Dover (DOV) Q3 2025 Earnings Call Transcript

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DATE

Oct. 23, 2025 at 9:30 a.m. ET

CALL PARTICIPANTS

Chairman, President, and Chief Executive Officer — Richard J. Tobin

Senior Vice President and Chief Financial Officer — Chris Winger

Vice President, Investor Relations — Jack Dickens

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RISKS

Richard J. Tobin described a “twenty-year low” in industrywide shipments of refrigeration door cases during Q3 2025, attributing the decline to “tariff uncertainty” that has caused customers to delay maintenance and upgrade spending.

Management stated that refrigeration equipment revenue loss represents a $140 million to $150 million headwind that was absorbed this year. Year-over-year reduction in refrigeration on the basic retail refrigeration equipment has cost about 1.5% to 2% of organic growth on a full-year basis.

Richard J. Tobin noted certain top line challenges in vehicle services, indicating Europe remains a source of headwinds, and it is “a little bit early to make a call” on recovery in that geography.

TAKEAWAYS

Revenue -- Up 5% in the quarter, supported by “broad-based shipment growth in short cycle components,” according to Richard J. Tobin and recent acquisitions.

Bookings -- Consolidated bookings increased 8% in total in Q3 2025 and experienced 4% organic order growth; Climate & Sustainability Technologies bookings grew 25% during the quarter.

EBITDA Margin -- Reached a record 26.1% in the quarter, improving 170 basis points over the comparable period, with all five segments posting margin gains.

Adjusted EPS -- Adjusted EPS rose 15% in the quarter and is up 17% year to date.

Order Visibility -- Management cited ongoing momentum and improved order trends in Q3 2025, “providing good visibility for the remainder of the year and into 2026.”

Guidance -- Full-year adjusted EPS guidance for 2025 increased from between $9.35 and $9.55 to between $9.50 and $9.60.

Free Cash Flow -- Year-to-date free cash flow totaled $631 million (11% of revenue) for the nine months ended Q3 2025, up $96 million over the prior year to date; management reiterated 2025 free cash flow guidance of 14% to 16% conversion rate.

Engineered Products -- Segment revenue declined in Q3 2025 on lower vehicle services volume, but profit increased via cost management and productivity actions.

Clean Energy & Fueling -- Clean Energy & Fueling was up 5% organically in the quarter, led by clean energy component shipments and the SiteIQ acquisition; margin was up 200 basis points from product mix and restructuring benefits.

Imaging and Identification -- Organic growth of 3% on core marking and coding in Q3 2025, with a 29% adjusted EBITDA margin driven by structural cost controls.

Pumps and Process Solutions -- Up 6% organically in Q3 2025, supported by single-use biopharma and data center thermal connector demand; Secora acquisition “significantly outperforming” according to Richard J. Tobin initial expectations.

Climate & Sustainability Technologies -- Segment revenue down due to a 30% year-to-date decline in food retail cases and engineering services, though CO2 systems and heat exchangers saw double-digit growth during the quarter.

Productivity Programs -- Ongoing projects, including the consolidation of glass door manufacturing, are projected to add $40 million in incremental carryover benefit in 2026.

Capital Allocation -- Management emphasized focus on high-ROI capital investments and continued M&A optionality and noted, “we think our shares are cheap and we're likely to intervene,” according to Richard J. Tobin regarding buybacks.

SUMMARY

Dover (NYSE:DOV) delivered broad-based quarterly growth in Q3 2025, emphasizing margin expansion through productivity initiatives and positive end-market mix impacts. Management reported that secular growth segments—including clean energy, data center technologies, and biopharma—are contributing disproportionately to improved profitability and represent roughly 20% of the current portfolio. Guidance was raised for adjusted EPS, with order and booking trends pointing to continued positive performance into 2026 despite some sectoral revenue declines. Commentary highlighted accelerating cost efficiencies, targeted capital deployment, and selective M&A activity as key strategic levers supporting future margin and growth objectives.

Richard J. Tobin stated, “I'm not aware of any business within the portfolio that's forecasting down revenue for next year,” signaling portfolio-wide expectation of revenue growth in 2026.

The company expects incremental margin carryover from 2025 restructuring actions, with an additional $40 million benefit projected for 2026 and further gains into 2027.

Secora acquisition integration will expand manufacturing into at least two new geographies over the next twenty-four months, per management remarks.

Single-use biopharma components have “returned to its long-term double-digit growth trajectory” based on volume and new product launches, as described by Richard J. Tobin in Q3 2025.

The company maintains market leadership in U.S. CO2 refrigeration, with double-digit segment growth projected to continue into 2026 due to regulatory and customer adoption drivers.

INDUSTRY GLOSSARY

CO2 refrigeration systems: Commercial refrigeration units using carbon dioxide as a refrigerant, often sought for regulatory compliance and environmental benefits.

Thermal connectors for liquid cooling: Components used to transfer heat from electronic devices (such as data center servers) using liquid-based cooling systems, critical for high-density computing environments.

Serialization software: Software used in pharmaceuticals to track and document product identity through unique codes, supporting traceability and regulatory compliance.

Single-use biopharma components: Disposable products used in pharmaceutical manufacturing processes, favored for efficiency and contamination risk reduction.

Manifolds: Devices, typically in industrial automation and fluid systems, that serve as central points for distributing fluids or gases to multiple outputs.

Full Conference Call Transcript

Richard J. Tobin: Thanks, Jack. Good morning, everybody. Let's get started on Slide three. Overall, we are pleased with Dover's third quarter results. Revenue was up 5% in the quarter driven by broad-based shipment growth in short cycle components, continued strength across our secular growth end markets, and very encouraging results from recently closed acquisitions. Order trends continued to deposit momentum in the quarter, up 8% all in year over year or 4% organically, providing good visibility for the remainder of the year and into 2026.

Margin performance in the quarter was excellent with a record consolidated EBITDA margin of 26.1%, up 170 basis points over the comparable period as a result of positive mix impact from our growth platforms, solid execution, and our rigorous cost containment and productivity actions. All five segments posted margin improvements during the quarter. All in adjusted EPS was up 15% in the quarter and is up 17% year to date. Capital deployment remains a key driver of our double-digit earnings growth. This year, we increased our investments in high ROI capital projects focused on productivity and capacity expansions as well as targeted footprint optimization.

Our balance sheet strength is an advantage that provides flexibility and attractive optionality as we pursue value-creating bolt-on acquisitions and opportunistic capital return strategies. We have a constructive outlook for the remainder of 2025 and into 2026. Despite some macroeconomic uncertainty, underlying end market demand is healthy across much of the portfolio and is supported by our sustained order growth. As a result, we are increasing our full-year adjusted EPS guidance from $9.35 to $9.55 to $9.50 to $9.60. Let's go to slide five. Engineered Products revenue was down in the quarter on lower volumes in vehicle services, partially offset by solid performance in Aerospace and Defense Components.

Despite the organic volume decline, absolute segment profit improved in the quarter on well-executed structural cost management, product mix, and productivity initiatives. Clean Energy and Fueling was up 5% organically in the quarter led by strong shipments in Clean Energy Components, fluid transport, North American retail fueling software, and equipment. Our recent acquisition of SiteIQ, a provider of remote site monitoring of fueling sites, is off to a good start. Margin performance, as expected, was solid in the quarter, up 200 basis points on volume leverage and a higher mix of below-ground fueling equipment and restructuring benefit carry forward.

Imaging and ID was up 3% organically in the quarter and growth in our core marketing and coding business and in serialization software. Margin performance remains very good in this segment at 29% adjusted EBITDA margin as management actions on cost to serve and structural cost controls continue to drive incremental margins higher. Pumps and Process Solutions was up 6% organically with growth in single-use biopharma components, thermal connectors for liquid cooling of data centers, and precision components and digital controls for natural gas and power generation infrastructure. Secora, which we acquired at the end of the second quarter, is significantly outperforming our underwriting case.

Segment revenue mix, volume leverage drove margin improvement on solid production performance and volume in secular growth exposed end markets. Revenue was down in the quarter in Climate Sustainability Technologies and comparative declines in food retail cases and engineering services, which were collectively down 30% year to date. Industry-wide shipments of door cases are at a twenty-year low in part because of tariff uncertainty has caused customers to delay maintenance and replacement upgrade spending. These projects cannot be delayed indefinitely and encouragingly, we saw a material acceleration in booking rates in the quarter which signals volume improvement moving forward.

Meanwhile, the segment had record quarterly volumes in CO2 systems, as well as double-digit growth in heat exchangers and accelerating demand for liquid cooling of data centers and improving sentiment in European heat pumps. Despite the lower top line, the segment posted 120 points of margin improvement on productivity actions and a higher mix of U.S. CO2 systems and braze plate heat exchangers. I'll pass it to Chris.

Chris Winger: Thanks, Rich. Good morning, everyone. Let's go to our cash flow statement on slide six. Year-to-date free cash flow was $631 million or 11% of revenue, up $96 million over the prior year as increased year-over-year operating cash conversion more than offset an expected increase in capital spending. Free cash flow generation accelerated in the third quarter in line with our expectations and with historical trends, and we expect a further step up in the fourth quarter, which is historically our highest cash-generating quarter. Our guidance for 2025 free cash flow remains on track at 14% to 16% on strong conversion of operating free cash flow operating cash flow. With that, let me turn it back to Rich.

Richard J. Tobin: Okay. I'm on slide seven. Let's provide a little more detail on the bookings and third quarter. Q3 consolidated bookings were up 8% in total and 4% organically from the prior year. I call out the 25% bookings growth in climate and sustainability technologies, a welcome sign as we expect the segment to return to growth in the fourth quarter on broad-based volume demand. On slide eight, we highlight several end markets that are key drivers of our revenue growth in 2025 and beyond. We are benefiting from major investments in power generation, electricity infrastructure, and artificial intelligence across multiple businesses.

We are directly exposed to data center build-out by hyperscalers, the secular shift from air cooling to liquid cooling of new chip technologies. Between our thermal CPC connectors, which primarily connect to the back of the server rack manifolds and directly to the chip, as well as our large and XL heat exchangers from SWEP that are key components in cooling distribution units and chillers, we expect to generate over $100 million of revenue in this year alone. Our recently closed Secora acquisition expands our exposure to electricity infrastructure through measurement, inspection, and control solutions for high voltage polymer-coated wires and cables, a direct beneficiary of growing electrification trends and demand for customers for product quality assurance and improvement.

All this electricity has to come from somewhere, and natural gas remains the most viable for scalable, reliable energy for the foreseeable future. Our precision components and OPW Clean Energy businesses participate across several points of the natural gas infrastructure value chain, including gas and steam turbine components, midstream gas pipeline, engines and compressor infrastructure, and valves and vacuum jacketed piping used in liquefaction and gasification of LNG. End market data and customer discussions indicate a very bright future for these businesses.

Our single-use biopharma components platform has returned to its long-term double-digit growth trajectory on volume demand and new product launches, continued advances in biological drugs and therapies coupled with an industry shift towards single-use manufacturing processes are fueling sustained high-quality growth for our products. CO2 refrigeration, we maintain a clear market leadership position in the U.S. Supported by a fully platform product portfolio and a retrofitted plant in Conyers, Georgia that provides strong competitive moats and product performance, lead times, and scalability. Economic and regulatory tailwinds are driving the transition to CO2 systems as large national retail chains accelerate their adoption with a line of sight of continued double-digit growth into 2026.

A significant majority of the acquisition capital deployed in the past five years has been directed towards these high-end growth markets, which remain top priorities for continued investment. Collectively, these markets now represent roughly 20% of our portfolio and are contributing meaningfully to our margin expansion. Moving to Slide nine. Our investments in center-led functions and ongoing focus on productivity improvement are key drivers of our margin expansion. We have made significant progress building out our shared back office services, digital capabilities, and internal engineering services through the India Innovation Centre.

These center-led functions enable our operating companies to concentrate on what matters most: serving customers, driving new product development, and responding to market-specific needs while leveraging Dover's global scale and balance sheet. This structure remains a core competitive differentiator of our operating companies, and we extract cost synergies from our existing and acquired portfolio companies. Our Dover Business Services, Dover Digital, and Innovation Center are now fully developed and integrated across the organization. With these operations fully built out, we expect meaningful scale and scope benefits as we continue to grow organically and through acquisitions, further reducing average transaction costs and driving attractive margin accretion.

We believe that our shared back office services will be the largest non-product beneficiary of artificial intelligence implementation. An important part of our business model is to drive productivity through targeted efficiency and fixed cost reduction programs. On the right are some of the key ongoing projects that we had highlighted in previous quarters, including our recently announced transition of the Anthony Glass door manufacturing from Sylmar, California into our existing Hill Phoenix refrigerated case facility in Richmond, Virginia, a move expected to deliver significant cost savings. These initiatives are projected to contribute $40 million in incremental carryover benefit in 2026 with additional benefits extending into 2027. Let's finish up on the outlook slide number 10.

We expect engineered products to improve sequentially in the fourth quarter on double-digit growth in aerospace and defense components and improving market trends and competitive dynamics within vehicle services. Our outlook in clean energy and fueling remains solid across most of the businesses, and over North American retail fueling is starting another capital deployment cycle, and the outlook in clean energy components is positive as well. Vehicle wash continues to experience some headwinds although we would expect that to recover in 2026. Imaging and ID should continue its long-term steady growth trajectory given its significant recurring revenue base and solid underlying demand with an additional upside from serialization software. We forecast this segment to continue its single-digit organic trajectory.

The outlook for Pumps and Process Solutions is strong and broad-based with attractive top-line forecasts across single-use biopharma components, thermal connectors for liquid cooling of data centers, and precision components for natural gas infrastructure. Bookings and backlog trends in our long cycle polymer processing signal improving conditions, and the business should return to growth in the fourth quarter for the first time in over two years. And finally, Climate and Sustainability Technologies should grow in the high single digits organically in the fourth quarter on continued strength in CO2 refrigeration systems and heat exchangers as well as growth in refrigerated door cases from improved booking rates. The full-year guidance is on the left.

We expect acceleration in our top line in the fourth quarter driven by our secular growth businesses and sequential recovery in certain capital goods end markets. We are well-positioned as we begin to transition into 2026. Our advantaged balance sheet provides attractive optionality to selectively play offense to continue driving shareholder returns. I'll pass it back to you, Jack.

Jack Dickens: Okay. I guess, Chloe, before you get to the script on questions, if I could just interject quickly. We've had a lot of pickup in our analyst coverage over the last twelve months. So if we could please limit the Q&A to just one question, we would greatly appreciate that. I'll turn it over to you, Chloe.

Operator: Thank you. If you would like to ask a question, simply press star then the number one. Again, we ask that participants limit themselves to one question. We'll take our first question from Andy Kaplowitz with Citigroup. Your line is open.

Andy Kaplowitz: Hey, good morning, everyone.

Richard J. Tobin: Hi, Andy.

Andy Kaplowitz: You mentioned an improving sequential outlook in vehicle services, improved booking rates in refrigerated door cases. But did you see improving bookings cadence across Q3 for the company? And would you expect book to bill over one time in Q4? And then do these improvements in relatively easy comps set you up for a better organic growth year in '26? At least closer to that algorithm that you've given out of 4% to 6% over time?

Richard J. Tobin: That's about five questions, Andy, but I know where you're headed. Look, year-over-year reduction in refrigeration on the basic retail refrigeration equipment has cost us about 1.5% to 2% of organic growth on a full-year basis. So the good news is that we've been able to cover that largely because of our growth platforms and the margin improvement over year-over-year. And the good news also is, which I called out in the press release, is that because booking rates have accelerated, particularly in there, and we will do quite well on the comparative top line in that business that you know, we're looking at close to a $140 to $150 million revenue headwind that we absorbed this year.

So do we get it all back next year? We'll see, but I think we're gonna get a significant portion of it back if the Q4 trajectory holds as we go through the end of the year.

Operator: And we'll take our next question from Steve Tusa with JPMorgan. Your line is open.

Steve Tusa: It sounded like Andy was mowing the lawn there or something. It reminds me of back to school, one question in 32 parts. But just the implied organic in the fourth quarter, I mean, you have a pretty wide range there. But the low end of that range seems to be in and around the mid-single digits for the fourth quarter. And then totally unrelated follow-up to that, you guys thinking about buying back stock? I mean, you guys have a ton of cash and you sold probably a subpar asset for a multiple that's now above where your stock is trading. So any thoughts around a potential buyback as well?

Richard J. Tobin: Yeah, I think if you go back and look in the transcript, you'll see the corporate speak for we think our shares are cheap and we're likely to intervene. Number one. And number two, yeah, I think that from an organic basis, Q4 should be our highest quarter in the year.

Steve Tusa: Okay. Thanks.

Operator: We'll move next to Jeff Sprague with Vertical Research. Your line is open.

Jeffrey Sprague: Hey, thanks. Good morning. Hey, Rich, just back to the sort of the restructuring. Is this the totality of sort of, you know, what foreshadowed for us on the Q2 call? Or are there sort of other actions in place that could then even be added to this? Or is this pretty much in flight what we should expect for 2026?

Richard J. Tobin: We had a big debate in here whether to not...

Jeffrey Sprague: Hello?

Richard J. Tobin: Hello? Still here.

Jeffrey Sprague: Yeah. I'm sorry. I didn't hear you. I don't know if that was my alright. I'll answer you. I'll answer it again. That is look. We had signaled that we were gonna give an update in Q3. So that's where we are in Q3 right now. I expect that number to increase as we close the year. It's just going to be a question of the timing, whether it's '26 or '27, but that number should go up.

Jeffrey Sprague: Great. Thank you, Rich.

Operator: And we'll take our next question from Nigel Coe with Wolfe Research. Your line is open.

Nigel Coe: Thanks. I promise I'll keep this just to one question.

Richard J. Tobin: So I promise I'll try. Nigel, we get complaints for cutting people off despite the fact we have the longest conference call. But anyway, go ahead.

Nigel Coe: No. I know. I know. I know. You're a popular company. Any initial thoughts on '26? And I'm not asking for a range here, but just seems that a lot of the businesses that are dragging today could well be meaningful tailwinds in '26. You know, if these secular growth businesses continue, then, you know, '26 organic could be quite an acceleration. So just any thoughts, as you see things right now for '26?

Richard J. Tobin: Yeah. I mean, we like the setup. In a strange way, we took the headwind that we had not forecasted in refrigeration. Based on our discussions with customers. But because of rollover restructuring and a lot of productivity and some really healthy mix, we've been able to absorb it this year. So the good news is that, that's set up comparatively looks good there. I'm not aware of any business within the portfolio that's forecasting down revenue for next year. Now clearly, somebody will get it right and somebody will get it wrong, but it's not like the situation that we had with MOG in the past where it was cyclical and we knew it was gonna come down.

The rest of it think that we can look at the trajectory in Q4. If you put on just regular seasonality next year, think the setup looks really good.

Nigel Coe: Okay. Thanks, Rich.

Operator: And we will move next to Amit Mehra. Your line is open.

Amit Mehra: Congrats, operator. That's a pretty good attempt on my last name. Appreciate it. Rich, you know, if we go back six months, feels like kind of a millennia ago, but you were kind of prescient by lopping a $100 million in the back half kind of right off the top, and it looks like that's kind of been absorbed. As you think about rolling up the plan for '26, I mean, do you see the same I guess the macro backdrop has gotten better, but do you still kind of feel like, that kind of conservatism is appropriate if you think about '26? And then just related to that, the margins have been incredible this year.

I think all-time record in the third quarter. It feels like margins can move up again in '26 just given all the restructuring you did, but I just want to understand kind of you're starting off of a very high base, and would love to get your thoughts on margin progression into 2026.

Richard J. Tobin: Sure. I'll deal with the margin one first. You do have an amount of mix effect within the segments. So I think we'd have to consider that to a certain extent. But absolute, probably fine. I don't think that we're over-earning from a margin point of view right now. If I look at each individual product line, there's nothing esoteric in there that said, yeah. But we really killed it here. So, I don't expect them to come down with the fact you know, our business model if we do things correctly, always has rollover restructuring and productivity.

We don't think we can do this every year for multiple years, and that's always a little bit of a hedge that we have for either volatility in the top line or kind of a negative mix change. So that's positive. So to the extent that we get the product mix that we like, and we're rolling forward another $40 million that's positive to margins overall. So I think that we're good there. In terms of the setup, I think I answered it before. We took a pretty big headwind in refrigeration here. It's almost two full percentage points of organic growth, we're at a twenty-year low in terms of unit volume into that space this year.

I mean, do we come all the way back? But again, I think that let's we've got a pretty heady number in terms of organic growth. For Q4. Let's get that under our belt. And let's see where bookings are and everything else. But, you know, I'd like the setup, as I said before, we like.

Amit Mehra: Okay. Good. Thank you.

Operator: We'll move next to Scott Davis with Milas Research. Your line is open.

Scott Davis: Hey. Good morning, guys.

Richard J. Tobin: Scott.

Scott Davis: Can you guys give some context to your data center exposure and kind of terms maybe around content per megawatt or opportunity per megawatt? I mean, do you look at it that way? Or no?

Richard J. Tobin: I mean, look. We have people that try to look at it that way, but let's be honest, in terms of participation, it's meaningful for us in terms of the volume and the margin, but in terms of the entire ecosystem, and the billions of dollars being spent, we are who we are. Our focus is more getting the spec on the reference products for the reference customers. And that, I think that we've been highly successful in doing that on both the braids plate heat exchange side and the thermal connector side. So to the extent that the market grows, the way we see it, we don't see a change in the competitive stack in those particular product lines.

So if it grows, we'll get our fair share.

Scott Davis: Okay. I'll pass it on. You guys. Good luck. Thanks.

Operator: We'll take our next question from Joe Ritchie with Goldman Sachs. Your line is open.

Joe Ritchie: Thanks. Good morning, guys.

Richard J. Tobin: Joe.

Joe Ritchie: Hey, Rich. Can you just give a little bit more color on that Secura acquisition? I think you said that it was significantly outperforming. So that's great to see. And then maybe just give us an update on your deal pipeline and, you know, the potential to do more in the next twelve months.

Richard J. Tobin: Yeah. Sure. Secora I think that we had a head start there because we had been working with Secora with our MOG polymer processing equipment business on our own for our own uses, and then we got to know each other. So we were able to close that. Because as we learned about the company, not only for our own particular use, but what they were doing and where their exposure was, we really liked it. And, you know, knock wood, it's really done fantastically. In Q1, significantly better than our deal model would have incorporated for the base year. We are in the process of integrating Secura.

So, you know, if you take a look at that back office slide that we put in there, in all three areas, we're working of assembly operations. Pretty much done. So we're gonna take what was a single site manufacturing site, and probably expand it at least in two other different geographies over the next twenty-four months. So that's great. In terms of the deal pipeline, you know, if you look at the overall stats on M&A, it looks like M&A is up significantly, and it is, but it's really very large deals and corporate breakups and a variety of things. The mid-market where we kinda play, has been slow.

We, you know, in terms of pipeline, we got an interesting pipeline. There. In terms of valuation, valuations I think they're trying to find its footing. And that's so we're being selective as usual. But you know, we've got enough in the pipeline that I would expect that you know, we'd close on a couple things over the next twelve months.

Joe Ritchie: Helpful. Thank you.

Operator: We'll move next to Chris Snyder with Morgan Stanley. Your line is open.

Christopher M. Snyder: Thank you. I wanted to ask on orders. So positive update here in Q3, up 8% or 4% organic. But can you provide some color or thoughts on the order to revenue, I guess, conversion for the company? Because you know, you've had pretty good orders for a while now, and it hasn't really converted to the top line to the same degree, that we've seen in orders. So I guess any, you know, kind of thoughts on that? And it seems like going forward, you do expect better conversion whether it's into Q4 or '26, so?

Richard J. Tobin: Thank you. Yes. I mean, the amount of intention that orders get in organic orders and extrapolate that into revenue is one of the great mysteries in life. But we continue to give the data that is more reflective than to me. Than orders, kind of in terms of trajectory and everything. But you're right. I mean, look. At the end of the day, we would have liked organic growth to be higher this year. I think it's been really isolated in two particular businesses. We had an inkling on the vehicle services probably have a challenging year. We missed it. On refrigeration. Clearly. The good news about that is we don't believe that has lost revenue.

It's just been pushed largely into '26 now, although we'll get a nice uptick next year. So you know, orders are up. Portfolio is in pretty good shape. I mean, if you know, you see segments, we see it down to the individual operating company basis. As I mentioned on an earlier to an earlier question, we don't see a cyclical decline in any portion of the portfolio rolling into '26, and that's probably the first time that we can say that in a couple of years.

Christopher M. Snyder: Thank you. I appreciate that.

Operator: We'll take our next question from Joe O'Dea with Wells Fargo. Your line is open.

Joseph John O'Dea: Hi. Good morning. Rich, you made the comment about how you're not aware of any businesses in the portfolio that are forecasting revenue down next year. Guess I'm curious about which ones you're most excited about the potential just when you think about, you know, coming off of the MOG swept Belvac kind of situation last year and now you get sort of cases indoors. And the vehicle lift side. And so just thinking about, you know, what could be poised to sort of deliver kind of growth that you're getting excited about next year.

Richard J. Tobin: Sure. I'm like, we highlight the growth platform, so I think you can go take a look at that. We think that we are in what should be a two to three to four-year CapEx cycle in the fueling business overall? Inclusive of the cryogenic components and everything that we bought in that space. So I think what was our growth this quarter like 5% organic? Yeah. Which is pretty good. Overall. We don't see that slowing for the foreseeable future. For a variety of reasons, whether it's customer CapEx or regulatory and everything else. Refrigeration, I think we've beaten that one to death at this point. We don't I know Belvac is growing this year.

We, you know, I think it will grow some next year, but that's not going to move the needle in comparison to refrigeration and what's happening in brazed heat exchangers. Vehicle services, we'll see. I mean, it's been a tough year, because a lot of that is exposure to Europe, it's a little bit early to make a call on Europe, but I don't expect it to decline. Going forward. And I actually the management's done a really great job on the cost structure. So even despite the top line headwind that you see this year, Okay.

Joseph John O'Dea: And you cut out at the end on me, but I heard through management doing a great job on cost and vehicle lift.

Richard J. Tobin: Yeah. Yeah. So what I'm saying is if it grows a little bit next year, the incremental margin should be positive.

Joseph John O'Dea: Got it. Thank you.

Richard J. Tobin: You're welcome.

Operator: We'll take our next question from Deane Dray with RBC Capital Markets. Your line is open.

Deane Michael Dray: Thank you. Good morning, everyone.

Richard J. Tobin: Hi, Dean.

Deane Michael Dray: Hey, on imaging, can you expand on the point about serialization software, kind of size the opportunity is and some context, please?

Richard J. Tobin: Sure. It's 16% I guess, of the total revenue of the space. Am I right? Yeah. It's about $60 to $70 million. Okay. Yeah. Anyway, yeah, it's leveraged almost exclusively to pharma. So as pharma builds out production lines, that's when we sell the software and the recurring revenue associated with it. I think that everybody's pretty well aware of what's going on in kind of incentivized reshoring of pharma. I think that we'll get our fair share of that.

Deane Michael Dray: Thank you.

Richard J. Tobin: You're welcome.

Operator: We'll take our next question from Julian Mitchell with Barclays.

Julian C.H. Mitchell: Hi, good morning.

Richard J. Tobin: Hello, Jason.

Julian C.H. Mitchell: Hey. I just want to understand Rich a little bit better. Sort of how you've seen the demand environment play out because your tone is quite upbeat on the top line, but the revenue guide is reiterated. And so I just put a finer point on it, I wondered if any of the segment revenue assumptions for this year have changed since the figures you guided for in July. And whether there had been anything in the bookings that had surprised you positively, you know, the last few months or so.

Richard J. Tobin: Sure. Oh, I clearly we missed on retail refrigeration. By a significant amount. All the customer information that we're getting it was on the come. I think if, you know, some of the commentary that we gave intra quarter when we can see that it wasn't coming, were like, okay, now it's not coming. But, you know, we're chasing our tail a little bit. So the quantum of that loss on a full-year basis is 1% or 2% of organic revenue growth. That we had.

Now it's gonna flex now because the orders popped, so least optically, we'll have a good look in Q4 for a $130 to $140 million of revenue that we've gotta make up year over year we'll take half of that growth for next year, Julian, at the end of the day. The balance of the businesses, the trajectory is fine in terms of orders. We always have to be a little bit careful in Q4 because you know, we're guessing about our customers' behavior on their own inventory. At the end of the day. But I think that someone asked earlier about the you know, someone did the math on the squeeze for revenue growth in Q4. And that's fair.

So it, you know, it stays within our window. Gives us a little bit of cushion just in case, you know, December is light in terms of shipments. But overall, there's really the only significant change is that biopharma hung in there because there was some thought about well, was this restocking? And clearly, it's not. We've run the numbers on that. So it's been pretty consistent in terms of demand and should be consistent in Q4. Same thing with thermal connectors. So overall, there's a little bit of cushion on the revenue side in Q4, but the trajectory and the only thing that's changed is we lost basically a quarter of retail refrigeration.

Julian C.H. Mitchell: Great. Thank you.

Richard J. Tobin: Thanks.

Operator: And I would now like to turn the call back to the presenters for any additional or closing remarks.

Jack Dickens: No, Chloe, you can wrap up.

Operator: Certainly. Thank you, everyone. This concludes our question and answer period and Dover's Third Quarter 2025 Earnings Conference Call. You may now disconnect your line at this time and have a wonderful day.

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