DOWNERS
GROVE, Ill., July 25,
2024 /PRNewswire/ -- Dover (NYSE: DOV), a
diversified global manufacturer, announced its financial results
for the second quarter ended June 30, 2024. All comparisons
are to the comparable period of the prior fiscal year, unless
otherwise noted.
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
($ in millions,
except per share data)
|
|
2024
|
|
2023
|
|
%
Change*
|
|
2024
|
|
2023
|
|
%
Change*
|
|
U.S.
GAAP
|
|
Revenue
|
|
$
2,178
|
|
$
2,100
|
|
4 %
|
|
$
4,272
|
|
$
4,179
|
|
2 %
|
|
Net
earnings
|
|
282
|
|
242
|
|
16 %
|
|
914
|
|
471
|
|
94 %
|
|
Diluted
EPS
|
|
2.04
|
|
1.72
|
|
19 %
|
|
6.57
|
|
3.35
|
|
96 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
Organic revenue
change
|
|
|
|
|
|
5 %
|
|
|
|
|
|
2 %
|
|
Adjusted net earnings
1
|
|
327
|
|
288
|
|
14 %
|
|
600
|
|
561
|
|
7 %
|
|
Adjusted diluted
EPS
|
|
2.36
|
|
2.05
|
|
15 %
|
|
4.31
|
|
3.99
|
|
8 %
|
|
|
1 Q2
and year-to-date 2024 and 2023 adjusted net earnings exclude after
tax purchase accounting expenses and restructuring and other costs.
Year-to-date 2024 excludes the after tax gain on the sale of
De-Sta-Co.
* Change may be impacted by rounding.
|
For the quarter ended June 30,
2024, Dover generated revenue of $2.2
billion, an increase of 4% (+5% organic). GAAP net earnings
of $282 million increased 16%, and
GAAP diluted EPS of $2.04 was up 19%.
On an adjusted basis, net earnings of $327
million increased 14% and adjusted diluted EPS of
$2.36 was up 15%.
For the six months ended June 30,
2024, Dover generated revenue of $4.3
billion, an increase of 2% (+2% organic) compared to the
prior year. GAAP net earnings of $914
million increased by 94%, and GAAP diluted EPS of
$6.57 was up 96%. On an adjusted
basis, net earnings of $600 million
increased 7%, and adjusted diluted EPS of $4.31 was up 8% compared to the prior year.
A full reconciliation between GAAP and adjusted measures and
definitions of non-GAAP and other performance measures are included
as an exhibit herein.
MANAGEMENT COMMENTARY:
Dover's President and Chief Executive Officer, Richard J. Tobin, said, "Dover's second quarter
results were solid, driven by excellent production performance and
strong shipment rates on orders received. Volume strength was
broad-based across the portfolio, with four of our five operating
segments posting top-line growth. Margin expansion was robust
during the period due to previous portfolio additions, positive mix
impact from our growth platforms, and our rigorous cost containment
and productivity actions. Order trends continued their positive
trajectory, bolstering our confidence in the second half
outlook.
"Our strong operational results were complemented by ongoing
portfolio actions. We completed two highly strategic bolt-on
acquisitions that enhance our clean energy components platform,
adding applications in highly attractive end markets and expanding
our global reach and manufacturing base. We also announced the
divestiture of our Environmental Solutions Group business unit,
reducing our exposure to capital goods as we continue to migrate
the portfolio toward high margin priority platforms. Based on the
development of our inorganic pipeline over the last few months, we
believe we are entering a market with a significant opportunity for
capital deployment, with enhanced capacity and optionality from the
divestiture proceeds.
"We are approaching the second half of 2024 constructively.
Underlying end market demand is healthy and is supported by our
sustained order rates. We are committed to achieving our full year
guidance through a combination of organic growth, operational
execution, and productive capital deployment."
FULL YEAR 2024 GUIDANCE:
In 2024, Dover expects to generate GAAP EPS in the range of
$10.80 to $10.95 (adjusted EPS of $9.05 to $9.20),
based on full year revenue growth of 3% to 4% (2% to 3% on an
organic basis). Full year 2024 guidance includes the Environmental
Solutions Group business unit.
CONFERENCE CALL INFORMATION:
Dover will host a webcast and conference call to discuss its
second quarter results at 9:30 A.M. Eastern Time (8:30 A.M. Central Time) on Thursday,
July 25, 2024. The webcast can be accessed on the Dover
website at dovercorporation.com. The conference call will also be
made available for replay on the website. Additional information on
Dover's results and its operating segments can be found on the
Company's website.
ABOUT DOVER:
Dover is a diversified global manufacturer and solutions
provider with annual revenue of over $8
billion. We deliver innovative equipment and components,
consumable supplies, aftermarket parts, software and digital
solutions, and support services through five operating segments:
Engineered Products, Clean Energy & Fueling, Imaging &
Identification, Pumps & Process Solutions and Climate &
Sustainability Technologies. Dover combines global scale with
operational agility to lead the markets we serve. Recognized for
our entrepreneurial approach for over 65 years, our team of
approximately 25,000 employees takes an ownership mindset,
collaborating with customers to redefine what's possible.
Headquartered in Downers Grove,
Illinois, Dover trades on the New York Stock Exchange under
"DOV."
FORWARD-LOOKING STATEMENTS:
This press release contains "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended. All statements in this document other than
statements of historical fact are statements that are, or could be
deemed, "forward-looking" statements. Forward-looking statements
are subject to numerous important risks, uncertainties, assumptions
and other factors, some of which are beyond the Company's control.
Factors that could cause actual results to differ materially from
current expectations include, among other things, general economic
conditions and conditions in the particular markets in which we
operate; supply chain constraints and labor shortages that could
result in production stoppages, inflation in material input costs
and freight logistics; the impact of interest rate and currency
exchange rate fluctuations; the impacts of natural or human-induced
disasters, acts of war, terrorism, international conflicts, and
public health crises 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; our ability to realize synergies from
newly acquired businesses; and our ability to derive expected
benefits from restructuring, productivity initiatives and other
cost reduction actions. For details on the risks and uncertainties
that could cause our results to differ materially from the
forward-looking statements contained herein, we refer you to the
documents we file with the Securities and Exchange Commission,
including our Annual Report on Form 10-K for the year ended
December 31, 2023, and our Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K. These documents are available from the
Securities and Exchange Commission, and on our website,
dovercorporation.com. The Company undertakes no obligation to
publicly update any forward-looking statement, whether as a result
of new information, future events or otherwise.
|
INVESTOR SUPPLEMENT
- SECOND QUARTER 2024
DOVER
CORPORATION
CONSOLIDATED
STATEMENTS OF EARNINGS
(unaudited)(in
thousands, except per share data*)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue
|
$
2,178,262
|
|
$
2,100,086
|
|
$
4,272,203
|
|
$
4,179,109
|
|
Cost of goods and
services
|
1,356,695
|
|
1,341,250
|
|
2,693,381
|
|
2,673,254
|
|
Gross
profit
|
821,567
|
|
758,836
|
|
1,578,822
|
|
1,505,855
|
|
Selling, general and
administrative expenses
|
452,193
|
|
434,340
|
|
915,317
|
|
866,754
|
|
Operating
earnings
|
369,374
|
|
324,496
|
|
663,505
|
|
639,101
|
|
Interest
expense
|
32,374
|
|
33,804
|
|
68,739
|
|
68,018
|
|
Interest
income
|
(4,080)
|
|
(2,653)
|
|
(8,837)
|
|
(4,744)
|
|
Loss (gain) on
disposition
|
663
|
|
—
|
|
(529,280)
|
|
—
|
|
Other income,
net
|
(12,872)
|
|
(6,678)
|
|
(19,288)
|
|
(10,486)
|
|
Earnings before
provision for income taxes
|
353,289
|
|
300,023
|
|
1,152,171
|
|
586,313
|
|
Provision for income
taxes
|
71,467
|
|
57,784
|
|
238,128
|
|
115,500
|
|
Net
earnings
|
$
281,822
|
|
$
242,239
|
|
$
914,043
|
|
$
470,813
|
|
|
|
|
|
|
|
|
|
Net earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
2.05
|
|
$
1.73
|
|
$
6.61
|
|
$
3.37
|
|
Diluted
|
$
2.04
|
|
$
1.72
|
|
$
6.57
|
|
$
3.35
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
137,443
|
|
139,862
|
|
138,247
|
|
139,810
|
|
Diluted
|
138,404
|
|
140,578
|
|
139,136
|
|
140,597
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
$
0.510
|
|
$
0.505
|
|
$
1.02
|
|
$
1.01
|
|
|
|
|
|
|
|
|
|
* Per share data may be
impacted by rounding.
|
|
|
|
|
|
|
|
|
DOVER
CORPORATION
QUARTERLY SEGMENT
INFORMATION
(unaudited)(in
thousands)
|
|
|
2024
|
|
2023
|
|
Q1
|
Q2
|
Q2
YTD
|
|
Q1
|
Q2
|
Q2
YTD
|
Q3
|
Q4
|
FY
2023
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
$
543,140
|
$
514,837
|
$
1,057,977
|
|
$
497,549
|
$
473,687
|
$
971,236
|
$
504,271
|
$
529,080
|
$
2,004,587
|
|
Clean Energy &
Fueling
|
445,053
|
463,014
|
908,067
|
|
430,729
|
441,166
|
871,895
|
466,959
|
449,423
|
1,788,277
|
|
Imaging &
Identification
|
276,806
|
287,593
|
564,399
|
|
283,091
|
271,932
|
555,023
|
276,179
|
285,530
|
1,116,732
|
|
Pumps & Process
Solutions
|
465,729
|
477,239
|
942,968
|
|
413,881
|
465,626
|
879,507
|
431,373
|
444,811
|
1,755,691
|
|
Climate &
Sustainability
Technologies
|
364,292
|
436,706
|
800,998
|
|
455,325
|
449,001
|
904,326
|
475,911
|
398,345
|
1,778,582
|
|
Intersegment
eliminations
|
(1,079)
|
(1,127)
|
(2,206)
|
|
(1,552)
|
(1,326)
|
(2,878)
|
(1,425)
|
(1,432)
|
(5,735)
|
|
Total consolidated
revenue
|
$
2,093,941
|
$
2,178,262
|
$
4,272,203
|
|
$
2,079,023
|
$
2,100,086
|
$
4,179,109
|
$
2,153,268
|
$
2,105,757
|
$
8,438,134
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
$
103,969
|
$
101,247
|
$
205,216
|
|
$ 84,275
|
$ 73,076
|
$
157,351
|
$
101,610
|
$
118,464
|
$
377,425
|
|
Clean Energy &
Fueling
|
69,675
|
87,536
|
157,211
|
|
73,605
|
83,616
|
157,221
|
92,483
|
78,900
|
328,604
|
|
Imaging &
Identification
|
69,959
|
75,786
|
145,745
|
|
68,315
|
61,336
|
129,651
|
70,316
|
72,545
|
272,512
|
|
Pumps & Process
Solutions
|
118,737
|
137,217
|
255,954
|
|
115,244
|
129,337
|
244,581
|
117,907
|
121,917
|
484,405
|
|
Climate &
Sustainability
Technologies
|
50,759
|
79,127
|
129,886
|
|
73,778
|
76,074
|
149,852
|
84,060
|
71,468
|
305,380
|
|
Total segment
earnings
|
413,099
|
480,913
|
894,012
|
|
415,217
|
423,439
|
838,656
|
466,376
|
463,294
|
1,768,326
|
|
Purchase
accounting
expenses
1
|
45,551
|
45,697
|
91,248
|
|
42,679
|
40,200
|
82,879
|
40,320
|
41,744
|
164,943
|
|
Restructuring and other
costs 2
|
24,684
|
11,590
|
36,274
|
|
14,053
|
18,143
|
32,196
|
12,327
|
19,150
|
63,673
|
|
Disposition costs
3
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
1,302
|
1,302
|
|
(Gain) loss on
disposition 4
|
(529,943)
|
663
|
(529,280)
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Corporate
expense
/ other
5
|
42,317
|
41,380
|
83,697
|
|
40,072
|
33,922
|
73,994
|
30,686
|
45,913
|
150,593
|
|
Interest
expense
|
36,365
|
32,374
|
68,739
|
|
34,214
|
33,804
|
68,018
|
32,389
|
30,898
|
131,305
|
|
Interest
income
|
(4,757)
|
(4,080)
|
(8,837)
|
|
(2,091)
|
(2,653)
|
(4,744)
|
(3,808)
|
(4,944)
|
(13,496)
|
|
Earnings before
provision for
income taxes
|
798,882
|
353,289
|
1,152,171
|
|
286,290
|
300,023
|
586,313
|
354,462
|
329,231
|
1,270,006
|
|
Provision for income
taxes 6
|
166,661
|
71,467
|
238,128
|
|
57,716
|
57,784
|
115,500
|
64,709
|
32,969
|
213,178
|
|
Net earnings
|
$
632,221
|
$
281,822
|
$
914,043
|
|
$
228,574
|
$
242,239
|
$
470,813
|
$
289,753
|
$
296,262
|
$
1,056,828
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT EARNINGS
MARGIN
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
19.1 %
|
19.7 %
|
19.4 %
|
|
16.9 %
|
15.4 %
|
16.2 %
|
20.1 %
|
22.4 %
|
18.8 %
|
|
Clean Energy &
Fueling
|
15.7 %
|
18.9 %
|
17.3 %
|
|
17.1 %
|
19.0 %
|
18.0 %
|
19.8 %
|
17.6 %
|
18.4 %
|
|
Imaging &
Identification
|
25.3 %
|
26.4 %
|
25.8 %
|
|
24.1 %
|
22.6 %
|
23.4 %
|
25.5 %
|
25.4 %
|
24.4 %
|
|
Pumps & Process
Solutions
|
25.5 %
|
28.8 %
|
27.1 %
|
|
27.8 %
|
27.8 %
|
27.8 %
|
27.3 %
|
27.4 %
|
27.6 %
|
|
Climate &
Sustainability
Technologies
|
13.9 %
|
18.1 %
|
16.2 %
|
|
16.2 %
|
16.9 %
|
16.6 %
|
17.7 %
|
17.9 %
|
17.2 %
|
|
Total segment earnings
margin
|
19.7 %
|
22.1 %
|
20.9 %
|
|
20.0 %
|
20.2 %
|
20.1 %
|
21.7 %
|
22.0 %
|
21.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Q4 and FY
2023 disposition costs relate to the sale of De-Sta-Co.
|
|
4 (Gain)
loss on disposition due to the sale of De-Sta-Co in the Engineered
Products segment.
|
|
5 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 overhead
costs, deal-related expenses and various administrative expenses
relating to the corporate headquarters.
|
|
6 Q4 and FY
2023 include the net income tax benefit of internal reorganizations
executed in 2023.
|
|
DOVER
CORPORATION
QUARTERLY EARNINGS
PER SHARE
(unaudited)(in
thousands, except per share data*)
|
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
Q1
|
Q2
|
Q2
YTD
|
|
Q1
|
Q2
|
Q2
YTD
|
Q3
|
Q4
|
FY
2023
|
|
Net earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
4.55
|
$
2.05
|
$
6.61
|
|
$
1.64
|
$
1.73
|
$
3.37
|
$
2.07
|
$
2.12
|
$
7.56
|
|
Diluted
|
$
4.52
|
$
2.04
|
$
6.57
|
|
$
1.63
|
$
1.72
|
$
3.35
|
$
2.06
|
$
2.11
|
$
7.52
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings and
weighted average shares used in calculated earnings per share
amounts are as follows:
|
|
Net earnings
|
$
632,221
|
$
281,822
|
$
914,043
|
|
$
228,574
|
$
242,239
|
$
470,813
|
$
289,753
|
$
296,262
|
$
1,056,828
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
139,051
|
137,443
|
138,247
|
|
139,757
|
139,862
|
139,810
|
139,878
|
139,893
|
139,848
|
|
Diluted
|
139,869
|
138,404
|
139,136
|
|
140,616
|
140,578
|
140,597
|
140,615
|
140,586
|
140,599
|
|
|
|
|
|
|
|
|
|
|
|
|
* Per share data may be
impacted by rounding.
|
|
|
|
DOVER
CORPORATION
QUARTERLY ADJUSTED
EARNINGS AND ADJUSTED EARNINGS PER SHARE (NON-GAAP)
(unaudited)(in
thousands, except per share data*)
|
|
Non-GAAP
Reconciliations
|
|
|
2024
|
|
2023
|
|
Q1
|
Q2
|
Q2
YTD
|
|
Q1
|
Q2
|
Q2
YTD
|
Q3
|
Q4
|
FY
2023
|
|
Adjusted net
earnings:
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
$
632,221
|
$
281,822
|
$
914,043
|
|
$
228,574
|
$
242,239
|
$
470,813
|
$
289,753
|
$
296,262
|
$
1,056,828
|
|
Purchase accounting
expenses, pre-tax 1
|
45,551
|
45,697
|
91,248
|
|
42,679
|
40,200
|
82,879
|
40,320
|
41,744
|
164,943
|
|
Purchase accounting
expenses, tax i
mpact 2
|
(10,005)
|
(10,053)
|
(20,058)
|
|
(9,599)
|
(9,012)
|
(18,611)
|
(8,966)
|
(9,143)
|
(36,720)
|
|
Restructuring and other
costs, pre-
tax 3
|
24,684
|
11,590
|
36,274
|
|
14,053
|
18,143
|
32,196
|
12,327
|
19,150
|
63,673
|
|
Restructuring and other
costs, tax
impact 2
|
(4,875)
|
(2,479)
|
(7,354)
|
|
(2,990)
|
(3,665)
|
(6,655)
|
(2,556)
|
(3,970)
|
(13,181)
|
|
Disposition costs,
pre-tax 4
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
1,302
|
1,302
|
|
Disposition costs, tax
impact 2
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
(270)
|
(270)
|
|
(Gain) loss on
disposition, pre-tax 5
|
(529,943)
|
663
|
(529,280)
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
(Gain) loss on
disposition, tax-
impact 2
|
114,973
|
(144)
|
114,829
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Adjusted net
earnings
|
$
272,606
|
$
327,096
|
$
599,702
|
|
$
272,717
|
$
287,905
|
$
560,622
|
$
330,878
|
$
345,075
|
$
1,236,575
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net
earnings per share:
|
|
|
|
|
|
|
|
|
|
Diluted net earnings
per share
|
$
4.52
|
$
2.04
|
$
6.57
|
|
$
1.63
|
$
1.72
|
$
3.35
|
$
2.06
|
$
2.11
|
$
7.52
|
|
Purchase accounting
expenses, pre-tax 1
|
0.33
|
0.33
|
0.66
|
|
0.30
|
0.29
|
0.59
|
0.29
|
0.30
|
1.18
|
|
Purchase accounting
expenses, tax
impact 2
|
(0.07)
|
(0.07)
|
(0.14)
|
|
(0.07)
|
(0.06)
|
(0.13)
|
(0.06)
|
(0.07)
|
(0.26)
|
|
Restructuring and other
costs, pre-
tax 3
|
0.18
|
0.08
|
0.26
|
|
0.10
|
0.13
|
0.23
|
0.09
|
0.14
|
0.46
|
|
Restructuring and other
costs, tax
impact 2
|
(0.03)
|
(0.02)
|
(0.05)
|
|
(0.02)
|
(0.03)
|
(0.05)
|
(0.02)
|
(0.03)
|
(0.10)
|
|
Disposition costs,
pre-tax 4
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
0.01
|
0.01
|
|
Disposition costs, tax
impact 2
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
(Gain) loss on
disposition, pre-tax 5
|
(3.79)
|
—
|
(3.80)
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
(Gain) loss on
disposition, tax-
impact 2
|
0.82
|
—
|
0.83
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Adjusted diluted net
earnings per
share
|
$
1.95
|
$
2.36
|
$
4.31
|
|
$
1.94
|
$
2.05
|
$
3.99
|
$
2.35
|
$
2.45
|
$
8.80
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Purchase
accounting expenses are primarily comprised of amortization of
acquired intangible assets.
|
|
2
Adjustments were tax effected using the statutory tax rates in the
applicable jurisdictions or the effective tax rate, where
applicable, for each period.
|
|
3
Restructuring and other costs relate to actions taken for headcount
reductions, facility consolidations and site closures, product line
exits, and other asset charges. Q1 and Q2 YTD 2024 include $3.4M
and Q3 and FY 2023 include $3.3M of non-cash asset impairment
charges for our Climate & Sustainability Technologies
segment.
|
|
4 Q4 and FY
2023 disposition costs relate to the sale of De-Sta-Co.
|
|
5 (Gain)
loss on disposition due to the sale of De-Sta-Co in the Engineered
Products segment, including a $0.7M post-closing adjustment
recorded in Q2 2024.
|
|
* Per share data and
totals may be impacted by rounding.
|
|
DOVER
CORPORATION
QUARTERLY ADJUSTED
SEGMENT EBITDA (NON-GAAP)
(unaudited)(in
thousands)
|
|
Non-GAAP
Reconciliations
|
|
2024
|
|
2023
|
|
Q1
|
Q2
|
Q2
YTD
|
|
Q1
|
Q2
|
Q2
YTD
|
Q3
|
Q4
|
FY
2023
|
|
ADJUSTED SEGMENT
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products:
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings
|
$
103,969
|
$
101,247
|
$
205,216
|
|
$
84,275
|
$
73,076
|
$
157,351
|
$
101,610
|
$
118,464
|
$
377,425
|
|
Other depreciation and
amortization 1
|
6,361
|
6,343
|
12,704
|
|
7,070
|
7,300
|
14,370
|
7,306
|
6,397
|
28,073
|
|
Adjusted segment EBITDA
2
|
110,330
|
107,590
|
217,920
|
|
91,345
|
80,376
|
171,721
|
108,916
|
124,861
|
405,498
|
|
Adjusted segment EBITDA
margin 2
|
20.3 %
|
20.9 %
|
20.6 %
|
|
18.4 %
|
17.0 %
|
17.7 %
|
21.6 %
|
23.6 %
|
20.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Clean Energy &
Fueling:
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings
|
$
69,675
|
$
87,536
|
$
157,211
|
|
$
73,605
|
$
83,616
|
$
157,221
|
$
92,483
|
$
78,900
|
$
328,604
|
|
Other depreciation and
amortization 1
|
7,921
|
7,627
|
15,548
|
|
7,046
|
7,541
|
14,587
|
7,686
|
7,844
|
30,117
|
|
Adjusted segment EBITDA
2
|
77,596
|
95,163
|
172,759
|
|
80,651
|
91,157
|
171,808
|
100,169
|
86,744
|
358,721
|
|
Adjusted segment EBITDA
margin 2
|
17.4 %
|
20.6 %
|
19.0 %
|
|
18.7 %
|
20.7 %
|
19.7 %
|
21.5 %
|
19.3 %
|
20.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Imaging &
Identification:
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings
|
$
69,959
|
$
75,786
|
$
145,745
|
|
$
68,315
|
$
61,336
|
$
129,651
|
$
70,316
|
$
72,545
|
$
272,512
|
|
Other depreciation and
amortization 1
|
3,733
|
3,271
|
7,004
|
|
3,394
|
3,745
|
7,139
|
3,972
|
4,182
|
15,293
|
|
Adjusted segment EBITDA
2
|
73,692
|
79,057
|
152,749
|
|
71,709
|
65,081
|
136,790
|
74,288
|
76,727
|
287,805
|
|
Adjusted segment EBITDA
margin 2
|
26.6 %
|
27.5 %
|
27.1 %
|
|
25.3 %
|
23.9 %
|
24.6 %
|
26.9 %
|
26.9 %
|
25.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Pumps & Process
Solutions:
|
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings
|
$
118,737
|
$
137,217
|
$
255,954
|
|
$
115,244
|
$
129,337
|
$
244,581
|
$
117,907
|
$
121,917
|
$
484,405
|
|
Other depreciation and
amortization 1
|
12,139
|
12,637
|
24,776
|
|
10,939
|
11,609
|
22,548
|
12,052
|
11,744
|
46,344
|
|
Adjusted segment EBITDA
2
|
130,876
|
149,854
|
280,730
|
|
126,183
|
140,946
|
267,129
|
129,959
|
133,661
|
530,749
|
|
Adjusted segment EBITDA
margin 2
|
28.1 %
|
31.4 %
|
29.8 %
|
|
30.5 %
|
30.3 %
|
30.4 %
|
30.1 %
|
30.0 %
|
30.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Climate &
Sustainability Technologies:
|
|
|
|
|
|
|
|
|
|
|
Segment
earnings
|
$
50,759
|
$
79,127
|
$
129,886
|
|
$
73,778
|
$
76,074
|
$
149,852
|
$
84,060
|
$
71,468
|
$
305,380
|
|
Other depreciation and
amortization 1
|
7,275
|
7,220
|
14,495
|
|
6,624
|
6,895
|
13,519
|
6,954
|
7,084
|
27,557
|
|
Adjusted segment EBITDA
2
|
58,034
|
86,347
|
144,381
|
|
80,402
|
82,969
|
163,371
|
91,014
|
78,552
|
332,937
|
|
Adjusted segment EBITDA
margin 2
|
15.9 %
|
19.8 %
|
18.0 %
|
|
17.7 %
|
18.5 %
|
18.1 %
|
19.1 %
|
19.7 %
|
18.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Segments:
|
|
|
|
|
|
|
|
|
|
|
|
Total segment earnings
2, 3
|
$
413,099
|
$
480,913
|
$
894,012
|
|
$
415,217
|
$
423,439
|
$
838,656
|
$
466,376
|
$
463,294
|
$
1,768,326
|
|
Other depreciation and
amortization 1
|
37,429
|
37,098
|
74,527
|
|
35,073
|
37,090
|
72,163
|
37,970
|
37,251
|
147,384
|
|
Total Adjusted segment
EBITDA 2
|
450,528
|
518,011
|
968,539
|
|
450,290
|
460,529
|
910,819
|
504,346
|
500,545
|
1,915,710
|
|
Total Adjusted segment
EBITDA
margin 2
|
21.5 %
|
23.8 %
|
22.7 %
|
|
21.7 %
|
21.9 %
|
21.8 %
|
23.4 %
|
23.8 %
|
22.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Other
depreciation and amortization relates to property, plant, and
equipment and intangibles, and excludes amounts related to purchase
accounting expenses and restructuring and other costs.
|
|
2 Refer to
Non-GAAP Disclosures section for definition.
|
|
3 Refer to
Quarterly Segment Information section for reconciliation of total
segment earnings to net earnings.
|
|
DOVER
CORPORATION
QUARTERLY NET
EARNINGS TO ADJUSTED SEGMENT EBITDA RECONCILIATION
(NON-GAAP)
(unaudited)(in
thousands)
|
|
Non-GAAP
Reconciliations
|
|
2024
|
|
2023
|
|
Q1
|
Q2
|
Q2
YTD
|
|
Q1
|
Q2
|
Q2
YTD
|
Q3
|
Q4
|
FY
2023
|
|
Net earnings
|
$
632,221
|
$
281,822
|
$
914,043
|
|
$
228,574
|
$
242,239
|
$
470,813
|
$
289,753
|
$
296,262
|
$
1,056,828
|
|
Provision for income
taxes 1
|
166,661
|
71,467
|
238,128
|
|
57,716
|
57,784
|
115,500
|
64,709
|
32,969
|
213,178
|
|
Earnings before
provision for
income taxes
|
798,882
|
353,289
|
1,152,171
|
|
286,290
|
300,023
|
586,313
|
354,462
|
329,231
|
1,270,006
|
|
Interest
income
|
(4,757)
|
(4,080)
|
(8,837)
|
|
(2,091)
|
(2,653)
|
(4,744)
|
(3,808)
|
(4,944)
|
(13,496)
|
|
Interest
expense
|
36,365
|
32,374
|
68,739
|
|
34,214
|
33,804
|
68,018
|
32,389
|
30,898
|
131,305
|
|
Corporate expense /
other 2
|
42,317
|
41,380
|
83,697
|
|
40,072
|
33,922
|
73,994
|
30,686
|
45,913
|
150,593
|
|
Disposition costs
3
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
1,302
|
1,302
|
|
(Gain) loss on
disposition 4
|
(529,943)
|
663
|
(529,280)
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Restructuring and other
costs 5
|
24,684
|
11,590
|
36,274
|
|
14,053
|
18,143
|
32,196
|
12,327
|
19,150
|
63,673
|
|
Purchase accounting
expenses 6
|
45,551
|
45,697
|
91,248
|
|
42,679
|
40,200
|
82,879
|
40,320
|
41,744
|
164,943
|
|
Total segment earnings
7
|
413,099
|
480,913
|
894,012
|
|
415,217
|
423,439
|
838,656
|
466,376
|
463,294
|
1,768,326
|
|
Add: Other depreciation
and
amortization 8
|
37,429
|
37,098
|
74,527
|
|
35,073
|
37,090
|
72,163
|
37,970
|
37,251
|
147,384
|
|
Total adjusted segment
EBITDA 7
|
$
450,528
|
$
518,011
|
$
968,539
|
|
$
450,290
|
$
460,529
|
$
910,819
|
$
504,346
|
$
500,545
|
$
1,915,710
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Q4 and FY
2023 include the net income tax benefit of internal reorganizations
executed in 2023.
|
|
2 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 overhead
costs, deal-related expenses and various administrative expenses
relating to the corporate headquarters.
|
|
3 Q4 and FY
2023 disposition costs relate to the sale of De-Sta-Co.
|
|
4 (Gain)
loss on disposition due to the sale of De-Sta-Co in the Engineered
Products segment.
|
|
5
Restructuring and other costs relate to actions taken for headcount
reductions, facility consolidations and site closures, product line
exits, and other asset charges.
|
|
6 Purchase
accounting expenses are primarily comprised of amortization of
acquired intangible assets.
|
|
7 Refer to
Non-GAAP Disclosures section for definition.
|
|
8 Other
depreciation and amortization relates to property, plant, and
equipment and intangibles, and excludes amounts related to purchase
accounting expenses and restructuring and other costs.
|
|
DOVER
CORPORATION
REVENUE GROWTH
FACTORS AND ADJUSTED EPS GUIDANCE RECONCILIATIONS
(NON-GAAP)
(unaudited)(in
thousands, except per share data*)
|
|
Non-GAAP
Reconciliations
|
|
|
Revenue Growth
Factors
|
|
2024
|
|
|
Q2
|
|
Q2
YTD
|
|
Organic
|
|
|
|
|
|
Engineered
Products
|
|
20.2 %
|
|
14.6 %
|
|
Clean Energy &
Fueling
|
|
2.3 %
|
|
1.9 %
|
|
Imaging &
Identification
|
|
6.9 %
|
|
2.6 %
|
|
Pumps & Process
Solutions
|
|
(3.1) %
|
|
0.5 %
|
|
Climate &
Sustainability Technologies
|
|
(2.3) %
|
|
(11.4) %
|
|
Total
Organic
|
|
4.8 %
|
|
1.8 %
|
|
Acquisitions
|
|
2.1 %
|
|
2.1 %
|
|
Dispositions
|
|
(2.6) %
|
|
(1.3) %
|
|
Currency
translation
|
|
(0.6) %
|
|
(0.4) %
|
|
Total*
|
|
3.7 %
|
|
2.2 %
|
|
* Totals may be
impacted by rounding.
|
|
|
|
2024
|
|
|
Q2
|
|
Q2
YTD
|
|
Organic
|
|
|
|
|
|
United
States
|
|
11.4 %
|
|
6.3 %
|
|
Other
Americas
|
|
17.6 %
|
|
5.9 %
|
|
Europe
|
|
(3.8) %
|
|
(2.2) %
|
|
Asia
|
|
(8.5) %
|
|
(6.8) %
|
|
Other
|
|
(27.8) %
|
|
(24.8) %
|
|
Total
Organic
|
|
4.8 %
|
|
1.8 %
|
|
Acquisitions
|
|
2.1 %
|
|
2.1 %
|
|
Dispositions
|
|
(2.6) %
|
|
(1.3) %
|
|
Currency
translation
|
|
(0.6) %
|
|
(0.4) %
|
|
Total*
|
|
3.7 %
|
|
2.2 %
|
|
* Totals may be
impacted by rounding.
|
|
|
Adjusted EPS
Guidance Reconciliation
|
|
|
Range
|
|
2024 Guidance for
Earnings per Share (GAAP)
|
|
$10.80
|
|
$10.95
|
|
Purchase accounting
expenses, net
|
|
|
1.01
|
|
|
Restructuring and other
costs, net
|
|
|
0.24
|
|
|
Gain on disposition,
net
|
|
|
(3.00)
|
|
|
2024 Guidance for
Adjusted Earnings per Share (Non-GAAP)
|
|
$9.05
|
|
$9.20
|
|
* Per share data and
totals may be impacted by rounding.
|
|
DOVER
CORPORATION
QUARTERLY CASH FLOW
AND FREE CASH FLOW (NON-GAAP)
(unaudited)(in
thousands)
|
|
Quarterly Cash
Flow
|
|
2024
|
|
2023
|
|
Q1
|
Q2
|
Q2
YTD
|
|
Q1
|
Q2
|
Q2
YTD
|
Q3
|
Q4
|
FY
2023
|
|
Net Cash Flows Provided
By (Used In):
|
|
|
|
|
|
|
|
|
Operating
activities
|
$
166,593
|
$
203,662
|
$
370,255
|
|
$
241,284
|
$
195,254
|
$
436,538
|
$
383,457
|
$
516,350
|
$
1,336,345
|
|
Investing
activities
|
429,851
|
28,165
|
458,016
|
|
(43,556)
|
(42,454)
|
(86,010)
|
(50,243)
|
(590,377)
|
(726,630)
|
|
Financing
activities
|
(80,782)
|
(830,657)
|
(911,439)
|
|
(306,565)
|
(137,924)
|
(444,489)
|
(312,716)
|
189,149
|
(568,056)
|
|
|
Quarterly Free Cash
Flow (Non-GAAP)
|
|
2024
|
|
2023
|
|
Q1
|
Q2
|
Q2
YTD
|
|
Q1
|
Q2
|
Q2
YTD
|
Q3
|
Q4
|
FY
2023
|
|
Cash flow from
operating
activities 1
|
$
166,593
|
$
203,662
|
$
370,255
|
|
$
241,284
|
$
195,254
|
$
436,538
|
$
383,457
|
$
516,350
|
$
1,336,345
|
|
Less: Capital
expenditures
|
(44,475)
|
(40,872)
|
(85,347)
|
|
(48,375)
|
(40,079)
|
(88,454)
|
(43,128)
|
(61,010)
|
(192,592)
|
|
Free cash
flow
|
$
122,118
|
$
162,790
|
$
284,908
|
|
$
192,909
|
$
155,175
|
$
348,084
|
$
340,329
|
$
455,340
|
$
1,143,753
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
operating
activities as a percentage of
revenue
|
8.0 %
|
9.3 %
|
8.7 %
|
|
11.6 %
|
9.3 %
|
10.4 %
|
17.8 %
|
24.5 %
|
15.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
operating
activities as a percentage of
adjusted net earnings
|
61.1 %
|
62.3 %
|
61.7 %
|
|
88.5 %
|
67.8 %
|
77.9 %
|
115.9 %
|
149.6 %
|
108.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow as a
percentage
of revenue
|
5.8 %
|
7.5 %
|
6.7 %
|
|
9.3 %
|
7.4 %
|
8.3 %
|
15.8 %
|
21.6 %
|
13.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow as a
percentage
of adjusted net earnings
|
44.8 %
|
49.8 %
|
47.5 %
|
|
70.7 %
|
53.9 %
|
62.1 %
|
102.9 %
|
132.0 %
|
92.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Q2 and Q2
YTD 2024 include income tax payments of $56 million related to the
gain on the disposition of De-Sta-Co. The remainder of the tax
payments on the De-Sta-Co gain will be paid in quarterly
installments throughout 2024.
|
|
DOVER
CORPORATION
PERFORMANCE
MEASURES
(unaudited)(in
thousands)
|
|
|
2024
|
|
2023
|
|
Q1
|
Q2
|
Q2
YTD
|
|
Q1
|
Q2
|
Q2
YTD
|
Q3
|
Q4
|
FY
2023
|
|
BOOKINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Products
|
$
541,982
|
$
581,370
|
$
1,123,352
|
|
$
536,472
|
$
489,131
|
$
1,025,603
|
$
576,641
|
$
494,528
|
$
2,096,772
|
|
Clean Energy &
Fueling
|
471,610
|
442,086
|
913,696
|
|
454,526
|
440,137
|
894,663
|
449,663
|
401,195
|
1,745,521
|
|
Imaging &
Identification
|
278,433
|
288,641
|
567,074
|
|
290,712
|
262,092
|
552,804
|
271,113
|
297,312
|
1,121,229
|
|
Pumps & Process
Solutions
|
473,632
|
461,426
|
935,058
|
|
464,297
|
394,317
|
858,614
|
363,111
|
455,390
|
1,677,115
|
|
Climate &
Sustainability
Technologies
|
453,086
|
406,269
|
859,355
|
|
371,643
|
310,911
|
682,554
|
340,474
|
325,625
|
1,348,653
|
|
Intersegment
eliminations
|
(1,107)
|
(1,693)
|
(2,800)
|
|
(1,530)
|
(1,918)
|
(3,448)
|
(849)
|
(2,125)
|
(6,422)
|
|
Total consolidated
bookings
|
$
2,217,636
|
$
2,178,099
|
$
4,395,735
|
|
$
2,116,120
|
$
1,894,670
|
$
4,010,790
|
$
2,000,153
|
$
1,971,925
|
$
7,982,868
|
|
2024
|
|
Q2
|
|
Q2
YTD
|
|
BOOKINGS GROWTH
FACTORS
|
|
|
|
|
|
|
|
|
Organic
|
|
|
|
|
Engineered
Products
|
29.3 %
|
|
14.5 %
|
|
Clean Energy &
Fueling
|
(1.6) %
|
|
— %
|
|
Imaging &
Identification
|
11.1 %
|
|
3.5 %
|
|
Pumps & Process
Solutions
|
10.5 %
|
|
2.3 %
|
|
Climate &
Sustainability Technologies
|
31.6 %
|
|
26.6 %
|
|
Total
Organic
|
16.1 %
|
|
9.2 %
|
|
Acquisitions
|
2.1 %
|
|
2.0 %
|
|
Dispositions
|
(2.7) %
|
|
(1.3) %
|
|
Currency
translation
|
(0.5) %
|
|
(0.3) %
|
|
Total*
|
15.0 %
|
|
9.6 %
|
|
* Totals may be
impacted by rounding.
|
|
|
|
Non-GAAP Measures Definitions
In an effort to provide investors with additional information
regarding our results as determined by GAAP, management also
discloses non-GAAP information that management believes provides
useful information to investors. Adjusted net earnings, adjusted
diluted net earnings per share, total segment earnings, total
segment earnings margin, adjusted segment EBITDA, adjusted segment
EBITDA margin, free cash flow, free cash flow as a percentage of
revenue, free cash flow as a percentage of adjusted net earnings,
and organic revenue growth are not financial measures under GAAP
and should not be considered as a substitute for net earnings,
diluted net earnings per share, cash flows from operating
activities, or revenue as determined in accordance with GAAP, and
they may not be comparable to similarly titled measures reported by
other companies.
Adjusted net earnings represents net earnings adjusted for the
effect of purchase accounting expenses, restructuring and other
costs/benefits, disposition costs and gain/loss on disposition.
Purchase accounting expenses are primarily comprised of
amortization of intangible assets. We exclude after-tax purchase
accounting expenses because the amount and timing of such charges
are significantly impacted by the timing, size, number and nature
of the acquisitions the Company consummates. While we have a
history of acquisition activity, our acquisitions do not happen in
a predictive cycle. Exclusion of purchase accounting expenses
facilitates more consistent comparisons of operating results over
time. We believe it is important to understand that such intangible
assets were recorded as part of purchase accounting and contribute
to revenue generation. We exclude the other items because they
occur for reasons that may be unrelated to the Company's commercial
performance during the period and/or management believes they are
not indicative of the Company's ongoing operating costs or gains in
a given period.
Adjusted diluted net earnings per share or adjusted earnings per
share represent diluted EPS adjusted for the effect of purchase
accounting expenses, restructuring and other costs/benefits,
disposition costs and gain/loss on disposition.
Total segment earnings is defined as the sum of earnings before
purchase accounting expenses, restructuring and other
costs/benefits, disposition costs, gain/loss on disposition,
corporate expenses/other, interest expense, interest income and
provision for income taxes for all segments. Total segment earnings
margin is defined as total segment earnings divided by revenue.
Adjusted segment EBITDA is defined as segment earnings plus
other depreciation and amortization expense, which relates to
property, plant, and equipment and intangibles, and excludes
amounts related to purchase accounting expenses and restructuring
and other costs/benefits. Adjusted segment EBITDA margin is defined
as adjusted segment EBITDA divided by revenue.
Management believes the non-GAAP measures above are useful to
investors to better understand the Company's ongoing profitability
as they will better reflect the Company's core operating results,
offer more transparency and facilitate easier comparability to
prior and future periods and to its peers.
Free cash flow represents net cash provided by operating
activities minus capital expenditures. Free cash flow as a
percentage of revenue equals free cash flow divided by revenue.
Free cash flow as a percentage of adjusted net earnings equals free
cash flow divided by adjusted net earnings. Management believes
that free cash flow and free cash flow ratios are important
measures of liquidity because they provide management and investors
a measurement of cash generated from operations that is available
for mandatory payment obligations and investment opportunities,
such as funding acquisitions, paying dividends, repaying debt and
repurchasing our common stock.
Management believes that reporting organic revenue growth, which
excludes the impact of foreign currency exchange rates and the
impact of acquisitions and dispositions, provides a useful
comparison of our revenue and trends between periods. We do not
provide a reconciliation of forward-looking organic revenue to the
most directly comparable GAAP financial measure pursuant to the
exception provided in Item 10(e)(1)(i)(B) of Regulation S-K because
we are not able to provide a meaningful or accurate compilation of
reconciling items. This is due to the inherent difficulty in
accurately forecasting the timing and amounts of the items that
would be excluded from the most directly comparable GAAP financial
measure or are out of our control. For the same reasons, we are
unable to address the probable significance of unavailable
information which may be material.
Performance Measures Definitions
Bookings represent total orders received from customers in the
current reporting period and exclude de-bookings related to orders
received in prior periods, if any. This metric is an important
measure of performance and an indicator of order trends.
Organic bookings represent bookings excluding the impact of
foreign currency exchange rates and the impact of acquisitions and
dispositions. This metric is an important measure of performance
and an indicator of revenue order trends.
We use the above 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.
|
Investor Contact:
|
Media Contact:
|
|
Jack Dickens
|
Adrian
Sakowicz
|
|
Senior Director -
Investor Relations
|
Vice President -
Communications
|
|
(630)
743-2566
|
(630)
743-5039
|
|
jdickens@dovercorp.com
|
asakowicz@dovercorp.com
|
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SOURCE Dover