Stephen Tusa — Managing Director, JPMorgan
Hey, good morning. Or geez, good afternoon. I got—
Richard Tobin — CEO, Dover Corporation
I know.
Stephen Tusa — Managing Director, JPMorgan
Kind of weird.
Richard Tobin — CEO, Dover Corporation
Right.
Stephen Tusa — Managing Director, JPMorgan
Yeah. Had to eat lunch, delay lunch for you guys.
Richard Tobin — CEO, Dover Corporation
Yeah. We'll go early in the morning next time around, but.
Stephen Tusa — Managing Director, JPMorgan
No, it's nice you got to avoid the other calls. That's helpful. Price cost, what are we looking at this year? I know you guys buy a bit of steel, so how are you thinking about managing the raws?
Richard Tobin — CEO, Dover Corporation
Yeah. I mean, I think right now we should do what we've done every year, probably like 1-1.5% over. Now, clearly, we're looking into commodity costs moving up going into the year. We can talk about incremental margin and what that means. So whether we've got to go back to the well or not, we'll see based on the trajectory.
Stephen Tusa — Managing Director, JPMorgan
Okay. So as of now, how much price are you embedding in the guide?
Richard Tobin — CEO, Dover Corporation
1.5-2%.
Stephen Tusa — Managing Director, JPMorgan
Okay. And then just one more question for you. You were pretty positive over the course of the quarter in your commentary. Anything you've seen in the last month or so or two months that would change that positive view and tone on just the general economy and business?
Richard Tobin — CEO, Dover Corporation
No. I mean, look, we were looking for the best organic growth quarter for the year, and we got it. We got the margin accretion that we looked for, considering kind of a little bit of the mix differential that we had in Q4 versus the previous couple of quarters. And book-to-bill is over one. So to me, I think that we hit the three kind of data points that we were looking for going into 2026. Our backlogs are good. Production performance should be pretty good in Q1. I think we got to don't get a little excited about production performance delivery because I think we'll really ramp. The seasonality will be the same as usual. But overall, yeah, I mean, we like the setup.
Stephen Tusa — Managing Director, JPMorgan
Great. Thanks a lot.
Richard Tobin — CEO, Dover Corporation
Thanks.
Julian Mitchell — Analyst, Barclays
Hi, good morning. Maybe just to start off with very strong margin performance. But when we're thinking about kind of mix for 2026, and I know there's a lot of different businesses, but I suppose you're guiding for the highest organic sales growth in these segments with the lowest EBITDA margin. So maybe help us understand in DCEF and DCST what sort of operating leverage you're aiming for this year. There's sort of outsized cost savings, tailwinds, for example, that mean they can have very strong operating leverage alongside the high volume growth.
Richard Tobin — CEO, Dover Corporation
Yeah. No, you're spot on. I mean, what we're looking for in DCEF is the leverage on the revenue growth, plus that is the segment that will be impacted the most from prior period restructuring, so the rooftop. That'll come progressively through the year. So I think that the margin enhancement that we'd expect to get there would be a little bit back-end loaded just because of the restructuring benefits. The other one is DCST. You saw the margin jump in Q4 of 250 basis points comparatively. We'll see if we can get more on the volume going from there. Back to the question we had previously, that's where we're a little bit commodity exposed, particularly in copper. So do we bounce up the top-line expectations a little there to cover that? We'll see as the year goes on.
Right now, we've bought forward enough that we've got an idea, pretty good idea what we'll get probably in the first half of the year. We'll see if we need to take any pricing action there to cover any headwinds we've got on input costs. But you're spot on in terms of the mix.
Julian Mitchell — Analyst, Barclays
Thanks. That's helpful. And maybe you've mentioned sort of seasonality rich a couple of times as being sort of a normal year ahead. So should we expect, let's say, year-on-year EPS growth and sales growth each quarter to not be that different from the full year framework on slide 10 is most?
Richard Tobin — CEO, Dover Corporation
Yeah. No, Julian, and that's right. Right? And when we looked at consensus for the year, it was oddly high for Q1, despite the fact that I think for 12 months, or not 12, or for nine months, we've been saying over and over again, be careful about the biopharma mix in Q1. So look, the full year is the full year. We'll hit the full year, but the seasonality should be the same as it's been sitting in your models historically.
Julian Mitchell — Analyst, Barclays
That's great. Thank you.
Richard Tobin — CEO, Dover Corporation
You're welcome.
Amit Mehrotra — Managing Director, UBS
Thanks. Hey, Rich. Good to talk to you. So just quick question on growth outlook for this year, 4%. Obviously, that's a good number, certainly a better number than the last couple of years, but it's a bit lower than sort of where we exited at in the fourth quarter. So maybe you can talk about it. Is that just prudent conservatism? Talk a little bit about that. And then it looks like if I look at the margin expansion for this year, it seems like the entirety is explained by maybe that $40 million wraparound productivity benefit. Is that right? And maybe is that just the mix effect kind of offsetting some of the volume leverage?
Richard Tobin — CEO, Dover Corporation
Yeah. I mean, the answer is yes and yes. I mean, it's early in the year. I mean, if you remember, I remember sitting here last year talking about our guidance, and then we ran into tariff tumult. So there is an amount of prudence in terms of the top line and the incremental margin at the end of the day. We talked about input costs and a variety of other things. These are numbers based on what we see in the backlog that we can execute on, whether we can move them up or not. We'll see quarter by quarter, but bookings momentum has accelerated into the end of last year.
So if we get that same kind of acceleration and we get the visibility as we move through the quarter, then I would expect, I think, that we progressively moved up EPS last year based on our original guidance. We would expect to kind of look at doing the same thing.
Amit Mehrotra — Managing Director, UBS
Yeah. That's helpful. And just related to that, so I know there was like a $150 million drawdown in refrigeration last year. Obviously, orders perked up in the third quarter and I guess are continuing to move in that direction. Do you feel confident you're able to get all of that back from where we stand today?
Richard Tobin — CEO, Dover Corporation
We're sold out for Q1. That's what I can tell you. So we're booking, and that is relatively short-cycle business, and we're booking well into Q2. So far, so good.
Amit Mehrotra — Managing Director, UBS
Okay. Very good. Thank you very much. Appreciate it.
Richard Tobin — CEO, Dover Corporation
You're welcome. Yep.
Jeffrey Sprague — Managing Partner, Vertical Research Partners
Hey, thanks. Good day, everyone. Hey, Rich, just back on the incrementals and everything. We've touched on this a little bit, but just cutting through all the different mix changes and the like, I just want to make sure there's not anything below the line I'm missing. It looks like you're sort of guiding an observed incremental as reported about 35%. Is that right, or is there something else in between kind of OP and the bottom line to be aware of?
Richard Tobin — CEO, Dover Corporation
There's nothing really on the bottom line, Jeff. So you're close on the number, or you're right on the number, more or less.
Jeffrey Sprague — Managing Partner, Vertical Research Partners
Yeah.
Hey, and then second hand, right? So I'll be careful, but there's been some chatter that you've made some noise about kind of transformative sort of deal, generational deal, something very large. Maybe just to kind of address your appetite for something really large, or are you more inclined to stick with bolt-ons? Anything you could add there?
Richard Tobin — CEO, Dover Corporation
Well, it's better than the retirement one from last year, so I'll take the transformational deal angle. We're not going to talk about anything in the pipeline. It's not been our history here. I mean, we have a very keen eye about execution risk. I'm sure that we'll do some M&A this year. If we were to consider something transformational, it would have to be shareholder-friendly to Dover at the end of the day.
So it's not as if we look at the business and the business that we own and say that we've squeezed everything out of it, and then now we've got to go do something to move it on. I think we've got a good algorithm here with bolt-on deals and growing the top line that we're not required to do anything, I guess, is the best way I can describe it.
Jeffrey Sprague — Managing Partner, Vertical Research Partners
Yeah. Hey, and then maybe I'm sorry, a third one, Jack, don't get mad at me, but just back on revenues, you noted maybe there's some conservatism here, but just thinking about this order growth rate that's been ahead of revenues now for a significant period of time and the fact that things like SIKORA are coming into organic at a faster rate. Is there just anything that's more long-cycle in the orders or something that doesn't convert quickly to kind of explain that apparent-looking disconnect?
Richard Tobin — CEO, Dover Corporation
I mean, at the end of the day, I mean, 3-5 historically without getting over our skis here is a pretty good number. But you're right. If I look at the velocity of orders coming in, you could roll forward and see. Q1 is always kind of an interesting quarter for us because we have a lot of production performance, and then we ship a lot in Q2, Q3. I think part of it is let's get into Q1. Let's see if we're manufacturing backlog or we're replacing what we're taking in production performance with new order flow. And if that's the case, then we'll take a close look at the top line. And again, I don't want to repeat myself. We are cognizant about input costs moving up, and if we have to take pricing action, that will actually drive some top-line growth also.
Jeffrey Sprague — Managing Partner, Vertical Research Partners
Right. Okay. Great. I'll leave it there. Thanks, Rich.
Richard Tobin — CEO, Dover Corporation
Yep.
Joseph O'Dea — Managing Director, Wells Fargo
Hi. Thanks for taking my questions. Wanted to start on the retail fueling CapEx cycle side of things, and just if you could elaborate on what you're seeing there, some details across regions, how you think that plays out over the course of 2026 in terms of any accelerating demand there.
Richard Tobin — CEO, Dover Corporation
It's very much a North American phenomenon. We've actually drawn down our exposures in both emerging markets in EMEA. We haven't left, but we've taken, that's actually been a drag on our top line over the last three or four years that we've gone and done 80/20 on the customer side. And other than that, it's, look, since 2001-ish, EVs were taking over the world, so there was not a lot of CapEx spent in retail fueling. And that was reflected maybe not in the margin, which I think we've done a fantastic job of, but on the top line, well, that's kind of turned the corner here. And if you go look at someone like Costco and what margins of fueling are right now, I think it's woken up the market that spreads at the retail are as high as they've ever been.
That's going to drive returns on projects.
Joseph O'Dea — Managing Director, Wells Fargo
Just on the restructuring side, you've got the $40 million carryover from actions last year. I think in the past you've touched on there could be more to do there. So just how you're approaching that when you would make any decisions around it, parts of the business that would see a bigger impact if you do decide to do more?
Richard Tobin — CEO, Dover Corporation
I think we've got a pretty full plate on what we're doing now. So there's a lag time between looking at proposals and then enacting them. If you take refrigeration, we're actually going to carry extra fixed costs for the first half of the year as we're taking down one facility and building another one. So we don't really get the benefit of that until the back half of next year. And that's the same for clean energy to a certain extent. But yeah, look, every year we've got a goal of attacking fixed costs. So we'll update you as we take the charges. We'll tell you what they are and where they are.
Joseph O'Dea — Managing Director, Wells Fargo
Got it. Thank you.
Richard Tobin — CEO, Dover Corporation
Yep.
Nigel Coe — Managing Director, Wolfe Research
Hey, thanks. Good afternoon, guys. So Rich, I thought it'd be interesting to think about growth bifurcated between the 20% of what you call sector growth markets, and that's been growing double digits. And then the trough markets that are, I don't know, 40%-50%, Maag, SWEP, Belvac, VSG, Refrigeration. Just maybe just talk about what you're seeing in those two buckets in 2026.
Richard Tobin — CEO, Dover Corporation
Yeah. The growth bucket is going really well. There's really nothing to add to it. So anything that we'd said over the previous three quarters of last year, that trajectory has continued. So we're good there. I mean, the ones that have been a headwind, I mean, in Belvac, that's when we were just going to have to wait for the CapEx cycle to turn in can making. At least the conversations are getting there, but we don't really see it in backlog yet. On Vehicle Service Group, that has very much been a European story. And that is why, despite having the headwind on the top line, you don't see a lot of margin dilution because that's just reflective of the difference between the regions where we make high margins and not, to a certain extent.
I don't see that improving yet, but we're almost in year three of Europe being down there. So one would expect that that could turn, hopefully, during the year as we go forward. And refrigeration was an anomaly. I mean, we discussed it at length at the end of Q3. It was deferment, but we showed you the backlog building in Q4 and then look at the revenue growth and the margin expansion that we got in Q4. And as I mentioned, one of the questions, we're sold out for Q1 and we're booking well into Q2 now. So it doesn't look like there's only so much we can make in a given year, right, from a capacity point of view because we've actually taken a lot of capacity out there.
But what we said about going into 2026 is reflected in our backlog and was reflected in the revenue growth in Q4.
Nigel Coe — Managing Director, Wolfe Research
Okay. So refrigeration is recovering nicely. Sounds like Maag is still some headwinds there. Everything else fairly steady. Is that a good way to summarize that?
Richard Tobin — CEO, Dover Corporation
Yeah. Yeah. Maag's going to Maag's will see it because and you'll see it in the backlog because the dollar value of Maag's orders are so high, you'll know when it's coming. And right now, it's fair to say that the European chemical market is not doing well.
Nigel Coe — Managing Director, Wolfe Research
Yeah. That's not a shortcut. So just a quick clarification on the incremental margins. Is there a structuring payback to sustain 35% type incremental margins given the mixed pressures you've highlighted, or could that be?
Richard Tobin — CEO, Dover Corporation
No. I think that when you do the math and you look at the incrementals, I think that there's more upside than downside there.
Nigel Coe — Managing Director, Wolfe Research
Okay. That's clear. Thanks, Rich.
Richard Tobin — CEO, Dover Corporation
Yep.
Scott Davis — Chairman and CEO, Melius Research
Hey. Good afternoon, guys.
Richard Tobin — CEO, Dover Corporation
Scott.
Jack Dickens — VP of Investor Relations, Dover Corporation
Hey, Scott.
Scott Davis — Chairman and CEO, Melius Research
Rich, if you take a step backwards, this portfolio has changed quite a bit since you've taken the helm here. But what do you think the new entitlement kind of through cycle growth rate is of this portfolio you have now? Is it kind of right? We're kind of in that sweet spot around 5%? Is it 4%-5%?
Richard Tobin — CEO, Dover Corporation
Yeah. I mean, it is somewhere between 3-6%, depending on GDP and everything else, but clearly can do 5%.
Scott Davis — Chairman and CEO, Melius Research
Okay. That's what I would have thought. And guys, it's kind of been a while since we've talked about closed case, that whole nonsense thing that kind of went up and went down. And you've got a big installed base, and it's got to be aging out. Is there any way to think about the age of that installed base and kind of what the and be able to just socialize maybe the pent-up demand, how long those things last before they need to be replaced, etc.?
Richard Tobin — CEO, Dover Corporation
Well, it's a little bit of a tale of two cities. There's the CO2 rooftop, which is a change in technology play where knock wood, we are the North American market leader, and we're a co-leader in Europe, and we're the North American market leader, and we're doing really well because for a variety of reasons. That, I mean, put into the kind of the growth platforms. When Jack gives you those numbers, that CO2 business is in there. On the retail refrigerated door case business, we've taken that business from somewhere around 7% or 8% margin up into the very high teens now. We're finishing the last CapEx. We've basically rebuilt the entire industrial footprint there.
What we end up is with a core refrigeration business, which is around $500 million-ish at very nice margins and extremely good cash flow because it doesn't hold any working capital. It's worth significantly more today than it was back in the day when it was a discussion element. We'll grow that business, but we'll grow it for profitability, and we'll grow the CO2 side as quickly as we can because we're in the early innings there, and we've got a leadership position.
Scott Davis — Chairman and CEO, Melius Research
Okay. Helpful. Good color. Thank you. I'll pass it on. Best of luck this year, guys.
Richard Tobin — CEO, Dover Corporation
Thanks.
Mike Halloran — Analyst, Baird
Hey. Good morning. Well, afternoon, everyone. So first on the clean energy margins, I prepared remarks. You mentioned the mid-20% target. Maybe just some timeline on when you think you can get there, Rich?
Richard Tobin — CEO, Dover Corporation
We're going to have to walk it up. So knock wood, should get into the low 20s this year and then walk it up from there. Can we accelerate it? It's going to depend on a little bit of mix. And I really want to see, we're still kind of in a transitional period on the footprint side. So what we really get out once we're done and what the benefit of the fixed cost absorption is once we get that done. So we're still doing that now, and we'll probably be completed by the end of the year on that. So just on the top line, we think we can get into the low 20s. From there, it's going to be on the roll forward of the cost out. And your guess is as good as mine.
We're really excited about the longer-term opportunity on the cryogenic side, which is not a super large business for us, but becoming larger. If that growth rate and that opportunity continues to expand, then we're very excited about it.
Mike Halloran — Analyst, Baird
That makes sense. Then you touched on it briefly there, but you've had comments about there's only so much capacity to drive the growth. At the same time, you're also doing some of these internal initiatives, managing capacity lower. How do you see that push-pull as you work through the year? Are there areas where you might be putting incremental capital to expand capacity, or do we feel pretty good about the network as we sit here today? And then what's left on the pairing side?
Richard Tobin — CEO, Dover Corporation
Right now, CapEx is coming down in 2026 because of basically the completion of the expansion capacity and the restructuring capacity. So it's coming down. We feel good where we are. We are greenfielding a plant or beginning to greenfield a plant in North Carolina. That'll probably take us into 2027 by the time that's complete. So we've got a flexible model. I mean, we can kind of expand capacity relatively quickly. So besides the ones that we had in flight that we detailed in Q3, the only new one that I would add to that is the greenfield plant in North Carolina.
Mike Halloran — Analyst, Baird
Thank you.
Richard Tobin — CEO, Dover Corporation
Yep.
David Ridley-Lane — Analyst, Bank of America
This is David Ridley-Lane on for Andrew Obin. I was wondering if you could talk about your exposure on sort of the natural gas power generation side. Do you supply components for just large turbines, or is it small turbines and reciprocating engines as well? And then notably, over the last kind of three, six months, there's been quite a number of capacity expansions by the equipment providers. Just over participate in that. Thank you.
Richard Tobin — CEO, Dover Corporation
The answer to your question is yes, yes, and yes. So everything from large turbines to midstream to reciprocating compressors, the large turbine business is kind of front-running the market right now. And while capacity in percentage terms has moved up quite a bit, these are very, very big units. So the unit value is high, but the number of units is not dramatic. We believe that there's going to be significant follow-on CapEx on the delivery side, meaning getting the natural gas to those turbines. We expect that to kick off, hopefully, but expect it to kick off in the back half of 2026.
David Ridley-Lane — Analyst, Bank of America
Got it. And just to sort of clarify a thing from the slides, there's something about price cost in the fourth quarter for the Clean Energy and Fueling segment. Was that kind of one time, or?
Richard Tobin — CEO, Dover Corporation
You know what? You got me.
Chris Woenker — CFO, Dover Corporation
Yeah. It's a bit of a timing catch-up in terms of when the price comes in relative to the cost. So it's really just a timing thing we see in the fourth quarter.
David Ridley-Lane — Analyst, Bank of America
Got it. Okay. Thank you very much.
Richard Tobin — CEO, Dover Corporation
Thanks.
Andrew Kaplowitz — Analyst, Citigroup
Good afternoon, everyone.
Richard Tobin — CEO, Dover Corporation
Hi, Andy.
Andrew Kaplowitz — Analyst, Citigroup
Hey, Rich. You mentioned as you get better visibility, then you could adjust revenue guidance. But given book-to-bill has been pretty good over the last couple of quarters, and you still seem relatively positive about your markets, do you have visibility at least to continue that near-term book-to-bill over one that you've been delivering?
Richard Tobin — CEO, Dover Corporation
I don't know, right? As I mentioned in my earlier comments, right, that Q1 tends to be a production month and not much of a shipment month, right? And part and parcel to having a discussion, I mean, I can't believe we're giving out guidance. I'm talking about moving guidance already. But part and parcel to that is getting through Q1 and seeing whether we're eating into our backlog or we're neutral or is backlog building even in excess of production, which is basically what we'd have to add into the back half of the year. So look, we were here the same time last year, and then the shit hit the fan in February. So let's get into the year. Right now, all things look good in terms of exit trajectory and backlog trajectory and orders and everything.
Let's kind of walk it into Q1, and we'll give you an update when we get there.
Andrew Kaplowitz — Analyst, Citigroup
That's helpful, Rich. And then I wanted to ask you about DII. I know it's kind of a GDP, maybe GDP plus business, but what, if anything, gets you going there a little bit more? I know the low single-digit forecast for 2026, and you did mention you're in the middle of the sort of multi-year margin expansion progression and structural cost. So where are you in that progression? Do you still have good margin upside in that segment?
Richard Tobin — CEO, Dover Corporation
We're actually deploying a bunch of CapEx into that business right now, kind of some modernization and productivity. So if that all goes well, that'll drive margin from there. It's consumer goods exposed. I don't follow consumer goods that closely. Well, whether we see capacity expansions there, which would drive kind of the organic growth higher than kind of normal. But I mean, it's such a messy number because it's a global business, and it's got a lot of FX running through it. We try not to get above our skis on kind of the longer-term growth rate because it flops around. But it's a highly valuable business when you look at the cash flow dynamics of it.
Andrew Kaplowitz — Analyst, Citigroup
Helpful, Rich.
Richard Tobin — CEO, Dover Corporation
Thanks.
Brett Linzey — Managing Director, Mizuho
Hey. Good afternoon, all.
Christopher Woenker — CFO, Dover Corporation
Hi.
Richard Tobin — CEO, Dover Corporation
Hey.
Brett Linzey — Managing Director, Mizuho
Hey. Question on the 20% of the business tied to the secular markets. You've done a good job highlighting that over the last several quarters. Curious post-mortem, how did that group of businesses grow in 2025? And then are you still seeing a pretty solid double-digit type of rate here for 2026 for that 20%?
Richard Tobin — CEO, Dover Corporation
Yes and yes.
Brett Linzey — Managing Director, Mizuho
Yes and yes. Okay. And then a follow-up on capital allocation. So slide number eight, the dotted bar stack frames the optionality on the flex leverage. Maybe just an update on the investment-grade leverage ratio that's implied there.
Richard Tobin — CEO, Dover Corporation
I would imagine that it's calculated off of full year 2025 EBITDA. It is probably the max leverage with some wiggle room kind of to maintain investment grade. It's just simple math.
Brett Linzey — Managing Director, Mizuho
Yep. Okay. Got it. I'll leave it there. Thanks a lot.
Richard Tobin — CEO, Dover Corporation
Thanks.
Joe Ritchie — Managing Director, Goldman Sachs
Hey, guys. Good afternoon.
Richard Tobin — CEO, Dover Corporation
Hey, Joe.
Joe Ritchie — Managing Director, Goldman Sachs
So I'll start by just asking, I mean, I'll ask the flip side to Jeff's question from earlier. So not talking about big deals, but potential divestitures across your business. I know you look at your portfolio frequently. Just how are you thinking about the portfolio as it stands today and potentially addition by subtraction?
Richard Tobin — CEO, Dover Corporation
Well, I mean, we've got a fiduciary responsibility. If someone wants to purchase a portion of the portfolio, we have to consider it, number one. Right now, we're comfortable with what we own. We do preserve optionality if we were to lever to do deals that we could deliver by monetization of the portfolio as an option per se. But right now, we're fine with the portfolio as it is, either organically investing in it or the portions that we've historically done more M&A.
Joe Ritchie — Managing Director, Goldman Sachs
Okay. All right. Good to hear. And then I'm not going to ask you to change guidance. You just gave guidance. But if you go back to that slide 9 and you take a look at your organic growth expectations for the year, where across the portfolio do you think you have the biggest swing factors this year?
Richard Tobin — CEO, Dover Corporation
I mean, they're all correct. And if you added 1 percentage point to all of the you know what I mean? There's no this one can double based on our expectations. It's more of, do you get a point here? Do you get a point here? Do you get a point there? And at the end, when you add it all up, it adds a couple of points to the top line. So without getting over our skis here, I think that those are directionally absolutely right.
Joe Ritchie — Managing Director, Goldman Sachs
Okay. Sounds good. I hope you get that point as we progress through the year.
Richard Tobin — CEO, Dover Corporation
Thanks, Joe.
Joe Ritchie — Managing Director, Goldman Sachs
Good to talk to you.
Richard Tobin — CEO, Dover Corporation
See you.
Dean Dray — Managing Director, RBC Capital Markets
Thank you. Good day, everybody.
Christopher Woenker — CFO, Dover Corporation
Hey, Dean.
Richard Tobin — CEO, Dover Corporation
Hey.
Dean Dray — Managing Director, RBC Capital Markets
Hey. Maybe just pick up on Joe's question there because I've been staring at page nine, and I'm trying to remember the last time you had organic growth all green and all the arrows on margin pointing up uniformly like that. It begs the question, was there anything different about the planning process this year? Is this strictly a bottom-up aggregation of each one of the businesses, or did you overlay in any way, haircut anything? Remember a year ago, the tariffs, you decided that you did want to be a little more conservative. Is there any element of trimming or boosting here that you'd like to share? Sure.
Richard Tobin — CEO, Dover Corporation
I think it was in the comments, but I mean, I think that we were pretty upfront over the last 2 or 3 years of some of the longer cycle businesses that had done extremely well were cycling down, right, because it was coming out of the backlog. So the Maags and the Belvacs of the world, we knew that we were exiting some businesses or some revenue in Europe in our fueling solutions business. That was going to be negative. That was incorporated into our guidance, so meaning top-line headwind but margin up. And then we did not have a I think that we had thought going into 2025 that we were concerned about Vehicle Service Group in Europe, and that's the way it turned out at the end of the day.
I think what this shows here is that we don't have an identified headwind like we have, whether it's because of long-cycle businesses cycling down and/or particular markets that we think were under duress.
Dean Dray — Managing Director, RBC Capital Markets
That's helpful. Thank you. Just a quick one. Backlog has come up a bunch of times in Q&A here. Just directionally, how much of 2026 revenues do you expect are in backlog today, just kind of directionally? How does that compare to other normal times?
Richard Tobin — CEO, Dover Corporation
I don't know in total. I can just tell you anecdotally, I think I mentioned it before, something like refrigeration that grew heavily in Q4 were sold out for Q1, right? And that is not a normal state of affairs. We generally bleed historically in that particular business, or most of our businesses actually bleed down backlog in Q4 and replace it in Q1. Because we built so much backlog in Q4 of this year, the swing factor is going to be, do we eat into it in Q1, or does it just continue to build? And if it does, it's proactive for the back half or second half of the year, but we'll know that in the next 60 days or so.
Dean Dray — Managing Director, RBC Capital Markets
Thank you.
Richard Tobin — CEO, Dover Corporation
Thanks.