Dover — Oct 10, 2024 release

DOVER CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)(in thousands, except per share data*) 2024 2023 Q1 Q2 Q2 YTD Q1 Q2 Q3 Q4 FY 2023 Revenue $ 1,883,719  $ 1,948,782  $ 3,832,501   $ 1,907,429  $ 1,913,807  $ 1,958,428  $ 1,904,812  $ 7,684,476   Cost of goods and services 1,186,532  1,196,259  2,382,791   1,205,044  1,206,932  1,219,047  1,185,909  4,816,932   Gross profit 697,187  752,523  1,449,710   702,385  706,875  739,381  718,903  2,867,544   Selling, general and administrative expenses 442,981  429,055  872,036   416,143  415,242  402,838  413,981  1,648,204   Operating earnings 254,206  323,468  577,674   286,242  291,633  336,543  304,922  1,219,340   Interest expense 36,365  32,374  68,739   34,214  33,803  32,390  30,897  131,304   Interest income (4,756) (4,081) (8,837) (2,091) (2,653) (3,808) (4,944) (13,496) (Gain) loss on disposition (529,943) 663  (529,280) —  —  —  —  —   Other income, net (7,139) (12,845) (19,984) (3,807) (6,677) (10,274) (710) (21,468) Earnings before provision for income taxes 759,679  307,357  1,067,036   257,926  267,160  318,235  279,679  1,123,000   Provision for income taxes 157,577  60,770  218,347   51,234  50,150  56,252  21,500  179,136   Earnings from continuing operations 602,102  246,587  848,689   206,692  217,010  261,983  258,179  943,864   Earnings from discontinued operations, net 30,119  35,235  65,354   21,882  25,229  27,770  38,083  112,964   Net earnings $ 632,221  $ 281,822  $ 914,043   $ 228,574  $ 242,239  $ 289,753  $ 296,262  $ 1,056,828   Basic earnings per share: Earnings from continuing operations $ 4.33  $ 1.79  $ 6.14   $ 1.48  $ 1.55  $ 1.87  $ 1.85  $ 6.75   Earnings from discontinued operations, net $ 0.22  $ 0.26  $ 0.47   $ 0.16  $ 0.18  $ 0.20  $ 0.27  $ 0.81   Net earnings $ 4.55  $ 2.05  $ 6.61   $ 1.64  $ 1.73  $ 2.07  $ 2.12  $ 7.56   Weighted average shares outstanding 139,051  137,443  138,247 139,757 139,862 139,878 139,893 139,848 Diluted earnings per common share: Earnings from continuing operations $ 4.30  $ 1.78  $ 6.10   $ 1.47  $ 1.54  $ 1.86  $ 1.84  $ 6.71   Earnings from discontinued operations, net $ 0.22  $ 0.25  $ 0.47   $ 0.16  $ 0.18  $ 0.20  $ 0.27  $ 0.80   Net earnings $ 4.52  $ 2.04  $ 6.57   $ 1.63  $ 1.72  $ 2.06  $ 2.11  $ 7.52   Weighted average shares outstanding 139,869 138,404 139,136 140,616 140,578 140,615 140,586 140,599 Dividends paid per common share $ 0.51  $ 0.51  $ 1.02   $ 0.505  $ 0.505  $ 0.51  $ 0.51  $ 2.03   * Per share data may be impacted by rounding. IS - 1 DOVER CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)(in thousands, except per share data*) FY 2022 FY 2021 Revenue $ 7,844,174  $ 7,361,273  Cost of goods and services 4,939,221  4,522,425  Gross profit 2,904,953  2,838,848  Selling, general and administrative expenses 1,625,312  1,632,926  Operating earnings 1,279,641  1,205,922  Interest expense 116,456  106,316  Interest income (4,429) (4,439) Gain on dispositions —  (206,338) Other income, net (22,589) (14,839) Earnings before provision for income taxes 1,190,203  1,325,222  Provision for income taxes 200,291  259,902  Earnings from continuing operations 989,912  1,065,320  Earnings from discontinued operations, net 75,464  58,498  Net earnings $ 1,065,376  $ 1,123,818  Basic earnings per share: Earnings from continuing operations $ 6.94  $ 7.40  Earnings from discontinued operations, net $ 0.53  $ 0.41  Net earnings $ 7.47  $ 7.81  Weighted average shares outstanding 142,681 143,923 Diluted earnings per common share: Earnings from continuing operations $ 6.89  $ 7.33  Earnings from discontinued operations, net $ 0.53  $ 0.40  Net earnings $ 7.42  $ 7.74  Weighted average shares outstanding 143,595 145,273 Dividends paid per common share $ 2.01  $ 1.99  * Per share data may be impacted by rounding. IS - 2 DOVER CORPORATION SEGMENT INFORMATION (unaudited)(in thousands) 2024 2023 Q1 Q2 Q2 YTD Q1 Q2 Q3 Q4 FY 2023 REVENUE Engineered Products $ 332,820  $ 285,297  $ 618,117   $ 325,955  $ 287,408  $ 309,431  $ 328,131  $ 1,250,925   Clean Energy & Fueling 445,053  463,014  908,067   430,729  441,166  466,959  449,423  1,788,277   Imaging & Identification 276,806  287,593  564,399   283,091  271,932  276,179  285,530  1,116,732   Pumps & Process Solutions 465,729  477,239  942,968   413,881  465,626  431,373  444,811  1,755,691   Climate & Sustainability Technologies 364,292  436,706  800,998   455,325  449,001  475,911  398,345  1,778,582   Intersegment eliminations (981) (1,067) (2,048) (1,552) (1,326) (1,425) (1,428) (5,731) Total consolidated revenue $ 1,883,719  $ 1,948,782  $ 3,832,501   $ 1,907,429  $ 1,913,807  $ 1,958,428  $ 1,904,812  $ 7,684,476   EARNINGS FROM CONTINUING OPERATIONS Segment Earnings: Engineered Products $ 62,532  $ 52,095  $ 114,627   $ 54,064  $ 38,872  $ 63,525  $ 67,590  $ 224,051   Clean Energy & Fueling 69,675  87,536  157,211   73,605  83,616  92,483  78,900  328,604   Imaging & Identification 69,959  75,786  145,745   68,315  61,336  70,316  72,545  272,512   Pumps & Process Solutions 118,737  137,217  255,954   115,244  129,337  117,907  121,917  484,405   Climate & Sustainability Technologies 50,759  79,127  129,886   73,778  76,074  84,060  71,468  305,380   Total segment earnings 371,662  431,761  803,423   385,006  389,235  428,291  412,420  1,614,952   Purchase accounting expenses 1 44,187  44,332  88,519   40,603  38,644  38,956  40,379  158,582   Restructuring and other costs 2 23,971  11,590  35,561   14,053  18,143  11,581  19,150  62,927   Disposition costs 3 —  —  —   —  —  —  1,302  1,302   (Gain) loss on disposition 4 (529,943) 663  (529,280) —  —  —  —  —   Corporate expense / other 5 42,159  39,526  81,685   40,301  34,138  30,937  45,957  151,333   Interest expense 36,365  32,374  68,739   34,214  33,803  32,390  30,897  131,304   Interest income (4,756) (4,081) (8,837) (2,091) (2,653) (3,808) (4,944) (13,496) Earnings before provision for income taxes 759,679  307,357  1,067,036   257,926  267,160  318,235  279,679  1,123,000   Provision for income taxes 6 157,577  60,770  218,347   51,234  50,150  56,252  21,500  179,136   Earnings from continuing operations $ 602,102  $ 246,587  $ 848,689   $ 206,692  $ 217,010  $ 261,983  $ 258,179  $ 943,864   SEGMENT EARNINGS MARGIN Engineered Products 18.8 % 18.3 % 18.5 % 16.6 % 13.5 % 20.5 % 20.6 % 17.9 % Clean Energy & Fueling 15.7 % 18.9 % 17.3 % 17.1 % 19.0 % 19.8 % 17.6 % 18.4 % Imaging & Identification 25.3 % 26.4 % 25.8 % 24.1 % 22.6 % 25.5 % 25.4 % 24.4 % Pumps & Process Solutions 25.5 % 28.8 % 27.1 % 27.8 % 27.8 % 27.3 % 27.4 % 27.6 % Climate & Sustainability Technologies 13.9 % 18.1 % 16.2 % 16.2 % 16.9 % 17.7 % 17.9 % 17.2 % Total segment earnings margin 19.7 % 22.2 % 21.0 % 20.2 % 20.3 % 21.9 % 21.7 % 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 in our Engineered Products segment. 4 (Gain) loss on disposition including working capital adjustments due to the sale of De-Sta-Co in our 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. IS - 3 DOVER CORPORATION SEGMENT INFORMATION (unaudited)(in thousands) FY 2022 FY 2021 REVENUE Engineered Products $ 1,379,512  $ 1,234,695  Clean Energy & Fueling 1,878,507  1,648,153  Imaging & Identification 1,123,815  1,163,367  Pumps & Process Solutions 1,728,235  1,708,634  Climate & Sustainability Technologies 1,737,724  1,608,175  Intersegment eliminations (3,619) (1,751) Total consolidated revenue $ 7,844,174  $ 7,361,273  EARNINGS FROM CONTINUING OPERATIONS Segment Earnings: Engineered Products $ 240,496  $ 196,512  Clean Energy & Fueling 352,993  327,186  Imaging & Identification 268,084  266,932  Pumps & Process Solutions 533,018  575,593  Climate & Sustainability Technologies 254,484  185,517  Total segment earnings 1,649,075  1,551,740  Purchase accounting expenses 1 174,397  137,535  Restructuring and other costs 2 36,209  37,242  Loss (gain) on dispositions 3 194  (206,338) Corporate expense / other 4, 5 136,045  156,202  Interest expense 116,456  106,316  Interest income (4,429) (4,439) Earnings before provision for income taxes 1,190,203  1,325,222  Provision for income taxes 200,291  259,902  Earnings from continuing operations $ 989,912  $ 1,065,320  SEGMENT EARNINGS MARGIN Engineered Products 17.4 % 15.9 % Clean Energy & Fueling 18.8 % 19.9 % Imaging & Identification 23.9 % 22.9 % Pumps & Process Solutions 30.8 % 33.7 % Climate & Sustainability Technologies 14.6 % 11.5 % Total segment earnings margin 21.0 % 21.1 % 1 Purchase accounting expenses are primarily comprised of amortization of acquired intangible assets and charges related to fair value step-ups for acquired inventory sold during the period. 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 Loss (gain) on dispositions including working capital adjustments related to the sale of Unified Brands in our Climate & Sustainability Technology segment and Race Winning Brands equity method investment in our Engineered Products segment. 4 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. 5 FY 2022 includes a $6.3 million settlement charge related to our U.S qualified defined benefit plan. IS - 4 DOVER CORPORATION 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 Q3 Q4 FY 2023 Adjusted earnings from continuing operations: Earnings from continuing operations $ 602,102  $ 246,587  $ 848,689   $ 206,692  $ 217,010  $ 261,983  $ 258,179  $ 943,864   Purchase accounting expenses, pre-tax 1 44,187  44,332  88,519   40,603  38,644  38,956  40,379  158,582   Purchase accounting expenses, tax impact 2 (9,711) (9,760) (19,471) (9,140) (8,671) (8,670) (8,847) (35,328) Restructuring and other costs, pre-tax 3 23,971  11,590  35,561   14,053  18,143  11,581  19,150  62,927   Restructuring and other costs, tax impact 2 (4,734) (2,479) (7,213) (2,990) (3,665) (2,401) (3,970) (13,026) 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 earnings from continuing operations $ 240,845  $ 290,789  $ 531,634   $ 249,218  $ 261,461  $ 301,449  $ 305,923  $ 1,118,051   Adjusted diluted earnings per share from continuing operations: Diluted earnings from continuing operations per share $ 4.30  $ 1.78  $ 6.10   $ 1.47  $ 1.54  $ 1.86  $ 1.84  $ 6.71   Purchase accounting expenses, pre-tax 1 0.32  0.32  0.64   0.29  0.27  0.28  0.29  1.13   Purchase accounting expenses, tax impact 2 (0.07) (0.07) (0.14) (0.06) (0.06) (0.06) (0.06) (0.25) Restructuring and other costs, pre-tax 3 0.17  0.08  0.26   0.10  0.13  0.08  0.14  0.45   Restructuring and other costs, tax impact 2 (0.03) (0.02) (0.05) (0.02) (0.03) (0.02) (0.03) (0.09) 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 earnings per share from continuing operations $ 1.72  $ 2.10  $ 3.82   $ 1.77  $ 1.86  $ 2.14  $ 2.18  $ 7.95   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 $3.4 million and Q3 and FY 2023 include $3.3 million 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 in our Engineered Products segment. 5 (Gain) loss on disposition due to the sale of De-Sta-Co in our Engineered Products segment, including a $0.7 million post-closing adjustment recorded in Q2 2024. * Per share data and totals may be impacted by rounding. IS - 5 DOVER CORPORATION ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE (NON-GAAP) (unaudited)(in thousands, except per share data*) Non-GAAP Reconciliations FY 2022 FY 2021 Adjusted earnings from continuing operations: Earnings from continuing operations $ 989,912  $ 1,065,320  Purchase accounting expenses, pre-tax 1 174,397  137,535  Purchase accounting expenses, tax impact 2 (40,151) (33,695) Restructuring and other costs, pre-tax 3 36,209  37,242  Restructuring and other costs, tax impact 2 (7,639) (7,055) Loss (gain) on dispositions, pre-tax 4 194  (206,338) Loss (gain) on dispositions, tax-impact 2 (27) 53,218  Tax Cuts and Jobs Act 5 (22,579) —  Adjusted earnings from continuing operations $ 1,130,316  $ 1,046,227  Adjusted diluted earnings per share from continuing operations: Diluted earnings from continuing operations per share $ 6.89  $ 7.33  Purchase accounting expenses, pre-tax 1 1.21  0.95  Purchase accounting expenses, tax impact 2 (0.28) (0.23) Restructuring and other costs, pre-tax 3 0.25  0.26  Restructuring and other costs, tax impact 2 (0.05) (0.05) Loss (gain) on dispositions, pre-tax 4 —  (1.42) Loss (gain) on dispositions, tax-impact 2 —  0.37  Tax Cuts and Jobs Act 5 (0.16) —  Adjusted diluted earnings per share from continuing operations $ 7.87  $ 7.20  1 Purchase accounting expenses are primarily comprised of amortization of intangible assets and charges related to fair value step-ups for acquired inventory sold during the period. FY 2022 includes $20.0 million of amortization of inventory step-up primarily related to the Q4 2021 acquisitions within our Clean Energy & Fueling segment. 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 exists, and other asset charges. FY 2022 includes $5.5 million of non-cash foreign currency translation losses reclassified to earnings included within restructuring and other costs and $2.1 million related to write-off of assets due to an exit from certain Latin America countries for our Climate & Sustainability Technologies segment. FY 2021 includes a $12.1 million other than temporary impairment charge related to an equity method investment and a $6.1 million write-off of assets incurred in connection with an exit from certain Latin America countries both for our Climate & Sustainability Technologies segment. FY 2021 also includes a $9.1 million payment received for previously incurred restructuring costs related to a product line exit in our Engineered Products segment. 4 FY 2021 represents gain on dispositions of $181.6 million and $24.7 million due to the sales of Unified Brands in our Climate & Sustainability Technologies segment and Race Winning Brands equity method investment in our Engineered Products segment, respectively. FY 2022 represents working capital adjustments related these dispositions. 5 FY 2022 represents a reduction to income taxes previously recorded related to the Tax Cuts and Jobs Act. * Per share data and totals may be impacted by rounding. IS - 6 DOVER CORPORATION ADJUSTED SEGMENT EBITDA (NON-GAAP) (unaudited)(in thousands) Non-GAAP Reconciliations 2024 2023 Q1 Q2 Q2 YTD Q1 Q2 Q3 Q4 FY 2023 ADJUSTED SEGMENT EBITDA Engineered Products: Segment earnings $ 62,532  $ 52,095  $ 114,627   $ 54,064  $ 38,872  $ 63,525  $ 67,590  $ 224,051   Other depreciation and amortization 1 4,785  4,778  9,563   5,671  5,778  5,736  4,827  22,012   Adjusted segment EBITDA 2 67,317  56,873  124,190   59,735  44,650  69,261  72,417  246,063   Adjusted segment EBITDA margin 2 20.2 % 19.9 % 20.1 % 18.3 % 15.5 % 22.4 % 22.1 % 19.7 % Clean Energy & Fueling: Segment earnings $ 69,675  $ 87,536  $ 157,211   $ 73,605  $ 83,616  $ 92,483  $ 78,900  $ 328,604   Other depreciation and amortization 1 7,921  7,627  15,548   7,046  7,541  7,686  7,844  30,117   Adjusted segment EBITDA 2 77,596  95,163  172,759   80,651  91,157  100,169  86,744  358,721   Adjusted segment EBITDA margin 2 17.4 % 20.6 % 19.0 % 18.7 % 20.7 % 21.5 % 19.3 % 20.1 % Imaging & Identification: Segment earnings $ 69,959  $ 75,786  $ 145,745   $ 68,315  $ 61,336  $ 70,316  $ 72,545  $ 272,512   Other depreciation and amortization 1 3,733  3,271  7,004   3,394  3,745  3,972  4,182  15,293   Adjusted segment EBITDA 2 73,692  79,057  152,749   71,709  65,081  74,288  76,727  287,805   Adjusted segment EBITDA margin 2 26.6 % 27.5 % 27.1 % 25.3 % 23.9 % 26.9 % 26.9 % 25.8 % Pumps & Process Solutions: Segment earnings $ 118,737  $ 137,217  $ 255,954   $ 115,244  $ 129,337  $ 117,907  $ 121,917  $ 484,405   Other depreciation and amortization 1 12,139  12,637  24,776   10,939  11,609  12,052  11,744  46,344   Adjusted segment EBITDA 2 130,876  149,854  280,730   126,183  140,946  129,959  133,661  530,749   Adjusted segment EBITDA margin 2 28.1 % 31.4 % 29.8 % 30.5 % 30.3 % 30.1 % 30.0 % 30.2 % Climate & Sustainability Technologies: Segment earnings $ 50,759  $ 79,127  $ 129,886   $ 73,778  $ 76,074  $ 84,060  $ 71,468  $ 305,380   Other depreciation and amortization 1 7,275  7,220  14,495   6,624  6,895  6,954  7,084  27,557   Adjusted segment EBITDA 2 58,034  86,347  144,381   80,402  82,969  91,014  78,552  332,937   Adjusted segment EBITDA margin 2 15.9 % 19.8 % 18.0 % 17.7 % 18.5 % 19.1 % 19.7 % 18.7 % Total Segments: Total segment earnings 2, 3 $ 371,662  $ 431,761  $ 803,423   $ 385,006  $ 389,235  $ 428,291  $ 412,420  $ 1,614,952   Other depreciation and amortization 1 35,853  35,533  71,386   33,674  35,568  36,400  35,681  141,323   Total Adjusted segment EBITDA 2 407,515  467,294  874,809   418,680  424,803  464,691  448,101  1,756,275   Total Adjusted segment EBITDA margin 2 21.6 % 24.0 % 22.8 % 21.9 % 22.2 % 23.7 % 23.5 % 22.9 % 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 earnings from continuing operations. IS - 7 DOVER CORPORATION ADJUSTED SEGMENT EBITDA (NON-GAAP) (unaudited)(in thousands) Non-GAAP Reconciliations FY 2022 FY 2021 ADJUSTED SEGMENT EBITDA Engineered Products: Segment earnings $ 240,496  $ 196,512  Other depreciation and amortization 1 22,571  22,712  Adjusted segment EBITDA 2 263,067  219,224  Adjusted segment EBITDA margin 2 19.1 % 17.8 % Clean Energy & Fueling: Segment earnings 4 $ 352,993  $ 327,186  Other depreciation and amortization 1 28,815  25,842  Adjusted segment EBITDA 2 381,808  353,028  Adjusted segment EBITDA margin 2 20.3 % 21.4 % Imaging & Identification: Segment earnings $ 268,084  $ 266,932  Other depreciation and amortization 1 14,185  14,189  Adjusted segment EBITDA 2 282,269  281,121  Adjusted segment EBITDA margin 2 25.1 % 24.2 % Pumps & Process Solutions: Segment earnings $ 533,018  $ 575,593  Other depreciation and amortization 1 40,839  39,272  Adjusted segment EBITDA 2 573,857  614,865  Adjusted segment EBITDA margin 2 33.2 % 36.0 % Climate & Sustainability Technologies: Segment earnings $ 254,484  $ 185,517  Other depreciation and amortization 1 26,204  26,987  Adjusted segment EBITDA 2 280,688  212,504  Adjusted segment EBITDA margin 2 16.2 % 13.2 % Total Segments: Total segment earnings 2, 3, 4 $ 1,649,075  $ 1,551,740  Other depreciation and amortization 1 132,614  129,002  Total Adjusted segment EBITDA 2 1,781,689  1,680,742  Total Adjusted segment EBITDA margin 2 22.7 % 22.8 % 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 earnings from continuing operations. 4 FY 2022 excludes $19.0 million of amortization of inventory step-up related to the Q4 2021 acquisitions within our Clean Energy & Fueling segment. IS - 8 DOVER CORPORATION EARNINGS FROM CONTINUING OPERATIONS TO ADJUSTED SEGMENT EBITDA RECONCILIATION (NON-GAAP) (unaudited)(in thousands) Non-GAAP Reconciliations 2024 2023 Q1 Q2 Q2 YTD Q1 Q2 Q3 Q4 FY 2023 Earnings from continuing operations $ 602,102  $ 246,587  $ 848,689   $ 206,692  $ 217,010  $ 261,983  $ 258,179  $ 943,864   Provision for income taxes 1 157,577  60,770  218,347   51,234  50,150  56,252  21,500  179,136   Earnings before provision for income taxes 759,679  307,357  1,067,036   257,926  267,160  318,235  279,679  1,123,000   Interest income (4,756) (4,081) (8,837) (2,091) (2,653) (3,808) (4,944) (13,496) Interest expense 36,365  32,374  68,739   34,214  33,803  32,390  30,897  131,304   Corporate expense / other 2 42,159  39,526  81,685   40,301  34,138  30,937  45,957  151,333   Disposition costs 3 —  —  —   —  —  —  1,302  1,302   (Gain) loss on disposition 4 (529,943) 663  (529,280) —  —  —  —  —   Restructuring and other costs 5 23,971  11,590  35,561   14,053  18,143  11,581  19,150  62,927   Purchase accounting expenses 6 44,187  44,332  88,519   40,603  38,644  38,956  40,379  158,582   Total segment earnings 7 371,662  431,761  803,423   385,006  389,235  428,291  412,420  1,614,952   Add: Other depreciation and amortization 8 35,853  35,533  71,386   33,674  35,568  36,400  35,681  141,323   Total adjusted segment EBITDA 7 $ 407,515  $ 467,294  $ 874,809   $ 418,680  $ 424,803  $ 464,691  $ 448,101  $ 1,756,275   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 in our Engineered Products segment. 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. IS - 9 DOVER CORPORATION EARNINGS FROM CONTINUING OPERATIONS TO ADJUSTED SEGMENT EBITDA RECONCILIATION (NON-GAAP) (unaudited)(in thousands) Non-GAAP Reconciliations FY 2022 FY 2021 Earnings from continuing operations $ 989,912  $ 1,065,320  Provision for income taxes 200,291  259,902  Earnings before provision for income taxes 1,190,203  1,325,222  Interest income (4,429) (4,439) Interest expense 116,456  106,316  Corporate expense / other 1,2 136,045  156,202  Loss (gain) on dispositions 3 194  (206,338) Restructuring and other costs 4 36,209  37,242  Purchase accounting expenses 5 174,397  137,535  Total segment earnings 6 1,649,075  1,551,740  Add: Other depreciation and amortization 7 132,614  129,002  Total adjusted segment EBITDA 6 $ 1,781,689  $ 1,680,742  1 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. 2 FY 22 includes a $6.3 million settlement charge related to our U.S. qualified benefit plan. 3 Loss (gain) on dispositions including working capital adjustments related to the sale of Unified Brands in our Climate & Sustainability Technology segment and Race Winning Brands equity method investment in our Engineered Products segment. 4 Restructuring and other costs relate to actions taken for headcount reductions, facility consolidations and site closures, product line exits, and other asset charges. 5 Purchase accounting expenses are primarily comprised of amortization of acquired intangible assets and charges related to fair value step-ups for acquired inventory sold during the period. 6 Refer to Non-GAAP Disclosures section for definition. 7 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. IS - 10 DOVER CORPORATION REVENUE GROWTH FACTORS RECONCILIATIONS (NON-GAAP) (unaudited)(in thousands, except per share data*) Non-GAAP Reconciliations Revenue Growth Factors 2024 2023 Q1 Q2 Q2 YTD Q1 Q2 Q3 Q4 FY 2023 Organic Engineered Products 2.1  % 18.3  % 9.7   % (0.7) % (16.6) % (12.0) % (7.7) % (9.3) % Clean Energy & Fueling 1.4  % 2.3  % 1.9   % (2.6) % (9.3) % (0.2) % (3.5) % (4.0) % Imaging & Identification (1.6) % 6.9  % 2.6   % 8.2  % 0.3  % (3.6) % (3.5) % 0.2   % Pumps & Process Solutions 4.5  % (3.1) % 0.5   % (7.1) % 0.9  % (7.3) % 0.5  % (3.3) % Climate & Sustainability Technologies (20.3) % (2.3) % (11.4) % 16.2  % 4.0  % 1.8  % (10.9) % 2.4   % Total Organic (3.4) % 3.0  % (0.2) % 2.2  % (4.1) % (3.9) % (5.2) % (2.8) % Acquisitions 2.2  % 2.3  % 2.3   % 1.0  % 1.0  % 1.0  % 1.0  % 1.0   % Dispositions —  % (2.8) % (1.4) % —  % —  % —  % —  % —   % Currency translation —  % (0.7) % (0.4) % (2.8) % (0.7) % 1.3  % 1.1  % (0.2) % Total* (1.2) % 1.8  % 0.3   % 0.4  % (3.8) % (1.6) % (3.1) % (2.0) % * Totals may be impacted by rounding. 2024 2023 Q1 Q2 Q2 YTD Q1 Q2 Q3 Q4 FY 2023 Organic United States (2.3) % 9.1  % 3.3   % 1.0  % (11.5) % (10.8) % (0.5) % (5.7) % Other Americas (6.1) % 18.2  % 5.9   % 18.4  % 13.7  % 13.9  % (23.4) % 3.7   % Europe (0.5) % (3.8) % (2.2) % (0.3) % (0.9) % (5.2) % (16.1) % (5.7) % Asia (4.8) % (8.6) % (6.8) % (4.0) % 2.0  % (3.4) % 4.8  % (0.2) % Other (21.6) % (28.0) % (24.9) % 20.6  % 32.8  % 72.7  % 26.7  % 38.4   % Total Organic (3.4) % 3.0  % (0.2) % 2.2  % (4.1) % (3.9) % (5.2) % (2.8) % Acquisitions 2.2  % 2.3  % 2.3   % 1.0  % 1.0  % 1.0  % 1.0  % 1.0   % Dispositions —  % (2.8) % (1.4) % —  % —  % —  % —  % —   % Currency translation —  % (0.7) % (0.4) % (2.8) % (0.7) % 1.3  % 1.1  % (0.2) % Total* (1.2) % 1.8  % 0.3   % 0.4  % (3.8) % (1.6) % (3.1) % (2.0) % * Totals may be impacted by rounding. IS - 11 DOVER CORPORATION REVENUE GROWTH FACTORS RECONCILIATIONS (NON-GAAP) (unaudited)(in thousands, except per share data*) Non-GAAP Reconciliations Revenue Growth Factors FY 2022 FY 2021 Organic Engineered Products 14.7  % 20.8  % Clean Energy & Fueling (0.3) % 5.8  % Imaging & Identification 2.9  % 8.0  % Pumps & Process Solutions 4.1  % 26.6  % Climate & Sustainability Technologies 18.5  % 22.0  % Total Organic 7.8  % 16.5  % Acquisitions 4.6  % 1.3  % Dispositions (1.6) % (0.2) % Currency translation (4.2) % 2.1  % Total* 6.6  % 19.7  % * Totals may be impacted by rounding. FY 2022 FY 2021 Organic United States 7.6  % 17.7  % Other Americas 7.7  % 12.9  % Europe 11.7  % 15.5  % Asia 7.1  % 18.0  % Other (11.0) % 11.6  % Total Organic 7.8  % 16.5  % Acquisitions 4.6  % 1.3  % Dispositions (1.6) % (0.2) % Currency translation (4.2) % 2.1  % Total* 6.6  % 19.7  % * Totals may be impacted by rounding. IS - 12 DOVER CORPORATION PERFORMANCE MEASURES (unaudited)(in thousands) 2024 2023 Q1 Q2 Q2 YTD Q1 Q2 Q3 Q4 FY 2023 BOOKINGS Engineered Products $ 329,925  $ 280,542  $ 610,467   $ 329,005  $ 297,662  $ 330,566  $ 312,416  $ 1,269,649   Clean Energy & Fueling 471,610  442,086  913,696   454,526  440,137  449,663  401,195  1,745,521   Imaging & Identification 278,433  288,641  567,074   290,712  262,092  271,113  297,312  1,121,229   Pumps & Process Solutions 473,632  461,426  935,058   464,297  394,317  363,111  455,390  1,677,115   Climate & Sustainability Technologies 453,086  406,269  859,355   371,643  310,911  340,474  325,625  1,348,653   Intersegment eliminations (791) (1,591) (2,382) (1,530) (1,913) (848) (2,100) (6,391) Total consolidated bookings $ 2,005,895  $ 1,877,373  $ 3,883,268   $ 1,908,653  $ 1,703,206  $ 1,754,079  $ 1,789,838  $ 7,155,776   2024 2023 Q1 Q2 Q2 YTD Q1 Q2 Q3 Q4 FY 2023 BOOKINGS GROWTH FACTORS Organic Engineered Products 0.2  % 11.4  % 5.5   % (5.8) % (9.2) % 3.0  % (2.3) % (3.7) % Clean Energy & Fueling 1.6  % (1.6) % —   % (6.1) % (8.4) % 3.5  % (0.1) % (3.1) % Imaging & Identification (3.4) % 11.1  % 3.5   % (1.8) % (8.5) % (5.4) % 7.7  % (2.1) % Pumps & Process Solutions (4.6) % 10.5  % 2.3   % (1.2) % (19.4) % (15.6) % 22.6  % (4.7) % Climate & Sustainability Technologies 22.3  % 31.6  % 26.6   % (11.6) % (31.5) % (16.8) % (14.8) % (19.1) % Total Organic 3.2  % 11.5  % 7.1   % (5.4) % (16.3) % (6.7) % 2.2  % (6.9) % Acquisitions 2.1  % 2.4  % 2.2   % 1.1  % 0.7  % 0.3  % 0.4  % 0.7   % Dispositions —  % (3.0) % (1.4) % —  % —  % —  % —  % —   % Currency translation (0.2) % (0.7) % (0.4) % (2.9) % (0.8) % 1.3  % 1.1  % (0.5) % Total* 5.1  % 10.2  % 7.5   % (7.2) % (16.4) % (5.1) % 3.7  % (6.7) % * Totals may be impacted by rounding. IS - 13 DOVER CORPORATION PERFORMANCE MEASURES (unaudited)(in thousands) FY 2022 FY 2021 BOOKINGS Engineered Products $ 1,320,288  $ 1,398,444  Clean Energy & Fueling 1,821,025  1,742,479  Imaging & Identification 1,154,199  1,190,404  Pumps & Process Solutions 1,709,204  2,023,061  Climate & Sustainability Technologies 1,669,916  2,317,000  Intersegment eliminations (5,173) (1,477) Total consolidated bookings $ 7,669,459  $ 8,669,911  FY 2022 FY 2021 BOOKINGS GROWTH FACTORS Organic Engineered Products (4.8) % 29.1  % Clean Energy & Fueling (8.8) % 11.2  % Imaging & Identification 2.6  % 7.7  % Pumps & Process Solutions (12.8) % 48.2  % Climate & Sustainability Technologies (19.3) % 53.3  % Total Organic (10.3) % 31.1  % Acquisitions 3.8  % 1.6  % Dispositions (1.6) % (0.3) % Currency translation (3.4) % 2.3  % Total* (11.5) % 34.7  % * Totals may be impacted by rounding. IS - 14 DOVER CORPORATION QUARTERLY CASH FLOW AND FREE CASH FLOW (NON-GAAP) (unaudited)(in thousands) Quarterly Cash Flow 2024 2023 2022 Q1 Q2 Q2 YTD Q1 Q2 Q3 Q4 FY 2023 FY 2022 Net Cash Flows Provided By (Used In): Operating activities $ 146,456  $ 149,181  $ 295,637   $ 220,240  $ 168,947  $ 331,795  $ 498,564  $ 1,219,546   $ 746,754   Investing activities 432,416  33,215  465,631   (41,952) (40,591) (48,529) (586,643) (717,715) (520,844) Financing activities (80,782) (830,657) (911,439) (306,565) (137,924) (312,716) 189,149  (568,056) (260,265) Quarterly Free Cash Flow (Non-GAAP) 2024 2023 2022 Q1 Q2 Q2 YTD Q1 Q2 Q3 Q4 FY 2023 FY 2022 Cash flow from operating activities 1 $ 146,456  $ 149,181  $ 295,637   $ 220,240  $ 168,947  $ 331,795  $ 498,564  $ 1,219,546   $ 746,754   Less: Capital expenditures (40,050) (35,822) (75,872) (46,771) (38,183) (41,177) (57,275) (183,406) (211,082) Free cash flow $ 106,406  $ 113,359  $ 219,765   $ 173,469  $ 130,764  $ 290,618  $ 441,289  $ 1,036,140   $ 535,672   Cash flow from operating activities as a percentage of revenue 7.8  % 7.7  % 7.7   % 11.5  % 8.8  % 16.9  % 26.2  % 15.9   % 9.5   % Cash flow from operating activities as a percentage of adjusted earnings from continuing operations 60.8  % 51.3  % 55.6   % 88.4  % 64.6  % 110.1  % 163.0  % 109.1   % 66.1   % Free cash flow as a percentage of revenue 5.6  % 5.8  % 5.7   % 9.1  % 6.8  % 14.8  % 23.2  % 13.5   % 6.8   % Free cash flow as a percentage of adjusted earnings from continuing operations 44.2  % 39.0  % 41.3   % 69.6  % 50.0  % 96.4  % 144.2  % 92.7   % 47.4   % 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. FY 2022 includes income tax payments of $43.5 million related to the gain on the disposition of Unified Brands and $13.4 million related to an internal reorganization. IS - 15 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 earnings from continuing operations, adjusted diluted earnings per share from continuing operations, 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 earnings from continuing operations, and organic revenue growth are not financial measures under GAAP and should not be considered as a substitute for earnings from continuing operations, diluted earnings from continuing operations 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.  The items described in our definitions herein, unless otherwise noted, relate solely to our continuing operations. Adjusted earnings from continuing operations represents earnings from continuing operations adjusted for the effect of purchase accounting expenses, restructuring and other costs/benefits, Tax Cuts and Jobs Act, disposition costs and gain/loss on dispositions. 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 earnings per share from continuing operations or adjusted earnings per share from continuing operations represent diluted earnings from continuing operations per share adjusted for the effect of purchase accounting expenses, restructuring and other costs/benefits, Tax Cuts and Jobs Act, disposition costs and gain/loss on dispositions. Total segment earnings is defined as the sum of earnings before purchase accounting expenses, restructuring and other costs/benefits, disposition costs, gain/loss on dispositions, 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 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 earnings from continuing operations equals free cash flow divided by adjusted earnings from continuing operations. 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. IS - 16 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 revenue 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. IS - 17