DOV - Earnings call 4 2023 | Dover Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to Dover's Fourth Quarter and Full Year 2023 Earnings Conference Call.

Speaking today are Richard J. Tobin, President and Chief Executive Officer; Brad Cerepak, Senior Vice President and Chief Financial Officer; and Jack Dickens, Senior Director, Investor Relations. [Operator Instructions] As a reminder, ladies and gentlemen, this conference call is being recorded, and your participation implies consent to our recording of this call.

If you do not agree with these terms, please disconnect at this time. you. Thank

like go call ahead, now Jack to turn please Dickens, sir. to would over the Mr. I

Jack Dickens

Thank you, this Angela. [indiscernible], will for available joining be Good our and morning, everyone, call. on XX of audio and a An archived replay version the through for of website call link be our will February thank webcast you days.

risks forward-looking differ and expectations. Actual a events could from Our in statements filings. current number which our comments our results We obligation uncertainties, on statements. of today are discussed assume statements based will to to those include forward-looking due SEC and update no

With that, I Richard. turn will over to call the

Richard Tobin

Jack. Thanks,

with play deployment QX, managing down the and balance good the we We in business the This portfolio operating on on to And demand XXXX. and the in start the drove production also as channel on Let's markets played us we Slide a posture posture several at to fixed focused capital we XXXX. in [indiscernible] conditions puts fourth drove strong operating solidated cost cash end in us inventory the positions lines adopted to expected. X. discussed which in higher product and to flow the for performance free us enable quarter, inventories front match in a mix absorption. in demand position a This of Market volumes offense out capitalized solid margin the production on quarter largely certain in [indiscernible] as quarter.

announced high improved through the our January software discipline, remained mix. proactive that good attractive with led revenue and our portfolio in QX. at streams transactions pricing We and add in exposures synergistic including and diversity front. quarterly of cost margin growth along breadth exposures, The X acquisitions, to portfolio We segment market to reoccurring bolt-on our another record active containment end

financial first the portfolio Underlying end in Bookings our position X we momentum bookings further solid. first of demand we improving, months quarter, close entered the than and enhance sale the the drove growth better of We majority by cash distance expect XX position. significantly of is which were to XXXX the organic the We in will is across a ago. quarters.

book-to-bill and igniting in improving market, channel biopharma above note, some and evident of in which customers the Of announced was sentiment partners. also results recently is

off exit seasonality we half. on While idiosyncratic weigh first headwinds heat rate as and the conditions volumes we and such expect the European Overall, pumps can-making year. through quarter equipment their in fourth progressively improve demand expect to to

us bioprocessing, across Our carryover and smart in center position with benefits the to XXXX to recent like investments during puts compressor capture cost year. a data COX markets end actions refrigeration, heating of and growth electricification projects in be very specific In-flight cooling, announced strong provide cooling goals. numerous secular

our upgrade Lastly, acquisition a strategies [indiscernible]. against execute balance to portfolio as to the continue strong return sheet opportunistic pursue pipeline we capacity capital has ample and

across revenue Let's the were XX% much points X% XXX growing basis productivity of down up reflecting in to Consolidated momentum Bookings portfolio. improvements. quarter. X. portfolio up organically, organic rate broad-based Slide go and was the Margin was on X% to

quarter. $X.XX efficiency million the was in and of $XXX on flow cash over working share improved CapEx. per or in to XX% XX% was up revenue Free quarter EPS capital Adjusted lower the

reflects XXXX outlook. constructive guide Our a

excluding organic EPS of benefit [ and to represents We which to $X.XX X% recognized revenue in the share, fourth adjusted ] year-over-year of $X.XX growth, X% a X% growth the reorganization tax organic are quarter. guiding for X% to per

Europe waste and growth improved the handling. driven quarter improved and bookings quarter lower from haulers business during in the into national quarter. were but in and Slide Asia had to aftermarket, Products skip particularly shipments and large conversion reservations XXXX. in X. vehicle waste Engineered volume Let's availability solid Chassis notably a strong municipalities the well

benefits quarter. on positive our XXX performance Margin coupled on volume in energy and improved most fueling defense. business, segment, in dispensers. we robust conversion points as in a intervened Clean recent continued and aerospace was equipment productivity the basis on and facilitate aggressively and channel distribution continued general with production is performance where and to such, on solid mix hanging leverage waste their investments components hauling is in car around above-ground hardware, fueling our and growth, recovery wash less destocking fueling, retail below LPG components up the Cryogenic

projected to to and normal believe quarters to cash a and allowed booking a as high normal strong excess that business Imaging consistent to and performance with diversity in exposures difficult shipping levered market performer X remains with this stable clear ID the in a on seasonality this exemplary. in with expect has requirement period revenue, We margins our this posture X. proactive quarter of another ID production and posted and flows. product reoccurring in we quarter and channel against traceability, segment and to was comparable QX geographic and intervention segment degree end Margin regulatory inventory XXXX return growing

to revenue notably abrupt demand, declines beverage Solutions line up as was on and a Climate and good of heat was our in our in monitoring The a from strong customers remote recent wins which making well Europe by the volume organically in Process the forecast. Components. in as was degree in compressor Sustainability and residential in contracts broader recent and incorporated HVAC Asia, not Precision notable strong can integration previous of reoccurring Murphy quarter substantial and it performance technology. complex FW processing slowing the is Technologies reception smart in start the of & pumps, in expected Pumps polymer and industry off with Top impacted most in and

significant positive in COX on food exceptional product quarter the was achievements Brad excess to but retail EBIT fourth here. the team years mix past their which The a to seasonally [ to performance drive XX% in retail, improve mix. I'll and these pass of accretion driven in ] in improvement productivity. product further X quarter, still have Margin improved traditionally deserves on accommodation it margins runway posted by food slower in for quarter, we margin operational

Brad Cerepak

Okay. everyone. Good Thanks, morning, Rich.

to contributed go FX FX X. With The acquisitions rate. headwind X% for driven and primarily in a by euro-dollar to our the [indiscernible] resulted inter-year positive full quarter. the translation revenue X%. the a bridge Slide line of the the in remained shows year organic movements exchange top in but decline Let's top $X.XX $X.XX fourth quarter in

the the up shipment revenue a which Asia From XX% geographic the and components, Asia, in large X% quarter, Europe was polymer down all of China, by fueling perspective, about largest base in [indiscernible] half market, driven HVA on of organically was lower processing. quarter, represents X%. order while our within up in retail U.S., XX% was our

the times. On lead bottom normalization bookings of chart, were year-over-year due up to

of reduction Slide on flow CapEx. our as XXXX previously we management back free working actively the working capital year. inventory with $X.X in working cash focus year with Working double year's which nearly level -- work billion, discussed, on We're on pleased front, in our particular the the and on to full capital came a Now generation, half at lower capital X. the prior in liquidate balances

down record working go $XX due 'XX reaching XXXX. improvement further purchase opportunistic within level have The in investment step CapEx a CapEx pronounced room was in in of in lower XXXX XXXX. capital real heat exchanger million of came less during on to business to We in we a believe after estate onetime our XXXX.

further into to 'XX. CapEx expect down step We

on to back I'm going turn Rich, to that, Slide it With X.

Richard Tobin

years cultivate and technological This highlights sufficient the in recent fast-growing leadership to proactively results product these $XX A foundation and provide with organically customers. these with win We nascent opportunity million to investments significant and few in growth saw markets some behind technology these R&D in for several of lines and ago, scale businesses invested portfolio. CapEx and a combined about revenue. were platforms

are in the are innings long-term We their and investments of excited capitalizing on these early prospects. about

with become planned capacity, capital priorities of double-digit we our capital marquee growth million in about contributors projects, Across expect and trajectory, long-term leadership lower with these customers. positions this combined relationships year a we we strong overall technology these and against expect to shows years recognized capital growth progress for into automation several be revenue elevated XX XXXX. Dover's With and meaningful to markets, profile. platforms $XXX to productivity in expenditures investments Slide enjoy after

continue We allocation organic capital high return confidence, on Acquisitions decisions. parcel Dover. investments to investment seeking and in those better high stronger and and our part building a remain prioritize

in portfolio work growth, towards we our cyclicality. enhance priorities, investors, shaping higher both these actively reshape been as line we and additions higher with lower portfolio the subtractions, and have through indicated and to return We to

to optionality allocation are flow year. cash Our and far [indiscernible] compared last position superior capital

flow March. cash close 'XX, free of added DESTECO should of the at proceeds sale another We the of solid expect year from the February, in with end of beginning generation that benefit

sheet improving ample opportunistically balance We capacity continue or through accretive return to shareholders. our have capital acquisitions our to portfolio

industrial shows Moving have revenue to we the Slide ahead a and we X grown of averages. portfolio. at the past line in 'XX performance over GDP rate and financial 'XX long-term X% experienced top the Despite headwinds years, XX of the annualized organic

up driven over was and targets mix. excess we in performance by period conversion out improvement in and basis our solid, operational margin at of primarily XXX a that laid points long-term Our product aggregate

Slide to go let's Finally, XX.

demand and data our center secular be transition to growth strong Our heating, demand electrification driving cooling, components. top the compressor near-term and energy engineered line COX, is exposed bearings. growth end as The increased precision investment components will outlook in including by infrastructure cryogenic markets, for components our remain XXXX for tied for driven

upgrade business shortage replenish to growth haulers handling its as waste is year continue fleets. for and the to chassis and -- work their publish double-digit trajectory Our effectively booked abates and

market, incorporated that our update growth during year mix margin consolidated improve year. is to in have will we the caution are But forecasted progresses. view in we Full for history, biopharma we'll the this we operating and and productivity confident product actions. volume, recent on end as year Based post our on appropriate forecast year-on-year

work channel fourth to to in several have pre-COVID build balance get return expect inventories quarter seasonality rate revenue exit and our and We businesses. the with done to off the hard

consists a markets. portfolio of attractive businesses Our and collection niche end in operate of that

allocation year deliver ahead. they Our last detrimental the market partners serving dynamics, business, global like business let's customers, to numerous year to go and thank changes deliver control and capital look forward our our year's at teams full for quickly model levels and efforts our is flexible, and Q&A. the investors to the we disposal can results, beneficial respond Jack, we in forecast. be or and And I'd to cost our to optionality have to in to

Operator

Andrew our [Operator first We'll Bank Obin take question from America. with Instructions] of

Andrew Obin

bookings in first positive, question, And have churn? X think, bookings turned staying How how quarters. time I positive? do have much Just visibility this is in sustainable a you

Richard Tobin

stays now. would bookings outlook I on right our 'XX expect the based positive throughout

think whether the in we've be that the to work inventory, the done hard we we're the and see Solutions. expect that I Fueling channel it channel biopharma same bookings, would and inflection that's the where in seeing the on

going -- we're I in unforeseen So expect go to don't to expect unless trend have I an this negative don't XXXX. recession

Andrew Obin

good. area that because my biopharma. you That then have the the sounds inventory of do sometime obsolete clarify, a recovery the half question you year. for understanding just first Do is of just the any And biopharma some will -- become in to in

in it's to the know guidance I that for your not? and So reflected months. what call And what's XX tough past been is

degree warranted. of caution some is clearly, So

Richard Tobin

had of and some we It's of did behind a call that not our customers wrong. in them because coincidence we been been this front

the very we biopharma the back quarter. cautiously. to we despite ourself if in said are pick fact update and we'd are I earnings you by that quarter you order beginning were have And transcript, little go rates position just at to going rather We on look accretion up, where

is So that see and -- meaningful we expect orders. be year-over-year. of to to we see not year-over-year, down any say what until We'll but we're -- think we have that not it operating going ourselves keep to amount I do can anything wait the incorporated up we profit

Andrew Obin

it's because in regulated? some FDA am of correct the become And I does thinking inventory obsolete that

Richard Tobin

You correct. are absolutely

Operator

comes Andrew Citigroup. from The next Kaplowitz question with

Andrew Kaplowitz

thinking some happening how on cadence about color Richard, EPS the about organic you us the to X% give in thinking growth Brad, by you for the And growth more X% segment? going then pre-COVID of are could maybe of year you're how more a would in you I the businesses. return is your year? within this said back-end to now? seasonality given you of But cycle lot short turn loaded to be know kind

Richard Tobin

I start think it that will slowly.

actually would we again, it's I run that -- as So ramp again, production of other you've will for a in got difficult a But QX QX the the like expect to QX that. But pretty we be occur adopt be what QX QX of I think majority going And the working of in then on roll comps some every will dependent by and we highly kind QX extent. forward vast a certain was QX. strong to all accretion production -- capital. us. into for it's Usually, QX year, rates for saw

Andrew Kaplowitz

comparisons an demand or see guys? in drive business? you that heat should Clean you And then inventory good you is energy that more feel Got mentioned the exception is would then portfolio? the for to in good where it. way that you Maybe and That's And that your heat clean across with now generally you say you feel helpful. about in. exchangers Dover Energy, pumps -- it it Or easier intervening is do

Richard Tobin

clean of Well, lot To there's for up moment. energy. in a back what's a of parts moving

that the move flush inventory. QX total dropping accomplished -- of was total at through I channel think we as adopted into I posture predicated think across portfolio. production the that that QX we we've that upon And operating to

mentioned, market exchanges the 'XX was Again, heat on for that return. to decline forecast like sudden until was the demand about I I cautious that for going see heat into think think pumps. we biopharma, we not we're As very our be QX incorporated what in

So now, I I calling that heat think be prove that that, may we're to down year-over-year, right but conservative. think pumps

growth in on going -- and QX other is that we'll the to my to view then side. think return it's I QX, and own flush probably

outside of shape pumps, think good heat in heat for overall, that in pretty terms I of So exchanges balance. we're

incorporated aggregate X is what's so see. that's the of into basically And to X that the demand we

much pretty balance. be should in demand production So

build see So now. we back we way of and inventory right in that's ramp kind QX QX, some QX as up probably but will we the it for

Andrew Kaplowitz

ST in DC with TV or? grow 'XX Rich, down, you Can exchanges

Richard Tobin

our Belvac Because being very when we that, say revenue If offset our heat right? exchanges rolling conservative. and we not see is No, with you've see X happens pump we're think year-over-year, that years. COX about demand which I what for customers what we've The stays until will down got expected for heat which forecast, but all growth cautious XXXX.

Operator

comes from with question Davis Melius next The Scott Research.

Scott Davis

world ] get as Thanks to would XX%. I'll some for prepared on. geographically, maybe around being move Q&A couple helpful of remarks, China I And But [ the just things little caught it for a us that One, bit there? if XX%, some expecting the the really all say let's you with up. geographic Europe puts everybody normalization moves I takes down a of It's to maybe brief eye. of and Or for walk wish more and on to get my get thing and a little kind your 'XX bit open memo. could a the point of and and volatility

Richard Tobin

China our X% revenue first okay, as X%, is, kind of now, all, I look, don't or Yes. the Sure. percent -- a now Look, China think is X% number know, I X%. that of of

number we the on the out numbers make law big So shipment it China of small polymer into when that a swings numbers. processing, of

quarter at we to great, of in by heat absolutely demand mid-September. is the exasperated selling from operating or sudden heat of base we all, Well, pumps of business but is the is remaining in business couple that selling economy went that it's hardly So an a great, we really things. have could up of about exchanges but in in not down first flexed the Europe not make because the been where of base everything Chinese European it -- a economy. anything the that. shift reflection It's China the posture

So got clear. bit, was I that a little over a recognition think their inventory so that skis needs market-wide to there

Chinese So I what was think forecast don't is baked that into our on we're year next optimistic overly demand.

of we've the our think baked the forecast aggregate in vast America is year-over-year the the demand fact -- that had. got majority that should North because that of into headwind But I we driven. of idiosyncratic growth European only improve

Scott Davis

a makes That lot Okay. of sense.

that's... kind you like? M&A. I is remarks hard If couple good year a positive some start last -- about? tonality, a -- does made this started that but may increasingly what to good put And be sort some work to M&A? off 'XX of of to Rich, just have or for quarters, a you've there more answer, Is we guys of you'd what it mind of something is -- dollars So to line can think -- that sort range look goal a -- What like on the of where or think in you

Richard Tobin

the the of out I the end slide look, day, of understand we together that chain flow at all odd the COVID, where coming I accretion X everything up put of getting an lot dynamic mean firepower, of and sure. terms wasn't cash else. question. great, and was Look, there a No, yes, in the because but it hung reason it earnings was was supply in inventory

going year cash. was we to the we've of expected what is into a year got this bunch this So generate

Now we've time that had capacity ample during period. balance sheet

So because months return hand, it waiting doing position. was been M&A we it's and other significantly build were M&A this I our haven't But is cash better ago. like for -- XX we on ability pure than the on just not capital think to cash

the deployment. expect So you be active us would to more in

like we've return But acquisitions that shareholders. decent something a months. acquisitions if with we've hurdles, return to cash find the we'll that. last, something can't return Sure. those closed do hurdles then Now like of X look of we the some got what, pipeline in kind bigger? got we X to that We've Would

the posture always So adopt. that's we

of to base. back it's return We point to And amount x find are attractive M&A go view. need to we our shareholder got of things that we a coming like if can't, find every not from it's So year.

Scott Davis

luck year, of Best enough. guys. this Fair

Richard Tobin

Thanks.

Operator

The Halloran from next Baird. question comes with Mike

Michael Halloran

just for of through Rich, how improve think is a and and year everything that much year across idea business thought to you better the tying the comps patterns you, that destocking up, that behind versus Mike, get the process you fundamental when you demand being about the underlying things tied numerous have?

Richard Tobin

I we're end X demand. of top skis getting we've don't the X of got terms day, over that in line. our the to At in think

the that brought we've of to we because is, stake what X small portfolio. to taking dilution amount versus into X got sold the Now out a we

of view, I from cycling think point the of processing portfolio down. look mask but certain an fantastically I earnings done point parts equipment are top be where a We've the at take neutralized [ from would line when that and a not which polymer just can-making equipment itself, that ]. have got

So to point. the look why cycle in take portfolio that don't we other and year -- about expect And up of portions of we've a of repeat. that we been that's a variety we last had investing known this we've a to footfalls couple

than that So that growth, net-net, return baking invested. what's headwind not growth the underlying as GDP really I if in is some growth have we're on just portions portfolio, of we're on we the of X/X it's is we think but the this have overall cyclical higher incorporating because into the our where baked

consequence. significant didn't we on on try exist group the page. revenue growth ago what until of taken up really we've got a mean, like we've that amount So I -- that year any a platforms X in to of highlight

ones. GDP it's rates because going rather And highlight to growth than driven AG. So the market the on The the bit interest largely drop exposure cyclical is expand. little specific of figure than products is and on going and better to the we headwinds Fed a just got end is

Brad Cerepak

add about. big it's vocal that while positive is the what I on is not come issue pretty of I X the say, except here volume X idiosyncratic set of pretty last the we that been the fact growth, top that X would because to we've over was this for quarter about a Yes. we're to as numbers there guide, the talking first line significant years to I that guess would price unlikely down

volume, actually think I past where absorption, think a this about just up price. plant is now So years for not us you set it can than better to return year

Michael Halloran

a business, trends, the hood underneath for sense. piece, you of Helpful. then the on And It about you're side, pumps that how think lot trajectory, what about makes et you're order that when the seeing thinking cetera, industrial talk maybe and the about pumps year? just

Richard Tobin

industrial the in of headwind really and never had destocking. decent. stocking kind of It's really high-value that's pump It equipment. really side -- terms And the

So it's -- more or fundamental demand. less it's

of interest was I think of of some else. because there half the caution 'XX and back in the rates carryover everything just

year the what's industrial I into on extraordinary not some but this think side. growth, baked forecast is our anything

Brad Cerepak

Right.

Operator

Tusa The next question JPMorgan. with comes from Steve

C. Stephen Tusa

do are price what in Where for price for and assume And standoff you year? the you on like the volume?

Richard Tobin

X.X Price X point to and is about think. volume, points on -- I

Brad Cerepak

the XX-XX, Roughly, thing. Same same thing. right?

Richard Tobin

what of X.X [ point price think point, is I think price because volume. you your think the our I done ] you on is and get the -- and cash inventory can And to terms in one so that price we've not Yes. up hard that we've based that inventory. it's of what see on And skis protect against flow of X set there. XX-XX over argument but in I work balances, way

need all with right this So at point. we do in hog orders to production now,

C. Stephen Tusa

impact you down Did think How that degree? in margins that take the quarter? a do to much production

Richard Tobin

it can see clean in you mean sure. I Yes. energy for

C. Stephen Tusa

any Got for a just total improvement lastly, color hard year, the basis it. of or number on specific kind then margins whether it's point And more margins. for

Richard Tobin

to It's see dependent up see like or we on How's that large, X like put we'd But hard an we by answer? on it. I for to and number quarter mix. want think should We'd this before a a year. accept so to

C. Stephen Tusa

feathering over course the build? do of you. Sorry, you in XQ? that And year? of how one in that you expect the then What more how does too, for see do kind seasonality EPS

Richard Tobin

Right.

of more QX that be will of I QX. reflection a think

the of good of And -- and HVAC, is the ramp think think like fundamental then those we we're volume then time -- worked ready I it by we show the bought because here just or hit should all prefer year, what of put by in get a probably we'll can -- accretion right? going or QX of better stand I of we on the the than QX. And if we get basically we the trying can comp. a And to absorption that up to majority our there some go, and have we the operate the be more that so speaking over macro, is that get -- we'll to we forecast It get comes, then This So our a from couple but vertical we it's QX. have we forecast. we terms rather that years numbers. end about seasonality we we where on last that -- of a be regular caution EPS the think vast these But don't and half return to in me. to lead biopharma we we idea get in macro out markets, is all

Brad Cerepak

And and Yes. specifically, CPC. is businesses, volume the come, do convert X When those on and up. about SWEP the mix does they we're talking

the that's So news. good

Operator

Joe The next Goldman Sachs. question comes with from Ritchie

Joseph Ritchie

lot days. around So discussion these portfolio Rich, your a of

there would the you'd of share what to by to comments share unlock you'd potential of the like curious to pieces value like portfolio? the divesting be great. about Any Just some

Richard Tobin

committed mean to portfolio. managing I we're the

-- [indiscernible]. I the sold we think

X over more assets. last months accretive think and acquisitions margin growth-oriented closed at think, where the -- XXXX. a just X we've I price are pretty good I in We've

same the do we'll think thing. I So

really And bigger the year place. in is past a at I that optionality if that moves, portfolio that sheet cash look we the our need think sheet I good you balance good of optionality. knock-on this balance effect is have really you think flow

more a shape what it way. building about in that that So means, continue improved We the blocks to but that prosaic put be -- least which can portfolio have at year-over-year. be need we the

Joseph Ritchie

just shapes kind Okay. growth. commentary kind talked the EPS of both. That's both end, low I missed And the you X% help guys to X% think me around I the guide. some the end, maybe of about high helpful. of know organically, that But what I maybe initial understand of have

Richard Tobin

at take of we processing significant Well, headline this knew profits need and So right? figure headwind equipment you that have was to coming. X, polymer going know cyclical I forward, banked we we where can-making mean, to the account out X into that had we headwinds

how bit to point up. So of that X, all the of And a think of from it, headwind making DESTACO top we're the got of X acquisitions, we've in we're point where that in view forecasting biopharma to see because -- led disposal previous neutralizes coming a line kind wait cautious that in stance HVAC a a we've years, terms of I that are We've out on view. of not of taken and then think very We've unlike components from and profit to I market terms those the battlegrounds. going develops. that, a

Operator

question Vertical The with Research. Sprague Jeff comes from next

Jeffrey Sprague

think deleveraging If that back is on numbers? or the guide repurchase you've just deployment. today, in or about like laid Rich, there capital share to any out I capital prospective what anything deployment in the here

Richard Tobin

So is in that timing you'd a is come let little bit we'll The capital EPS be or in day, that pretty high, there with of that happens. Look, right. when which M&A you what's top accretion cautious the calculate right? you of know line deployment, of margin incorporated incremental share an at it whether activity repurchase. the a if on Some, the end

Jeffrey Sprague

about kind inform I on lot on segments at thinking value M&A. this reshaping time. we're And mean, negative Slide where over There's I are we COX, do [indiscernible] chart you're you does DCS, you're then that of obviously, have X that face how take where headed net mean XX, portfolio. -- your the should right? but

Richard Tobin

and and we DPPS SWEP think chart mean that issue capital a out I has in terms defense because that fits of with us are the think engineered kind outside control I mean, for time. actually to Belvac the organic. And you products be would organic certain. for I But chart been total that an done Well, in closing XXXX think allocation put hierarchy in DCF if in terms flipped. that also. an I can't to you of Well, of the that overall, what Yes. we've refrigeration, of I some the yes. investment, that DCST think play organic of And acquisitions.

So yes.

bit, the flip it's a correct. they around think there, I hierarchy largely that little but may

Jeffrey Sprague

Okay. back bio orders or the on in up on the Was something in that the orders, there? process pick -- quarter. strengthened did all just else notably Rich, that And --

Richard Tobin

influenced the I it's broad think what we thermal more calling by based, I are and connectors. it's think

Operator

The Barclays. next question comes from Julian Mitchell with

Julian Mitchell

to operating wanted the Maybe margins. I with start just

I you're realize of not this or sort number much So for firm-wide color. giving a segment year

margin trying some maybe the year. firm-wide drivers about of think this to of So

So there's some those neutral. volume so you've X, are far. leverage neutral what cost X.X Price broadly divestment up maybe M&A points. announced I seems think and is because positive

So your maybe X of margins from impact, parts were on right. think, wondered is assumptions if heat up pump I those guide? do can much mix you characterize you'd biopharma fueling sort in I mix, stable, guess, And anything then those aggregate, a of down, all down, polymer moving there in

Richard Tobin

to we on production Well, Yes. the cut we wall, you manage touched Julian. inventories. -- mean, look, I in DCF

we business, reflected the It's did just products And underground reflected -- all not it's that in and a accretive. is portion we and the is so which it highly back it's that sell. we year-over-year. margin -- of So on QX, that lost and in get

reoccur bit accretion bulk XXXX. production but implementation and into less don't really expect recall, expect or and the a driven which in Products, full VSG more ERP a expect we an year year, of would hiccup of of balance to Engineered returns. we that if going that 'XX And a we we was of ESG, that had again. back half, the last you was little by as with margin So we the

VII we helpful. [ So that's ], at margins. XX% do That's what close great.

we're So baking side, has revenue more is the years. a get and we DPPS is we're that's to What which or the will mix now cautious issue our on that now Belvac, going flex and whatever cautious on got forecast a knew year. for us. because would -- heat modeled top got the a which no forecast accretive. anything, heat wrong our the into stance was our had biopharma a has in we right about to And that hardly now then for headwind not than DCST for If pumps. headwind down in margin be going less calling here right headwind longer be pumps, on about come X-plus lot will it's be being we've we're down

Julian Mitchell

And to earnings of wanted trends. just quarterly follow you the I helpful. were talking some sort very up when of about That's

meat of earnings sort you assume growth flattish? in or EPS So And into earnings then said, do as we QX the the or is QX? QX you get of

Richard Tobin

accelerate production a QX Yes, we then going of -- will of What to and comps amount I'm but go get is QX. reflection we'll more be -- not ramp the it's there. of of right some of out bad of carryforward a lot

Operator

The next question comes Research. Coe from with Nigel Wolfe

Nigel Coe

margin the a leverage cover We've to want clearly driver too you this of just [indiscernible] on to is but crack year. Clearly, lot give cover much ground. here. of earnings don't of big want a margins, I And Rich,

So margins. actions what the just other some you've driving just roll maybe we've cost baked you from talk But itemize I forward you got actions -- taken maybe of significant in any know some cost took in about savings? 'XX. structural

Richard Tobin

Yes. go took have coming. the year. from and the transcript, some the We've got at actions If half that we of We Nigel. do look carryforward in we back back

are -- a hedge. which it more a have of ready they're to not not because of I'm baked, cost have revenue do fully do list we calendarize we a list actions, but yet of

So should accretive we're demand on be if actually actions those we take to the right and those us. profile,

necessarily execution. timing the terms of they're this is reason they're in And on baked point. the in So at in working baked because the not we're not

Nigel Coe

their think then material pricing, successful in are components, we've And sensitive mean, very price. ] and market. with I as ESG SWEP, [ of I it pushing little well. all on specifically nervous been sounds HillPhoenix forecasting HVAC a about the customers more maybe raw end parts we've some of the inflation on Okay. -- your been businesses, But like bit

in So more material of within end what some you're across terms pricing the portfolio seeing these 'XX, just power curious of in raw markets. specifically sensitive

Richard Tobin

for it's to the line. realized way bottom And fallen I'm us. you capable that's of is about look interesting. of talking in our it's if the what I source back pricing, Yes, a dramatic It pricing. around all been the here at pricing consternation not has and go and mean of

what so pricing, some guess market that customers And of look our we've at and if of I on we lack through end passed for they've jealous been better word.

So to want -- be don't negative. we've us, I it's been -- to

clauses couple inputs. got price. taken a have we've some feel I businesses of terms think escalation, don't -- of de-escalation that that in we've I

this being locking been businesses especially front those of I think foot we've about our in pricing, into going year. the on in proactive

actually back not we've but now, of bit if give to a little had room my we expectation. right So got pricing, that's

at way inventory, your not in good environment into to the as of it of Our we to today, neck the about certain that going of manage always that's last end demand the we over a to it setup see extent protect that and into to is issue year, that defend kind been I feel took we to price. skis has why pricing position the get the ability think our kind

Operator

question with comes Dray final from Deane RBC Markets. Capital Our

Deane Dray

time, any there new out I for started, the XX January how the or ISM a first puts comments, on like January at minutes of X.X couple think, above came Was ago, takes in years. orders just

and at from your So any puts XX.X but takes perspective?

Richard Tobin

don't You I know. know what?

closed haven't it's I tells So even terrible, But it's I we month -- Deane. yet, have one would expect anything. would something. so if no positive, Usually, been heard me when the

in. worse I'm -- but unaware being have it So we than what of baked

Deane Dray

different to Good then a And just hear. question. Data up cooling times. couple a All right. quick of center came

a key I there's growth how a of investment it's -- cooling starting side. more in big is liquid a cooling in XX% participate mean geared Do Your air exchangers that sense you cooling role play there. good that? have than because towards cycle versus you heat Will

Richard Tobin

exclusively liquid almost It's levered towards cooling.

Deane Dray

not a supplier you'll to -- vendor, be that you you're Is particular a for are And component correct? tied that. Yes.

Richard Tobin

correct. That's

Brad Cerepak

say data centers. we When cooling thermal, liquid Yes. need in we

Richard Tobin

supply We everything.

Brad Cerepak

too. it's heat It's just exchangers, connectors, not

Operator

and and Quarter question-and-answer Dover's Fourth period That concludes our Full Call. Year XXXX Earnings Conference

your at wonderful line disconnect now may day. and have this time, a You

Dover (DOV) 1 Feb 242023 Q4 Earnings call transcript