Dover Corp. (DOV) 2Q largely in line, orders encouraging, buy the dip

Equity Research 24 July 2026 | 8:23AM EDT

Dover Corp. (DOV) 2Q largely in line, orders encouraging, buy the dip

DOV 12m Price Target: $255.00 Price: $197.80 Upside: 28.9% BUY Joe Ritchie Bottom line: 2Q largely in line, orders encouraging, buy the dip. | Goldman Sachs & Co. LLC DOV reported adj. segment EBIT that was +1% vs. FactSet consensus Jatin Khanna as operating margins of 24.0% came in 50bps ahead of expectations | Goldman Sachs India SPL driven by beats in all segments except DCST (which missed by 200bps). Incremental margins came in better at 36% vs 26-28% Luke McCollester, CFA | Goldman Sachs & Co. LLC expected, as the company continues to execute on cost actions and higher productivity. Organic growth came in slightly below our expectations at +4.8% (GSe: +5.3% vs prior +5.3%), as DCST missed Key Data _____________________________________ Market cap: $27.9bn by a wide margin (+8.3% vs GSe: +14.0%) while the rest of the Enterprise value: $29.1bn 3m ADTV: $218.7mn segments beat. DCST’s organic-growth shortfall was principally an United States execution-driven shipment issue in retail refrigeration, not a Americas Multi-Industry M&A Rank: 3 demand issue. While heat exchangers delivered a record quarter GS Forecast __________________________________ supported by strong liquid-cooling/data-center demand and CO2 12/25 12/26E 12/27E 12/28E

refrigeration orders remained robust, DOV was unable to fully Revenue ($ mn) EBITDA ($ mn) 8,092.6 1,830.9 8,705.0 2,007.9 9,197.7 2,151.6 9,657.7 2,289.1 convert that demand into 2Q revenue because it missed EBIT ($ mn) 1,451.3 1,607.2 1,745.6 1,871.0 EPS ($) production-throughput targets during a complex refrigeration P/E (X) manufacturing footprint consolidation. The company was EV/EBITDA (X) FCF yield (%) 4.5 4.7 5.4 6.0 simultaneously closing/transferring production from one facility, Dividend yield (%) 1.1 1.1 1.1 1.1 operating redundant capacity, and ramping/training labor at the Net debt/EBITDA (X) 0.9 0.6 0.3 (0.0)

receiving site, which made it difficult to raise output sufficiently, 6/26 9/26E 12/26E 3/27E leaving them late on certain customer deliveries. As a result, this EPS ($)

impacted total consolidated organic growth by 100–150 bps. If not GS Factor Profile ______________________________ Growth for this headwind, organic growth would have come in at ~+6% (vs. GSe: +5.3%). Importantly, the missed revenue should come through Financial Returns

for DCST in 3Q or 4Q instead. Orders remained up DD% for the third Multiple

quarter in a row at +16% y/y (vs. +24% in 1Q and +10% in 4Q) with Integrated particular strength in DCST (+46% y/y), DPPS (+11% y/y), and DCEF (+14% y/y) which should provide good visibility for the rest of the Percentile 20th 40th 60th 80th 100th

year. With this print, DOV raised the 2026 adj. EPS guide to DOV relative to Americas Coverage $10.55-$10.75 (vs. prior $10.45-$10.65 vs. GS/Cons. DOV relative to Americas Multi-Industry

$10.70/$10.67) on better organic growth of +4-6% (vs prior Source: Company data, Goldman Sachs Research estimates. +3-5%). Our estimates remain unchanged but are encouraged by See disclosures for details.

the continued order momentum. In addition, we view yesterday’s

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Dover Corp. (DOV)

Dover Corp. (DOV) Balance Sheet ($ mn) _______________________________________ BUY Rating since Mar 26, 2020 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 1,676.8 2,055.2 2,622.0 3,318.9 Accounts receivable 1,371.4 1,479.9 1,609.6 1,690.1 Inventory 1,272.8 1,340.6 1,434.8 1,545.2 Ratios & Valuation __________________________________________ Other current assets /25 12/26E 12/27E 12/28E Total current assets 4,506.9…