Dover's second quarter results were strong, driven by excellent production performance, positive margin mix from our growth platforms, and carry forward cost actions taken in prior periods. Top line performance accelerated in the quarter on broad based shipment growth in short cycle components and outperformance over secular growth exposed end markets. Order trends continued to be positive momentum in the quarter, up 7% year-over-year, bolstering our confidence in the second half outlook, with the majority of our third quarter revenue already in backlog. As an anecdote, July orders are tracking really well going into the back end of the third quarter.
We continue to invest in high ROI organic capital projects, including productivity and capacity expansion, as well as targeted footprint optimization. During the quarter, we also completed two acquisitions of attractive, fast growing assets within our high priority Pumps & Process Solutions segment. Our balance sheet strength remains an advantage that provides flexibility as we pursue value creating capital deployment to further expand our businesses in high growth, high margin areas. Underlying end market demand is healthy and is supported by our sustained order rates.
As a result, we are raising our full year adjusted EPS guidance to $9.35-$9.55, which is +14% for the full year at midpoint. Engineered Products revenue was down in the quarter on lower volumes of vehicle services. Margin performance for the segment was up on structural cost management and productivity. Clean Energy & Fueling was up 8% in the quarter, led by strong shipments in clean energy components, fluid transport, and North American retail fueling software and equipment.
| Metric | Period | Current guidance |
|---|---|---|
| Adjusted EPS | FY2025 | $9.35-$9.55 (+14% at midpoint, aiming toward top of range at +16%) (raised) |
| Organic revenue growth | FY2025 | 4%-6% (raised (1 pt FX, 1 pt acquisition, ~2 pts comps)) |
| Free cash flow (% of revenue) | FY2025 | 14-16% (unchanged) |
| Metric | YoY | Note |
|---|---|---|
| Orders (consolidated bookings) | +7% | Continued positive momentum, up sequentially, with year-to-date book-to-bill above 1 across all five segments. |
| Adjusted EPS | +16% | Strong operational results, margin mix, and carry-forward cost actions. |
| Clean Energy & Fueling revenue | +8% | Strong shipments in clean energy components, fluid transport, and North American retail fueling software and equipment; margins up 80 bps on volume leverage, higher mix of below-ground fueling equipment, and restructuring benefit carry-forward. |
| Pumps & Process Solutions revenue | +4% organic | Double-digit growth in single-use biopharma components, thermal connectors for data-center liquid cooling, and midstream natural gas compression digital controls, plus SIKORA acquisition. |
| Imaging & ID | stable | Growth in core marking and coating partially offset by timing of textiles; margin remained at 28% adjusted EBITDA. |
| Thermal connectors | ~+50% YTD | Demand tied to liquid cooling of data centers. |
| Free cash flow (YTD) | +$41 million (to $261M, 7% of revenue) | Operating cash conversion improvements more than offset higher capital spend on growth and productivity projects. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Data center liquid cooling (thermal connectors, heat exchangers/SWEP) | — | Dover positioned as leader in connectors and co-leader in heat exchangers, adding capacity; thermal connectors up ~50% YTD | Rising |
| Restructuring and footprint optimization savings | — | About $30 million of savings reflected in 2025; expects at least the same in 2026 with a larger total quantum, timing split between 2026 and 2027 | Rising |
| Refrigeration / food retail demand | — | Full-year refrigeration forecast taken down as case business slides right, though CO2 systems at record volumes and margin up | Declining |
| Tariffs and price/cost | $215M annualized exposure cited prior | In a positive price/cost position; no additional second-half headwind expected; reshoring on track | Steady |
| Biopharma single-use components | — | Double-digit growth but lapping Q1 restocking; growth rate expected to moderate in second half on tougher comps | Declining |
| M&A / capital deployment | — | Close to $400 million in revenue under LOI; proprietary, low-execution-risk deals; SIKORA completed | Rising |