Just a quick follow-up on CST margins. So I know you said it is going to be stronger. Growth from flat You have got a lot of that-- Operator: Brandon, we are having a hard time hearing you. Are you far away from the microphone? Analyst: Hello? Richard Joseph Tobin: Can you hear us, Brandon? Yeah. Can you hear me? Yes. We can hear you now. Alright. Go ahead. I am seeing CST-- you saw strong growth accelerate there margins went down when these are-- Brandon. Hey, Brandon, you are cutting-- Hey, Brandon, you are cutting out. You know what? Give Jack a call. He will get to you. But you are cutting in and out. Operator: Okay. I think we can wrap up the call, Leslie. Thank you. That concludes our question and answer period and Dover's third quarter 26 earnings conference call. You may now disconnect your line at this time, and have a wonderful day. Good morning, and welcome to Dover's Third Quarter 26 Earnings Conference Call. Speaking today are Richard J. Tobin, President and Executive Chief Executive Officer Christopher Woenker, Senior Vice President and chief financial officer, and Jack Dickens, vice president, investor relations. After the speakers' remarks, there will be a Q&A session. If you would like to ask a question during this time, press star and then the number 1 on your telephone keypad. If you would like to withdraw your question, please press star 2. As a reminder, ladies and gentlemen, this conference call is being recorded, and your participation implies consent to our recording of this call. If you do not agree with this term, please disconnect at this time. Thank you. I would now like to turn our call over to Mr. Jack Dickens, Please go ahead, sir. Jack Dickens: Thank you, Leslie. Good morning, everyone, and thank you for joining our call. An audio version of this call will be available on our website through November 12, a replay link of the webcast will be archived for 90 days. Our comments today will include forward-looking statements based on current expectations, Actual results and events could differ from those statements due to a number of risks and uncertainties which are discussed in our SEC filings. We assume no obligation to update our forward-looking statements With that, I will turn the call over to Richard. Richard Joseph Tobin: Thanks. Jack. Good morning, everyone. Let's get started on slide 3. Overall, it was a solid quarter. Organic growth accelerated to 7%, led by our secular growth markets and supported by durable demand across the majority of the portfolio. Bookings were the highlight in the quarter, Orders were up 16% year over year with growth in all 5 segments Book to bill was 1.03 for the quarter. Our backlog is up 35% versus this time last year. Which supports our confidence in the forecast and provides very good momentum heading into 2027. Adjusted EPS was $2.88 per share, up 10% in the quarter. We remained active on the capital. On capital deployment announcing 2 bolt-on acquisitions that add complementary capabilities. Low cost manufacturing, and geographic breadth to our businesses. We also repurchased over 330 million of our shares in the quarter. We are narrowing our full year guidance towards the upper end of the range. With organic growth of 5% to 6% and adjusted EPS from $10.60 to $10.75 per share representing double digit growth consistent with our long term algorithm. Let's go to slide 5. Our secular growth markets now represent over 25% of our total revenue, up from 18% in 2024. Across the top of the slide, we show our expected growth rates in each of these markets this year. In total, these markets are a material driver of our overall revenue growth in 2026 and we expect that trend to continue in 2027. We have purposely built these platforms through R&D spending and new product development in our legacy businesses as well as through targeted M&A. Our business model is unique. It allows us to pursue a variety of high growth business opportunities across a range of secular themes, several of our businesses participating in more than 1. We have been able to deliver this growth by proactively adding capacity and advance to the market, which has allowed us to capture leadership positions. This has been particularly important in energy transition and power generation, CO2 systems, data centers, and cryogenic components serving the energy and space markets. We have continued to invest in additional capacity in 2026 behind this demand strength, some of which we will detail in a subsequent slide. These organic and inorganic investmentss have delivered high returns and invested capital despite the proactive upfront investments as the result of high growth rates and margin profiles of these sectors. These businesses are technically demanding mission critical applications where Dover tends to win. The vast majority of our acquisition capital over the past 5 years has been deployed in these markets and they remain our top priorities from both an organic and inorganic investments. Going to slide 6. This slide underscores the breadth and duration of our order book. Trailing 12 month bookings are up percent, well ahead of revenue growth at 8% and trailing book to bill has climbed to 1.08. Every segment has grown bookings faster than revenue over the past 12 months. That sustained order momentum order momentum is underpinned the top line acceleration we are seeing in 2026, and it gives us confidence in our outlook going forward. Importantly, our backlog is 35% higher it was at this point last year and is up sequentially from Q2 with roughly half scheduled to ship in 2027. This gives us a solid foundation heading into next year. Revenue visibility well ahead of where we would expect to be at this point in the planning cycle. Moving to slide 7. Engineered Products was down 2% organically. Demand for aerospace and defense components remained strong but was more than offset by lower volumes in European vehicle services. Margin was stable on favorable mix and cost controls. Clean energy and fueling grew 12% organically, with solid shipments and new orders in clean energy components, fluid transport, and North American retail fueling, which posted its strongest quarter in years. Demand for our cryogenic components in LNG and space launch infrastructure remains healthy with several recent high profile project wins. Margin was roughly flat as volume leverage was offset by production ramp in cryogenic product lines, where demand is running ahead of capacity. We are actively expanding that capacity with additional output coming online in the first quarter of 2027. Imaging and ID grew 2% organically by double digit growth in serialization software and solid performance in core marking and coding consumables and equipment margins expanded 400 basis points to 33%. Driven by volume leverage on largely fixed cost base and software growth and consumables favorable geographic mix, and foreign currency translation. Pumps and Process Solutions grew 1% organically with growth in AI and energy infrastructure single use biopharma and industrial pumps, that was partially offset by lower volumes in poly polymer processing equipment where coating activity is high. Margin expanded 70 basis points to 34% on solid conversion in industrial pumps and precision components and a higher mix of biopharma revenue. Climate and sustainability technology accelerated to 18% organic growth in the quarter. Shipments and order rates in brazed plate heat exchangers remain robust across all geographies and major end markets with notable strength and liquid cooling for data centers, is initially concentrated in The US but we are now seeing meaningful acceleration in Europe and Asia. Lead times remain extended, we are actively investing to double our global capacity for large heat exchangers through 2027. CO2 refrigeration systems posted quarterly revenue and posted record quarterly revenue with September reaching its highest output of the year in refrigerated door cases. The investments we have added in Richmond, Virginia facility are ramping up. Line rates exiting third quarter were 15% higher than the second quarter. We expect an another sequential increase in line rates and output in the fourth quarter. We also completed the consolidation of the door frame production in some market California at the end of the quarter. Segment margin was 18%. Margins in heat exchangers were robust as volumes outrun the significant investments in capacity build with direct labor less than percent of its cost basis, this business converts incremental volume exceptionally well. Those gains in heat exchangers were offset by cost of ramping production simultaneously across CO2 systems, specialty cases, and refrigerated door cases, ahead of higher demand and shipment rates in 2027. Which is reflected in our backlog. Heat exchangers should continue to benefit from volume leverage in 2027 with a good portion of Q1 revenue already in backlog. In food retail, we have absorbed $40 million in costs year to date from investments and extra labor costs associate with the production ramp along with duplicate fixed costs of running 2 facilities for the throughput of 1. As line rates continue to ramp, and as the roll off of fixed costs accelerates in the balance of the year, margins in climate and sustainability technologies are poised to improve meaningfully in 2027. Pass it over to Christopher. Christopher Woenker: Thanks Rich and good morning everyone. Let's go to our cash flow statement on slide 8. Year to date free cash flow was $703 million or 11% of revenue up $72 million over the prior year. Driven primarily by increased operating cash conversion which more than offset working capital investments to support accelerating top line growth. Third quarter free cash flow was $383 million or 17% of revenue. We have taken up our full year CapEx guide for the year to reflect the organic investments we are making behind demand strength. Free cash flow accelerated in the third quarter consistent with historical trends and we expect a further increase in the fourth quarter, which is historically our highest cash generating quarter. Our full year free cash flow guidance remains on track at 14% to 16% of revenue. With that, let me turn it back to Richard. Richard Joseph Tobin: Okay. I am on slide 9. Organic investment remains our highest return use of capital. On the left, are our most meaningful projects. In support of our organic revenue trajectory, we have greenfield expansions underway below ground retail fueling cryogenic components flow meters in The US, and single use biopharma components in Asia, along with capacity investments in radio frequency equipment for space, printer and ink production, and specialty cases in CO2 systems and large heat exchangers. Many of these projects will be online by the end of the first quarter of 2027. On the productivity side, we are optimizing our vehicle service footprint, extracting synergies from our polymer processing acquisition, and have now completed the footprint consolidation in food retail. These actions generate substantial carryover restructuring benefits we will quantify when we provide full year guidance in January. On the right side of the slide are the bolt on acquisitions we announced in the quarter, Clarin, which we closed in August, adds extrusion dies and feed blocks to our Maag polymer processing platform along with more than 300 thousand square-foot of US manufacturing capacity close to The US petrochemical and space launch infrastructure. Lichtung, which we signed and expect to close in the fourth quarter, gives our clean energy segment a low cost state of the art cryogenics components manufacturing presence in India. Both businesses carry excess capacity that other Dover operating companies will leverage as man. Manufacturing hubs in highly strategic locations. Moving to slide 10. Our balance sheet remains a competitive advantage and our capital allocation priorities are unchanged. Organic investment generates our highest returns we are guiding full year CapEx of $200 to $220 million with the capacity and productivity projects I just covered delivering attractive returns into next year. We have committed approximately $80 million to our 2 announced acquisitions and our pipeline remains active for bolt on opportunities in high priority markets. We have also repurchased approximately $400 million of shares year to date, including $330 million in the third quarter. With over $3 billion of dry powder that quarter end, we have the ample flexibility to play offense and capital allocation. And a near term bias towards returning capital to shareholders. Girish with slide 11. We are moving our full year guidance towards the upper end of the range. We are our focus is on finishing the year strong. And our order book gives us confidence in the forecast with momentum carrying into 2027. Alongside a constructive demand backdrop and a strong order book, we will benefit from carryover restructuring savings contributions from completed acquisitions, a lower share count, and a roll off of transition costs in food retail we look forward to closing up the year strong and are confident as we enter 2027 from a position of strength over to you, Jack. Jack Dickens: Leslie, we can go right to the Q&A. Operator: Thank you. Star then the number 1 on your telephone keypad. If you would like to withdraw your question, please press star 2. We ask that participants limit themselves to 1 question and 1 clarifying question. Our first question comes from Steve Tusa with Wells Fargo. Please go ahead. Your line is now open. Steve Tusa: Good morning, guys. Steve. Just on the backlog, I think it is, like, a little bit above, billion now if I kinda, like, go back and do the math. I and I think you said 50% of that is, like, shippable for next year. Is there anything in kind of the non backlog business that you look out to next year that you would be like, worried about being unsustainable or dropping off at all? Richard Joseph Tobin: I would characterize it this way, I guess. Where we have been capacity constrained is what is driving the backlog into 2027. So the duration of the demand is a good indicator because customers are basically getting in line to reserve that capacity. It is not overly influenced from some of our more traditional long cycle businesses. Mods pretty much is a bottom, same with Belvac. So it is not those numbers are not influenced by those 2 businesses. So that is actually upside. To backlog build as we go into 2027. And then our traditional, short-cycle businesses we do not have a lot of visibility into next year, and we will just book and ship as we normally do between now and the end of the year. Steve Tusa: Right. And is there any reason for the growth to slow materially in Q4? I know you kind of guided that number. The midpoint is you know, a bit of a slowing. Is there anything that stands out? I mean, the order has been pretty good. Book to bill above 1.0 seasonal is Yeah. Richard Joseph Tobin: Not really other than the fact that Q4 is not always in our control. Right? We have got the orders We can make the orders, then it becomes a question at the end of the year whether those orders get called off by our customers or is everybody play a kind of a managing the working capital game at the end of the year. So we are always a little bit cautious because December could go almost either way in any given year, but there is nothing based on the trajectory that we see that. that is any slowing. it is pure calendarization. Steve Tusa: Alright. 1 more. Just on the buyback, you have done, 300 million or something like that. Are you done with that? Or is there still some of that to, know, ton of cash, ton of capacity is can you chew through some of that? Richard Joseph Tobin: I think in-- I think in corporate speak, what we said that our bias was still on capital return. So take that for what it is. Steve Tusa: Brett. I do not understand all corporate speak, but that. that is pretty clear. So I appreciate that. Thank you. Richard Joseph Tobin: Brett. Thanks. Operator: Thank you. Our next question comes from Nigel Coe. Wolfe Research. Please go ahead. Nigel Coe: Thanks. Good morning. Richard Joseph Tobin: Maybe Rich, could you just kind of give us little sense on the dual cost you called out, I think, $40 million of investment and dual cost that is now behind us. Maybe give us a sense on how you see CST margins in the fourth quarter, but more importantly, going into 2027. And you said a 20% margin target in the past for that segment. Are we on track for that in 2020. Yeah. Nigel Coe: Just for clarity's sake. Richard Joseph Tobin: it is the year to date headwind costs of the plant closure and the redundant labor that we have had to run as a result of that, and that is year to date. Okay? So that number will actually probably go up between now and the end of the year because as line rates come up, we will absorb that extra labor, and then we will begin to flip it over into productivity. So that is the $40 million. Nigel Coe: Yeah. Richard Joseph Tobin: I mean, I think that we are well on track to meeting the targets that we put on that sector. Because of 2 things. Number 1, that the carryover of not having those costs of consolidation between the 2 years is an add-back The volume across the segment goes up. And so the incremental margin of the fixed cost goes up along with it. So I think that. that is why I said that can expect a material change in 2027 in the margin of that particular segment. Nigel Coe: But no numbers. Oh, come on. Nigel, we are gonna give you guidance when we get to the to the end of the year, but it is material. Richard Joseph Tobin: Okay. Nigel Coe: You have said 20% in the past. I was just I was just trying to get a sense on? But maybe can we just talk about the PPS orders Not PPS, CST orders. Been strong for a long time now. No sign of slowdown. I am I am just wondering maybe if you can just, like, try and try and give us another second level detail on SWEP versus CO2 versus core federation. And I do wanna get a sense on 1 number, which is 3% growth in data center this year is impressive. But I would think it would be even more impressive just given the growth in the market. And I am wondering if there is any capacity constraints within SWEP that maybe gets released in 2020 Well, yeah. Richard Joseph Tobin: I mean, we have. I think that if you go on the slide of our capital investments and if you go back and read the transcript of what I said. Yeah. We have been capacity constrained all year. It does not seem to be preventing the actual build outs but everybody's trying to get in front of securing the supply. So there is a lot of signaling effect in there. But we are basically ramping to double capacity into the main product line that is been growing. This is SLEP now. that is been sent into data centers That will change over time. Because there will be a shift between the central cooling system demand, which we see it now, into more CDU mix into the future and we are taking that into consideration. In terms of the backlog, I do not wanna say 50, but it is dominated by CO2 systems demand and SWEP. Nigel Coe: Okay, thanks, Richard. Richard Joseph Tobin: Thanks. Operator: Thank you. Our next question comes from Mike Halloran with Baird. Please go ahead. Your line is open. Mike Halloran: Hey. Good morning, everyone. Richard Joseph Tobin: Hi. Mike Halloran: Hey. So back to the backlog. Question on some level. what is the normal conversion ratio at this point? You know, half your backlog shippable next year, what does that normally look like? And maybe any thoughts on the lead times you are seeing in the industry and if those are starting to extend? Richard Joseph Tobin: If it is higher than average that we would see at this time. So let me go back and read the transcripts. We would expect in a kinda. Let's call it a normal year for book to bill to come down in Q3 just the order of magnitudes of shipments. But because of the secular growth nature of some of these businesses, some of these businesses that we are in that customers in certain segments are securing supply so trying to secure capacity. And so that they are ordering well in advance of what we would normally expect. And that is why we gave you the backlog figures, and that is we tried to monetize how much of that is 2027 because that in general terms, would not look like that except for the pace of the growth rate in some of those segments. Mike Halloran: That makes sense. And you know, on the buyback side, M&A side, obviously, certainly makes sense that you are pushing more on the capital return side short term. But maybe what is just happening on the M&A side of things are you getting priced out of deals at this point? Has the activity slowed? Maybe just thoughts there. Richard Joseph Tobin: Yeah. I mean, the activity naturally slows in Q4. Very little comes to the market at the end of the year. So whatever has come to market is. Has come to market. Not to get into certain deals. Look, we have got return criteria that we stick to. So there are some things that we did not get. We would have liked to get, but the purchase price that, those assets sold for were above that criteria. At the end of the day, we will see in 2027, but we have got a ton on our plate of organic investment which is probably gonna drive as much revenue growth as kind of bolt on acquisitions would do. So we retain a posture of optionality, meaning that we will participate in M&A. We got a. We have got some interesting stuff in the pipeline. But with all the cash that we are producing, that we carried into this year, all the cash that we are gonna produce this year, that clearly that our stance is now on capital return. Mike Halloran: Thank you. Appreciate it. Richard Joseph Tobin: Thanks. Operator: Thank you. Our next question is from Joe O'Dea from Vertical Research. Please go ahead. Your line is open. Joe O'Dea: Hi. Good morning. Could you talk a little bit about pricing and what might be in the pipeline just with respect to the inflationary backdrop. It looks like the price this quarter was pretty similar to the second quarter, maybe a little bit tougher comp. But are you out there in the market and you do anything more on the pricing side? Richard Joseph Tobin: Deane, if you are carry over into next year? Yeah. It depends, Joe. I mean, we are actually. Have moved up pricing decisions this year. And have been introducing pricing, which in a stable year of low inflation environment, We kinda wait to the beginning of the year. We have actually accelerated that in certain instances. Depending on exposure to a variety of different things, whether it is commodity group metals or other things. So I think we are on the front foot of getting ahead of what anybody's view about price cost is going 27. I think we are actually probably a full quarter in front of getting in front of that. Joe O'Dea: And then just another 1 on the food retail and the production ramp cost. As we think about full year being somewhere above $40 million, how much of that can we think about as being nonrepeat? Is there is there carryover associated with it, or do think that those are all kind of contained costs that you will be able to leverage next? Richard Joseph Tobin: It will it will it will. So that the speed is coming down as the volumes go up Right? You get the fixed court. Fixed cost absorption benefit. The balance of it is productivity. So it is just winding out extra labor costs as you stabilize the line rates. So we would expect that to progressively get better over the balance of the year. And then probably finish up by the end of Q1. But I do not expect you know, the 40 the 40 or whatever it ends up being at the end of this year flows through in total. Going into next year. Unless volume drops. And based on our backlog right now, we would see no indication of volume dropping in 2020. Got it. Joe O'Dea: Thank you. Richard Joseph Tobin: Welcome. Operator: Thank you. Our next question comes from Scott Davis with Melius Research. Please go ahead. Your line is open. Scott Davis: Hey. Good morning, guys. Richard Joseph Tobin: Scott? Scott Davis: Rich, what happens in retail fueling when prices. When fuel prices are up this much? Does that create a little bit more cash flow for these for these guys to invest in their businesses? Seems like that you know, it is been a while since we have had a big jump like this. But what does what does $6 diesel and $4 gas do for the. For these folks? Richard Joseph Tobin: Yeah. Not to talk about our customers, profitability, which many of which are publicly traded. I you know, at the end of the day, earnings spread on fueling products have been up substantially over the past 18 to 24 months. And I do not expect that to narrow. The better news. So that great. We like healthy customers that are that are making a lot of money. Number 1. And number 2, the good part of what we have seen about the CapEx is there is supply constraints in that particular market. And that is just lengthening the duration of what we believe the demand cycle is. So we knew we were coming into a CapEx cycle for a variety of different reasons. We now believe that is going to extend we called it out a year and a half ago as a 3-year cycle. it is probably gonna we could probably argue that it is gonna be at least 4. Scott Davis: And is that an area where you are able to get price because of that supply chain dislocation? Richard Joseph Tobin: it is it is. In terms of the amount of market participants, it is a market that we like. Yeah. Scott Davis: Makes sense. All right. Thank you. Best of luck. Richard Joseph Tobin: Thanks. Operator: Thank you. Our next question comes from Andy Kaplowitz Citigroup. Please go ahead. Your line is open. Andy Kaplowitz: Good morning, everyone. Richard Joseph Tobin: Hi, Andy. So Richard, so DII, I think, was the best margin that segment has recorded. I know you mentioned mix, productivity effects, but I think you have been working on structural cost actions in that segment. So should we think about DII's margins even more sustainable, you know, closer to Q3 rates or maybe it was more of a onetime bump? Look, I would look at year to date at the end of the day because it is our most global business. there is a lot running through that some of our other businesses do not have to deal with, especially FX. And then mix because of the disproportionate difference in margin between the consumables and the So it will move around for that. Having said that, if you go back and take a look over a 3- to 5-year period, we have steadily marched up the margin in that business through a variety of different measures. We are making some pretty significant investments. We built a brand new plant in Poland. This past year, and we are gonna finish up on basically rebuilding our ink production in 2027. So we expect some productivity to come out of that. So. Yeah. I mean, I would not get all excited about the quarters this quarter margin, but if you look at on a year to date basis, that is entirely sustainable. Andy Kaplowitz: that is great. And maybe a similar question on clean energy and fueling. If I look at, you know, Q3 year over year is a little bit more difficult than the first half. I know you talked about Cryospace production ramp impacting margin, but maybe update us on the you created in that business, that journey. I think you talked about a 25% margin. Where is that? Richard Joseph Tobin: Look, we are tracking there, but we have been the opportunities that we found on the cryo side over the past 18 months which is driving the top line is requiring a lot of investment on our part. So that has got a little bit of a dilutive effect. But we will take that trade off any day. Right? Because it is driving the top line and there are these are businesses with secular growth that once we go through the build phase, we can expect what we saw in SWEP over the last couple years where we had margins that were down because investment was running ahead of the revenue. Now we have got the revenue in SWEP. And so the incremental margin is robust. We would expect that same kind of trajectory, and that is the reason that we put that slide in about all the organic investments that we are making is it is not only to kind of explain what we think about the durability of the revenue increase, but it is to give you a signal that we are gonna invest here. there is some cost of making those investments, but we believe over time, the return on invested capital there, will be excellent. Andy Kaplowitz: Appreciate all the color, Richard. Thanks. Operator: Thank you. Our next question comes from Brett Linzey, Mizuho. Please go ahead. Your line is open. Brett Linzey: Your line is open. Operator: We have to move on. We will move to our next question. Our next question comes from Amit Mehrotra with UBS. Go ahead. Your line is open. Amit Mehrotra: Thank you, operator. Hi, Richard. I just-- maybe 1 quick 1. Schwepp lead times, last time I checked in, they were, like, 25 weeks. Is that still the case? And I think that is where most of your copper exposure is. Obviously, copper's come off a little bit, but sort of hit all time highs in September. I think you have a material pass through on that, so no issue on price cost. Maybe you can enlighten me on that. But maybe there is a margin issue as copper rises in that business. Maybe you can talk those 2 things. Richard Joseph Tobin: Yeah. Alright. Let's deal with copper first. I think that it is. We do have copper exposure there, but it is built into the pricing mechanism with our supplier contracts. In SWEP. I do not know what lead times are off the top of my head. I mean, we are bringing on additional capacity. Sequentially through the year, but with a with a pretty big jump this quarter going into Q1. Then it becomes a big debate of, well. But the lead times keep going out because the orders keep coming in advance of that capacity build. Does that wind down in 2027? Hard to say. Right now, we do not see it. But we are bringing on more capacity because the fact that we have. We believe in the durability of the demand. Amit Mehrotra: But it is not measured in years. it is measured in quarters. Right? Richard Joseph Tobin: Yeah. Yeah. No. No. We are not. it is not Okay. Amit Mehrotra: it is not it is not in So I guess just my follow-up question, my clarifying question is then If I think about the order in dollar terms, over the last 3 quarters. So this year, sort of averaged $2.3 to $2.4 billion depending on the quarter. that is about 9% to 10% higher than the average quarterly revenue of this year. I. I am sure you are gonna tell me to curb my enthusiasm, but is that the wrong way to think about maybe the organic growth opportunity next year? Richard Joseph Tobin: Let me answer it this way. We have given you book to bill against my own advice. We gave you the number of the backlog increase We. To get into the high level math, when you do not know what the duration is of the timing of those orders, Yeah. it is a fool's game. I am sure Jack can give you all kinds of clarifying questions. But I cannot go there right now. Amit Mehrotra: I guess that was my question that was my question about lead time. Right? So, I mean, lead times. Richard Joseph Tobin: Look, I mean, we are we are not losing share because of lead times. Right? Because we. Generally speaking, we are in very concentrated markets. From a supply base. So those who bring on the capacity proactively tend to win. And that is why we have been investing in advance of some of this demand to the detriment of margins, by the way, But it is. But they end up being good investments once they roll over and absorb the fixed cost. So we can see that in SWEP. Right now. Amit Mehrotra: Excellent. Okay. Thank you for answering my questions. Appreciate it. Richard Joseph Tobin: Thanks. Operator: Thank you. Our next question is from Andrew Obin, Bank of America. Please go ahead. Your line is open. David Ridley Lane: This is David Ridley Lane on for Andrew. Clean energy and fueling, there is a comment that you are planning a greenfield expansion in below-ground retail fueling. Know that there is a regulatory or replacement cycle there for underground tanks. But adding capacity expansion suggests that you think this is a kind of a multiyear durable cycle. Is that right interpretation? Richard Joseph Tobin: Yeah. I think I answered it a minute ago to Scott. There is capacity constraints underground equipment to come into compliance on tanks. And that and because there is capacity, which by the way, we do not supply, that is doing is lengthening the duration of the demand because you cannot get the tanks to do the work. Right? What we are expanding in is all of the products that are around that. Where we see robust demand and our margins are quite good. So that is the way I would answer it. David Ridley Lane: Thank you. And, just a quick follow-up. Have you been hearing any impact from higher interest rates from any of your more capital planning type businesses. Is that something that is followed up to your level? Richard Joseph Tobin: None. David Ridley Lane: Very clear. You very much. Richard Joseph Tobin: Thanks. Operator: Thank you. Our next question is from Joe Ritchie with Goldman Sachs. Please go ahead. Your line is open. Before you buy stock in Dover, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dover wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $350,756!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,363,905!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 22, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Dover (DOV) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

- Interested in Dover Corporation? Here are five stocks we like better. - Dover reported strong third-quarter momentum: Organic revenue increased 7%, bookings rose 16% across all five segments, and backlog expanded 35% year over year. Adjusted EPS grew 10% to $2.88, prompting the company to raise its full-year outlook toward the upper end of its prior range. - Growth was led by clean energy, cooling and data-center markets. Climate & Sustainability Technologies grew 18% and Clean Energy & Fueling rose 12%, while Dover continues investing in capacity expansion, including large heat exchangers and cryogenic components. - Food-retail production costs remain a near-term margin headwind. Dover has incurred about $40 million in transition costs but expects them to improve through 2026 and largely end by the first quarter of 2027; the company also generated $703 million in year-to-date free cash flow, repurchased about $400 million of stock, and completed or announced two bolt-on acquisitions. - 3 Dividend Growth Stocks With 6% to 8% Yields Dover (NYSE:DOV) reported third-quarter results marked by accelerating organic growth, stronger orders and an expanded backlog, as the industrial manufacturer increased its full-year outlook toward the upper end of its prior range. President and Chief Executive Officer Richard J. Tobin said organic revenue grew 7% in the quarter, while bookings increased 16% from a year earlier across all five operating segments. The company posted a quarterly book-to-bill ratio of 1.03 and said backlog was 35% higher than a year ago, with approximately half of that backlog scheduled to ship in 2027. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over - 3 Dividend Kings Poised to Outperform the Market Adjusted earnings per share rose 10% to $2.88. Dover narrowed its full-year outlook to organic growth of 5% to 6% and adjusted EPS of $10.60 to $10.75, which Tobin said would represent double-digit growth in line with its long-term framework. Trailing 12-month bookings rose 16%, ahead of 8% revenue growth, and trailing book-to-bill reached 1.08, according to Tobin. Every segment grew bookings faster than revenue over the past 12 months. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? - These 5 Dividend Aristocrats are Quality Stocks for AI Investing Tobin said the elevated backlog principally reflects capacity constraints in Dover's higher-growth businesses, where customers are placing orders in advance to secure supply. The backlog is not heavily influenced by certain traditional longer-cycle businesses, including MAAG polymer processing and Belvac, which he described as near a bottom. "Our backlog is 35% higher than it was at this point last year and is up sequentially from Q2," Tobin said. "That gives us a solid foundation heading into next year with revenue visibility well ahead of where we would expect to be at this point in the planning cycle." → IonQ's Bold Expansion Could Leave Shareholders Paying the Price He cautioned that the company does not have the same visibility into its shorter-cycle operations, which generally continue to book and ship in the normal course. Tobin also said Dover was cautious about fourth-quarter timing because customer order releases and year-end working-capital management can affect December shipments, though he cited no underlying demand slowdown. Dover said secular growth markets now account for more than 25% of its total revenue, up from 18% in 2024. The company has focused investment and acquisitions on areas including energy transition, power generation, carbon dioxide systems, data centers, and cryogenic components for energy and space markets. Third-quarter segment performance included: - Engineered Products: Organic revenue declined 2%, as strong aerospace and defense component demand was more than offset by lower European vehicle-services volumes. Margins were stable due to favorable mix and cost controls. - Clean Energy & Fueling: Organic growth was 12%, supported by clean-energy components, fluid transport and North American retail fueling. Cryogenic component demand in LNG and space-launch infrastructure remained healthy. Margins were roughly flat as higher volumes were offset by production ramps in cryogenic products. - Imaging & Identification: Organic growth was 2%, led by double-digit serialization-software growth. Segment margin expanded 400 basis points to 33%, aided by operating leverage, software and consumables growth, geographic mix and foreign-exchange translation. - Pumps & Process Solutions: Organic growth was 1%, with gains in AI and energy infrastructure, single-use biopharma and industrial pumps partly offset by lower polymer-processing equipment volumes. Margin rose 770 basis points to 34%. - Climate & Sustainability Technologies: Organic growth accelerated to 18%, led by brazed plate heat exchangers and CO2 systems. The company cited particular strength in liquid cooling for data centers, including increasing demand in Europe and Asia. In Climate & Sustainability Technologies, Dover is investing to double global capacity for large heat exchangers through 2027. It said lead times remain extended. Tobin said the company expects demand to increasingly shift over time from central cooling systems toward cooling distribution unit, or CDU, applications. Climate & Sustainability Technologies reported an 18% segment margin in the quarter. Strong heat-exchanger margins were offset by costs associated with scaling CO2 systems, specialty cases and refrigerated door cases ahead of anticipated 2027 demand. Dover has absorbed roughly $40 million in year-to-date food-retail costs tied to additional labor during production ramps and duplicate fixed costs associated with operating two facilities for the throughput of one. The company completed its door-frame production consolidation in Sylmar, California, at the end of the third quarter, while production investments at its Richmond, Virginia, facility continued to ramp. Tobin said the $40 million headwind could increase before year-end as production line rates rise, but he expects the costs to progressively improve through the remainder of 2026 and likely conclude by the end of the first quarter of 2027. He said Climate & Sustainability Technologies margins should improve "materially" in 2027, supported by higher volumes, improved fixed-cost absorption and the roll-off of transition costs. "We will beat our comp in Q1," Tobin said when asked about the timing of a margin improvement. Year-to-date free cash flow totaled $703 million, or 11% of revenue, up $72 million from the prior year. Third-quarter free cash flow was $383 million, or 17% of revenue. Senior Vice President and Chief Financial Officer Chris Woenker said Dover raised its full-year capital-expenditure outlook to $200 million to $220 million to support organic capacity and productivity investments, while maintaining full-year free-cash-flow guidance of 14% to 16% of revenue. Dover is expanding capacity in below-ground retail fueling, cryogenic components, U.S. flow meters, Asian single-use biopharma components, radio-frequency equipment for space, printer ink, CO2 specialty cases and large heat exchangers. Many projects are expected to be online by the end of the first quarter of 2027. The company also announced two bolt-on acquisitions. Cloeren, acquired in August, adds extrusion dies and feed blocks to Dover's MAAG polymer-processing platform. Leistung, expected to close in the fourth quarter, is intended to provide Clean Energy & Fueling with a cryogenic-components manufacturing presence in India. Dover committed about $80 million to the two transactions. Dover repurchased more than $330 million of stock during the quarter and about $400 million year to date. Tobin said the company had more than $3 billion of available financial capacity at quarter-end and retained a near-term bias toward returning capital to shareholders while continuing to assess bolt-on acquisition opportunities. Dover Corporation (NYSE: DOV) is a diversified manufacturer that develops and produces specialized equipment, components and engineered systems for industrial and commercial customers. Its businesses serve markets including fluid handling, equipment manufacturing, clean energy, fueling, refrigeration, heating and cooling, printing, and vehicle service. The company's products include pumps, compressors, controls, dispensing and fueling equipment, refrigeration systems, heat-transfer technologies, industrial machinery, vehicle lifts and service equipment, and components used in engineered industrial applications. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Dover Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Organic growth accelerated to 7% in the quarter, primarily driven by strategic positioning in secular growth markets which now represent over 25% of total revenue. - Bookings surged 16% year-over-year with growth across all five segments, resulting in a record backlog that is 35% higher than the previous year. - Management attributes the top-line acceleration to proactive capacity investments made in advance of market demand, particularly in energy transition and data centers. - Climate and Sustainability Technologies saw 18% organic growth, fueled by robust demand for brazed plate heat exchangers in data center liquid cooling applications. - Clean Energy and Fueling performance was bolstered by a multi-year capital expenditure cycle in North American retail fueling and healthy demand for cryogenic components. - Imaging and ID margins expanded 400 basis points to 33%, driven by high-margin software growth and volume leverage on a largely fixed cost base. - The unique business model allows for participation in multiple high-growth secular themes, with technically demanding mission-critical applications serving as a competitive moat. - Full-year guidance was narrowed toward the upper end, assuming organic growth of 5% to 6% and adjusted EPS of $10.60 to $10.75. - Backlog duration provides high visibility into 2027, with approximately half of the current backlog scheduled to ship in the next fiscal year. - Management expects a material improvement in Climate and Sustainability margins in 2027 as $40 million in non-recurring consolidation and labor costs roll off. - Capacity for large heat exchangers is being doubled through 2027 to meet accelerating demand for data center cooling in Europe and Asia. - Strategic greenfield expansions in retail fueling, cryogenic components, and biopharma are expected to be online by the end of Q1 2027. - The company absorbed $40 million in year-to-date costs related to food retail production ramps and duplicate fixed costs from running two facilities during consolidation. - Capacity constraints in cryogenic product lines and heat exchangers have temporarily offset volume leverage as demand currently runs ahead of production capabilities. - Two bolt-on acquisitions, Clarin and Lichtung, were announced to add low-cost manufacturing hubs and geographic breadth in the US and India. - Management noted a near-term bias toward returning capital to shareholders, supported by over $3 billion in dry powder and $330 million in Q3 share repurchases. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management clarified that the backlog is driven by capacity-constrained secular markets where customers are 'getting in line' to reserve future production. - The backlog figures are not influenced by traditional long-cycle businesses like Belvac, which are currently at a cyclical bottom, representing potential future upside. - The $40 million headwind from plant closures and redundant labor will likely increase slightly through year-end as line rates ramp up. - Management explicitly stated they expect to beat the margin comparison in Q1 2027 as these transition costs roll off and volume leverage takes over. - Management noted that while many competitors are entering the data center space, Dover's highly automated and engineered process requires 18-month lead times for capacity. - They believe their proactive investment strategy allows them to capture market share despite the 'detriment to margins' during the build phase. - Dover has accelerated pricing decisions by a full quarter to stay ahead of potential price-cost headwinds going into 2027. - Pricing mechanisms for copper exposure in the heat exchanger business are already built into supplier contracts, mitigating commodity volatility risks.

DOWNERS GROVE, Ill., Oct. 22, 2026 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the third quarter ended September 30, 2026. All comparisons are to the comparable period of the prior fiscal year, unless otherwise noted. | | Three Months Ended September 30, | | Nine Months Ended September 30, ($ in millions, except per share data)* | | 2026 | | 2025 | | % Change* | | 2026 | | 2025 | | % Change* U.S. GAAP Revenue | | $ 2,234 | | $ 2,078 | | 8 % | | $ 6,477 | | $ 5,993 | | 8 % Earnings from continuing operations | | 337 | | 303 | | 11 % | | 888 | | 823 | | 8 % Diluted EPS from continuing operations | | 2.50 | | 2.20 | | 14 % | | 6.56 | | 5.96 | | 10 % | | | | | | | | | | | | Non-GAAP Organic revenue change | | | | | | 7 % | | | | | | 6 % Adjusted earnings from continuing operations 1 | | 388 | | 361 | | 7 % | | 1,069 | | 981 | | 9 % Adjusted diluted EPS from continuing operations | | 2.88 | | 2.62 | | 10 % | | 7.89 | | 7.10 | | 11 % | 1 | Q3 and year-to-date 2026 and 2025 adjusted earnings from continuing operations exclude after-tax purchase accounting expenses, restructuring and other costs, and gain on dispositions. * | Totals, change and per share data may be impacted by rounding. For the quarter ended September 30, 2026, Dover generated revenue of $2.2 billion, an increase of 8% (+7% organic). GAAP earnings from continuing operations of $337 million increased by 11%, and GAAP diluted EPS from continuing operations of $2.50 was up 14%. On an adjusted basis, earnings from continuing operations of $388 million were up 7% and adjusted diluted EPS from continuing operations of $2.88 was up 10%. For the nine months ended September 30, 2026, Dover generated revenue of $6.5 billion, an increase of 8% (+6% organic). GAAP earnings from continuing operations of $888 million increased by 8%, and GAAP diluted EPS from continuing operations of $6.56 was up 10%. On an adjusted basis, earnings from continuing operations of $1.1 billion were up 9% and adjusted diluted EPS from continuing operations of $7.89 was up 11%. A full reconciliation between GAAP and adjusted measures and definitions of non-GAAP and other performance measures are included as an exhibit herein. MANAGEMENT COMMENTARY: Dover's President and Chief Executive Officer, Richard J. Tobin, said, "Dover delivered strong results in the third quarter. Top-line growth accelerated, led by our secular growth markets in artificial intelligence and power generation infrastructure, energy transition, single-use biopharma, semiconductor manufacturing, and space launch. This strength was complemented by broad-based performance across the portfolio, including improving line rates in food retail as we completed the footprint consolidation. "Order performance was a highlight, consistent with the trend we have seen throughout the year. Bookings increased across all five segments and again outpaced shipments, reinforcing our confidence in the forecast. Notably, a significant portion of our backlog is scheduled for delivery in 2027, giving us a solid foundation heading into next year. "We remained active in capital deployment. We continued to invest behind greenfield expansions in high-growth end markets, along with productivity and footprint optimization projects. During the quarter, we announced two bolt-on acquisitions that expand our capabilities in attractive markets and add manufacturing capacity in key strategic locations, and we opportunistically repurchased over $330 million of our shares. Our balance sheet and liquidity position provide significant flexibility to deploy additional capital. "We are on track to deliver double-digit adjusted EPS growth in 2026, in line with our long-term algorithm. As we begin planning for 2027, the constructive demand backdrop and our order book, together with carryover benefits from actions taken this year, set the stage for continued value creation for our shareholders." FULL YEAR 2026 GUIDANCE: In 2026, Dover expects to generate GAAP EPS in the range of $8.93 to $9.08 (adjusted EPS of $10.60 to $10.75), based on full year revenue growth of 7% to 8% (organic growth of 5% to 6%). CONFERENCE CALL INFORMATION: Dover will host a webcast and conference call to discuss its third quarter results at 9:30 A.M. Eastern Time (8:30 A.M. Central Time) on Thursday, October 22, 2026. The webcast can be accessed on the Dover website at dovercorporation.com. The conference call will also be made available for replay on the website. Additional information on Dover's results and its operating segments can be found on the Company's website. ABOUT DOVER: Dover is a diversified global manufacturer and solutions provider with annual revenue of over $8 billion. We deliver innovative equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services through five operating segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions and Climate & Sustainability Technologies. Dover combines global scale with operational agility to lead the markets we serve. Recognized for our entrepreneurial approach for over 70 years, our team of approximately 24,000 employees takes an ownership mindset, collaborating with customers to redefine what's possible. Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under "DOV." FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements in this document other than statements of historical fact are statements that are, or could be deemed, "forward-looking" statements. Forward-looking statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control. Factors that could cause actual results to differ materially from current expectations include, among other things, general economic conditions and conditions in the particular markets in which we operate; supply chain constraints and labor shortages that could result in production stoppages; inflation in material input costs and freight logistics; the impacts of natural or human-induced disasters, acts of war, terrorism, international conflicts, and public health crises or other future pandemics on the global economy and on our customers, suppliers, employees, business and cash flows; changes in customer demand and capital spending; competitive factors and pricing pressures; our ability to develop and launch new products in a cost-effective manner; changes in law, including the effect of tax laws and developments with respect to trade policy and tariffs; our ability to identify, consummate and successfully integrate and realize synergies from newly acquired businesses; acquisition valuation levels; the impact of interest rate and currency exchange rate fluctuations; capital allocation plans and changes in those plans, including with respect to dividends, share repurchases, investments in research and development, capital expenditures and acquisitions; our ability to effectively deploy capital resulting from dispositions; our ability to derive expected benefits from restructurings, productivity initiatives and other cost reduction actions; the impact of legal compliance risks and litigation, including with respect to product quality and safety, cybersecurity and privacy; and our ability to capture and protect intellectual property rights. For details on the risks and uncertainties that could cause our results to differ materially from the forward-looking statements contained herein, we refer you to the documents we file with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025, and our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These documents are available from the Securities and Exchange Commission, and on our website, dovercorporation.com. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. INVESTOR SUPPLEMENT - THIRD QUARTER 2026 DOVER CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)(in thousands) | Three Months Ended September 30, | | Nine Months Ended September 30, | 2026 | | 2025 | | 2026 | | 2025 Revenue | $ 2,233,839 | | $ 2,077,841 | | $ 6,477,483 | | $ 5,993,492 Cost of goods and services | 1,330,413 | | 1,244,247 | | 3,895,316 | | 3,596,136 Gross profit | 903,426 | | 833,594 | | 2,582,167 | | 2,397,356 Selling, general and administrative expenses | 484,238 | | 456,441 | | 1,465,283 | | 1,369,297 Operating earnings | 419,188 | | 377,153 | | 1,116,884 | | 1,028,059 Interest expense | 28,870 | | 27,239 | | 87,450 | | 81,638 Interest income | (16,520) | | (17,804) | | (45,102) | | (55,993) Gain on dispositions | — | | — | | — | | (4,644) Other income, net | (13,848) | | (18,525) | | (32,750) | | (26,663) Earnings before provision for income taxes | 420,686 | | 386,243 | | 1,107,286 | | 1,033,721 Provision for income taxes | 83,866 | | 82,951 | | 219,172 | | 211,058 Earnings from continuing operations | 336,820 | | 303,292 | | 888,114 | | 822,663 Loss from discontinued operations, net | (3,489) | | (1,296) | | (4,104) | | (10,782) Net earnings | $ 333,331 | | $ 301,996 | | $ 884,010 | | $ 811,881 DOVER CORPORATION QUARTERLY EARNINGS PER SHARE (unaudited)(in thousands, except per share data*) Earnings Per Share | | | | | | | | | | | | 2026 | | 2025 | Q1 | Q2 | Q3 | Q3 YTD | | Q1 | Q2 | Q3 | Q3 YTD | Q4 | FY 2025 Basic earnings (loss) per share: Continuing operations | $ 1.77 | $ 2.32 | $ 2.51 | $ 6.60 | | $ 1.74 | $ 2.04 | $ 2.21 | $ 5.99 | $ 2.02 | $ 8.01 Discontinued operations | $ — | $ — | $ (0.03) | $ (0.03) | | $ (0.06) | $ (0.01) | $ (0.01) | $ (0.08) | $ 0.05 | $ (0.03) Net earnings | $ 1.77 | $ 2.32 | $ 2.48 | $ 6.57 | | $ 1.68 | $ 2.03 | $ 2.20 | $ 5.92 | $ 2.07 | $ 7.99 | | | | | | | | | | | Diluted earnings (loss) per share: | | | | | | | | | Continuing operations | $ 1.76 | $ 2.31 | $ 2.50 | $ 6.56 | | $ 1.73 | $ 2.03 | $ 2.20 | $ 5.96 | $ 2.01 | $ 7.97 Discontinued operations | $ — | $ — | $ (0.03) | $ (0.03) | | $ (0.06) | $ (0.01) | $ (0.01) | $ (0.08) | $ 0.05 | $ (0.03) Net earnings | $ 1.75 | $ 2.30 | $ 2.47 | $ 6.53 | | $ 1.67 | $ 2.02 | $ 2.19 | $ 5.88 | $ 2.06 | $ 7.94 | | | | | | | | | | | Net earnings (loss) and weighted average shares used in calculated earnings (loss) per share amounts are as follows: Continuing operations | $ 238,749 | $ 312,545 | $ 336,820 | $ 888,114 | | $ 239,241 | $ 280,130 | $ 303,292 | $ 822,663 | $ 274,766 | $ 1,097,429 Discontinued operations | (316) | (299) | (3,489) | (4,104) | | (8,420) | (1,066) | (1,296) | (10,782) | 7,309 | (3,473) Net earnings | $ 238,433 | $ 312,246 | $ 333,331 | $ 884,010 | | $ 230,821 | $ 279,064 | $ 301,996 | $ 811,881 | $ 282,075 | $ 1,093,956 | | | | | | | | | | | Weighted average shares outstanding: | | | | | | | | | Basic | 134,977 | 134,759 | 134,200 | 134,644 | | 137,267 | 137,226 | 137,236 | 137,254 | 135,993 | 136,935 Diluted | 135,895 | 135,553 | 134,878 | 135,440 | | 138,260 | 137,974 | 138,029 | 138,099 | 136,826 | 137,777 | | | | | | | | | | | Dividends paid per common share | $ 0.52 | $ 0.52 | $ 0.525 | $ 1.565 | | $ 0.515 | $ 0.515 | $ 0.52 | $ 1.55 | $ 0.52 | $ 2.07 | | | | | | | | | | | * Per share data may be impacted by rounding. | | DOVER CORPORATION QUARTERLY SEGMENT INFORMATION (unaudited)(in thousands) | 2026 | | 2025 | Q1 | Q2 | Q3 | Q3 YTD | | Q1 | Q2 | Q3 | Q3 YTD | Q4 | FY 2025 REVENUE | | | | | | | | | | | Engineered Products | $ 266,639 | $ 283,481 | $ 274,903 | $ 825,023 | | $ 254,646 | $ 275,944 | $ 279,705 | $ 810,295 | $ 275,549 | $ 1,085,844 Clean Energy & Fueling | 554,809 | 594,959 | 606,003 | 1,755,771 | | 491,148 | 546,097 | 541,368 | 1,578,613 | 551,894 | 2,130,507 Imaging & Identification | 285,420 | 305,101 | 304,667 | 895,188 | | 280,090 | 292,009 | 299,100 | 871,199 | 302,244 | 1,173,443 Pumps & Process Solutions | 537,810 | 552,709 | 568,517 | 1,659,036 | | 493,573 | 520,554 | 550,920 | 1,565,047 | 583,623 | 2,148,670 Climate & Sustainability Technologies | 411,060 | 455,097 | 481,452 | 1,347,609 | | 347,888 | 416,151 | 408,529 | 1,172,568 | 387,273 | 1,559,841 Intersegment eliminations | (2,115) | (1,326) | (1,703) | (5,144) | | (1,286) | (1,163) | (1,781) | (4,230) | (1,504) | (5,734) Total consolidated revenue | $ 2,053,623 | $ 2,190,021 | $ 2,233,839 | $ 6,477,483 | | $ 1,866,059 | $ 2,049,592 | $ 2,077,841 | $ 5,993,492 | $ 2,099,079 | $ 8,092,571 | | | | | | | | | | | EARNINGS FROM CONTINUING OPERATIONS | | | | | | | | Segment Earnings: | | | | | | | | | | | Engineered Products | $ 44,991 | $ 57,798 | $ 56,613 | $ 159,402 | | $ 44,114 | $ 53,511 | $ 57,483 | $ 155,108 | $ 62,158 | $ 217,266 Clean Energy & Fueling | 99,041 | 128,546 | 132,881 | 360,468 | | 85,644 | 107,771 | 118,665 | 312,080 | 105,990 | 418,070 Imaging & Identification | 77,457 | 84,976 | 95,171 | 257,604 | | 77,575 | 76,937 | 81,772 | 236,284 | 78,451 | 314,735 Pumps & Process Solutions | 169,492 | 178,848 | 177,878 | 526,218 | | 151,275 | 159,504 | 168,565 | 479,344 | 172,256 | 651,600 Climate & Sustainability Technologies | 63,995 | 75,826 | 80,555 | 220,376 | | 52,119 | 77,262 | 76,002 | 205,383 | 60,264 | 265,647 Total segment earnings | 454,976 | 525,994 | 543,098 | 1,524,068 | | 410,727 | 474,985 | 502,487 | 1,388,199 | 479,119 | 1,867,318 Purchase accounting expenses 1 | 54,579 | 51,591 | 45,850 | 152,020 | | 49,104 | 51,123 | 59,381 | 159,608 | 58,837 | 218,445 Restructuring and other costs 2 | 36,795 | 24,635 | 21,767 | 83,197 | | 9,397 | 23,210 | 15,913 | 48,520 | 29,466 | 77,986 Gain on dispositions 3 | — | — | — | — | | (2,468) | (2,176) | — | (4,644) | — | (4,644) Corporate expense / other 4 | 49,238 | 47,534 | 42,445 | 139,217 | | 51,959 | 41,875 | 31,515 | 125,349 | 39,190 | 164,539 Interest expense | 29,522 | 29,058 | 28,870 | 87,450 | | 27,608 | 26,791 | 27,239 | 81,638 | 28,134 | 109,772 Interest income | (14,060) | (14,522) | (16,520) | (45,102) | | (20,254) | (17,935) | (17,804) | (55,993) | (17,039) | (73,032) Earnings before provision for income taxes | 298,902 | 387,698 | 420,686 | 1,107,286 | | 295,381 | 352,097 | 386,243 | 1,033,721 | 340,531 | 1,374,252 Provision for income taxes | 60,153 | 75,153 | 83,866 | 219,172 | | 56,140 | 71,967 | 82,951 | 211,058 | 65,765 | 276,823 Earnings from continuing operations | $ 238,749 | $ 312,545 | $ 336,820 | $ 888,114 | | $ 239,241 | $ 280,130 | $ 303,292 | $ 822,663 | $ 274,766 | $ 1,097,429 | | | | | | | | | | | SEGMENT EARNINGS MARGIN | | | | | | | | | Engineered Products | 16.9 % | 20.4 % | 20.6 % | 19.3 % | | 17.3 % | 19.4 % | 20.6 % | 19.1 % | 22.6 % | 20.0 % Clean Energy & Fueling | 17.9 % | 21.6 % | 21.9 % | 20.5 % | | 17.4 % | 19.7 % | 21.9 % | 19.8 % | 19.2 % | 19.6 % Imaging & Identification | 27.1 % | 27.9 % | 31.2 % | 28.8 % | | 27.7 % | 26.3 % | 27.3 % | 27.1 % | 26.0 % | 26.8 % Pumps & Process Solutions | 31.5 % | 32.4 % | 31.3 % | 31.7 % | | 30.6 % | 30.6 % | 30.6 % | 30.6 % | 29.5 % | 30.3 % Climate & Sustainability Technologies | 15.6 % | 16.7 % | 16.7 % | 16.4 % | | 15.0 % | 18.6 % | 18.6 % | 17.5 % | 15.6 % | 17.0 % Total segment earnings margin | 22.2 % | 24.0 % | 24.3 % | 23.5 % | | 22.0 % | 23.2 % | 24.2 % | 23.2 % | 22.8 % | 23.1 % | | | | | | | | | | | 1 Purchase accounting expenses are primarily comprised of amortization of intangible assets. 2 Restructuring and other costs relate to actions taken for headcount reductions, facility consolidations and site closures, product line exits, and other asset charges. 3 Gain on dispositions, including post-closing adjustments. 4 Certain expenses are maintained at the corporate level and not allocated to the segments. These expenses include executive and functional compensation costs, non-service pension costs, non-operating insurance expenses, shared business services and digital and IT overhead costs, deal-related expenses and various administrative expenses relating to the corporate headquarters. DOVER CORPORATION QUARTERLY ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE (NON-GAAP) (unaudited)(in thousands, except per share data*) Non-GAAP Reconciliations | 2026 | | 2025 | Q1 | Q2 | Q3 | Q3 YTD | | Q1 | Q2 | Q3 | Q3 YTD | Q4 | FY 2025 Adjusted earnings from continuing operations: | | | | | | | | | Earnings from continuing operations | $ 238,749 | $ 312,545 | $ 336,820 | $ 888,114 | | $ 239,241 | $ 280,130 | $ 303,292 | $ 822,663 | $ 274,766 | $ 1,097,429 Purchase accounting expenses, pre-tax 1 | 54,579 | 51,591 | 45,850 | 152,020 | | 49,104 | 51,123 | 59,381 | 159,608 | 58,837 | 218,445 Purchase accounting expenses, tax impact 2 | (12,692) | (11,704) | (12,011) | (36,407) | | (10,919) | (11,367) | (14,067) | (36,353) | (14,134) | (50,487) Restructuring and other costs, pre-tax 3 | 36,795 | 24,635 | 21,767 | 83,197 | | 9,397 | 23,210 | 15,913 | 48,520 | 29,466 | 77,986 Restructuring and other costs, tax impact 2 | (8,048) | (5,375) | (4,551) | (17,974) | | (1,887) | (4,642) | (3,230) | (9,759) | (5,608) | (15,367) Gain on dispositions, pre- tax 4 | — | — | — | — | | (2,468) | (2,176) | — | (4,644) | — | (4,644) Gain on dispositions, tax- impact 2 | — | — | — | — | | 689 | 435 | — | 1,124 | — | 1,124 Adjusted earnings from continuing operations | $ 309,383 | $ 371,692 | $ 387,875 | $ 1,068,950 | | $ 283,157 | $ 336,713 | $ 361,289 | $ 981,159 | $ 343,327 | $ 1,324,486 | | | | | | | | | | | Adjusted diluted earnings per share from continuing operations: | | | | | | | Diluted earnings per share from continuing operations | $ 1.76 | $ 2.31 | $ 2.50 | $ 6.56 | | $ 1.73 | $ 2.03 | $ 2.20 | $ 5.96 | $ 2.01 | $ 7.97 Purchase accounting expenses, pre-tax 1 | 0.40 | 0.38 | 0.34 | 1.12 | | 0.36 | 0.37 | 0.43 | 1.16 | 0.43 | 1.59 Purchase accounting expenses, tax impact 2 | (0.09) | (0.09) | (0.09) | (0.27) | | (0.08) | (0.08) | (0.10) | (0.26) | (0.10) | (0.37) Restructuring and other costs, pre-tax 3 | 0.27 | 0.18 | 0.16 | 0.61 | | 0.07 | 0.17 | 0.12 | 0.35 | 0.22 | 0.57 Restructuring and other costs, tax impact 2 | (0.06) | (0.04) | (0.03) | (0.13) | | (0.01) | (0.03) | (0.02) | (0.07) | (0.04) | (0.11) Gain on dispositions, pre- tax 4 | — | — | — | — | | (0.02) | (0.02) | — | (0.03) | — | (0.03) Gain on dispositions, tax- impact 2 | — | — | — | — | | — | — | — | 0.01 | — | 0.01 Adjusted diluted earnings per share from continuing operations | $ 2.28 | $ 2.74 | $ 2.88 | $ 7.89 | | $ 2.05 | $ 2.44 | $ 2.62 | $ 7.10 | $ 2.51 | $ 9.61 | | | | | | | | | | | 1 Purchase accounting expenses are primarily comprised of amortization of intangible assets. 2 Adjustments were tax effected using the statutory tax rates in the applicable jurisdictions or the effective tax rate, where applicable, for each period. 3 Restructuring and other costs relate to actions taken for headcount reductions, facility consolidations and site closures, product line exits, and other asset charges. Q1 2026, Q2 2026, Q3 2026 and YTD 2026 include other costs of $3.0 million, $4.3 million, $1.7 million, and $9.0 million, respectively, associated with a footprint reduction in our Climate & Sustainability Technologies segment. Q2 2025, Q3 2025, Q4 2025 and FY 2025 include other costs of $1.9 million, $1.8 million, $2.6 million and $6.3 million, respectively, associated with a footprint reduction within our Climate & Sustainability Technologies segment. Q2 2025 and FY 2025 include other costs of $4.0 million associated with a product line exit within our Climate & Sustainability Technologies segment. 4 Gain on dispositions, including post-closing adjustments. * Per share data and totals may be impacted by rounding. DOVER CORPORATION QUARTERLY ADJUSTED SEGMENT EBITDA (NON-GAAP) (unaudited)(in thousands) Non-GAAP Reconciliations | 2026 | | 2025 | Q1 | Q2 | Q3 | Q3 YTD | | Q1 | Q2 | Q3 | Q3 YTD | Q4 | FY 2025 ADJUSTED SEGMENT EBITDA | | | | | | | | | | | | | | | | | | | | | | Engineered Products: | | | | | | | | | | | Segment earnings | $ 44,991 | $ 57,798 | $ 56,613 | $ 159,402 | | $ 44,114 | $ 53,511 | $ 57,483 | $ 155,108 | $ 62,158 | $ 217,266 Other depreciation and amortization 1 | 5,486 | 5,447 | 5,647 | 16,580 | | 4,800 | 5,141 | 5,736 | 15,677 | 5,818 | 21,495 Adjusted segment EBITDA 2 | 50,477 | 63,245 | 62,260 | 175,982 | | 48,914 | 58,652 | 63,219 | 170,785 | 67,976 | 238,761 Adjusted segment EBITDA margin 2 | 18.9 % | 22.3 % | 22.6 % | 21.3 % | | 19.2 % | 21.3 % | 22.6 % | 21.1 % | 24.7 % | 22.0 % | | | | | | | | | | | Clean Energy & Fueling: | | | | | | | | | | | Segment earnings | $ 99,041 | $ 128,546 | $ 132,881 | $ 360,468 | | $ 85,644 | $ 107,771 | $ 118,665 | $ 312,080 | $ 105,990 | $ 418,070 Other depreciation and amortization 1 | 8,552 | 9,111 | 8,714 | 26,377 | | 8,578 | 8,961 | 8,582 | 26,121 | 8,685 | 34,806 Adjusted segment EBITDA 2 | 107,593 | 137,657 | 141,595 | 386,845 | | 94,222 | 116,732 | 127,247 | 338,201 | 114,675 | 452,876 Adjusted segment EBITDA margin 2 | 19.4 % | 23.1 % | 23.4 % | 22.0 % | | 19.2 % | 21.4 % | 23.5 % | 21.4 % | 20.8 % | 21.3 % | | | | | | | | | | | Imaging & Identification: | | | | | | | | | | | Segment earnings | $ 77,457 | $ 84,976 | $ 95,171 | $ 257,604 | | $ 77,575 | $ 76,937 | $ 81,772 | $ 236,284 | $ 78,451 | $ 314,735 Other depreciation and amortization 1 | 4,208 | 4,373 | 4,556 | 13,137 | | 4,093 | 4,229 | 4,091 | 12,413 | 5,155 | 17,568 Adjusted segment EBITDA 2 | 81,665 | 89,349 | 99,727 | 270,741 | | 81,668 | 81,166 | 85,863 | 248,697 | 83,606 | 332,303 Adjusted segment EBITDA margin 2 | 28.6 % | 29.3 % | 32.7 % | 30.2 % | | 29.2 % | 27.8 % | 28.7 % | 28.5 % | 27.7 % | 28.3 % | | | | | | | | | | | Pumps & Process Solutions: | | | | | | | | | | | Segment earnings | $ 169,492 | $ 178,848 | $ 177,878 | $ 526,218 | | $ 151,275 | $ 159,504 | $ 168,565 | $ 479,344 | $ 172,256 | $ 651,600 Other depreciation and amortization 1 | 14,012 | 14,004 | 15,059 | 43,075 | | 12,601 | 13,131 | 14,256 | 39,988 | 14,238 | 54,226 Adjusted segment EBITDA 2 | 183,504 | 192,852 | 192,937 | 569,293 | | 163,876 | 172,635 | 182,821 | 519,332 | 186,494 | 705,826 Adjusted segment EBITDA margin 2 | 34.1 % | 34.9 % | 33.9 % | 34.3 % | | 33.2 % | 33.2 % | 33.2 % | 33.2 % | 32.0 % | 32.8 % | | | | | | | | | | | Climate & Sustainability Technologies: | | | | | | | | | | Segment earnings | $ 63,995 | $ 75,826 | $ 80,555 | $ 220,376 | | $ 52,119 | $ 77,262 | $ 76,002 | $ 205,383 | $ 60,264 | $ 265,647 Other depreciation and amortization 1 | 8,069 | 8,001 | 7,966 | 24,036 | | 7,325 | 7,605 | 7,558 | 22,488 | 7,856 | 30,344 Adjusted segment EBITDA 2 | 72,064 | 83,827 | 88,521 | 244,412 | | 59,444 | 84,867 | 83,560 | 227,871 | 68,120 | 295,991 Adjusted segment EBITDA margin 2 | 17.5 % | 18.4 % | 18.4 % | 18.1 % | | 17.1 % | 20.4 % | 20.5 % | 19.4 % | 17.6 % | 19.0 % | | | | | | | | | | | Total Segments: | | | | | | | | | | | Total segment earnings 2, 3 | $ 454,976 | $ 525,994 | $ 543,098 | $ 1,524,068 | | $ 410,727 | $ 474,985 | $ 502,487 | $ 1,388,199 | $ 479,119 | $ 1,867,318 Other depreciation and amortization 1 | 40,327 | 40,936 | 41,942 | 123,205 | | 37,397 | 39,067 | 40,223 | 116,687 | 41,752 | 158,439 Total Adjusted segment EBITDA 2 | 495,303 | 566,930 | 585,040 | 1,647,273 | | 448,124 | 514,052 | 542,710 | 1,504,886 | 520,871 | 2,025,757 Total Adjusted segment EBITDA margin 2 | 24.1 % | 25.9 % | 26.2 % | 25.4 % | | 24.0 % | 25.1 % | 26.1 % | 25.1 % | 24.8 % | 25.0 % | | | | | | | | | | | 1 Other depreciation and amortization relates to property, plant, and equipment and intangibles, and excludes amounts related to purchase accounting expenses and restructuring and other costs. 2 Refer to Non-GAAP Measures Definitions section for definition. 3 Refer to Quarterly Segment Information section for reconciliation of total segment earnings to earnings from continuing operations. DOVER CORPORATION QUARTERLY EARNINGS FROM CONTINUING OPERATIONS TO ADJUSTED SEGMENT EBITDA RECONCILIATION (NON-GAAP) (unaudited)(in thousands) Non-GAAP Reconciliations | 2026 | | 2025 | Q1 | Q2 | Q3 | Q3 YTD | | Q1 | Q2 | Q3 | Q3 YTD | Q4 | FY 2025 Earnings from continuing operations | $ 238,749 | $ 312,545 | $ 336,820 | $ 888,114 | | $ 239,241 | $ 280,130 | $ 303,292 | $ 822,663 | $ 274,766 | $ 1,097,429 Provision for income taxes | 60,153 | 75,153 | 83,866 | 219,172 | | 56,140 | 71,967 | 82,951 | 211,058 | 65,765 | 276,823 Earnings before provision for income taxes | 298,902 | 387,698 | 420,686 | 1,107,286 | | 295,381 | 352,097 | 386,243 | 1,033,721 | 340,531 | 1,374,252 Interest income | (14,060) | (14,522) | (16,520) | (45,102) | | (20,254) | (17,935) | (17,804) | (55,993) | (17,039) | (73,032) Interest expense | 29,522 | 29,058 | 28,870 | 87,450 | | 27,608 | 26,791 | 27,239 | 81,638 | 28,134 | 109,772 Corporate expense / other 1 | 49,238 | 47,534 | 42,445 | 139,217 | | 51,959 | 41,875 | 31,515 | 125,349 | 39,190 | 164,539 Gain on dispositions 2 | — | — | — | — | | (2,468) | (2,176) | — | (4,644) | — | (4,644) Restructuring and other costs 3 | 36,795 | 24,635 | 21,767 | 83,197 | | 9,397 | 23,210 | 15,913 | 48,520 | 29,466 | 77,986 Purchase accounting expenses 4 | 54,579 | 51,591 | 45,850 | 152,020 | | 49,104 | 51,123 | 59,381 | 159,608 | 58,837 | 218,445 Total segment earnings 5 | 454,976 | 525,994 | 543,098 | 1,524,068 | | 410,727 | 474,985 | 502,487 | 1,388,199 | 479,119 | 1,867,318 Add: Other depreciation and amortization 6 | 40,327 | 40,936 | 41,942 | 123,205 | | 37,397 | 39,067 | 40,223 | 116,687 | 41,752 | 158,439 Total adjusted segment EBITDA 5 | $ 495,303 | $ 566,930 | $ 585,040 | $ 1,647,273 | | $ 448,124 | $ 514,052 | $ 542,710 | $ 1,504,886 | $ 520,871 | $ 2,025,757 | | | | | | | | | | | 1 Certain expenses are maintained at the corporate level and not allocated to the segments. These expenses include executive and functional compensation costs, non-service pension costs, non-operating insurance expenses, shared business services and digital and IT overhead costs, deal-related expenses and various administrative expenses relating to the corporate headquarters. 2 Gain on dispositions, including post-closing adjustments. 3 Restructuring and other costs relate to actions taken for headcount reductions, facility consolidations and site closures, product line exits, and other asset charges. 4 Purchase accounting expenses are primarily comprised of amortization of intangible assets. 5 Refer to Non-GAAP Measures Definitions section for definition. 6 Other depreciation and amortization relates to property, plant, and equipment and intangibles, and excludes amounts related to purchase accounting expenses and restructuring and other costs. DOVER CORPORATION REVENUE GROWTH FACTORS AND ADJUSTED EPS GUIDANCE RECONCILIATIONS (NON-GAAP) (unaudited) Non-GAAP Reconciliations Revenue Growth Factors | 2026 | Q3 | | Q3 YTD Organic | | | Engineered Products | (1.6) % | | 0.8 % Clean Energy & Fueling | 12.1 % | | 10.6 % Imaging & Identification | 2.2 % | | 0.7 % Pumps & Process Solutions | 1.2 % | | 0.3 % Climate & Sustainability Technologies | 17.9 % | | 13.7 % Total Organic | 7.1 % | | 5.7 % Acquisitions | 0.5 % | | 1.2 % Currency translation | (0.1) % | | 1.2 % Total* | 7.5 % | | 8.1 % * Totals may be impacted by rounding. | 2026 | Q3 | | Q3 YTD Organic | | | United States | 12.6 % | | 10.9 % Europe | (3.0) % | | (4.1) % Asia | 15.1 % | | 6.9 % Other Americas | (7.0) % | | 1.8 % Other | (1.1) % | | (1.7) % Total Organic | 7.1 % | | 5.7 % Acquisitions | 0.5 % | | 1.2 % Currency translation | (0.1) % | | 1.2 % Total* | 7.5 % | | 8.1 % * Totals may be impacted by rounding. Adjusted EPS Guidance Reconciliation* | Range 2026 Guidance for Earnings per Share from Continuing Operations (GAAP) | $8.93 | | $9.08 Purchase accounting expenses, net | | 1.16 | Restructuring and other costs, net | | 0.51 | 2026 Guidance for Adjusted Earnings per Share from Continuing Operations (Non-GAAP) | $10.60 | | $10.75 * Per share data and totals may be impacted by rounding. DOVER CORPORATION QUARTERLY CASH FLOW AND FREE CASH FLOW (NON-GAAP) (unaudited)(in thousands) Quarterly Cash Flow | 2026 | | 2025 | Q1 | Q2 | Q3 | Q3 YTD | | Q1 | Q2 | Q3 | Q3 YTD | Q4 | FY 2025 Net Cash Flows Provided By (Used In): | | | | | | | | Operating activities | $ 190,997 | $ 236,171 | $ 438,763 | $ 865,931 | | $ 157,474 | $ 212,340 | $ 424,245 | $ 794,059 | $ 543,946 | $ 1,338,005 Investing activities | (61,660) | (44,181) | (96,767) | (202,608) | | (74,186) | (681,584) | (58,857) | (814,627) | (71,967) | (886,594) Financing activities | (161,451) | (73,586) | (406,325) | (641,362) | | (122,234) | (84,235) | (73,878) | (280,347) | (344,523) | (624,870) Quarterly Free Cash Flow (Non-GAAP) | 2026 | | 2025 | Q1 | Q2 | Q3 | Q3 YTD | | Q1 | Q2 | Q3 | Q3 YTD | Q4 | FY 2025 Cash flow from operating activities | $ 190,997 | $ 236,171 | $ 438,763 | $ 865,931 | | $ 157,474 | $ 212,340 | $ 424,245 | $ 794,059 | $ 543,946 | $ 1,338,005 Less: Capital expenditures | (59,808) | (47,783) | (55,414) | (163,005) | | (48,192) | (60,932) | (54,150) | (163,274) | (56,989) | (220,263) Free cash flow | $ 131,189 | $ 188,388 | $ 383,349 | $ 702,926 | | $ 109,282 | $ 151,408 | $ 370,095 | $ 630,785 | $ 486,957 | $ 1,117,742 | | | | | | | | | | | Cash flow from operating activities as a percentage of revenue | 9.3 % | 10.8 % | 19.6 % | 13.4 % | | 8.4 % | 10.4 % | 20.4 % | 13.2 % | 25.9 % | 16.5 % | | | | | | | | | | | Cash flow from operating activities as a percentage of adjusted earnings from continuing operations | 61.7 % | 63.5 % | 113.1 % | 81.0 % | | 55.6 % | 63.1 % | 117.4 % | 80.9 % | 158.4 % | 101.0 % | | | | | | | | | | | Free cash flow as a percentage of revenue | 6.4 % | 8.6 % | 17.2 % | 10.9 % | | 5.9 % | 7.4 % | 17.8 % | 10.5 % | 23.2 % | 13.8 % | | | | | | | | | | | Free cash flow as a percentage of adjusted earnings from continuing operations | 42.4 % | 50.7 % | 98.8 % | 65.8 % | | 38.6 % | 45.0 % | 102.4 % | 64.3 % | 141.8 % | 84.4 % DOVER CORPORATION PERFORMANCE MEASURES (unaudited)(in thousands) | 2026 | | 2025 | Q1 | Q2 | Q3 | Q3 YTD | | Q1 | Q2 | Q3 | Q3 YTD | Q4 | FY 2025 BOOKINGS | | | | | | | | | | | | | | | | | | | | | | Engineered Products | $ 294,009 | $ 277,148 | $ 274,394 | $ 845,551 | | $ 264,538 | $ 276,571 | $ 273,278 | $ 814,387 | $ 281,237 | $ 1,095,624 Clean Energy & Fueling | 615,197 | 602,624 | 592,608 | 1,810,429 | | 543,859 | 526,819 | 509,553 | 1,580,231 | 587,041 | 2,167,272 Imaging & Identification | 312,646 | 302,771 | 292,907 | 908,324 | | 288,169 | 292,092 | 292,229 | 872,490 | 302,047 | 1,174,537 Pumps & Process Solutions | 597,578 | 590,020 | 557,177 | 1,744,775 | | 499,287 | 530,158 | 510,960 | 1,540,405 | 500,779 | 2,041,184 Climate & Sustainability Technologies | 646,960 | 560,272 | 594,051 | 1,801,283 | | 395,623 | 384,246 | 415,099 | 1,194,968 | 470,081 | 1,665,049 Intersegment eliminations | (2,714) | (1,482) | (1,025) | (5,221) | | (1,892) | (1,295) | (1,380) | (4,567) | (1,472) | (6,039) Total consolidated bookings | $ 2,463,676 | $ 2,331,353 | $ 2,310,112 | $ 7,105,141 | | $ 1,989,584 | $ 2,008,591 | $ 1,999,739 | $ 5,997,914 | $ 2,139,713 | $ 8,137,627 Non-GAAP Measures Definitions In an effort to provide investors with additional information regarding our results as determined by GAAP, management also discloses non-GAAP information that management believes provides useful information to investors. Adjusted earnings from continuing operations, adjusted diluted earnings per share from continuing operations, total segment earnings, total segment earnings margin, adjusted segment EBITDA, adjusted segment EBITDA margin, free cash flow, free cash flow as a percentage of revenue, free cash flow as a percentage of adjusted earnings from continuing operations, and organic revenue growth are not financial measures under GAAP and should not be considered as a substitute for earnings from continuing operations, diluted earnings per share from continuing operations, cash flows from operating activities, or revenue as determined in accordance with GAAP, and they may not be comparable to similarly titled measures reported by other companies. The items described in our definitions herein, unless otherwise noted, relate solely to our continuing operations. Adjusted earnings from continuing operations represents earnings from continuing operations adjusted for the effect of purchase accounting expenses, restructuring and other costs/benefits and gain/loss on dispositions. Purchase accounting expenses are primarily comprised of amortization of intangible assets. We exclude after-tax purchase accounting expenses because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions the Company consummates. While we have a history of acquisition activity, our acquisitions do not happen in a predictive cycle. Exclusion of purchase accounting expenses facilitates more consistent comparisons of operating results over time. We believe it is important to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. We exclude the other items because they occur for reasons that may be unrelated to the Company's commercial performance during the period and/or management believes they are not indicative of the Company's ongoing operating costs or gains in a given period. Adjusted diluted earnings per share from continuing operations or adjusted earnings per share from continuing operations represents diluted earnings per share from continuing operations adjusted for the effect of purchase accounting expenses, restructuring and other costs/benefits and gain/loss on disposition. Total segment earnings is defined as the sum of earnings before purchase accounting expenses, restructuring and other costs/benefits, gain/loss on dispositions, corporate expenses/other, interest expense, interest income and provision for income taxes for all segments. Total segment earnings margin is defined as total segment earnings divided by revenue. Adjusted segment EBITDA is defined as segment earnings plus other depreciation and amortization expense, which relates to property, plant, and equipment and intangibles, and excludes amounts related to purchase accounting expenses and restructuring and other costs/benefits. Adjusted segment EBITDA margin is defined as adjusted segment EBITDA divided by revenue. Management believes the non-GAAP measures above are useful to investors to better understand the Company's ongoing profitability as they better reflect the Company's core operating results, offer more transparency and facilitate easier comparability to prior and future periods and to its peers. Free cash flow represents net cash provided by operating activities minus capital expenditures. Free cash flow as a percentage of revenue equals free cash flow divided by revenue. Free cash flow as a percentage of adjusted earnings from continuing operations equals free cash flow divided by adjusted earnings from continuing operations. Management believes that free cash flow and free cash flow ratios are important measures of liquidity because they provide management and investors a measurement of cash generated from operations that is available for mandatory payment obligations and investment opportunities, such as funding acquisitions, paying dividends, repaying debt and repurchasing our common stock. Management believes that reporting organic revenue growth, which excludes the impact of foreign currency exchange rates and the impact of acquisitions and dispositions, provides a useful comparison of our revenue and trends between periods. We do not provide a reconciliation of forward-looking organic revenue to the most directly comparable GAAP financial measure pursuant to the exception provided in Item 10(e)(1)(i)(B) of Regulation S-K because we are not able to provide a meaningful or accurate compilation of reconciling items. This is due to the inherent difficulty in accurately forecasting the timing and amounts of the items that would be excluded from the most directly comparable GAAP financial measure or are out of our control. For the same reasons, we are unable to address the probable significance of unavailable information which may be material. Performance Measures Definitions Bookings represent total orders received from customers in the current reporting period and exclude de-bookings related to orders received in prior periods, if any. This metric is an important measure of performance and an indicator of revenue order trends. We use the above operational metric in monitoring the performance of the business. We believe the operational metric is useful to investors and other users of our financial information in assessing the performance of our segments. Investor Contact: | Media Contact: Jack Dickens | Adrian Sakowicz Vice President - Investor Relations | Vice President - Communications (630) 743-2566 | (630) 743-5039 [email protected] | [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/dover-reports-third-quarter-2026-results-302916126.html

Dover Corporation (DOV) came out with quarterly earnings of $2.88 per share, beating the Zacks Consensus Estimate of $2.83 per share. This compares to earnings of $2.62 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.77%. A quarter ago, it was expected that this company would post earnings of $2.72 per share when it actually produced earnings of $2.74, delivering a surprise of +0.74%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Dover, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $2.23 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 1.47%. This compares to year-ago revenues of $2.08 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Dover shares have added about 2.4% since the beginning of the year versus the S&P 500's gain of 13.3%. While Dover has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Dover was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.81 on $2.22 billion in revenues for the coming quarter and $10.65 on $8.66 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the bottom 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Luxfer (LXFR), has yet to report results for the quarter ended September 2026. This materials technology company specializing in aluminum, magnesium and zirconium is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +10%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Luxfer's revenues are expected to be $93.6 million, up 0.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dover Corporation (DOV) : Free Stock Analysis Report Luxfer Holdings PLC (LXFR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dover Corporation (DOV) reported $2.23 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 7.5%. EPS of $2.88 for the same period compares to $2.62 a year ago. The reported revenue represents a surprise of +1.47% over the Zacks Consensus Estimate of $2.2 billion. With the consensus EPS estimate being $2.83, the EPS surprise was +1.77%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Dover performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Revenue- Engineered Products: $274.9 million versus $288.47 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -1.7% change. - Revenue- Clean Energy & Fueling: $606 million versus the three-analyst average estimate of $574.01 million. The reported number represents a year-over-year change of +11.9%. - Revenue- Climate & Sustainability Technologies: $481.45 million versus $456.18 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +17.9% change. - Revenue- Pumps & Process Solutions: $568.52 million compared to the $574.5 million average estimate based on three analysts. The reported number represents a change of +3.2% year over year. - Revenue- Intersegment eliminations: $-1.7 million versus $-2.2 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -4.4% change. - Revenue- Imaging & Identification: $304.67 million versus the three-analyst average estimate of $310.52 million. The reported number represents a year-over-year change of +1.9%. - Adjusted EBITDA- Engineered Products: $62.26 million compared to the $68.33 million average estimate based on three analysts. - Adjusted EBITDA- Clean Energy & Fueling: $141.6 million compared to the $136.97 million average estimate based on three analysts. - Adjusted EBITDA- Climate & Sustainability Technologies: $88.52 million compared to the $90.56 million average estimate based on three analysts. - Adjusted EBITDA- Pumps & Process Solutions: $192.94 million versus the three-analyst average estimate of $198.9 million. - Adjusted EBITDA- Imaging & Identification: $99.73 million compared to the $92.11 million average estimate based on three analysts. View all Key Company Metrics for Dover here>>> Shares of Dover have returned +5.7% over the past month versus the Zacks S&P 500 composite's no change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dover Corporation (DOV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dover Corporation DOV has reported third-quarter 2026 adjusted earnings of $2.88 per share, rising 10% year over year and beating the Zacks Consensus Estimate of $2.83 by 1.77%. The improvement reflected broad-based demand, higher revenues and operational execution. On a reported basis, earnings from continuing operations were $2.50 per share, up 14% year over year. Revenues increased 7.5% year over year to $2.23 billion, beating the Zacks Consensus Estimate of $2.20 billion by 1.47%. Organic revenues grew 7.1%. Our model expected organic revenues to rise 4%. Cost of sales increased 6.9% year over year to $1.33 billion. Gross profit rose 8.4% to $903 million, while the gross margin improved to 40.4% from 40.1% in the prior-year quarter. Selling, general and administrative expenses increased 6.1% to $484 million. Operating earnings advanced 11.1% to $419 million, while the operating margin expanded to 18.8% from 18.2%. Total adjusted segment EBITDA increased 7.8% to $585 million. The related margin expanded 10 basis points to 26.2%, aided by productivity improvements, favorable product mix and volume leverage. Dover Corporation price-consensus-eps-surprise-chart | Dover Corporation Quote The Engineered Products segment's revenues declined 1.7% year over year to $275 million. The figure missed our estimate of $289 million. Adjusted EBITDA decreased 1.5% to $62.3 million from $63.2 million. The figure beat our estimate of $73 million. Strong demand for aerospace and defense components was offset by lower volumes in European vehicle services. The Clean Energy & Fueling segment's revenues increased 11.9% to $606 million, supported by clean energy components, fluid transport and North American retail fueling. The figure beat our estimate of $574 million. Adjusted EBITDA rose 11.3% to $141.6 million. The figure beat our estimate of $132 million. Volume leverage was partly offset by production ramp-up costs in cryogenic and space components. The Imaging & Identification segment's revenues increased 1.9% to $304.7 million. The reported figure missed our projection of $315 million. Adjusted EBITDA rose 16.1% to $99.7 million from $85.9 million. The figure missed our estimate of $97 million. Double-digit growth in serialization software, along with steady demand for marking and coding products, supported the performance. The Pumps & Process Solutions segment's revenues grew 3.2% year over year to $568.5 million but missed our estimate of $572 million. Adjusted EBITDA rose 5.5% to $192.9 million. The figure missed our estimate of $207 million. Growth in AI and energy infrastructure, single-use biopharma and industrial pumps supported revenues. The Climate & Sustainability Technologies segment's revenues increased 17.9% year over year to $481.5 million, driven by strong shipments of global heat exchangers and carbon dioxide refrigeration systems. We had predicted revenues of $448 million for this segment. Adjusted EBITDA increased 5.9% to $88.5 million but missed our estimate of $97.8 million. Dover's bookings totaled $2.31 billion compared with $2 billion in the year-ago quarter. Orders increased across all five segments, resulting in a book-to-bill ratio of 1.03. Climate & Sustainability Technologies recorded bookings of $594.1 million, up from $415.4 million. The company's trailing 12-month book-to-bill ratio reached 1.08. Approximately 50% of its consolidated backlog is scheduled for delivery in 2027, strengthening revenue visibility. Cash flow from operating activities increased to $438.8 million from $424.2 million in the prior-year quarter. Capital expenditure increased to $55.4 million from $54.2 million. For the first nine months, the free cash flow increased 11.4% to $702.9 million. Dover ended September with cash and cash equivalents of $1.69 billion. The company repurchased approximately $330 million worth of shares during the quarter, demonstrating continued capital deployment. Backed by favorable demand trends, Dover narrowed its 2026 adjusted earnings guidance to $10.60-$10.75 per share from the previously stated $10.55-$10.75. Full-year revenue growth is projected at 7-8%, including organic growth of 5-6%, compared with the earlier projections of 6-8% and 4-6%, respectively. The company expects the free cash flow to represent 14-16% of revenues, with capital expenditure projected at $200-$220 million. The company anticipates sustained demand momentum entering 2027. The company's shares have gained 19.2% in the past year compared with the industry's growth of 4.5%. Image Source: Zacks Investment Research Dover currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Graco Inc.'s GGG third-quarter 2026 adjusted earnings of 81 cents per share missed the Zacks Consensus Estimate of 82 cents. The bottom line grew from 73 cents in the year-ago quarter. Graco's revenues of $590 million surpassed the consensus estimate of $586 million. The top line increased from $543 million in third-quarter 2025. Flowserve Corporation FLS is scheduled to release third-quarter 2026 results on Oct. 28. The Zacks Consensus Estimate for FLS's third-quarter 2026 earnings is pegged at 98 cents per share, suggesting year-over-year growth of 8.9%. The Zacks Consensus Estimate for Flowserve Corp's top line is pegged at $1.24 billion, indicating an increase of 5.3% from the prior year's actual. Applied Industrial Technologies, Inc. AIT is scheduled to release first-quarter fiscal 2027 results on Oct. 27. The Zacks Consensus Estimate for AIT's first-quarter 2027 earnings is pegged at $2.86 per share, suggesting year-over-year growth of 8.7%. The Zacks Consensus Estimate for Applied Industrial's top line is pegged at $1.30 billion, indicating an increase of 7.6% from the prior year's actual. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dover Corporation (DOV) : Free Stock Analysis Report Flowserve Corporation (FLS) : Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report Graco Inc. (GGG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. - Organic Growth: Accelerated to 7% in Q3 2026, led by secular growth markets. - Orders/Bookings: Up 16% year-over-year with growth in all five segments; trailing 12-month bookings up 16%. - Book-to-Bill: 1.03% for the quarter; trailing book-to-bill climbed to 1.08%. - Backlog: Up 35% year-over-year and up sequentially from Q2; roughly half scheduled to ship in 2027. - Adjusted EPS: $2.88 per share, up 10% in the quarter. - Full-Year Guidance: Organic growth of 5% to 6%; adjusted EPS of $10.60 to $10.75 per share (double-digit growth). - Secular Growth Markets: Now over 25% of total revenue, up from 18% in 2024. - Engineered Products: Down 2% organically; margin stable on favorable mix and cost controls. - Clean Energy and Fueling: Grew 12% organically; margin roughly flat as volume leverage offset by production ramp in cryogenic product lines. - Imaging and ID: Grew 2% organically; margins expanded 400 basis points to 33%. - Pumps and Process Solutions: Grew 1% organically; margin expanded 70 basis points to 34%. - Climate and Sustainability Technologies: Accelerated to 18% organic growth; segment margin was 18%. - Food Retail Costs: Absorbed roughly $40 million of costs to date from production ramp and duplicate fixed costs. - Free Cash Flow: Year-to-date $703 million (11% of revenue), up $72 million year-over-year; Q3 free cash flow $383 million (17% of revenue). - Full-Year Free Cash Flow Guidance: 14% to 16% of revenue. - CapEx: Full-year guidance raised to $200 million to $220 million. - Share Repurchases: Over $330 million in Q3; approximately $400 million year-to-date. - Acquisitions: Approximately $80 million committed to two announced bolt-on acquisitions (Clarin closed in August; Lishtang expected to close in Q4). - Liquidity: Over $3 billion of dry powder at quarter end. - Warning! GuruFocus has detected 1 Warning Sign with DOV. - Is DOV fairly valued? Test your thesis with our free DCF calculator. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Organic growth accelerated to 7% in Q3 2026, led by secular growth markets and durable demand across the portfolio. - Orders increased 16% year-over-year with growth in all five segments, and backlog is up 35% year-over-year, providing strong visibility into 2027. - Adjusted EPS rose 10% to $2.88, and full-year guidance was narrowed toward the upper end with organic growth of 5-6% and adjusted EPS of $10.60-$10.75. - Secular growth markets now represent over 25% of total revenue, up from 18% in 2024, with continued investment in high-return capacity expansions. - Strong free cash flow generation with year-to-date FCF of $703 million (11% of revenue) and Q3 FCF of $383 million (17% of revenue), supporting capital return and growth investments. - Engineered Products segment declined 2% organically due to lower volumes in European vehicle services, partially offsetting aerospace and defense strength. - Clean Energy and Fueling margin was roughly flat as volume leverage was offset by production ramp costs in cryogenic product lines, with demand running ahead of capacity. - Climate and Sustainability Technologies incurred approximately $40 million in year-to-date costs from production ramp and duplicate fixed costs, with additional costs expected in Q4. - Food retail production ramp costs are expected to persist into early 2027, with margin improvement not fully materializing until after Q1 2027. - M&A activity has slowed with some deals lost due to valuation discipline, and the near-term bias is toward capital return rather than acquisitions. Q: With backlog up 35% year-over-year and roughly half scheduled to ship in 2027, is there any part of the non-backlog business you worry could be unsustainable next year? A: CEO Richard Tobin said the backlog build is driven by capacity-constrained secular growth businesses where customers are reserving capacity in advance, not by traditional long-cycle businesses MOGS and Belvax are "pretty much at a bottom," which he framed as upside to 2027 backlog. Traditional short-cycle businesses lack visibility, so Dover will book and ship as normal. Q: Is there any reason organic growth should slow materially in Q4 versus the strong order trajectory? A: CEO Richard Tobin attributed the implied Q4 moderation purely to calendarization and year-end caution customers managing working capital and potentially deferring order call-offs in December rather than any underlying demand slowdown. Q: How should we think about Climate & Sustainability Technologies (CST) margins in Q4 and 2027, given the ~$40 million of dual/ramp costs, and is the 20% segment margin target still on track? A: CEO Richard Tobin clarified the $40 million is a year-to-date headwind from the plant closure and redundant labor, and it will likely rise by year-end before flipping into productivity. He said CST is well on track for its targets, citing carryover savings from completed consolidation and strong incremental margins on higher volume, and reiterated a "material" margin improvement in 2027 without giving numbers ahead of formal guidance. Q: CST orders have been strong for a long time can you break down SWEP versus CO2, and is SWEP capacity constraining data center growth (only 3% this year)? A: CEO Richard Tobin confirmed Dover has been capacity constrained all year and is ramping to double capacity in the main SWEP product line serving data centers, with additional output coming online in Q1 2027. He noted the backlog is dominated by CO2 systems and SWEP, and that mix should shift over time from central cooling toward CDUs. Q: What is the normal backlog conversion ratio at this point in the year, and are industry lead times extending? A: CEO Richard Tobin said the ~50% shippable into 2027 is higher than a typical year normally book-to-bill would decline in Q3 because customers in secular growth segments are ordering well in advance to secure supply, which is why Dover disclosed the backlog figures and 2027 conversion. Q: On capital deployment, are you getting priced out of M&A, and is the buyback ($330M in Q3, ~$400M YTD) set to continue? A: CEO Richard Tobin said deal activity naturally slows in Q4 and Dover stuck to its return criteria, losing some assets that sold above its thresholds. With heavy organic investment and strong cash generation, he said the near-term bias remains toward returning capital to shareholders, while keeping optionality on an active bolt-on pipeline. Q: With inflation uncertain, what are you doing on pricing? A: CEO Richard Tobin said Dover has pulled forward pricing decisions this year rather than waiting for January, particularly where exposed to commodities such as group metals, putting the company roughly a quarter ahead of price-cost pressure heading into 2027. Q: How much of the food retail production ramp cost is non-repeatable, and when does it roll off? A: CEO Richard Tobin said the cost is largely extra labor that winds down as line rates stabilize, with fixed-cost absorption improving as volumes rise. He expects the ramp costs to progressively improve through the balance of the year and finish by the end of Q1 2027, and does not expect the full ~$40 million to carry into next year given backlog-supported volumes. Q: With fuel prices elevated, does that help retail fueling customers' cash flow and extend the CapEx cycle? A: CEO Richard Tobin said fueling margins have been up substantially over the past 1824 months and he doesn't expect them to narrow, leaving customers healthy and able to invest. Supply constraints in underground tank equipment are lengthening the cycle what was called a three-year CapEx cycle a year and a half ago now looks like at least four years. Q: Imaging & ID posted a record 33% margin is that sustainable or a one-time bump? A: CEO Richard Tobin cautioned the quarterly figure will move around due to FX and consumables-versus-equipment mix in Dover's most global business, but said the year-to-date margin level is entirely sustainable. He pointed to structural progress including a new Poland plant and the ink production rebuild completing in 2027 as sources of further productivity. Q: Clean Energy & Fueling margins were tougher year-over-year on the cryo/space production ramp where does the platform stand versus the 25% margin target? A: CEO Richard Tobin said the business is tracking toward the target, but heavy investment in cryogenic capacity to capture secular growth is dilutive near term a trade-off he'd take "any day." He likened it to SWEP, where investment ran ahead of revenue and margins are now robust as volume catches up, and said returns on invested capital should be excellent over time. Q: SWEP lead times were ~25 weeks still the case? And does rising copper create a margin issue? A: CEO Richard Tobin said copper exposure in SWEP is built into pricing mechanisms via supplier contracts, so no price-cost issue. He didn't confirm exact lead times but said capacity is being added sequentially with a big jump from Q4 into Q1 2027, and that Dover isn't losing share because supply bases in these markets are highly concentrated. Q: Quarterly orders of ~$2.32.4 billion are running ~910% above average quarterly revenue is that the right way to think about 2027 organic growth? A: CEO Richard Tobin pushed back, saying high-level math without knowing the duration and timing of orders is "a fool's game," though he noted Dover's proactive capacity investments position it to win in concentrated supply markets. Q: The greenfield expansion in below For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Watsco (WSO) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 27. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This heating and cooling company is expected to post quarterly earnings of $4.13 per share in its upcoming report, which represents a year-over-year change of +3.8%. Revenues are expected to be $2.21 billion, up 7% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.79% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Watsco, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.46%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Watsco will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Watsco would post earnings of $4.38 per share when it actually produced earnings of $4.00, delivering a surprise of -8.68%. Over the last four quarters, the company has beaten consensus EPS estimates just once. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Watsco appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Manufacturing - General Industrial industry, Dover Corporation (DOV), is soon expected to post earnings of $2.84 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +8.4%. Revenues for the quarter are expected to be $2.21 billion, up 6.2% from the year-ago quarter. The consensus EPS estimate for Dover has been revised 0.4% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.35%. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Dover will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Watsco, Inc. (WSO) : Free Stock Analysis Report Dover Corporation (DOV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research