Dover Corporation
Compounder of mission‑critical niches with rising cash conversion and disciplined portfolio shaping
Dover is a diversified industrial with five focused platforms that sell performance‑critical equipment, software and consumables into defensible niches.
In 2025 it generated 8.1 billion dollars of revenue and 1.12 billion dollars of free cash flow, with free cash flow equal to 13.8 percent of revenue and slightly above earnings, reflecting improving mix, pricing and cost discipline.
Guidance for 2026 calls for continued mid‑single‑digit revenue growth and double‑digit adjusted EPS growth, supported by broad bookings strength and margin carryover from restructuring. Under CEO Richard Tobin, Dover has pruned cyclicality and concentrated capital in higher‑quality platforms.
In 2024 it exited De‑Sta‑Co and Environmental Solutions Group at attractive valuations, while in 2025 it added SIKORA, Cryo‑Mach and ipp Pump Products to strengthen measurement, cryogenics and hygienic flow‑control.
The balance sheet sits at investment‑grade with net debt of 1.65 billion dollars and BBB+/Baa1 ratings, and the company extended its 70‑year dividend increase streak in 2025 while launching a 500 million dollar ASR that continues into 2Q 2026.
Dover a-t-elle un rempart concurrentiel (moat) solide ?
Dover’s moat is portfolio‑based with multiple mid‑moats rather than a single network monopoly.
Strengths: (1) Intangible assets 75/100. Recognized brands with regulatory certifications in fueling (OPW, Wayne, Tokheim), coding/traceability (Markem‑Imaje), hygienic and polymer processing (PSG, MAAG) confer trust and qualification advantages. (2) Switching costs 80/100. Embedded hardware plus software and consumables create lock‑in, especially in marking and coding, quick‑disconnects for biopharma and data‑center liquid cooling, cryogenic flow‑control, and retail fueling systems.
Consumables and aftermarket parts reinforce stickiness. (3) Efficient scale 65/100. Many product lines are niche oligopolies where global service footprints and safety certifications deter new entrants. (4) Cost advantages 60/100 from scale manufacturing, shared services and procurement; management highlights center‑led margin initiatives. (5) Network effects 20/100, generally limited.
Weighted overall moat score 74. Risks to durability: EV shift could pressure traditional fueling hardware and vehicle‑service volumes; textile printing cycles and regulatory changes can swing capital goods demand. Mitigants include EV chargers, cryogenic and CO2 refrigeration exposure and a rising software/consumables mix.
Dover a-t-elle un pricing power dans son secteur ?
Evidence of pricing: Imaging & Identification reported approximately 3.1 percent favorable pricing in 2025; Pumps & Process Solutions and Clean Energy & Fueling expanded segment margins to 30.3 percent and 19.6 percent, respectively, supported by pricing vs cost and mix.
These franchises sell mission‑critical components with low cost of failure relative to total system value, enabling price realization over cycles. Latent pricing power remains in software, service contracts and consumables within Markem‑Imaje and across aftermarket parts.
Risk: price elasticity is higher in macro slowdowns and in more commoditized sub‑lines. Overall, proven pass‑through and mix uplift warrant a solid score.
Quelle est la prévisibilité de l'activité de Dover ?
Dover’s mix includes recurring and replacement‑driven revenue streams that smooth cycles.
Free cash flow in 2025 was 1.12 billion dollars, 13.8 percent of revenue and 102 percent of earnings, indicating resilient cash conversion. 2026 guidance implies steady top‑line growth and further EPS gains, underpinned by broadly positive bookings and book‑to‑bill near or above 1.0 in most segments.
Geographic mix is balanced with 46 percent of revenue outside the U.S., reducing single‑country risk. Offsetting factors are exposures to vehicle service, retail fueling cycles and digital textile printing.
Dover est-elle financièrement solide ?
Net debt was 1.65 billion dollars at December 31, 2025 with total debt of 3.33 billion dollars and cash of 1.68 billion dollars; net debt to net capitalization was 18 percent. Interest coverage was ample, and the company maintains BBB+ (S&P) and Baa1 (Moody’s) ratings with stable outlooks.
Free cash flow of 1.12 billion dollars comfortably funds dividends and buybacks while preserving flexibility for bolt‑on M&A. Maturity ladder is well‑staggered, and there were no borrowings under committed credit facilities at year‑end.
Quelle est l'efficacité de la stratégie d'allocation de capital de Dover ?
Track record shows rational portfolio management and disciplined reinvestment. 2024 divestitures of De‑Sta‑Co and ESG simplified the portfolio and monetized non‑core assets. 2025 bolt‑ons in measurement (SIKORA), cryogenics (Cryo‑Mach) and hygienic pumps (ipp) bolster secular growth vectors like electrification, HPC thermal management and bioprocessing.
Capital returns balanced: 2025 dividends paid were 283 million dollars with the dividend raised for the 70th consecutive year, and a 500 million dollar ASR launched in November 2025 with additional open‑market repurchases. Management targets double‑digit returns on acquired capital within 3 to 4 years.
Dover a-t-elle une direction de haute qualité ?
Chairman, President and CEO Richard J. Tobin has led since 2018 and became Chairman in 2024. His tenure features sharper operating discipline, center‑led productivity, and thoughtful M&A and divestitures. CFO transition in 2025 appears orderly.
The team emphasizes returns on invested capital and margin conversion, and has maintained investment‑grade ratings while compounding the dividend. Governance is standard with a lead independent director in place.
Dover est-elle une entreprise de qualité ?
Dover Corporation est une entreprise de qualité a good avec un score de qualité de 80/100
- Mix upgrade in Pumps & Process Solutions and Clean Energy & Fueling is driving structurally higher margins and cash conversion, with 2025 segment margins of 30.3 percent and 19.6 percent, respectively.
- Portfolio shaping improved quality: sale of ESG and De‑Sta‑Co reduced exposure to heavy capital goods and funded bolt‑on M&A in cryogenics, hygienic and measurement adjacencies.
- Robust free cash flow of 1.12 billion dollars in 2025, 13.8 percent of revenue, supports dividends and repurchases while keeping leverage modest at 18 percent net debt to net capitalization.
- Bookings were broadly healthy in 2025, with book‑to‑bill at or above 1.0 in four segments and 6 percent bookings growth in Climate & Sustainability Technologies, underpinning 2026 growth visibility.
- Key risks are cyclical end‑markets (vehicle service, retail fueling hardware) and technology shifts such as EV adoption and textile print cycles, partly mitigated by installed base, consumables, software, and EV/clean‑energy product lines.
Quelle est le prix juste de l'action Dover ?
Dover est-elle un bon investissement à $228 ?
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