stockrowWhat it does
Dover is a diversified manufacturer and solutions provider. It sells specialized equipment, components, consumables, replacement parts, software, digital tools and support services to industrial and commercial customers. Founded in 1955, it is headquartered in Downers Grove and employs 24,000 people worldwide. Richard J. Tobin is President and Chief Executive Officer.
The company operates through five segments. Engineered Products supplies vehicle-service equipment, aerospace and defense communications products, winches, hoists, soldering and fluid-dispensing equipment. Clean Energy & Fueling supplies equipment and software for fuel storage, transport, dispensing, retail fueling, vehicle washes and hazardous-material handling. Imaging & Identification makes marking, coding, traceability, brand-protection and digital textile-printing systems.
Pumps & Process Solutions supplies pumps, meters, connectors, precision components, polymer-processing equipment, instruments and controls used in applications including biopharma, chemicals, energy, food, medical equipment and data-center cooling. Climate & Sustainability Technologies supplies commercial refrigeration systems, heat exchangers, heating and cooling equipment, and machinery and spare parts for aluminum can making.
Dover sells both stand-alone equipment and components that become part of larger systems. Its offerings are used where product performance, safety, reliability, measurement, process control or regulatory compliance matter to the customer.
How it makes money
Dover earns revenue by selling equipment and engineered components, then supplying parts, consumables, software and services during the installed base’s life. Recurring demand from parts, consumables, services and software represents approximately 40% of total revenue. Many component businesses sell products that are a small part of a customer’s larger system but are used in demanding applications; many equipment businesses have an aftermarket opportunity after the initial sale.
Pumps & Process Solutions and Clean Energy & Fueling were Dover’s two largest segments in FY2025, each with $2.1 billion of revenue. Pumps & Process Solutions supplies specialized products into industrial, biopharma, energy, plastics, semiconductor and thermal-management applications. Clean Energy & Fueling serves fuel and cryogenic-gas infrastructure, convenience retail and vehicle washes. The other three segments cover vehicle service and aerospace-related products; marking, coding and traceability systems; and refrigeration, heat-exchanger and can-making equipment.
FY2025 revenue was $8.1 billion; Q3 2026 free cash flow was $383 million, or 17% of revenue.
In FY2025, customer pricing increased revenue by approximately 1.9%. Dover also reported acquisition-related growth of 2.6%, organic revenue growth of 1.6%, and a favorable foreign-currency translation impact of 1.0%, partly offset by a 0.7% disposition-related decline. It evaluates order demand through bookings and book-to-bill, which compares orders received with revenue recorded in the same period. Dover reported trailing-12-month bookings growth of 15.0% ending in Q2 FY2026 and said book-to-bill was above one.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Pumps & Process Solutions | $2.1 billion | 26.5% | 13.4% |
| Clean Energy & Fueling | $2.1 billion | 26.3% | 10.0% |
| Climate & Sustainability Technologies | $1.6 billion | 19.3% | −1.25% |
| Imaging & Identification | $1.2 billion | 14.5% | 3.19% |
| Engineered Products | $1.1 billion | 13.4% | −9.70% |
Customers and how it sells
Dover serves thousands of customers across industrial and business-to-business markets. No customer accounted for more than 10% of consolidated revenue in 2025. Customer concentration is generally lower in businesses supplying many products and services across broad end-use applications, although defense, commercial refrigeration, can-making, power-generation and chemical-industry businesses can each deal with a smaller number of significant customers.
The company sells directly and through distributors; Pumps & Process Solutions also sells through original equipment manufacturers. Its manufacturing footprint is concentrated in North America, Europe and Asia, while products are sold globally. Dover seeks international growth, particularly in developing economies in Asia, the Middle East, Eastern Europe and South America.
The United States was Dover’s largest market in FY2025, with $4.4 billion of revenue and a 54.4% share. Europe generated $1.8 billion and represented 21.9%; Asia generated $900.2 million and represented 11.1%. Other Americas generated $707.5 million, or 8.74%, while Other revenue was $315.5 million, or 3.90%. Dover derived 46% of revenue from customers outside the United States in 2025.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $4.4 billion | 54.4% | 4.74% |
| Europe | $1.8 billion | 21.9% | 5.52% |
| Asia | $900.2 million | 11.1% | 8.10% |
| Other Americas | $707.5 million | 8.74% | −3.04% |
| Other | $315.5 million | 3.90% | 3.18% |
Suppliers and costs
Dover uses a broad range of metals, semi-processed materials and finished components. Steel, copper, aluminum and other commodities can have volatile prices. The company uses index-based supplier and customer contracts, along with global supply-chain programs, to manage some commodity-cost exposure; it may also seek price increases from customers, although timing can differ.
Raw materials are generally available from multiple sources, and Dover does not expect the loss of one supplier to materially affect consolidated operating profit. Some materials and components may nevertheless come from limited or sole-source suppliers. A supply interruption, insufficient quantities, long lead times, poor quality or unfavorable purchase terms could constrain manufacturing and customer deliveries.
Manufacturing is distributed mainly across North America, Europe and Asia. In FY2025, gross profit margin was 39.8%, while selling, general and administrative expense was 22.8% of revenue. Research and development expense was $165.3 million. Dover reported restructuring and other costs of $78.0 million, largely related to exit costs and headcount reductions.
- Revenue$8.1B
- Cost of revenue−$4.9B
- Selling, general and administrative−$1.8B
- Operating income$1.4B
Competitive position
Dover competes in specialized industrial markets where customer service, product quality, price and innovation are key factors. Competitors vary by segment. Engineered Products competes with Snap-On, The COATS Company, Arrowhead Winch, Teledyne and Nordson Corporation. Clean Energy & Fueling competes with Vontier, Tatsuno, Franklin Electric, Verifone, Elaflex, PDI Technologies, Ingersoll Rand, Dixon Valve & Coupling Company, Crane Company, Sonny’s Enterprises, National Carwash Solutions and Washtec.
Imaging & Identification competes with Veralto, Brother Industries, Electronics for Imaging and Kornit Digital. Pumps & Process Solutions competes with IDEX, Ingersoll Rand, ITT, SPX Flow, Danaher, Avantor, Spirax Sarco, Kingsbury, Ecolab, Hoerbiger Holdings, Miba, Nordson and Hillenbrand. Climate & Sustainability Technologies competes with Panasonic, Alfa Laval, Danfoss, Stolle Machinery and Crown Holdings.
Dover’s products are often specified by end customers or regulations, particularly in Pumps & Process Solutions. It also sells into a large installed base that needs aftermarket equipment and parts. The company owns patents, trademarks, licenses, trade secrets and customer relationships, while its digital offerings include connected products, sensors, controls and software.
Our reading: Switching costs are a meaningful moat for critical components used in demanding applications, because value-in-use and switching risks can exceed the component’s cost.
Our reading: Installed-base aftermarket revenue provides a meaningful moat where equipment needs consumables, parts, software and service throughout its life.
Our reading: Engineering, intellectual property and customer relationships support differentiation, but price, innovation and service competition remain active across Dover’s varied markets.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Snap-On Inc. | vehicle service equipment | Medium |
| The COATS Company | vehicle service equipment | Medium |
| Arrowhead Winch | industrial winch and hoist | Medium |
| Teledyne | aerospace and defense | Medium |
| Nordson Corporation | engineered products and process solutions | High |
| Vontier | retail fueling and vehicle wash | Medium |
| Tatsuno | fuel dispensing | Medium |
| Franklin Electric | fueling equipment | Medium |
Growth opportunities
Dover targets organic sales growth above gross domestic product, or 4% to 6% annually on average through a long-term business cycle, absent prolonged adverse economic conditions. It also pursues bolt-on acquisitions, capacity expansion, automation, research and development, digital capabilities and geographic expansion. The company plans average annual capital spending of approximately 2% of revenue.
Its growth priorities include digitization and automation in industrial processes; energy efficiency and sustainability; traceability and brand protection; biopharmaceutical production; data-center infrastructure; electrification; energy infrastructure; and growth in emerging economies. Pumps & Process Solutions addresses liquid cooling for electronics, including server racks and chips in data centers, while Climate & Sustainability Technologies supplies heat exchangers for data-center cooling. Dover is working to double capacity for data-center liquid-cooling products over the next 12 months.
Dover says secular-growth markets represent approximately 25.0% of FY2026 revenue. It expects $50.0 million of revenue tied to space in FY2026. The company also says North American natural-refrigerant adoption remains below 10.0% penetration. Dover reported that demand has outpaced supply and extended lead times in several priority markets, and it is expanding capacity in those areas.
Dover uses acquisitions to add products, technologies, manufacturing capability, geographic reach and access to adjacent markets. It spent approximately $1.9 billion to purchase fourteen businesses during 2023 through 2025, net of cash acquired and including contingent consideration.
- $7.9BFY2021
- $7.8BFY2022
- $7.7BFY2023
- $7.7BFY2024
- $8.1BFY2025
Structural risks
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Recessions, adverse market conditions and downturns in served markets can reduce sales, operating results and cash flow. Restructuring actions taken in a downturn can be complex, and their expected improvements or efficiencies may be delayed or not realized.
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Dover’s international operations expose it to political, social and economic disruption; tariffs and trade restrictions; transportation delays; currency effects; regulatory changes; labor unrest; intellectual-property theft; and difficulties managing multinational operations. Approximately 46% of revenue was derived outside the United States in 2025.
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Competition includes new products, digital solutions, support services, technologies, business models and pricing pressure. Dover may lose customers if it does not anticipate customer needs, introduce competitive offerings or integrate evolving technologies in a timely and cost-effective way.
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Commodity, component and freight costs can rise, while some inputs are available from limited or single sources. Supply disruptions, extended lead times or shortages could affect manufacturing output, delivery commitments and operating profit.
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Cybersecurity threats affect Dover’s systems, connected products, cloud services and third-party providers. A prolonged disruption or compromise could cause production downtime, operational delays, theft or corruption of data and intellectual property, financial losses, legal liabilities and reputational damage.
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Acquisitions may underperform, create unexpected liabilities, fail to deliver expected synergies or prove difficult to integrate. Capital allocated poorly between acquisitions and organic investments could increase exposure to particular markets or geographies.
Bottom line
Our reading
Our reading: Dover is a diversified industrial business built around specialized components and equipment, with recurring aftermarket demand accounting for approximately 40% of revenue and exposure to a broad set of end markets. Its growth program combines capacity investment, digital capabilities and acquisitions, with current emphasis on areas such as data-center cooling, biopharma, energy infrastructure and refrigeration. Its principal operating exposures are industrial-cycle demand, execution on capacity and facility projects, supply and commodity costs, competition, international operations and cybersecurity.