Double-digit Q1 growth at Dover (NYSE: DOV) led by climate and fueling
Filing Impact
Filing Sentiment
Form Type
10-Q
Rhea-AI Filing Summary
Dover Corporation reported higher first‑quarter 2026 results with solid broad-based demand. Revenue rose to $2.05 billion, up 10.1%, driven by 5.3% organic growth, acquisitions and favorable currency, with particular strength in Climate & Sustainability Technologies and Clean Energy & Fueling.
Gross margin slipped to 38.9% from 40.0% on portfolio mix, while operating earnings increased to $305.9 million. Earnings from continuing operations were essentially flat at $238.7 million, but diluted EPS from continuing operations edged up to $1.76 from $1.73 as share count declined. Net earnings reached $238.4 million, including a small discontinued‑operations loss tied to a prior divestiture.
Bookings grew 23.8% to $2.5 billion, lifting book‑to‑bill above 1.0 in every segment and sharply in Climate & Sustainability Technologies. Cash from operations improved to $191.0 million, supporting $59.8 million of capital spending and $53.9 million of share repurchases, while cash and cash equivalents were $1.64 billion and net long‑term debt was stable.
Positive
- None.
Negative
- None.
Key Figures
Revenue: $2,053.6M
Diluted EPS from continuing operations: $1.76
Net earnings: $238.4M
+5 more
8 metrics
Revenue
$2,053.6M
Three months ended March 31, 2026; up 10.1% year over year
Diluted EPS from continuing operations
$1.76
Q1 2026 vs $1.73 in Q1 2025
Net earnings
$238.4M
Three months ended March 31, 2026; up 3.3% year over year
Gross margin
38.9%
Q1 2026 vs 40.0% in Q1 2025
Bookings
$2.5B
Three months ended March 31, 2026; up 23.8% year over year
Operating cash flow
$191.0M
Net cash provided by operating activities in Q1 2026
Restructuring and other costs
$36.8M
Three months ended March 31, 2026 vs $9.4M in prior year
Cash and cash equivalents
$1,641.9M
Balance at March 31, 2026
Key Terms
discontinued operations, segment earnings, book-to-bill, cash flow hedges, +2 more
6 terms
discontinued operations financial
"The ESG business was sold and reported as discontinued operations."
Discontinued operations are parts of a company that it has decided to sell or shut down, and no longer plans to run in the future. This matters to investors because it helps them understand which parts of the business are ongoing and which are being phased out, providing a clearer picture of the company’s current performance and future prospects. Think of it like a store closing a department—it no longer contributes to sales or profits.
segment earnings financial
"Management uses segment earnings to evaluate segment performance and allocate resources."
Segment earnings are the profit or loss reported for one specific part of a business—such as a product line, geographic region, or division—separated from the company’s overall results. Investors use them like slices of a pie to see which parts are making money, which are dragging performance down, and where management should invest or cut back, helping assess growth prospects and risk more precisely than looking at the company as a whole.
book-to-bill financial
"Book-to-bill is a ratio of the amount of bookings received from customers during a period divided by the amount of revenue recorded during that same period."
The book-to-bill ratio compares new orders a company has received (bookings) to the products or services it has invoiced or shipped (billings) over the same period. It matters to investors because a ratio above 1 means demand is outpacing fulfillment and the company may grow revenue or build backlog, while a ratio below 1 suggests slowing demand and possible future revenue weakness — think of it as new customer orders versus what the company actually sold.
cash flow hedges financial
"The Company has hedged portions of its forecasted sales and purchases with currency forward contracts designated as cash flow hedges."
A cash flow hedge is an accounting label companies use when they enter financial contracts—like currency or interest-rate agreements—to protect expected future cash payments or receipts from unpredictable moves. For investors, it signals that the company is trying to smooth out future cash variability (think of locking in a price to avoid surprises), which can reduce reported profit swings but also means the company has exposure to derivative instruments and their associated risks.
purchase accounting expenses financial
"Purchase accounting expenses are primarily comprised of amortization of acquired intangible assets."
Earnings Snapshot
Revenue: $2,053.6M
Q1 2026
Revenue
$2,053.6M
+10.1% YoY
Diluted EPS from continuing operations
$1.76
+1.7% YoY
Net earnings
$238.4M
+3.3% YoY
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
For the quarterly period ended March 31, 2026
or
OF 1934
For the transition period from to
Commission File Number: 1-4018
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12-b-2 of the Exchange Act .
| ☑ | Accelerated Filer | ☐ | Emerging Growth Company | ||||||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | |||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
The number of shares outstanding of the Registrant’s common stock as of April 17, 2026 was 134,661,414 .
Dover Corporation
Form 10-Q
Table of Contents
PART I — FINANCIAL INFORMATION | Page | |||||||
Item 1. | Financial Statements (unaudited) | |||||||
Condensed Consolidated Statements of Earnings for the three months ended March 31, 2026 and 2025 | 1 | |||||||
Condensed Consolidated Statements of Comprehensive Earnings for the three months ended March 31, 2026 and 2025 | 2 | |||||||
Condensed Consolidated Balance Sheets at March 31, 2026 and December 31, 2025 | 3 | |||||||
Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2026 and 2025 | 4 | |||||||
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025 | 5 | |||||||
Note 1 — Basis of Presentation | 6 | |||||||
Note 2 — Revenue | 6 | |||||||
Note 3 — Acquisitions | 7 | |||||||
Note 4 — Discontinued and Disposed Operations | 7 | |||||||
Note 5 — Inventories, net | 8 | |||||||
Note 6 — Property, Plant and Equipment, net | 8 | |||||||
Note 7 — Credit Losses | 8 | |||||||
Note 8 — Goodwill and Other Intangible Assets | 9 | |||||||
Note 9 — Restructuring Activities | 9 | |||||||
Note 10 — Borrowings | 10 | |||||||
Note 11 — Financial Instruments | 11 | |||||||
Note 12 — Income Taxes | 12 | |||||||
Note 13 — Equity Incentive Program | 13 | |||||||
Note 14 — Commitments and Contingent Liabilities | 14 | |||||||
Note 15 — Accumulated Other Comprehensive Earnings (Loss) | 15 | |||||||
Note 16 — Segment Information | 15 | |||||||
Note 17 — Stockholders' Equity | 19 | |||||||
Note 18 — Earnings per Share | 20 | |||||||
Note 19 — Recent Accounting Pronouncements | 20 | |||||||
Note 20 — Subsequent Events | 21 | |||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 22 | ||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 37 | ||||||
Item 4. | Controls and Procedures | 38 | ||||||
PART II — OTHER INFORMATION | ||||||||
Item 1. | Legal Proceedings | 38 | ||||||
Item 1A. | Risk Factors | 38 | ||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 38 | ||||||
Item 3. | Defaults Upon Senior Securities | 39 | ||||||
Item 4. | Mine Safety Disclosures | 39 | ||||||
Item 5. | Other Information | 39 | ||||||
Item 6. | Exhibits | 40 | ||||||
SIGNATURES | 41 | |||||||
Table of Contents
Item 1. Financial Statements
DOVER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenue | $ | $ | |||||||||
| Cost of goods and services | |||||||||||
| Gross profit | |||||||||||
| Selling, general and administrative expenses | |||||||||||
| Operating earnings | |||||||||||
| Interest expense | |||||||||||
| Interest income | ( | ( | |||||||||
Gain on dispositions | ( | ||||||||||
| Other income, net | ( | ( | |||||||||
| Earnings before provision for income taxes | |||||||||||
| Provision for income taxes | |||||||||||
Earnings from continuing operations | |||||||||||
Loss from discontinued operations, net | ( | ( | |||||||||
| Net earnings | $ | $ | |||||||||
Earnings per share from continuing operations: | |||||||||||
| Basic | $ | $ | |||||||||
| Diluted | $ | $ | |||||||||
Loss per share from discontinued operations: | |||||||||||
| Basic | $ | $ | ( | ||||||||
| Diluted | $ | $ | ( | ||||||||
| Net earnings per share: | |||||||||||
| Basic | $ | $ | |||||||||
| Diluted | $ | $ | |||||||||
| Weighted average shares outstanding: | |||||||||||
| Basic | |||||||||||
| Diluted | |||||||||||
See Notes to Condensed Consolidated Financial Statements
1
Table of Contents
DOVER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(In thousands)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net earnings | $ | $ | |||||||||
| Other comprehensive (loss) earnings, net of tax | |||||||||||
| Foreign currency translation adjustments: | |||||||||||
Foreign currency translation (loss) gain | ( | ||||||||||
Total foreign currency translation adjustments (net of $( | ( | ||||||||||
| Pension and other post-retirement benefit plans: | |||||||||||
Amortization of actuarial gain included in net periodic pension cost | ( | ( | |||||||||
Amortization of prior service credits included in net periodic pension cost | ( | ( | |||||||||
Total pension and other post-retirement benefit plans (net of $ | ( | ( | |||||||||
| Changes in fair value of cash flow hedges: | |||||||||||
Unrealized net earnings (loss) arising during the period | ( | ||||||||||
Net gain reclassified into earnings | ( | ( | |||||||||
Total cash flow hedges (net of $( | ( | ||||||||||
Other comprehensive (loss) earnings, net of tax | ( | ||||||||||
| Comprehensive earnings | $ | $ | |||||||||
See Notes to Condensed Consolidated Financial Statements
2
Table of Contents
DOVER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| March 31, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Receivables, net | |||||||||||
| Inventories, net | |||||||||||
| Prepaid and other current assets | |||||||||||
| Total current assets | |||||||||||
| Property, plant and equipment, net | |||||||||||
| Goodwill | |||||||||||
| Intangible assets, net | |||||||||||
| Other assets and deferred charges | |||||||||||
| Total assets | $ | $ | |||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Current portion of long-term debt | $ | $ | |||||||||
| Accounts payable | |||||||||||
| Accrued compensation and employee benefits | |||||||||||
| Deferred revenue | |||||||||||
| Accrued insurance | |||||||||||
| Other accrued expenses | |||||||||||
| Federal and other income taxes | |||||||||||
| Total current liabilities | |||||||||||
| Long-term debt | |||||||||||
| Deferred income taxes | |||||||||||
| Other liabilities | |||||||||||
| Stockholders' equity: | |||||||||||
| Total stockholders' equity | |||||||||||
| Total liabilities and stockholders' equity | $ | $ | |||||||||
See Notes to Condensed Consolidated Financial Statements
3
Table of Contents
DOVER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands, except per share data)
(Unaudited)
Common stock $ | Additional paid-in capital | Retained earnings | Accumulated other comprehensive earnings (loss) | Treasury stock | Total stockholders' equity | ||||||||||||||||||||||||||||||
| Balance at January 1, 2026 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
| Net earnings | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends paid ($ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
| Common stock issued for the exercise of share-based awards | ( | — | — | — | ( | ||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Common stock acquired | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Balance at March 31, 2026 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Common stock $ | Additional paid-in capital | Retained earnings | Accumulated other comprehensive earnings (loss) | Treasury stock | Total stockholders' equity | ||||||||||||||||||||||||||||||
| Balance at January 1, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
| Net earnings | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends paid ($ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
| Common stock issued for the exercise of share-based awards | ( | — | — | — | ( | ||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Common stock acquired | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive earnings, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
| Balance at March 31, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
See Notes to Condensed Consolidated Financial Statements
4
Table of Contents
DOVER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating Activities: | |||||||||||
| Net earnings | $ | $ | |||||||||
| Adjustments to reconcile net earnings to cash provided by operating activities: | |||||||||||
Loss from discontinued operations, net | |||||||||||
| Depreciation and amortization | |||||||||||
| Stock-based compensation expense | |||||||||||
Gain on dispositions | ( | ||||||||||
| Other, net | |||||||||||
| Cash effect of changes in assets and liabilities: | |||||||||||
| Accounts receivable, net | ( | ( | |||||||||
| Inventories | ( | ( | |||||||||
| Prepaid expenses and other assets | ( | ( | |||||||||
| Accounts payable | ( | ||||||||||
| Accrued compensation and employee benefits | ( | ( | |||||||||
| Accrued expenses and other liabilities | |||||||||||
| Accrued and deferred taxes, net | |||||||||||
| Net cash provided by operating activities | |||||||||||
| Investing Activities: | |||||||||||
| Additions to property, plant and equipment | ( | ( | |||||||||
| Acquisitions, net of cash and cash equivalents acquired | ( | ( | |||||||||
Proceeds from dispositions, net of cash transferred | |||||||||||
| Other | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
| Financing Activities: | |||||||||||
Repurchase of common stock | ( | ( | |||||||||
| Dividends paid to stockholders | ( | ( | |||||||||
| Payments to settle employee tax obligations on exercise of share-based awards | ( | ( | |||||||||
| Other | ( | ( | |||||||||
| Net cash used in financing activities | ( | ( | |||||||||
Cash Flows from Discontinued Operations: | |||||||||||
Net cash used in operating activities of discontinued operations | ( | ( | |||||||||
Net cash used in discontinued operations | ( | ( | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
| Cash and cash equivalents at beginning of period | |||||||||||
| Cash and cash equivalents at end of period | $ | $ | |||||||||
See Notes to Condensed Consolidated Financial Statements
5
Table of Contents
DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
1. Basis of Presentation
The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim periods and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for complete financial statements. These unaudited interim condensed consolidated financial statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes for Dover Corporation ("Dover" or the "Company") for the year ended December 31, 2025, included in the Company's Annual Report on Form 10-K filed with the SEC on February 13, 2026. The year-end consolidated balance sheet was derived from audited financial statements.
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect amounts reported in the condensed consolidated financial statements and accompanying disclosures. Although these estimates are based on management’s knowledge of current events and expectations about actions that the Company may undertake in the future, actual results may differ from those estimates. Our interim condensed consolidated financial statements are unaudited but reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair statement of results for these interim periods. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year.
2. Revenue
Revenue from Contracts with Customers
A majority of the Company’s revenue is short cycle in nature with shipments within one year from order. A small portion of the Company’s revenue derives from contracts extending over one year. The Company's payment terms generally range between 30 to 90 days and vary by the location of businesses, the type of products manufactured to be sold and the volume of products sold, among other factors.
Disaggregation of Revenue
Revenue from contracts with customers is disaggregated by segment and geographic location, as these categories best depict the nature and amount of the Company’s revenue. See Note 16 — Segment Information for further details.
Performance Obligations
Approximately 95 % of the Company’s revenue is recognized at a point in time, rather than over time as the Company completes its performance obligations. Specifically, revenue is recognized when control transfers to the customer, typically upon shipment or completion of installation, testing, certification, or other substantive acceptance provisions required under the contract. Approximately 5 % of the Company’s revenue is recognized over time.
A majority of the Company's contracts have a single performance obligation which represents, in most cases, the equipment or product being sold to the customer. Some contracts include multiple performance obligations such as a product and the related installation, extended warranty, software and digital solutions, and/or maintenance services. For contracts with multiple performance obligations, the Company allocates the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation.
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Table of Contents
DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
At March 31, 2026, we estimated that $325,426 in revenue is expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. We expect to recognize approximately 73.5 % of the Company's unsatisfied (or partially unsatisfied) performance obligations as revenue through 2027, 14.7 % in 2028, with the remaining balance to be recognized in 2029 and thereafter.
As permitted by Accounting Standards Codification ("ASC") 606, the Company has excluded from its disclosures above about unsatisfied performance obligations for any contracts with an expected duration of one year or less, and contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed.
Contract Balances
Contract assets primarily relate to the Company's right to consideration for work completed but not billed at the reporting date. Contract liabilities relate to advance consideration received from customers or advance billings for which revenue has not been recognized and are reduced when the associated revenue from the contract is recognized.
The following table provides information about contract assets and contract liabilities from contracts with customers:
| March 31, 2026 | December 31, 2025 | December 31, 2024 | |||||||||||||||
Contract assets - current | $ | $ | $ | ||||||||||||||
| Contract liabilities - current | |||||||||||||||||
| Contract liabilities - non-current | |||||||||||||||||
The revenue recognized during the three months ended March 31, 2026 and 2025 that was included in contract liabilities at the beginning of the period amounted to $80,543 and $74,189 , respectively.
3. Acquisitions
2026 Acquisitions
2025 Acquisitions
During the three months ended March 31, 2025, the Company acquired one business. On January 17, 2025, the Company acquired 100 % of the equity interest in Cryogenic Machinery Corp. ("Cryo-Mach"), a provider of cryogenic centrifugal pumps, mechanical seals and accessories, for total consideration of $28,909 , net of cash acquired and inclusive of measurement period adjustments. The Cryo-Mach business was acquired to expand the Company's participation in cryogenic applications within the Pumps & Process Solutions segment. In connection with this acquisition, the Company recorded tax-deductible goodwill of $9,250 and intangible assets of $21,020 , primarily related to customer intangibles. The goodwill recorded as a result of the acquisition represents economic benefits expected to be derived from product line expansions and operational synergies.
4. Discontinued and Disposed Operations
Discontinued Operations
On October 8, 2024, the Company completed the sale of the ESG business, an operating company within the Engineered Products segment, to Terex Corporation for total consideration, net of cash transferred, of $2.0 billion. The ESG sale qualifies for discontinued operations reporting because its disposal represented a strategic shift with a major effect on the Company's operations and financial results. As a result, the Company has classified the results of operations as discontinued operations in the condensed consolidated statements of earnings and the condensed consolidated statements of cash flows for the three months ended March 31, 2026 and 2025. During the three months ended March 31, 2026, other post-closing adjustments of $400 ($316 after-tax) were recorded resulting in a loss from discontinued operations in the condensed consolidated statements of earnings. During the three months ended March 31, 2025, net working capital adjustments of $9,796 ($7,739 after-tax) and other post-closing adjustments of $862 ($681 after-tax) were recorded resulting in a loss from discontinued operations, net of $8,420 in the condensed consolidated statements of earnings.
7
Table of Contents
DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
In June 2025, a jury returned a verdict against the ESG business for approximately $58.9 million in connection with litigation involving alleged breach of contract and inducement of breach of fiduciary duty claims arising from certain product development efforts. ESG has filed post-trial motions and, if necessary, will file an appeal with the U.S. Court of Appeals for the Seventh Circuit. The Company has not recognized an expense in connection with this matter because it does not currently believe a loss is probable.
Dispositions
There were no
5. Inventories, net
| March 31, 2026 | December 31, 2025 | ||||||||||
| Raw materials | $ | $ | |||||||||
| Work in progress | |||||||||||
| Finished goods | |||||||||||
| Subtotal | |||||||||||
| Less reserves | ( | ( | |||||||||
| Total | $ | $ | |||||||||
6. Property, Plant and Equipment, net
| March 31, 2026 | December 31, 2025 | ||||||||||
| Land | $ | $ | |||||||||
| Buildings and improvements | |||||||||||
| Machinery, equipment and other | |||||||||||
| Property, plant and equipment, gross | |||||||||||
| Accumulated depreciation | ( | ( | |||||||||
| Property, plant and equipment, net | $ | $ | |||||||||
Depreciation expense totaled $43,718 and $38,669 for the three months ended March 31, 2026 and 2025, respectively.
7. Credit Losses
The Company is exposed to credit losses primarily through sales of products and services. Due to the short-term nature of such receivables, the estimated amount of accounts receivable that may not be collected is based on the aging of the accounts receivable balances and other historical information on the financial condition of customers adjusted for current conditions. The Company has elected the practical expedient to assume that current conditions as of the balance sheet date do not change for the remaining life of the assets. Balances are written off when determined to be uncollectible.
The following table provides a rollforward of the allowance for credit losses deducted from accounts receivable that represent the net amount expected to be collected.
| 2026 | 2025 | ||||||||||
| Balance at January 1 | $ | $ | |||||||||
| Provision for expected credit losses, net of recoveries | |||||||||||
| Amounts written off charged against the allowance | ( | ( | |||||||||
| Other, including foreign currency translation | |||||||||||
| Balance at March 31 | $ | $ | |||||||||
8
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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
8. Goodwill and Other Intangible Assets
The changes in the carrying value of goodwill by reportable segments were as follows:
| Engineered Products | Clean Energy & Fueling | Imaging & Identification | Pumps & Process Solutions | Climate & Sustainability Technologies | Total | ||||||||||||||||||||||||||||||
| Balance at January 1, 2026 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Measurement period adjustments | |||||||||||||||||||||||||||||||||||
| Foreign currency translation | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Balance at March 31, 2026 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
The Company’s definite-lived and indefinite-lived intangible assets by major asset class were as follows:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
| Amortized intangible assets: | |||||||||||||||||||||||||||||||||||
| Customer intangibles | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Trademarks | |||||||||||||||||||||||||||||||||||
| Patents | |||||||||||||||||||||||||||||||||||
| Unpatented technologies | |||||||||||||||||||||||||||||||||||
| Distributor relationships | |||||||||||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||||||||
| Total | |||||||||||||||||||||||||||||||||||
| Unamortized intangible assets: | |||||||||||||||||||||||||||||||||||
| Trademarks | — | — | |||||||||||||||||||||||||||||||||
| Total intangible assets, net | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
For the three months ended March 31, 2026 and 2025, amortization expense was $53,703 and $48,749 , respectively. Amortization expense is primarily comprised of acquisition-related intangible amortization.
9. Restructuring Activities
The Company's restructuring charges by segment were as follows:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Engineered Products | $ | $ | |||||||||
| Clean Energy & Fueling | |||||||||||
| Imaging & Identification | |||||||||||
| Pumps & Process Solutions | |||||||||||
| Climate & Sustainability Technologies | |||||||||||
| Corporate | |||||||||||
| Total | $ | $ | |||||||||
| These amounts are classified in the condensed consolidated statements of earnings as follows: | |||||||||||
| Cost of goods and services | $ | $ | |||||||||
| Selling, general and administrative expenses | |||||||||||
| Total | $ | $ | |||||||||
The restructuring expenses of $30,211 incurred during the three months ended March 31, 2026 were primarily related to headcount reductions and exit costs in the Pumps & Process Solutions, Climate & Sustainability Technologies and Clean
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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
Energy & Fueling segments. These restructuring programs were initiated in 2025 and 2026 and the Company will continue to make proactive adjustments to its cost structure to align with current demand trends.
The Company’s severance and exit accrual activities were as follows:
| Severance | Exit | Total | |||||||||||||||
| Balance at January 1, 2026 | $ | $ | $ | ||||||||||||||
| Restructuring charges | (1) | ||||||||||||||||
| Payments | ( | ( | ( | ||||||||||||||
| Other, including foreign currency translation | ( | ( | (1) | ( | |||||||||||||
| Balance at March 31, 2026 | $ | $ | $ | ||||||||||||||
10. Borrowings
Borrowings consist of the following:
Carrying amount (1) | |||||||||||||||||
| Principal | March 31, 2026 | December 31, 2025 | |||||||||||||||
| Long-term | |||||||||||||||||
| € | |||||||||||||||||
| € | |||||||||||||||||
| $ | |||||||||||||||||
| $ | |||||||||||||||||
| € | |||||||||||||||||
| $ | |||||||||||||||||
| $ | |||||||||||||||||
| $ | |||||||||||||||||
| Total long-term debt | |||||||||||||||||
| Less long-term debt current portion | ( | ( | |||||||||||||||
Net long-term debt | $ | $ | |||||||||||||||
(1) Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discounts on total long-term debt were $8.0 million and $8.6 million as of March 31, 2026 and December 31, 2025, respectively. Total deferred debt issuance costs on total long-term debt were $9.2 million and $9.7 million as of March 31, 2026 and December 31, 2025, respectively.
The discounts are being amortized to interest expense using the effective interest method over the life of the issuances. The deferred issuance costs are amortized on a straight-line basis over the life of the debt, as this approximates the effective interest method.
As of March 31, 2026, the Company maintained a $1.0 billion five-year unsecured revolving credit facility and a $500.0 million 364-day unsecured revolving credit facility (together, the "Credit Agreements") with a syndicate of banks. The 364-day credit facility expired on April 2, 2026. The Credit Agreements are designated as a liquidity back-stop for the Company's commercial paper program and also are available for general corporate purposes. At the Company's election, loans under the Credit Agreements will bear interest at a base rate plus an applicable margin. The Credit Agreements require the Company to pay facility fees and impose various restrictions on the Company such as, among other things, a requirement to maintain a minimum interest coverage ratio of consolidated EBITDA to consolidated net interest expense of not less than 3.0 to 1. As of March 31, 2026 and December 31, 2025, there were no five-year or 364-day credit facilities.
On April 2, 2026, the Company entered into a new $1.5 billion five-year unsecured revolving credit facility with a syndicate of banks on substantially similar terms as the existing Credit Agreements. The new five-year credit facility replaced the existing Credit Agreements. See Note 20 — Subsequent Events for additional details.
The Company was in compliance with all covenants in the Credit Agreements and other long-term debt covenants at March 31, 2026 and had an interest coverage ratio of consolidated EBITDA to consolidated net interest expense of 40.8 to 1.
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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
Letters of Credit and other Guarantees
As of March 31, 2026, the Company had approximately $230.0 million outstanding in letters of credit, surety bonds, and performance and other guarantees which primarily expire on various dates through 2035. These letters of credit and bonds are primarily issued as security for insurance, warranty and other performance obligations. In general, we would only be liable for the amount of these guarantees in the event of default in the performance of our obligations, the probability of which is believed to be remote.
11. Financial Instruments
Cash Flow Hedges
The Company is exposed to market risk for changes in foreign currency exchange rates due to the global nature of its operations and certain commodity risks. In order to manage these risks, the Company has hedged portions of its forecasted sales and purchases which occur within the next twelve months that are denominated in non-functional currencies, with currency forward contracts designated as cash flow hedges. At March 31, 2026 and December 31, 2025, the Company had contracts with total notional amounts of $131,207 and $153,765 , respectively, to exchange currencies, principally euro, pound sterling, Swedish krona, Canadian dollar, Chinese yuan, and Swiss franc. The Company believes it is probable that all forecasted cash flow transactions will occur.
In addition, the Company had outstanding contracts with a total notional amount of $88,363 and $74,403 as of March 31, 2026 and December 31, 2025, respectively, that are not designated as hedging instruments. These instruments are used to reduce the Company's exposure for operating receivables and payables that are denominated in non-functional currencies. Gains and losses on these contracts are recorded in other income, net in the condensed consolidated statements of earnings.
The following table sets forth the fair values of derivative instruments designated as cash flow hedges held by the Company as of March 31, 2026 and December 31, 2025 and the balance sheet lines in which they are recorded:
| Fair Value Asset (Liability) | |||||||||||||||||
| March 31, 2026 | December 31, 2025 | Balance Sheet Caption | |||||||||||||||
| Foreign currency forward | $ | $ | Prepaid and other current assets | ||||||||||||||
| Foreign currency forward | ( | ( | Other accrued expenses | ||||||||||||||
For a cash flow hedge, the change in estimated fair value of a hedging instrument is recorded in accumulated other comprehensive earnings (loss), net of tax as a separate component of the condensed consolidated statements of stockholders' equity and is reclassified into revenues or cost of goods and services in the condensed consolidated statements of earnings during the period in which the hedged transaction is settled. The amount of gains or losses from hedging activity recorded in earnings is not significant, and the amount of unrealized gains and losses from cash flow hedges that are expected to be reclassified to earnings in the next twelve months is not significant; therefore, additional tabular disclosures are not presented. There are no amounts excluded from the assessment of hedge effectiveness, and the Company's derivative instruments that are subject to credit risk contingent features were not significant.
The Company is exposed to credit loss in the event of nonperformance by counterparties to the financial instrument contracts held by the Company; however, nonperformance by these counterparties is considered unlikely as the Company’s policy is to contract with highly-rated, diversified counterparties.
Net Investment Hedges
The Company designates certain non-derivative instruments as net investment hedges to hedge the net assets of certain foreign subsidiaries which are exposed to volatility in foreign currency exchange rates. The Company has designated the €600,000 , €500,000 , and €550,000 of euro-denominated notes issued November 9, 2016, November 4, 2019, and November 12, 2025, respectively, as hedges of its net investment in euro-denominated operations.
Changes in the value of the euro-denominated debt, which are calculated using the spot method, are recognized in foreign currency translation adjustments within other comprehensive earnings (loss) of the condensed consolidated statements of comprehensive earnings. These changes in fair value of the euro-denominated debt resulting from exchange rate differences are
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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
offset by changes in the net investment due to the high degree of effectiveness between the hedging instruments and the exposure being hedged.
Amounts recognized in other comprehensive earnings (loss) for the gains (losses) on net investment hedges were as follows:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Gain (loss) on euro-denominated debt | $ | $ | ( | ||||||||
Tax (expense) benefit | ( | ||||||||||
Net gain (loss) on net investment hedges, net of tax | $ | $ | ( | ||||||||
Fair Value Measurements
ASC 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of assets or liabilities.
Level 3 inputs are unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025:
| March 31, 2026 | December 31, 2025 | ||||||||||
| Level 2 | Level 2 | ||||||||||
| Assets: | |||||||||||
| Foreign currency cash flow hedges | $ | $ | |||||||||
| Liabilities: | |||||||||||
| Foreign currency cash flow hedges | |||||||||||
The derivative contracts are measured at fair value using models based on observable market inputs such as foreign currency exchange rates and interest rates; therefore, they are classified within Level 2 of the fair value hierarchy.
In addition to fair value disclosure requirements related to financial instruments carried at fair value, accounting standards require disclosures regarding the fair value of all of the Company's financial instruments.
The estimated fair value of long-term debt at March 31, 2026 and December 31, 2025, was $2,600,274 and $2,652,750 , respectively. The estimated fair value of long-term debt is based on quoted market prices for similar instruments and is, therefore, classified as Level 2 within the fair value hierarchy.
The carrying values of cash and cash equivalents, trade receivables, accounts payable, and current portion of long-term debt approximate their fair values as of March 31, 2026 and December 31, 2025 due to the short-term nature of these instruments.
12. Income Taxes
The effective tax rates for the three months ended March 31, 2026 and 2025 were 20.1 % and 19.0 %, respectively. The increase in the effective tax rate for the three months ended March 31, 2026 relative to the prior year comparable period was primarily due to a prior year reorganization.
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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
Dover and its subsidiaries file tax returns in the U.S., including various state and local returns, and in other foreign jurisdictions. The Company is routinely audited by taxing authorities in its filing jurisdictions, and a number of these audits are currently underway. We believe adequate provision has been made for all income tax uncertainties.
13. Equity Incentive Program
The Company typically makes its annual grants of equity awards pursuant to actions taken by the Compensation Committee of the Board of Directors at its regularly scheduled first quarter meeting. During the three months ended March 31, 2026, the Company issued stock-settled appreciation rights ("SARs") covering 266,199 shares, performance share awards ("PSAs") of 32,294 and restricted stock units ("RSUs") of 56,039 . During the three months ended March 31, 2025, the Company issued SARs covering 282,917 shares, PSAs of 34,458 and RSUs of 57,614 .
The Company uses the Black-Scholes option pricing model to determine the fair value of each SAR on the date of grant. Expected volatilities are based on Dover's stock price history, including implied volatilities from traded options on Dover stock. The Company uses historical data to estimate SAR exercise and employee termination patterns within the valuation model. The expected life of SARs granted is derived from the output of the option valuation model and represents the average period of time that SARs granted are expected to be outstanding. The interest rate for periods within the contractual life of the awards is based on the U.S. Treasury yield curve in effect at the time of grant.
The assumptions used in determining the fair value of the SARs awarded during the respective periods were as follows:
| SARs | |||||||||||
| 2026 | 2025 | ||||||||||
| Risk-free interest rate | % | % | |||||||||
| Dividend yield | % | % | |||||||||
| Expected life (years) | |||||||||||
| Volatility | % | % | |||||||||
Grant price | $ | $ | |||||||||
Fair value per share at date of grant | $ | $ | |||||||||
The PSAs granted in 2026 and 2025 vest based on the attainment of two equally weighted measures: (i) Dover’s performance relative to established internal metrics (performance condition) and (ii) Dover's performance relative to its peer group (companies listed under the S&P 500 Industrials sector; market condition).
The grant date fair value of the performance condition portion is determined using Dover’s closing stock price at the date of grant and the amount of expense recognized over the vesting period is subject to adjustment based on the expected attainment of the performance condition. The grant date fair value per share of the 2026 and 2025 PSAs' performance condition portion were $231.63 and $202.33 , respectively.
The grant date fair value of the 2026 and 2025 market condition portion is determined using the Monte Carlo simulation model. The amount of expense recognized over the vesting period is not subject to change based on future market conditions. The assumptions used in the Monte Carlo model to determine the fair value of the PSAs granted in the respective periods were as follows:
| PSAs | |||||||||||
| 2026 | 2025 | ||||||||||
| Risk-free interest rate | % | % | |||||||||
| Dividend yield | % | % | |||||||||
| Expected life (years) | |||||||||||
| Volatility | % | % | |||||||||
| Grant price | $ | $ | |||||||||
| Fair value per share at date of grant | $ | $ | |||||||||
The performance and vesting period for all 2026 and 2025 PSAs is three years
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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
The Company also has granted RSUs, and the fair value of these awards was determined using Dover's closing stock price on the date of grant, which was $231.63 and $202.33 for RSUs granted in 2026 and 2025, respectively.
Stock-based compensation is reported within selling, general and administrative expenses in the condensed consolidated statements of earnings. The following table summarizes the Company’s compensation expense relating to all stock-based incentive plans:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Pre-tax stock-based compensation expense | $ | $ | |||||||||
| Tax benefit | ( | ( | |||||||||
| Total stock-based compensation expense, net of tax | $ | $ | |||||||||
14. Commitments and Contingent Liabilities
Litigation
A few of the Company’s subsidiaries are involved in legal proceedings relating to the cleanup of waste disposal sites identified under federal and state statutes which provide for the allocation of such costs among "potentially responsible parties." In each instance, the extent of the Company’s liability appears to be relatively insignificant in relation to the total projected expenditures and the number of other "potentially responsible parties" involved and is anticipated to be immaterial to the Company. In addition, a few of the Company’s subsidiaries are involved in ongoing remedial activities at certain current and former plant sites, in cooperation with regulatory agencies, and appropriate estimated liabilities have been established. At March 31, 2026 and December 31, 2025, these estimated liabilities for environmental and other matters, including private party claims for exposure to hazardous substances that are probable and estimable, were not significant.
The Company and some of its subsidiaries are also parties to a number of other legal proceedings incidental to their businesses. These proceedings primarily involve claims by private parties alleging injury arising out of use of the Company’s products, patent infringement, employment matters and commercial disputes. Management and legal counsel, at least quarterly, review the probable outcome of such proceedings, the costs and expenses reasonably expected to be incurred and currently accrued to-date and consider the availability and extent of insurance coverage.
The Company has estimated liabilities for these other legal matters that are probable and estimable, and at March 31, 2026 and December 31, 2025, these estimated liabilities were immaterial. While it is not possible at this time to predict the outcome of these legal actions, in the opinion of management, based on the aforementioned reviews, the Company is not currently involved in any legal proceedings which, individually or in the aggregate, could have a material effect on its financial position, results of operations, or cash flows.
See also Note 4 — Discontinued and Disposed Operations for details on litigation related to a discontinued operation.
Warranty Accruals
Estimated warranty program claims are provided for at the time of sale of the Company's products. Amounts provided for are based on historical costs and adjusted for new claims and are included within other accrued expenses and other liabilities in the condensed consolidated balance sheets. The changes in the carrying amount of product warranties through March 31, 2026 and 2025, were as follows:
| 2026 | 2025 | ||||||||||
| Balance at January 1 | $ | $ | |||||||||
| Provision for warranties | |||||||||||
| Settlements made | ( | ( | |||||||||
| Other adjustments, including acquisitions and currency translation | ( | ||||||||||
| Balance at March 31 | $ | $ | |||||||||
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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
Supply Chain Financing
Outstanding payments related to Supply Chain Financing ("SCF") programs are recorded within accounts payable in our condensed consolidated balance sheets. Amounts due to the SCF programs financial institutions as of March 31, 2026 and December 31, 2025 were approximately $126,694 and $117,884 , respectively.
15. Accumulated Other Comprehensive Earnings (Loss)
Amounts reclassified from accumulated other comprehensive earnings (loss) to earnings during the three months ended March 31, 2026 and 2025 were as follows:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Pension plans: | |||||||||||
Amortization of actuarial gain | $ | ( | $ | ( | |||||||
Amortization of prior service credits | ( | ( | |||||||||
| Total before tax | ( | ( | |||||||||
Tax provision | |||||||||||
| Net of tax | $ | ( | $ | ( | |||||||
| Cash flow hedges: | |||||||||||
Net gain reclassified into earnings | $ | ( | $ | ( | |||||||
Tax provision | |||||||||||
| Net of tax | $ | ( | $ | ( | |||||||
The Company recognizes the amortization of net actuarial gains and losses and prior service costs and credits in other income, net within the condensed consolidated statements of earnings.
16. Segment Information
The Company categorizes its operating companies into five reportable segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions, and Climate & Sustainability Technologies. The Company's businesses are structured around similar business models, go-to market strategies, manufacturing practices and product categories which increases management efficiency and better aligns Dover's operations with its strategic initiatives and capital allocation priorities, and provides greater transparency about performance. Operating segments are defined as the components of an enterprise for which separate financial information is available, that engage in business activities from which they may recognize revenues and incur expenses, and that are regularly evaluated by the entity's chief operating decision maker or decision-making group, which is composed of Dover's Group Executive Committee ("GEC"), in making resource allocation decisions and evaluating performance.
The five reportable segments are as follows:
•Engineered Products segment provides a wide range of equipment, components, software, solutions and services to the vehicle aftermarket, aerospace and defense, industrial winch and hoist, precision soldering and fluid dispensing end-markets.
•Clean Energy & Fueling segment provides components, equipment, software solutions and services enabling safe and reliable storage, transport, dispensing, and remote monitoring of traditional and clean fuels (including liquefied natural gas, hydrogen, and electric vehicle charging), cryogenic gases, and other hazardous substances along the supply chain, and safe and efficient operation of convenience retail, retail fueling and vehicle wash establishments.
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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
•Imaging & Identification segment supplies precision marking and coding, product traceability, brand protection and digital textile printing equipment, as well as related consumables, software and services to the global packaged and consumer goods, pharmaceutical, industrial manufacturing, textile and other end-markets.
•Pumps & Process Solutions segment manufactures specialty pumps and flow meters, fluid transfer connectors, highly engineered precision components, instruments and digital controls for rotating and reciprocating machines, polymer processing equipment, measurement, inspection, and control technologies, serving single-use biopharmaceutical production, diversified industrial manufacturing applications, chemical production, plastics and polymer processing, midstream and downstream oil and gas, clean energy markets, thermal management, wire and cable, food and beverage, semiconductor production and medical applications and other end-markets.
•Climate & Sustainability Technologies segment is a provider of innovative and energy-efficient equipment, components, solutions, services and parts for the commercial refrigeration, heating and cooling and beverage can-making equipment end-markets.
Management uses segment earnings to evaluate segment performance and allocate resources. Segment earnings is defined as 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.
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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
Segment financial information and a reconciliation of segment results to consolidated results were as follows:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenue: | |||||||||||
| Engineered Products | $ | $ | |||||||||
| Clean Energy & Fueling | |||||||||||
| Imaging & Identification | |||||||||||
| Pumps & Process Solutions | |||||||||||
| Climate & Sustainability Technologies | |||||||||||
Total segment revenues | |||||||||||
| Intersegment eliminations | ( | ( | |||||||||
| Total consolidated revenue | $ | $ | |||||||||
Adjusted cost of goods and services:(1) | |||||||||||
| Engineered Products | $ | $ | |||||||||
| Clean Energy & Fueling | |||||||||||
| Imaging & Identification | |||||||||||
| Pumps & Process Solutions | |||||||||||
| Climate & Sustainability Technologies | |||||||||||
Total adjusted segment cost of goods and services | $ | $ | |||||||||
Adjusted selling, general and administrative expenses:(2) | |||||||||||
| Engineered Products | $ | $ | |||||||||
| Clean Energy & Fueling | |||||||||||
| Imaging & Identification | |||||||||||
| Pumps & Process Solutions | |||||||||||
| Climate & Sustainability Technologies | |||||||||||
Total adjusted segment selling, general and administrative expenses | $ | $ | |||||||||
| Earnings from continuing operations: | |||||||||||
Segment earnings: | |||||||||||
| Engineered Products | $ | $ | |||||||||
Clean Energy & Fueling | |||||||||||
| Imaging & Identification | |||||||||||
| Pumps & Process Solutions | |||||||||||
| Climate & Sustainability Technologies | |||||||||||
| Total segment earnings | |||||||||||
Purchase accounting expenses (3) | |||||||||||
Restructuring and other costs (4) | |||||||||||
Gain on dispositions (5) | ( | ||||||||||
Corporate expense / other (6) | |||||||||||
| Interest expense | |||||||||||
| Interest income | ( | ( | |||||||||
| Earnings before provision for income taxes | |||||||||||
| Provision for income taxes | |||||||||||
| Earnings from continuing operations | $ | $ | |||||||||
(1) Adjusted cost of goods and services exclude expenses related to purchase accounting and restructuring and other costs.
(2) Adjusted selling, general and administrative expenses exclude expenses related to purchase accounting, restructuring and other costs, and gain on dispositions and include other income, net.
(3) Purchase accounting expenses are primarily comprised of amortization of intangible assets.
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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
(4) Restructuring and other costs relate to actions taken for headcount reductions, facility consolidations and site closures, product line exits, and other asset charges. Restructuring and other costs consist of the following:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Restructuring | $ | $ | |||||||||
| Other costs, net | |||||||||||
| Restructuring and other costs | $ | $ | |||||||||
(5) Gain on dispositions, including post-closing adjustments.
(6) 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.
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Segment earnings margins: | |||||||||||
| Engineered Products | % | % | |||||||||
| Clean Energy & Fueling | % | % | |||||||||
| Imaging & Identification | % | % | |||||||||
| Pumps & Process Solutions | % | % | |||||||||
| Climate & Sustainability Technologies | % | % | |||||||||
| Total segments | % | % | |||||||||
| Depreciation and amortization: | |||||||||||
Other depreciation and amortization:(7) | |||||||||||
| Engineered Products | $ | $ | |||||||||
| Clean Energy & Fueling | |||||||||||
| Imaging & Identification | |||||||||||
| Pumps & Process Solutions | |||||||||||
| Climate & Sustainability Technologies | |||||||||||
| Total other depreciation and amortization | |||||||||||
| Corporate depreciation and amortization | |||||||||||
| Depreciation and amortization included in purchase accounting expenses and restructuring and other | |||||||||||
| Consolidated depreciation and amortization total | $ | $ | |||||||||
(7) 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.
| Three Months Ended March 31, | |||||||||||
| Capital expenditures: | 2026 | 2025 | |||||||||
| Engineered Products | $ | $ | |||||||||
| Clean Energy & Fueling | |||||||||||
| Imaging & Identification | |||||||||||
| Pumps & Process Solutions | |||||||||||
| Climate & Sustainability Technologies | |||||||||||
| Corporate | |||||||||||
Total capital expenditures | $ | $ | |||||||||
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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
Selected financial information by segment (continued):
Total assets: | March 31, 2026 | December 31, 2025 | |||||||||
Engineered Products | $ | $ | |||||||||
Clean Energy & Fueling | |||||||||||
| Imaging & Identification | |||||||||||
Pumps & Process Solutions | |||||||||||
| Climate & Sustainability Technologies | |||||||||||
Corporate (8) | |||||||||||
| Total assets | $ | $ | |||||||||
The following table presents revenue disaggregated by geography based on the location of the Company's customers:
| Three Months Ended March 31, | |||||||||||
Revenue by geography: | 2026 | 2025 | |||||||||
| United States | $ | $ | |||||||||
| Europe | |||||||||||
| Asia | |||||||||||
| Other Americas | |||||||||||
| Other | |||||||||||
| Total | $ | $ | |||||||||
17. Stockholders' Equity
Share Repurchases
In August 2023, the Company's Board of Directors approved a new standing share repurchase authorization whereby the Company may repurchase up to 20 million shares beginning on January 1, 2024 through December 31, 2026.
On November 10, 2025, the Company entered into a $500,000 accelerated share repurchase agreement (the "ASR Agreement") with JP Morgan Chase Bank, N.A. ("JP Morgan") to repurchase its shares in an accelerated share repurchase program (the "ASR Program"). The ASR Program is classified as equity, initially recorded at fair value with no subsequent remeasurement. The Company conducted the ASR Program under the current share repurchase authorization. The Company funded the ASR Program with cash on hand.
Under the terms of the ASR Agreement, the Company paid JP Morgan $500,000 on November 12, 2025, and on that date received initial delivery of 2,334,010 shares, representing a substantial majority of the shares expected to be retired over the course of the ASR Program. The ASR Program completed in April 2026. The impact of the shares that were received at the completion of the ASR Program is anti-dilutive and therefore excluded from the calculation of diluted earnings per share. See Note 20 — Subsequent Events for additional details.
In the three months ended March 31, 2026, exclusive of the ASR Agreement, the Company repurchased 250,000 shares at a total cost of $53,937 , or $215.75 per share. In the three months ended March 31, 2025, the Company repurchased 200,000 shares at a total cost of $40,700 , or $203.50 per share.
As of March 31, 2026, 14,346,708 shares remain authorized for repurchase under the August 2023 share repurchase authorization.
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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
18. Earnings per Share
The following table sets forth a reconciliation of the information used in computing basic and diluted earnings per share:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Earnings from continuing operations | $ | $ | |||||||||
Loss from discontinued operations, net | ( | ( | |||||||||
| Net earnings | $ | $ | |||||||||
| Basic earnings per common share: | |||||||||||
| Earnings from continuing operations | $ | $ | |||||||||
Loss from discontinued operations, net | $ | $ | ( | ||||||||
| Net earnings | $ | $ | |||||||||
| Weighted average shares outstanding | |||||||||||
| Diluted earnings per common share: | |||||||||||
| Earnings from continuing operations | $ | $ | |||||||||
Loss from discontinued operations, net | $ | $ | ( | ||||||||
| Net earnings | $ | $ | |||||||||
| Weighted average shares outstanding | |||||||||||
The following table is a reconciliation of the share amounts used in computing earnings per share:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Weighted average shares outstanding - basic | |||||||||||
| Dilutive effect of assumed exercise of SARs and vesting of performance shares and RSUs | |||||||||||
| Weighted average shares outstanding - diluted | |||||||||||
Diluted earnings per share amounts are computed using the weighted average number of common shares outstanding and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of SARs and vesting of performance shares and RSUs, as determined using the treasury stock method.
The number of anti-dilutive potential common shares excluded from the calculation above were approximately 60,000 and 42,000 for the three months ended March 31, 2026 and 2025, respectively.
19. Recent Accounting Pronouncements
Recently Issued Accounting Standards
In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income (Subtopic 220-40): Expense Disaggregation Disclosures, which expands disclosures of specific expense categories at interim and annual reporting periods. The amendments are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating this ASU to determine its impact on the Company’s disclosures.
Recently Adopted Accounting Standard
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands the disclosures required in an entity’s income tax rate reconciliation table and requires disclosure of income taxes paid both in U.S. and foreign jurisdictions. The amendments are effective for fiscal years beginning after December 15, 2024. The Company adopted the guidance during the fourth quarter of 2025.
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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides entities the option of a practical expedient in the estimation of credit losses. The amendments are effective for fiscal years beginning after December 15, 2025, and interim periods within those annual reporting periods. Early adoption is permitted. The Company adopted the guidance as of January 1, 2026. The adoption did not have a material impact on the Company's condensed consolidated financial statements. See Note 7 — Credit Losses for further details.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which changes the requirements for when entities may begin capitalizing costs for internal-use software. The amendments are effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The Company adopted the guidance on January 1, 2026. The adoption did not have a material impact on the Company's condensed consolidated financial statements.
20. Subsequent Events
In April 2026, JP Morgan delivered 153,652 additional shares which completed the ASR Program. Over the course of the ASR Program, the Company received a total of 2,487,662 shares. The total number of shares ultimately repurchased under the ASR Agreement was based on the average of the daily volume-weighted average share price of Dover's common stock during the calculation period of the ASR Program, less a discount, which was $200.99 .
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Refer to the section below entitled "Special Note Regarding Forward-Looking Statements" for a discussion of factors that could cause our actual results to differ from the forward-looking statements contained below and throughout this quarterly report.
Throughout this Management’s Discussion and Analysis of Financial Condition and Results of Operations ("MD&A"), we refer to measures used by management to evaluate performance, including a number of financial measures that are not defined under accounting principles generally accepted in the United States of America ("GAAP"). Please see "Non-GAAP Disclosures" at the end of this Item 2 for further detail on these financial measures. We believe these measures provide investors with important information that is useful in understanding our business results and trends. Reconciliations within this MD&A provide more details on the use and derivation of these measures.
OVERVIEW
Dover is a diversified global manufacturer and solutions provider delivering 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. The Company's entrepreneurial business model encourages, promotes and fosters deep customer engagement and collaboration, which has led to Dover's well-established and valued reputation for providing superior customer service and industry-leading product innovation. Unless the context indicates otherwise, references herein to "Dover," "the Company," and words such as "we," "us," or "our" include Dover Corporation and its consolidated subsidiaries.
Dover's five operating segments are as follows:
•Our Engineered Products segment provides a wide range of equipment, components, software, solutions and services to the vehicle aftermarket, aerospace and defense, industrial winch and hoist, precision soldering and fluid dispensing end-markets.
•Our Clean Energy & Fueling segment provides components, equipment, software solutions and services enabling safe and reliable storage, transport, dispensing, and remote monitoring of traditional and clean fuels (including liquefied natural gas, hydrogen, and electric vehicle charging), cryogenic gases, and other hazardous substances along the supply chain, and safe and efficient operation of convenience retail, retail fueling and vehicle wash establishments.
•Our Imaging & Identification segment supplies precision marking and coding, product traceability, brand protection and digital textile printing equipment, as well as related consumables, software and services to the global packaged and consumer goods, pharmaceutical, industrial manufacturing, textile and other end-markets.
•Our Pumps & Process Solutions segment manufactures specialty pumps and flow meters, fluid transfer connectors, highly engineered precision components, instruments and digital controls for rotating and reciprocating machines, polymer processing equipment, measurement, inspection, and control technologies, serving single-use biopharmaceutical production, diversified industrial manufacturing applications, chemical production, plastics and polymer processing, midstream and downstream oil and gas, clean energy markets, thermal management, wire and cable, food and beverage, semiconductor production and medical applications and other end-markets.
•Our Climate & Sustainability Technologies segment is a provider of innovative and energy-efficient equipment, components, solutions, services and parts for the commercial refrigeration, heating and cooling and beverage can-making equipment end-markets.
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In the first quarter of 2026, revenue was $2.1 billion, which increased $187.6 million, or 10.1%, as compared to the first quarter of 2025. This increase was driven by organic revenue growth of 5.3%, a favorable impact from foreign currency translation of 2.9% and acquisition-related revenue growth of 1.9%. Revenue growth was primarily driven by continued demand strength in our secular-growth-exposed end markets and pricing actions. The acquisition-related growth was primarily driven by our acquisitions in the Pumps & Process Solutions segment.
The 5.3% organic revenue growth for the first quarter of 2026 was driven by our Climate & Sustainability Technologies, Clean Energy & Fueling, and Engineered Products segments which grew 15.2%, 11.1%, and 2.1%, respectively. The growth was partially offset by the Imaging & Identification and Pumps & Process Solutions segments which declined 3.3% and 0.8%, respectively. For further information, see "Segment Results of Operations" within this Item 2.
From a geographic perspective, organic revenue for the U.S., our largest market, increased 12.1% in the first quarter of 2026 compared to the prior year comparable quarter, primarily driven by an increase in organic revenue in the Clean Energy & Fueling, Climate & Sustainability Technologies and Pumps & Process Solutions segments. Organic revenue increased for the Other Americas by 3.0% and decreased for Asia, Europe, and all other geographic markets by 4.7%, 4.2%, and 3.3%, respectively.
Bookings were $2.5 billion for the three months ended March 31, 2026, an increase of $474.1 million or 23.8% compared to the prior year comparable quarter. Bookings increased across all segments and most notably in the Climate & Sustainability Technologies segment.
Restructuring and other costs for the three months ended March 31, 2026 were $36.8 million, which included restructuring charges of $30.2 million and other costs of $6.6 million. Restructuring and other costs were primarily related to headcount reductions and exit costs in the Pumps & Process Solutions, Climate & Sustainability Technologies and Clean Energy & Fueling segments. For further discussion related to our restructuring and other costs, see "Restructuring and Other Costs (Benefits)," within this Item 2.
In the three months ended March 31, 2026, the Company repurchased 250,000 shares at a total cost of $53.9 million, or $215.75 per share. As of March 31, 2026, 14,346,708 shares remain authorized for repurchase under the August 2023 share repurchase authorization.
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CONSOLIDATED RESULTS OF OPERATIONS
| Three Months Ended March 31, | |||||||||||||||||
| (dollars in thousands, except per share figures) | 2026 | 2025 | % / Point Change | ||||||||||||||
| Revenue | $ | 2,053,623 | $ | 1,866,059 | 10.1 | % | |||||||||||
| Cost of goods and services | 1,255,488 | 1,120,559 | 12.0 | % | |||||||||||||
| Gross profit | 798,135 | 745,500 | 7.1 | % | |||||||||||||
| Gross profit margin | 38.9 | % | 40.0 | % | (1.1) | ||||||||||||
| Selling, general and administrative expenses | 492,226 | 449,191 | 9.6 | % | |||||||||||||
| Selling, general and administrative expenses as a percent of revenue | 24.0 | % | 24.1 | % | (0.1) | ||||||||||||
| Operating earnings | 305,909 | 296,309 | 3.2 | % | |||||||||||||
| Interest expense | 29,522 | 27,608 | 6.9 | % | |||||||||||||
| Interest income | (14,060) | (20,254) | (30.6) | % | |||||||||||||
Gain on dispositions | — | (2,468) | nm* | ||||||||||||||
| Other income, net | (8,455) | (3,958) | nm* | ||||||||||||||
| Earnings before provision for income taxes | 298,902 | 295,381 | 1.2 | % | |||||||||||||
| Provision for income taxes | 60,153 | 56,140 | 7.1 | % | |||||||||||||
| Effective tax rate | 20.1 | % | 19.0 | % | 1.1 | ||||||||||||
| Earnings from continuing operations | 238,749 | 239,241 | (0.2) | % | |||||||||||||
Loss from discontinued operations, net | (316) | (8,420) | nm* | ||||||||||||||
| Net earnings | $ | 238,433 | $ | 230,821 | 3.3 | % | |||||||||||
Earnings per common share from continuing operations - diluted | $ | 1.76 | $ | 1.73 | 1.7 | % | |||||||||||
* nm - not meaningful
Revenue
Revenue for the three months ended March 31, 2026 increased $187.6 million, or 10.1%, from the prior year comparable quarter. The increase in revenue was driven by organic revenue growth of 5.3%, primarily in our Climate & Sustainability Technologies, Clean Energy & Fueling and Engineered Products segments, a favorable impact from foreign currency translation of 2.9% and acquisition-related growth of 1.9%. Customer pricing favorably impacted revenue by approximately 1.8% in the first quarter of 2026 and by 1.3% in the prior year comparable quarter.
Gross Profit
Gross profit for the three months ended March 31, 2026 increased $52.6 million, or 7.1%, and gross profit margin decreased 110 basis points to 38.9%, versus the prior year comparable quarter. The gross profit margin decrease was primarily due to an unfavorable portfolio mix, partially offset by by productivity initiatives and benefits from restructuring actions.
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the three months ended March 31, 2026 increased $43.0 million, or 9.6%, from the prior year comparable quarter, primarily due to increases in employee compensation and benefits and acquisition-related amortization expense. As a percentage of revenue, selling, general and administrative expenses decreased 10 basis points as compared to the prior year comparable quarter to 24.0%.
Research and development costs, including qualifying engineering costs, are expensed when incurred and amounted to $39.6 million and $37.5 million for the three months ended March 31, 2026 and 2025, respectively. The costs as a percentage of revenue were 1.9% and 2.0% for the three months ended March 31, 2026 and 2025, respectively.
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Non-Operating Items
Interest Expense, net
For the three months ended March 31, 2026, interest expense, net of interest income, increased $8.1 million, or 110.3%, to $15.5 million compared to the prior year comparable quarter. The increase was primarily due to lower interest income from highly liquid short-term investments and higher interest expense incurred from the issuance of the €550.0 million 3.50% euro-denominated notes in the fourth quarter of 2025.
Income Taxes
The effective tax rates for the three months ended March 31, 2026 and 2025 were 20.1% and 19.0%, respectively. The increase in the effective tax rate for the three months ended March 31, 2026 relative to the prior year comparable quarter was primarily due to a prior year reorganization.
On July 4, 2025, the One Big Beautiful Bill was enacted into law, introducing changes to the U.S. tax code, including making permanent certain provisions originally enacted under the Tax Cuts and Jobs Act, such as 100% bonus depreciation and the immediate expensing of domestic research and development costs. The changes do not have a material impact to our condensed consolidated financial statements.
The Company is continuing to monitor the changes in tax laws resulting from the Organization for Economic Cooperation and Development’s multi-jurisdictional plan of action to address base erosion and profit shifting. We do not expect this to have a material impact on our effective tax rate.
Earnings from Continuing Operations
Earnings from continuing operations for the three months ended March 31, 2026 remained flat at $238.7 million, or $1.76 diluted earnings per share from continuing operations, compared to $239.2 million, or $1.73 diluted earnings per share from continuing operations in the prior year comparable quarter. The increases in employee compensation and benefits expense, acquisition-related amortization expense, and interest expense, net were offset by the increase in gross profit primarily driven by strong revenue growth.
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SEGMENT RESULTS OF OPERATIONS
The summary that follows provides a discussion of the results of operations of each of our five reportable operating segments (Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions, and Climate & Sustainability Technologies). Each of these segments is comprised of various product and service offerings that serve multiple markets. We evaluate our operating segment performance based on segment earnings as defined in Note 16 — Segment Information in the condensed consolidated financial statements in Item 1 of this Form 10-Q.
We report organic revenue growth (a non-GAAP measure) which excludes the impact of foreign currency exchange rates and the impact of acquisitions and divestitures. We believe that reporting organic revenue growth provides a useful comparison of our revenue performance and trends between periods. See "Non-GAAP Disclosures" at the end of this Item 2.
Additionally, we use the following operational metrics in monitoring the performance of the business. We believe the operational metrics are useful to investors and other users of our financial information in assessing the performance of our segments:
•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 order trends.
•Book-to-bill is a ratio of the amount of bookings received from customers during a period divided by the amount of revenue recorded during that same period. This metric is a useful indicator of demand.
Engineered Products
Our Engineered Products segment provides a wide range of equipment, components, software, solutions and services to the vehicle aftermarket, aerospace and defense, industrial winch and hoist, precision soldering and fluid dispensing end-markets.
| Three Months Ended March 31, | ||||||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | % Change | |||||||||||||||||
| Revenue | $ | 266,639 | $ | 254,646 | 4.7 | % | ||||||||||||||
| Segment earnings | $ | 44,991 | $ | 44,114 | 2.0 | % | ||||||||||||||
Segment earnings margin | 16.9 % | 17.3 % | ||||||||||||||||||
| Operational metrics: | ||||||||||||||||||||
| Bookings | $ | 294,009 | $ | 264,538 | 11.1 | % | ||||||||||||||
Components of revenue growth: | ||||||||||||||||||||
Organic growth | 2.1 | % | ||||||||||||||||||
| Foreign currency translation | 2.6 | % | ||||||||||||||||||
Total revenue growth | 4.7 | % | ||||||||||||||||||
First Quarter 2026 Compared to the First Quarter 2025
Engineered Products revenue for the first quarter of 2026 increased $12.0 million, or 4.7%, as compared to the first quarter of 2025, driven by a favorable impact from foreign currency translation of 2.6% and organic growth of 2.1%. Customer pricing favorably impacted revenue by approximately 2.1% in the first quarter of 2026 and 1.3% in the prior year comparable quarter.
The organic revenue growth was primarily driven by pricing actions and solid demand trends across end markets. The growth outlook is favorable for the remainder of the year as we expect improvement in vehicle service business demand and constructive demand conditions across key end markets, most notably in aerospace and defense.
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Engineered Products segment earnings increased $0.9 million, or 2.0%, compared to the first quarter of 2025. The increase was primarily driven by pricing actions, productivity initiatives and carry-over benefits from restructuring actions taken in 2025, partially offset by inflationary impacts and unfavorable mix. Segment earnings margin decreased to 16.9% from 17.3% as compared to the prior year comparable quarter.
Overall bookings increased 11.1% as compared to the prior year comparable quarter. The bookings increase was driven by strength in our aerospace and defense business and winch and hoist demand. Segment book-to-bill was 1.10.
Clean Energy & Fueling
Our Clean Energy & Fueling segment provides components, equipment, software solutions and services enabling safe and reliable storage, transport, dispensing, and remote monitoring of traditional and clean fuels (including liquefied natural gas, hydrogen, and electric vehicle charging), cryogenic gases, and other hazardous substances along the supply chain, and safe and efficient operation of convenience retail, retail fueling and vehicle wash establishments.
| Three Months Ended March 31, | ||||||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | % Change | |||||||||||||||||
| Revenue | $ | 554,809 | $ | 491,148 | 13.0 | % | ||||||||||||||
| Segment earnings | $ | 99,041 | $ | 85,644 | 15.6 | % | ||||||||||||||
Segment earnings margin | 17.9 % | 17.4 % | ||||||||||||||||||
| Operational metrics: | ||||||||||||||||||||
| Bookings | $ | 615,197 | $ | 543,859 | 13.1 | % | ||||||||||||||
Components of revenue growth: | ||||||||||||||||||||
Organic growth | 11.1 | % | ||||||||||||||||||
| Acquisitions | 0.1 | % | ||||||||||||||||||
| Foreign currency translation | 1.8 | % | ||||||||||||||||||
Total revenue growth | 13.0 | % | ||||||||||||||||||
First Quarter 2026 Compared to the First Quarter 2025
Clean Energy & Fueling revenue for the first quarter of 2026 increased $63.7 million, or 13.0%, as compared to the first quarter of 2025, driven by organic growth of 11.1%, a favorable foreign currency translation impact of 1.8% and acquisition-related growth of 0.1%. Acquisition-related growth was primarily driven by the acquisition of Site IQ, LLC in the third quarter of 2025. Customer pricing favorably impacted revenue in the first quarter of 2026 by approximately 2.1% and by 1.4% in the prior year comparable quarter.
The organic revenue growth was primarily driven by pricing actions and favorable demand trends in our above and below-ground retail fueling, fluid transport, and clean energy components businesses. We expect positive demand trends to continue in the rest of year driven by a favorable demand outlook across major end markets.
Clean Energy & Fueling segment earnings increased $13.4 million, or 15.6%, over the prior year comparable quarter. The increase was primarily driven by higher volumes, benefits from restructuring actions, and favorable pricing offsetting cost headwinds. Segment earnings margin increased to 17.9% from 17.4% as compared to prior year comparable quarter.
Overall bookings increased 13.1% as compared to the prior year comparable quarter. The bookings increase was primarily driven by demand in clean energy components and North America above and below-ground retail fueling equipment. Segment book-to-bill was 1.11.
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Imaging & Identification
Our Imaging & Identification segment supplies precision marking and coding, product traceability, brand protection and digital textile printing equipment, as well as related consumables, software and services to the global packaged and consumer goods, pharmaceutical, industrial manufacturing, textile and other end-markets.
| Three Months Ended March 31, | ||||||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | % Change | |||||||||||||||||
| Revenue | $ | 285,420 | $ | 280,090 | 1.9 | % | ||||||||||||||
| Segment earnings | $ | 77,457 | $ | 77,575 | (0.2) | % | ||||||||||||||
Segment earnings margin | 27.1 % | 27.7 % | ||||||||||||||||||
| Operational metrics: | ||||||||||||||||||||
| Bookings | $ | 312,646 | $ | 288,169 | 8.5 | % | ||||||||||||||
Components of revenue growth: | ||||||||||||||||||||
Organic decline | (3.3) | % | ||||||||||||||||||
| Foreign currency translation | 5.2 | % | ||||||||||||||||||
Total revenue growth | 1.9 | % | ||||||||||||||||||
First Quarter 2026 Compared to the First Quarter 2025
Imaging & Identification revenue for the first quarter of 2026 increased $5.3 million, or 1.9%, as compared to the first quarter of 2025, driven by a favorable impact from foreign currency translation of 5.2%, partially offset by an organic revenue decline of 3.3%. Customer pricing favorably impacted revenue in the first quarter of 2026 by approximately 1.2% and by approximately 2.3% in the prior year comparable quarter.
The organic revenue decline was primarily due to shipment timing for marking and coding equipment, partially offset by pricing actions. We expect organic revenue growth to inflect positively as we move through the year driven by pricing and constructive demand trends across the segment.
Imaging & Identification segment earnings decreased $0.1 million, or 0.2%, over the prior year comparable quarter. The decrease was primarily due to lower volumes, mostly offset by favorable pricing actions and productivity initiatives. Segment earnings margin decreased to 27.1% from 27.7% in the prior year comparable quarter.
Overall bookings increased 8.5% as compared to the prior year comparable quarter. The bookings increase was primarily driven by order strength in our core marking and coding business. Segment book-to-bill was 1.10.
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Pumps & Process Solutions
Our Pumps & Process Solutions segment manufactures specialty pumps and flow meters, fluid transfer connectors, highly engineered precision components, instruments and digital controls for rotating and reciprocating machines, polymer processing equipment, measurement, inspection, and control technologies, serving single-use biopharmaceutical production, diversified industrial manufacturing applications, chemical production, plastics and polymer processing, midstream and downstream oil and gas, clean energy markets, thermal management, wire and cable, food and beverage, semiconductor production and medical applications and other end-markets.
| Three Months Ended March 31, | ||||||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | % Change | |||||||||||||||||
| Revenue | $ | 537,810 | $ | 493,573 | 9.0 | % | ||||||||||||||
| Segment earnings | $ | 169,492 | $ | 151,275 | 12.0 | % | ||||||||||||||
Segment earnings margin | 31.5 % | 30.6 % | ||||||||||||||||||
| Operational metrics: | ||||||||||||||||||||
| Bookings | $ | 597,578 | $ | 499,287 | 19.7 | % | ||||||||||||||
Components of revenue growth: | ||||||||||||||||||||
Organic decline | (0.8) | % | ||||||||||||||||||
| Acquisitions | 7.0 | % | ||||||||||||||||||
| Foreign currency translation | 2.8 | % | ||||||||||||||||||
Total revenue growth | 9.0 | % | ||||||||||||||||||
First Quarter 2026 Compared to the First Quarter 2025
Pumps & Process Solutions revenue for the first quarter of 2026 increased $44.2 million, or 9.0%, as compared to the first quarter of 2025, driven by acquisition-related growth of 7.0% and a favorable impact from foreign currency translation of 2.8%, partially offset by an organic revenue decline of 0.8%. Acquisition-related growth was driven by the acquisitions of Sikora AG and ipp Pump Products GmbH in the second quarter of 2025. Customer pricing favorably impacted revenue in the first quarter of 2026 by approximately 1.6% and by approximately 1.3% in the prior year comparable quarter.
The organic revenue decline was primarily due to anticipated revenue declines in our plastics and polymer processing solutions business as customers continue to focus on optimizing the significant capacity investments made over the last several years, partially offset by robust demand for single-use biopharma components and precision components for midstream natural gas compression and power generation. We expect organic growth to trend positively as we move through the year.
Pumps & Process Solutions segment earnings increased $18.2 million, or 12.0%, over the prior year comparable quarter. The increase was driven by favorable price vs. cost dynamics, favorable portfolio mix and the impact from acquisitions, partially offset by lower polymer processing volumes. Segment earnings margin increased to 31.5% from 30.6% in the prior year comparable quarter.
Overall bookings increased 19.7% as compared to the prior year comparable quarter. The bookings increase was primarily driven by positive demand trends in biopharmaceutical and power generation end markets, as well as the favorable impact from acquisitions. Segment book-to-bill was 1.11.
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Climate & Sustainability Technologies
Our Climate & Sustainability Technologies segment is a provider of innovative and energy-efficient equipment, components, solutions, services and parts for the commercial refrigeration, heating and cooling and beverage can-making equipment end-markets.
| Three Months Ended March 31, | ||||||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | % Change | |||||||||||||||||
| Revenue | $ | 411,060 | $ | 347,888 | 18.2 | % | ||||||||||||||
| Segment earnings | $ | 63,995 | $ | 52,119 | 22.8 | % | ||||||||||||||
Segment earnings margin | 15.6 % | 15.0 % | ||||||||||||||||||
| Operational metrics: | ||||||||||||||||||||
| Bookings | $ | 646,960 | $ | 395,623 | 63.5 | % | ||||||||||||||
Components of revenue growth: | ||||||||||||||||||||
Organic growth | 15.2 | % | ||||||||||||||||||
| Foreign currency translation | 3.0 | % | ||||||||||||||||||
Total revenue growth | 18.2 | % | ||||||||||||||||||
First Quarter 2026 Compared to the First Quarter 2025
Climate & Sustainability Technologies revenue increased $63.2 million, or 18.2%, as compared to the first quarter of 2025, driven by an organic revenue growth of 15.2% and a favorable impact from foreign currency translation of 3.0%. Customer pricing favorably impacted revenue in the first quarter of 2026 by approximately 2.0% and by approximately 0.2% in the prior year comparable quarter.
The organic revenue growth was primarily driven by continued strong demand in CO2 refrigerant systems and recovery in refrigerated door case volumes, as well as accelerating demand for heat exchangers used in data center cooling and other applications. We expect organic growth trends to remain constructive as we progress throughout the year.
Climate & Sustainability Technologies segment earnings increased $11.9 million, or 22.8%, over the prior year comparable quarter. The increase in segment earnings was primarily driven by the favorable impact from higher volumes, productivity initiatives and the favorable mix impact from CO2 refrigerant systems growth in retail refrigeration. Segment earnings margin increased to 15.6% from 15.0% in the prior year comparable quarter.
Bookings in the first quarter of 2026 increased 63.5% from the prior year comparable quarter. The bookings increase was primarily driven by demand strength in retail refrigeration and heat exchanger demand trends, including longer lead-time orders. Segment book-to-bill was 1.57.
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Reconciliation of Segment Earnings to Earnings from Continuing Operations
| Three Months Ended March 31, | |||||||||||
(in thousands) | 2026 | 2025 | |||||||||
Earnings from Continuing Operations: | |||||||||||
Segment earnings: | |||||||||||
| Engineered Products | $ | 44,991 | $ | 44,114 | |||||||
| Clean Energy & Fueling | 99,041 | 85,644 | |||||||||
| Imaging & Identification | 77,457 | 77,575 | |||||||||
| Pumps & Process Solutions | 169,492 | 151,275 | |||||||||
| Climate & Sustainability Technologies | 63,995 | 52,119 | |||||||||
| Total segment earnings | 454,976 | 410,727 | |||||||||
Purchase accounting expenses (1) | 54,579 | 49,104 | |||||||||
Restructuring and other costs (2) | 36,795 | 9,397 | |||||||||
Gain on dispositions (3) | — | (2,468) | |||||||||
Corporate expense / other (4) | 49,238 | 51,959 | |||||||||
| Interest expense | 29,522 | 27,608 | |||||||||
| Interest income | (14,060) | (20,254) | |||||||||
| Earnings before provision for income taxes | 298,902 | 295,381 | |||||||||
| Provision for income taxes | 60,153 | 56,140 | |||||||||
Earnings from continuing operations | $ | 238,749 | $ | 239,241 | |||||||
(1) Purchase accounting expenses are primarily comprised of amortization of acquired 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.
Restructuring and Other Costs (Benefits)
Restructuring and other costs are not presented in our segment earnings because these costs are excluded from the segment operating performance measure reviewed by management. During the three months ended March 31, 2026, we incurred restructuring charges of $30.2 million and other costs, net of $6.6 million. Restructuring charges for the three months ended March 31, 2026 were primarily related to headcount reductions and exit costs in the Pumps & Process Solutions, Climate & Sustainability Technologies and Clean Energy & Fueling segments. These restructuring programs were initiated in 2025 and 2026 and the Company will continue to make proactive adjustments to its cost structure to align with current demand trends. Other costs, net of $6.6 million for the three months ended March 31, 2026 include $3.0 million in costs associated with a footprint reduction in our Climate & Sustainability Technologies segment. These restructuring and other charges were recorded in cost of goods and services and selling, general and administrative expenses in the condensed consolidated statements of earnings. Additional programs beyond the scope of the announced programs may be implemented during 2026 with related restructuring and other cost charges.
We recorded the following restructuring and other costs for the three months ended March 31, 2026:
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | Engineered Products | Clean Energy & Fueling | Imaging & Identification | Pumps & Process Solutions | Climate & Sustainability Technologies | Corporate | Total | ||||||||||||||||||||||||||||||||||
| Restructuring | $ | 1,724 | $ | 7,542 | $ | 1,036 | $ | 10,971 | $ | 8,526 | $ | 412 | $ | 30,211 | |||||||||||||||||||||||||||
Other costs, net | 10 | 1,764 | 1,039 | 393 | 2,960 | 418 | 6,584 | ||||||||||||||||||||||||||||||||||
| Restructuring and other costs | $ | 1,734 | $ | 9,306 | $ | 2,075 | $ | 11,364 | $ | 11,486 | $ | 830 | $ | 36,795 | |||||||||||||||||||||||||||
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Restructuring and other costs for the three months ended March 31, 2025 include restructuring charges of $8.3 million and other costs, net of $1.1 million. Restructuring charges for the three months ended March 31, 2025 were primarily related to headcount reductions and exit costs across the segments. These restructuring programs were initiated in 2024 and 2025. These restructuring and other charges were recorded in cost of goods and services and selling, general and administrative expenses in the condensed consolidated statement of earnings.
We recorded the following restructuring and other costs for the three months ended March 31, 2025:
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | Engineered Products | Clean Energy & Fueling | Imaging & Identification | Pumps & Process Solutions | Climate & Sustainability Technologies | Corporate | Total | ||||||||||||||||||||||||||||||||||
| Restructuring | $ | 2,468 | $ | 1,768 | $ | 169 | $ | 1,945 | $ | 1,666 | $ | 294 | $ | 8,310 | |||||||||||||||||||||||||||
Other costs (benefits), net | 61 | 115 | 415 | (43) | 401 | 138 | 1,087 | ||||||||||||||||||||||||||||||||||
Restructuring and other costs | $ | 2,529 | $ | 1,883 | $ | 584 | $ | 1,902 | $ | 2,067 | $ | 432 | $ | 9,397 | |||||||||||||||||||||||||||
Purchase Accounting Expenses
Purchase accounting expenses primarily relate to amortization of acquired intangible assets. These expenses are not presented in our segment earnings because they are excluded from the segment operating performance measure reviewed by management. These expenses reconcile to segment earnings as follows:
| Three Months Ended March 31, | |||||||||||
(in thousands) | 2026 | 2025 | |||||||||
| Purchase Accounting Expenses | |||||||||||
| Engineered Products | $ | 2,849 | $ | 2,657 | |||||||
Clean Energy & Fueling | 24,946 | 25,621 | |||||||||
| Imaging & Identification | 5,109 | 5,610 | |||||||||
Pumps & Process Solutions | 17,250 | 10,808 | |||||||||
| Climate & Sustainability Technologies | 4,425 | 4,408 | |||||||||
| Total | $ | 54,579 | $ | 49,104 | |||||||
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FINANCIAL CONDITION
We assess our liquidity in terms of our ability to generate cash to fund our operating, investing and financing activities. Significant factors affecting liquidity are cash flows generated from operating activities, capital expenditures, acquisitions, dispositions, dividends, repurchase of outstanding shares, adequacy of available commercial paper and bank lines of credit and the ability to attract long-term capital with satisfactory terms. We generate substantial cash from the operations of our businesses and remain in a strong financial position, with sufficient liquidity available for upcoming debt maturities and for reinvestment in existing businesses and strategic acquisitions.
Cash Flow Summary
The following table is derived from our condensed consolidated statements of cash flows:
| Three Months Ended March 31, | |||||||||||
Cash Flows from Operations (in thousands) | 2026 | 2025 | |||||||||
| Net cash flows provided by (used in): | |||||||||||
| Operating activities | $ | 190,997 | $ | 157,474 | |||||||
| Investing activities | (61,660) | (74,186) | |||||||||
| Financing activities | (161,451) | (122,234) | |||||||||
Operating Activities
Cash flow from operating activities for the three months ended March 31, 2026 increased by $33.5 million compared to March 31, 2025, primarily driven by compensation payment timing and higher operating earnings during the period for the first quarter of 2026 as compared to the first quarter of 2025.
Adjusted Working Capital: We believe adjusted working capital (a non-GAAP measure calculated as receivables, plus inventory, less accounts payable) provides a meaningful measure of liquidity by showing changes caused by operational results.
The following table provides a calculation of adjusted working capital:
Adjusted Working Capital (in thousands) | March 31, 2026 | December 31, 2025 | |||||||||
Receivables, net | $ | 1,444,558 | $ | 1,371,352 | |||||||
Inventories, net | 1,370,836 | 1,272,784 | |||||||||
| Less: Accounts payable | 975,514 | 875,678 | |||||||||
| Adjusted working capital | $ | 1,839,880 | $ | 1,768,458 | |||||||
Adjusted working capital has increased by $71.4 million, or 4.0%, for the three months ended March 31, 2026, driven by an increase of $73.2 million in net receivables and an increase of $98.1 million in net inventory, partially offset by an increase in accounts payable of $99.8 million. These amounts include the effects of acquisitions and foreign currency translation. Accounts receivable increased compared to the prior year as a result of higher revenue generation in the quarter. Inventories increased to support higher volume deliveries expected over the next several quarters, as supported by the order book and in line with historical seasonality. These factors also led to an increase in accounts payable.
Investing Activities
Cash flow from investing activities is derived from cash outflows for capital expenditures and acquisitions. The majority of the activity in investing activities was comprised of the following:
•Capital spending: Capital expenditures increased $11.6 million during the three months ended March 31, 2026, compared to the three months ended March 31, 2025, in line with our planned capital expenditures for the year, primarily driven by investments in growth and productivity.
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•Acquisitions: During the three months ended March 31, 2026, we deployed approximately $0.7 million to acquire one business within the Engineered Products segment. In comparison, during the three months ended March 31, 2025, we deployed approximately $29.3 million, net to acquire one business within the Pumps & Process Solutions segment. See Note 3 — Acquisitions in the condensed consolidated financial statements in Item 1 of this Form 10-Q for further details.
We anticipate that capital expenditures and any additional acquisitions we make through the remainder of 2026 will be funded from available cash and internally generated funds and, if necessary, through the issuance of commercial paper, or by accessing the public debt or equity markets. We estimate capital expenditures in 2026 to range from $190.0 million to $210.0 million.
Financing Activities
Cash flow from financing activities generally relates to the use of cash for payment of dividends, purchases of our common stock, and cash payments related to the settlement of tax obligations for exercises of share-based awards. The majority of financing activity was attributed to the following:
•Repurchase of common stock: The Company repurchased a total of 250,000 shares for $53.9 million during the three months ended March 31, 2026 and 200,000 shares for $40.7 million during the same period in 2025. See Note 17 — Stockholders' Equity in the condensed consolidated financial statements in Item 1 of this Form 10-Q for further details.
•Dividend payments: Total dividend payments to common shareholders were $70.4 million during the three months ended March 31, 2026, as compared to $71.4 million during the same period in 2025. Our dividends paid per common share increased 1.0% to $0.52 during the three months ended March 31, 2026 compared to $0.515 during the same period in 2025.
Liquidity and Capital Resources
Free Cash Flow
In addition to measuring our cash flow generation and usage based upon the operating, investing and financing classifications included in the condensed consolidated statements of cash flows, we also measure free cash flow (a non-GAAP measure) which 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 earnings from continuing operations equals free cash flow divided by earnings from continuing operations. We believe that free cash flow is an important measure of liquidity because it provides management and investors a measurement of cash generated from operations that may be available for mandatory payment obligations and investment opportunities, such as funding acquisitions, paying dividends, repaying debt and repurchasing our common stock.
The following table reconciles our free cash flow to cash flow provided by operating activities:
| Three Months Ended March 31, | |||||||||||
Free Cash Flow (dollars in thousands) | 2026 | 2025 | |||||||||
| Cash flow provided by operating activities | $ | 190,997 | $ | 157,474 | |||||||
| Less: Capital expenditures | (59,808) | (48,192) | |||||||||
| Free cash flow | $ | 131,189 | $ | 109,282 | |||||||
| Cash flow from operating activities as a percentage of revenue | 9.3 | % | 8.4 | % | |||||||
Cash flow from operating activities as a percentage of earnings from continuing operations | 80.0 | % | 65.8 | % | |||||||
| Free cash flow as a percentage of revenue | 6.4 | % | 5.9 | % | |||||||
Free cash flow as a percentage of earnings from continuing operations | 54.9 | % | 45.7 | % | |||||||
For the three months ended March 31, 2026, we generated free cash flow of $131.2 million, representing 6.4% of revenue and 54.9% of earnings from continuing operations. Free cash flow for the three months ended March 31, 2026 increased $21.9 million, compared to March 31, 2025, primarily driven by compensation payment timing and higher operating earnings, partially offset by higher capital expenditures.
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Capitalization
We use commercial paper borrowings for general corporate purposes, including the funding of acquisitions and the repurchase of our common stock. As of March 31, 2026, we maintained $1.0 billion five-year and $500.0 million 364-day unsecured revolving credit facilities (together, the "Credit Agreements") with a syndicate of banks which expire April 6, 2028 and April 2, 2026, respectively. The Credit Agreements are designated as a liquidity back-stop for the Company's commercial paper program and also are available for general corporate purposes. As of March 31, 2026 and December 31, 2025, there were no outstanding borrowings under the five-year or 364-day credit facilities.
At the Company's election, loans under the Credit Agreements will bear interest at a base rate plus an applicable margin. The Credit Agreements require the Company to pay facility fees and impose various restrictions on the Company such as, among other things, a requirement to maintain an interest coverage ratio of consolidated EBITDA to consolidated net interest expense of not less than 3.0 to 1. The Company was in compliance with all covenants in the Credit Agreements and other long-term debt covenants at March 31, 2026 and had an interest coverage ratio of consolidated EBITDA to consolidated net interest expense of 40.8 to 1. We are not aware of any potential impairment to our liquidity and expect to remain in compliance with all of our debt covenants.
On April 2, 2026, the Company entered into a new $1.5 billion five-year unsecured revolving credit facility with a syndicate of banks on substantially similar terms as the existing Credit Agreements. The new five-year credit facility replaced the existing Credit Agreements. See Note 20 — Subsequent Events in the condensed consolidated financial statements in Item 1 of this Form 10-Q for additional details.
We also have a current shelf registration statement filed with the Securities and Exchange Commission that allows for the issuance of additional debt securities that may be utilized in one or more offerings on terms to be determined at the time of the offering. Net proceeds of any offering would be used for general corporate purposes, including repayment of existing indebtedness, capital expenditures and acquisitions.
At March 31, 2026, our cash and cash equivalents totaled $1.6 billion, of which approximately $512.1 million was held outside the United States. At December 31, 2025, our cash and cash equivalents totaled $1.7 billion, of which approximately $447.8 million was held outside the United States. Cash and cash equivalents are held primarily in bank deposits with highly rated banks. We regularly hold cash in excess of near-term requirements in bank deposits or invest the funds in government money market instruments or short-term investments, which consist of investment grade time deposits with original maturity dates at the time of purchase of no greater than three months.
We utilize the net debt to net capitalization calculation (a non-GAAP measure) to evaluate our capital structure and assess our overall financial leverage and capacity and believe the calculation is useful to investors for the same reason. Net debt represents total debt minus cash and cash equivalents. Net capitalization represents net debt plus stockholders' equity. The following table provides a calculation of net debt to net capitalization from the most directly comparable GAAP measures:
Net Debt to Net Capitalization Ratio (dollars in thousands) | March 31, 2026 | December 31, 2025 | ||||||||||||
Current portion of long-term debt | $ | 692,848 | $ | 706,677 | ||||||||||
| Long-term debt | 2,597,265 | 2,621,295 | ||||||||||||
| Total debt | 3,290,113 | 3,327,972 | ||||||||||||
Less: Cash and cash equivalents | (1,641,916) | (1,676,808) | ||||||||||||
| Net debt | 1,648,197 | 1,651,164 | ||||||||||||
| Add: Stockholders' equity | 7,489,886 | 7,405,206 | ||||||||||||
| Net capitalization | $ | 9,138,083 | $ | 9,056,370 | ||||||||||
| Net debt to net capitalization | 18.0 | % | 18.2 | % | ||||||||||
Our net debt to net capitalization ratio decreased to 18.0% at March 31, 2026 compared to 18.2% at December 31, 2025. Net debt decreased $3.0 million during the period primarily due to the decrease in value of the euro-denominated debt resulting from foreign currency translation adjustments, partially offset by a decrease in cash and cash equivalents. Stockholders' equity increased for the period primarily driven by current earnings of $238.4 million, partially offset by dividends paid and share repurchases for the period.
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In April 2026, JP Morgan delivered 153,652 additional shares upon completion of the accelerated share repurchase program ("ASR Program") initiated in the fourth quarter 2025. The Company received a total of 2,487,662 shares over the course of the ASR program. See Note 20 — Subsequent Events in the condensed consolidated financial statements in Item 1 of this Form 10-Q for additional details.
Operating cash flow and access to capital markets are expected to satisfy our various cash flow requirements, including acquisitions, capital expenditures, purchase obligations, debt maturities, and lease obligations. Acquisition spending and/or share repurchases could potentially increase our debt.
We believe that existing sources of liquidity are adequate to meet anticipated funding needs at current risk-based interest rates for the foreseeable future.
Critical Accounting Estimates
Our condensed consolidated financial statements and related public financial information are based on the application of GAAP which requires the use of estimates, assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenue and expense amounts reported. These estimates can also affect supplemental information contained in our public disclosures, including information regarding contingencies, risk and our financial condition. We believe our use of estimates and underlying accounting assumptions conform to GAAP and are consistently applied. We review valuations based on estimates for reasonableness on a consistent basis.
Recent Accounting Standards
See Note 19 — Recent Accounting Pronouncements in the condensed consolidated financial statements in Item 1 of this Form 10-Q. The adoption of recent accounting standards as included in Note 19 — Recent Accounting Pronouncements in the condensed consolidated financial statements has not had, and is not expected to have, a significant impact on our revenue, earnings or liquidity.
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Special Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q, especially MD&A, 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. Some of these statements may be indicated by words such as "may", "anticipate", "expect", "believe", "intend", "continue", "guidance", "estimates", "suggest", "will", "plan", "should", "would", "could", "forecast" and other words and terms that use the future tense or have a similar meaning. Forward-looking statements are based on current expectations and are subject to numerous important risks, uncertainties, and assumptions, including those described in our Annual Report on Form 10-K for the year ended December 31, 2025. 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 and complete acquisitions and 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, and various other factors that are described in our periodic reports filed with or furnished to the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
The Company may, from time to time, post financial or other information on its website, www.dovercorporation.com. The website is for informational purposes only and is not intended for use as a hyperlink. The Company is not incorporating any material on its website into this report.
Non-GAAP Disclosures
In an effort to provide investors with additional information regarding our results as determined by GAAP, we also disclose non-GAAP information, which we believe provides useful information to investors. Free cash flow, free cash flow as a percentage of revenue, free cash flow as a percentage of earnings from continuing operations, net debt, net capitalization, net debt to net capitalization ratio, adjusted working capital, and organic revenue growth are not financial measures under GAAP and should not be considered as a substitute for cash flows from operating activities, debt or equity, working capital or revenue as determined in accordance with GAAP, and they may not be comparable to similarly titled measures reported by other companies.
Reconciliations and comparisons to non-GAAP measures can be found above in this Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There has been no significant change in our exposure to market risk during the three months ended March 31, 2026. For a discussion of our exposure to market risk, refer to Item 7A, "Quantitative and Qualitative Disclosures about Market Risk," contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
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Item 4. Controls and Procedures
At the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(e). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of March 31, 2026.
During the first quarter of 2026, there were no changes in the Company's internal control over financial reporting that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.
PART II — OTHER INFORMATION
Item 1. Legal Proceedings
See Note 14 — Commitments and Contingent Liabilities in the condensed consolidated financial statements in Item 1 of this Form 10-Q.
Item 1A. Risk Factors
There have been no material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities
a.Not applicable.
b.Not applicable.
c.The below table presents shares of Dover Stock that we acquired during the quarter
| Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased under the Plans or Programs (1) | |||||||||||||||||||
January 1 to January 31 | — | $ | — | — | 14,596,708 | ||||||||||||||||||
February 1 to February 28 | — | — | — | 14,596,708 | |||||||||||||||||||
March 1 to March 31 | 250,000 | 215.75 | — | 14,346,708 | |||||||||||||||||||
For the First Quarter | 250,000 | $ | 215.75 | — | 14,346,708 | ||||||||||||||||||
(1) In August 2023, the Company's Board of Directors approved a new standing share repurchase authorization whereby the Company may repurchase up to 20 million shares beginning on January 1, 2024 through December 31, 2026. The Company repurchased 250,000 shares under the August 2023 authorization during the three months ended March 31, 2026. As of March 31, 2026, the number of shares still available for repurchase under the current share repurchase authorization was 14,346,708.
(2) On November 10, 2025, the Company entered into a $500.0 million accelerated share repurchase agreement (the "ASR Agreement") with JP Morgan Chase Bank, N.A. ("JP Morgan") to repurchase its shares in an accelerated share repurchase program (the "ASR Program"). The Company funded the ASR Program with cash on hand. Under the terms of the ASR Agreement, the Company paid JP Morgan $500.0 million on November 12, 2025, and on that date received initial delivery of 2,334,010 shares, representing a substantial majority of the shares expected to be retired over the course of the ASR Program. In April 2026, JP Morgan delivered 153,652 additional shares which completed the ASR Program. Over the course of the ASR Program, the Company received a total of 2,487,662 shares. The total number of shares ultimately repurchased under the ASR Agreement was based on the average of the daily volume-weighted average share price of Dover's common stock during the calculation period of the ASR Program, less a discount, which was $200.99.
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Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
a.- b. None.
c. During the three months ended March 31, 2026, no director or Section 16 officer adopted terminated
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Item 6. Exhibits
| 31.1 | Certificate pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, signed and dated by Christopher B. Woenker. | ||||
| 31.2 | Certificate pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, signed and dated by Richard J. Tobin. | ||||
| 32 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed and dated by Richard J. Tobin and Christopher B. Woenker. | ||||
| 101 | The following materials from Dover Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Condensed Consolidated Statements of Earnings, (ii) the Condensed Consolidated Statements of Comprehensive Earnings, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Stockholders’ Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements. | ||||
| 104 | Cover Page formatted in Inline XBRL and contained in Exhibit 101. | ||||
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.
| DOVER CORPORATION | ||||||||
| Date: | April 23, 2026 | /s/ Christopher B. Woenker | ||||||
Christopher B. Woenker | ||||||||
| Senior Vice President & Chief Financial Officer | ||||||||
| (Principal Financial Officer) | ||||||||
| Date: | April 23, 2026 | /s/ Ryan W. Paulson | ||||||
| Ryan W. Paulson | ||||||||
| Vice President, Controller | ||||||||
| (Principal Accounting Officer) | ||||||||
41
FAQ
How did Dover (DOV) perform financially in Q1 2026?
Dover delivered higher results in Q1 2026, with revenue rising to $2.05 billion, up 10.1% year over year. Earnings from continuing operations were $238.7 million, and diluted EPS from continuing operations increased to $1.76 from $1.73.
What drove Dover (DOV) revenue growth in the first quarter of 2026?
Revenue growth was driven by 5.3% organic growth, a 2.9% favorable currency impact, and 1.9% acquisition-related growth. Strong demand in Climate & Sustainability Technologies, Clean Energy & Fueling, and Engineered Products segments, plus pricing actions, contributed meaningfully.
How did Dover’s operating margins and gross margin trend in Q1 2026?
Gross margin decreased to 38.9% from 40.0%, mainly due to portfolio mix. Operating earnings rose to $305.9 million, up 3.2%. Selling, general and administrative expenses held roughly flat as a percentage of revenue at 24.0%.
What were Dover (DOV) bookings and book-to-bill ratios in Q1 2026?
Bookings reached $2.5 billion, up 23.8% year over year, with increases across all segments. The company reported segment book‑to‑bill ratios above 1.0, including 1.57 in Climate & Sustainability Technologies, indicating orders exceeded shipments.
How strong was Dover’s cash flow and balance sheet in Q1 2026?
Net cash from operating activities was $191.0 million, up from $157.5 million a year earlier. Dover ended the quarter with $1.64 billion in cash and cash equivalents, total assets of $13.51 billion, and net long‑term debt of about $2.60 billion.
Which Dover segments showed the strongest growth in Q1 2026?
The strongest revenue growth came from Climate & Sustainability Technologies, up 18.2%, and Clean Energy & Fueling, up 13.0%. Both benefited from favorable demand trends and pricing. Pumps & Process Solutions grew 9.0% overall, mainly from acquisitions and currency.