DOV - Earnings call transcript Q1 2024

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Operator

Good morning, and welcome to Dover's First Quarter 2024 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.

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

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

Jack Dickens

joining everyone, Thank Good and our call. thank you, morning, you Natalie. for

An the our and through on be website be will of archived audio link days. May of this version replay will available call a webcast XX, for XX

number and statements forward-looking assume Our based our on SEC a results will due over that, Actual with those from include our statements statements. turn risks forward-looking which events today no uncertainties, differ to the comments expectations. could in update and are call of to current Rich. I'll And obligation discussed to We filings.

Richard Tobin

Thanks, Jack.

Let's to go Slide X.

comparable our our shipment several be of XXXX long-cycle portfolio our that counter performance offset with intended half in First second in and curtail toughest operating cyclicality expectations. the our clear biopharma Strong end to of together we what year. and to order effect. quarter took posture platforms, to of results trends was our is that improving in growth the some It has with components quarter across in its had able markets production were we're expected proactively this line

inventories and channel now level and times. are with conditions balance Customer set largely lead prevailing demand in to normalize

was an full broad-based, particularly remain and confidence end off We on the in strong bolstering building from exit rate deployment. As active quarter a last in outlook. order result, shorter-cycle markets, year year momentum capital our our and

The of ongoing part March streams reoccurring end the and add closed divestiture attractive During fueling closed portfolio acquisitions as and De-Sta-Co bolt-on at platforms. retail our we that our the quarter, carwash to evolution. of revenue X synergistic of digital

at of shareholders. the We a to program excess capital share our $XXX million February to return end also repurchase launched accelerated

with capital the the in XXXX. generation flow De-Sta-Co further for proceeds deployment provide ample Our capacity strong of cash along sale

the to the start a the to year We're off for remainder of encouraging. and is year setup solid the

support rate the through order Our conditions margin and volume the demand as progress for improvement outlook year. underlying momentum and healthy we

full full progresses towards the range, our as EPS We higher year the are evaluate and adjusted end if the targets continue we'll demand to trends year narrowing our of especially continue. guidance year

quarters to after Of we go in Revenue in growing Slide a the in the Bookings decline, growth post-COVID of X up the positive much this X% positive rest sequentially the organically trend X. up note, continue to of quarter. bookings X as and year-over-year Let's result X% order up straight bookings was across the rate quarters the XX% now expect portfolio. reflecting seen backlogs, of have quarter, year. momentum were of and for

Segment margins were down basis points. XX.X%, XX

volume up We on guiding to and expect year positive here leverage. to to mix quarter, to from X% accretion share Adjusted growth per XXXX. return revenue EPS was for the $X adjusted we $X.XX EPS in are X% and of organic the $X.XX year-over-year to and

better Europe. trajectory defense bookings and revenue in Aerospace double-digit and growth. on order strong and posted aftermarket vehicle including in and Volumes handling, waste particularly Engineered So let's for volume set first Products which to a and quarter had robust all-time conversion its move growth. should positive quarter, on X. software body growth, truck also momentum on an Slide improved continue market adoption. end strong conditions profits record

'XX channel the in destocking North heavy our X the steady were quarter fueling here Margins positive returned growth XXXX. the performance most quarter margins we by and on the over most segment. Margin target to full conversion expect expect of Europe America and improvement measures. U.S., to the is the [ by offset flat quarters performance what benefits of volume in the EMV solid and to Energy from dynamics printer a and Identification investments. sequential and year driven strong down quarter posted in and conversion, in strong quarter negative Imaging by volume exposed of consecutive remain segment the and up from in mix, shipments -- We organic after productivity negative lower to distribution with Clean line throughout cost enacted was ] volumes driven previously for largely comparable consumables top see cycle on price/cost but control strong & volumes attractive in end aftermarket.

and to process quarter for consumables We and year. and in on growth next to organically connectors components. higher precision for volumes be shipments. controls mix to Order Margin the and were rates very return encouraging. line up was Thomson on robust thermal was polymer quarter cost expect up performance the aftermarket of processing top exemplary in

are normalize shipments to continue We with grow year-over-year orders remain momentum production further X.XX commercial biopharma with and as see gained pleased of development book-to-bill and new a therapy robust. customer inventories to drug

that Top complex, expected destocking be by in strong plate polymer our in can-making point to exchanger Climate is and and were heat down biopharma headwinds HVAC out which beverage was investment are margins the volumes nearly by as segment Margins post in down destocking segment residential If the here. the in broader expect dilutive impact Sustainability due like driven consumable all heat the in we mostly capital most pandemic processing, to this consolidated modestly volumes, sequentially slightly headwinds on hold, was which is margin. growing. dissipate, biopharma business in notably homes performance would order slowdown our and brazed trends European the to line in production business. trends positive I to Technologies the driven expected, -- from of

evolving continues on digits heat market technology U.S. gains exchanger an grow business our in end share including in centers. contrast, double data applications, to In

in several strong year line build-out COX key top with by of the on segment year supported expect wins. We systems, performance the the in second to drove improve growth half bookings for customer progresses the the which easier and volume comparable refrigeration as

on it I'll pass to Brad.

Brad Cerepak

Thanks, morning, Rich. Good everyone.

of XX, will shows decline be relating X% the beginning revenue bridge EPS which contributed essentially costs line, to QX. to X. $X.XX March on flat. Slide sale, X%. growth organic quarter to De-Sta-Co were FX Total our an top while in offset The closed or half improving of X%, end across acquisition $X million the all organically to deal in the a activity. revenue De-Sta-Co ongoing the of From in revenue perspective, sale deal X% Asia, was Acquisitions which markets. quarter, down go our several and Let's Asia respectively. was up represents geo in and up X% and were conditions was quarter, with in base the market while U.S., Europe the China, X% about our largest Top of

chart, and momentum on normalized year-over-year channel bottom up lead were strong largely result the On of bookings times. and order sequentially as a inventories

cash working the X. Slide in $XXX inventory shipments, QX. cash higher seasonally capital quarter statement million Our to quarters on and investment impacted QX flow driving at of for by stronger or X% due balances of investments flow was in came ahead performance is the timing comparable in in revenue. Free receivable QX well of as

tax nature line The P&L by results. quarter was first of our flow out free in driven the these traditionally cash De-Sta-Co change on exclusion of nonoperating the sale the divestiture. flow they with adjusted quarter accrued of to is We recording adjust The the tax gain plan our lowest principally in reporting are as payments in related of to payments future year. of the cash taxes the

flow free XXXX remains for XX% forecast track between revenue. Our of on and cash XX%

I'll back turn Rich. it to

Richard Tobin

Okay.

markets. last secular in Before a helped provide the of lines to saw product technological to deliver I us provide continue color our and a CapEx growth go results that sufficient foundation more in Q&A, Early these to some our we win and high scale a wanted significant rate to and growing positioned with quarter on, and growth the on bit opportunity proactively in we little markets customers. of in leadership the invested to and cultivate R&D each

positions In with X to and attractive these booking is conversion Across revenue these we intellectual quarter Dover's remaining and Each protection. robust enjoyed years these total, trends the in well-entrenched have deliver contributor products to brand property first accretive the meaningful overall margin margin. double-digit end over the trajectories enjoy growth point Dover's markets, consolidated profile. markets to past of recognition these growth markets strong leadership that

transplanting a mover In U.S., in and refrigerant COX retail applications food where the and lead enjoy early product installed systems, to technology technological the we Europe broadest currently the natural from in offering. we have base were the largest

process, product reduces quality expanded cost platform-based complexity have times We that design product behind proactively the a and our customers. our capacity architecture invested strategy the facilitates supported improves and best-in-class digital ourselves and reduces sale for and go-to-market lead delivers and differentiated heavily a by

at a COX key traction in the marketplace multiyear launched several runway. platforms programs gaining recently conversion exciting with retailers underway Our are large-scale with

next-generation power liquid methods. Adoption data centers to with benefiting are artificial growth that chips from infrastructure intelligence. support significant cooling the We exposure of investment requiring now the in our also and secular requirements are

We are manifolds to cooling in exposed lead-free now within connector heat connection liquid points of which distribution transfer in cooling the units plates. which the and data enables cold at both racks our and business, heat the to provides exchanger liquid cooling centers the server and business, individual directly chip

down forecast the market customers end data I'll further infrastructure leave center chain. our to the and

For high-profile OEMs. us, the by [ evidenced in foreseeable specification recent and cleaning with the area it's wins order growth ] of trajectory robust as an our future chip

inventory long-term and single-use for best X compelling meet destocking lead well-chronicled any well meaningful manufacturing cell the installed The environment. times. through-cycle been headwinds years. production our past regulated the over proactively and the components performance Importantly, our products industry now post-COVID bioprocessing tailwinds inflections therapies positioned in biopharma we normalizing, have With platform are for specified and are with despite solid are capacity has gene of demand a to importantly, levels and customer

year. below industry still a and tone potential the set our While customers from is partners booking we trends positive upside our and business levels, this believe up peak recent for

shows performance Finally, let's the XX to Slide of portfolio. our go long-term

deployment earnings through of deliver accretion earnings returns for playbook of combination a operational accretion growth top and capital to organic through execution remains growth productive line unchanged strategy. Our

market the we our respond in the any to flexible with business pleased We continue changes of and the year quickly are will with marketplace. monitor to model, start end conditions

let's to Jack, And Q&A. go

Operator

Instructions] [Operator

We will from now with hear Baird. Halloran Mike

Michael Halloran

of a here. questions So couple

where comfortable the Obviously, next the into underlying a on of the of do perspective underlying just quarter? And quarters, sequentially an the for about going market you composition the related, maybe market talk little gets that order is from are comps from, the commentary year, to orders. First confidence going up bit see order easy growth just you couple second come but in end orders then kind the an perspective. that with from of in

Richard Tobin

both Europe. will we'll highlighted, and the where portfolio, big the exception but about they're of would the can-making that continue, We cycle in and supports, to do. expect go the orders QX, in to by short basically, which step-up see the I portions up two that be some cycle rates of have and we QX, with in and which different between trend because segment pretty go are in now Look, then. in the expect Yes, QX seasonality dynamic segment the order longer between a broad-based and exchangers heat of how we performance we'd

I in of importantly, did in we confidence the managing to the forward. think all rates the terms is work through fact on based confidence that going us most last more that's allowed inventory our terms year, of to and of channel order the have hard

Michael Halloran

in How action-ability the that me here. been from priorities? pipeline Obviously, Let as sitting to in has just the the pretty flexibility commentary the the look today your M&A at channel we're perspective? here you about positive short would term of your talk

Richard Tobin

It's loosened sure. for

I that's here now stay, recognition that to are rates a think there's helpful. interest

equity quite have the rallied that markets a bit. think I

away. terms purchase think than gone would So ago have at is not has I compression been year activity think on of fear lot of opportunities we flood a the can better but that a But in yet, today. that this multiples I it's look it that

Operator

Our next Steve Tusa from comes with question JPMorgan.

C. Stephen Tusa

guess, expect -- a things the SWEP really EU just were orders reflection I if of a by -- picking of isn't second the said were kind in would that pump the to turning So of if you that half. see not market there really now, it comment, bit on you that's heat up Is you up.

I you've said think that before?

Richard Tobin

here. I time Yes. mean out we're running of

that that, will clearly year-over-year. down expectation our So be market

-- think even this we've for that down I got year. brought estimates internal our we've

one would is we'll Maybe thought it that's think optimistic, business not to probably the what we're tracking that little I have been. but a we see. So

see to the any inflection of have orders end we to in So the back the at support in of would kind second bounce marketplace QX half.

C. Stephen Tusa

Right.

today, a solid to like see digit So the sound like orders right. you double half way that second first doesn't half,

Richard Tobin

go to and have look if back mean, I remember last But at you Yes. I the comps. year...

C. Stephen Tusa

sequential. meant I sequential,

Richard Tobin

Yes, Yes. sequential, yes.

C. Stephen Tusa

-- just sure. current seeing as in see the now aren't orders, embedded don't your you that's that given forecast not You being making

Richard Tobin

correct. That's

C. Stephen Tusa

for And just of to running quarter? your Or Okay. sequentially. going it about to second then want mean orders the want out just an calibrate us are up talk are I you basis forecast however that on help are you the EPS orders sales could looks the right to you however now there, ahead like it? be

mean or like in look going to because look anything like relative covered an be you're color for of perspective. XQ? Any a I on that influences you the EPS okay the way major like from orders to that like Anything seasonality So they're sales margins consensus? further

Richard Tobin

change. any Yes, I that think don't there's

C. Stephen Tusa

Okay.

or it what sequentially usually year, is percentage Brad? maybe the of So

Brad Cerepak

I think the normal season.

C. Stephen Tusa

to answer want wouldn't knew I this. you

Brad. to go I'll So

Richard Tobin

right that we expect is tracking Brad Steve. seasonality we're Look, would left the where the think now. I room,

QX will, back track. depending and on some your about and will up rates, leave then in that question QX QX, So how we to order QX, optionality be we

potential there rates order is in QX So continue upside build. if to

Brad Cerepak

year. Yes. up you that, through order There's a and sequential in De-Sta-Co but second see covering nuance we order through even because now rates the out our of the state can book goes Jack and quarter the take still on

C. Stephen Tusa

So like XXX-ish about for XQ, does sound that right?

Brad Cerepak

we give know don't guidance. You quarterly

Richard Tobin

Any other questions?

C. Stephen Tusa

I it. ask offline. that's no, guess No, Jack I'll

Operator

from next Julian Mitchell Barclays. question our comes with And

Julian Mitchell

start I Maybe to with wanted DCST just segment. off the

for price back through first the that steady of DCST, year? a sequential a mixed the year-on-year. So front ramp quarter, kind just just of And thing down in XX% bit point I think do assume on little then Was it from margin year. we that and comes sort later a the

Richard Tobin

-- very get system the upon can exchanger the COX and accretive much now end segment. to I year. think out is we the the predicated it's effect which be business, much that heat to because of effect ramp the is negative The on of volume how between going

I next take year, ramp, and volume you going you're but until will to of reduced against looking heat So into is be to the back guess, it that comps answer pushing the exchangers. at when your account need get question, we half we're up into to

Julian Mitchell

pricing, in of to a think QX. call the Got sort bit down it is it. And on Does year? the flip to was positive back little And out just anything in it I there? there later

Richard Tobin

relatively with out have related think a the to mix nice, to mean, else. that hold. be you. pricing got It's that's honest than anything more I I Yes, we be there is

Julian Mitchell

any lean so where you're of partners year, pretty That's do start at based we channel for the how customers But now for and helpful. concerns when channel a of partners customers, that on Or way are your further your think perspective just are the more around orders and when And are of to for you we realize product in inventory then follow-up, forth? your behaving broadly, a other move reduction? need is then looking inventories and sort you're market exposures. looking the breadth your sort your it there's end that at

Richard Tobin

business of pass-through a that see just see portions right are distribution, we the now. The build. don't Yes. We

hope a little will be that that would see dependent pull-through we here. on demand build, of one from we what So bit get on but

of about So the took bit, half proactive we've lot I we this second work quite Julian. did of in year. talked and work the mean a a

now. show checks right Our distribution we pass-through see don't build, just channel

a be to demand headwind. a a be to continues going not it's of positively, tailwind. there inflect will So Hopefully, bit if little

Operator

next Our Brett from Linzey Mizuho. comes question with

Brett Linzey

to to back wanted I come biopharma.

some improved channel obsolescence customer could that inventory of of that potential some you sound of multiplier expirations some effect the and that of talk through just warranty a like be some year. the the business. Maybe for moving upside single-use It could tone has noted there. You does about

Richard Tobin

done and lapped right? all went X.X-, shipments we've that If It's now, business X-year of back biopharma sequentially are line time where you heavy, look now. at where the kind that

on right kind still is out side So inventory forward. now, what business there's processing system and the is but inflecting the a pockets headwind relatively are of builds of of the there.

one So another the or up months. the be been that from of way cleared last inventory just over we because fact has expect to here orders the XX

Brett Linzey

And year-end? be that then any of business thermal What run liquid in you rate trends? reason shifting maybe the do business by why adoption those and And guess, I with this think growing to connectors, in doubling line applications there is bookings. revenue over is some the of should cooling

Richard Tobin

That's what we hope.

the I a end I are tell the about think where view. it's market. going we competitive I'm it not aspect -- from now because is you of What spec positioned feel we right size can you point of to of for good

little you we're bit to of I behind times. kind that because we to be build inflect right a have tell out biopharma, also be a I we're is saw going if what the we be lot the a that lead there that's capacity now. subcomponent to of going production a of it like think can to was in trailer what industry-leading prebuilt with going we're able But

Operator

from comes Our Goldman Sachs. with Ritchie next Joe question

Joseph Ritchie

Slide I chance And so of connectors. on to maybe thermal X, sticking get your some actually that a see did

maybe Your systems. showing of bit far question them in long ago. path off you the on customers Rich, just my maybe the from COX weeks this about talk world are tailwinds terms little these is that's But what we couple think data here? were do helping center kind how regulatory of Like really the of business? a And a

Richard Tobin

Okay.

And launched that, the to platform we our What next shipping in have now We're be are of third We second couple launching adopters. right will going is months. that. after then be after the our first platform platform. early sequentially,

reasons, the a got then ESG it. and aspect an individual of to the reasons early them and space of And in wait chosen because certain we've customers out. for regulatory So retail buying lot of that a of other be that are adopter not test units there to are have clients variety

trajectory. but So we're in innings we the here, I think like the early

Joseph Ritchie

And to we're curious, margin for and business us Okay. with great -- the guys as to Maybe green look, that's kind path of going have Cool. I'm then through of shoots referenced some see just seems you that trajectory here? you're from hear. just No, starting like I this thinking the biopharma, forward? know, it here. kind help

Richard Tobin

Joe. mix, It's

a to the what frankly, much balance and at actually as the mix is important consolidation look to at performed So quite were look that go revenue back we actually the the margin a is portfolio decline the way segment of And climbs, we to didn't years margin segment. it, because at in couple of the well. that

So I would I wouldn't the the incremental mixes of think as there. a more it about up look on basis. leverage from at terms unit climbs, revenue it in segment

Joseph Ritchie

just there. maybe And Yes. a quick follow-up

are improve expected from we for at any... margins sequentially business here bottom a to So that to if then

Richard Tobin

was We in What the never volume. really up up we gave margin any gave business.

like as not It's that margins. I you said, up, incremental mix So just it's business a and decremental of look proportion mix revenue. a at down

Operator

comes our Andy Citigroup. from Kaplowitz question from And next

Andrew Kaplowitz

the segments, thinking expectations to about the continue any at if that clear own were versus best be seems DEP Maybe other weakest. should there X% growth expectations. level growth X% But in 'XX relatively guide about for segment It organic versus your how is and that versus thinking you DCST QX? your own just company? surprises growth in the the to look you And are

Richard Tobin

Okay.

about think Let it. me

into forecast is business as for only that, our about XX% the pumps, exchanger a -- the what our business was it original which last is mentioned I heat I about basis, revenue. on think in than performing Europe of is baked that heat year is earlier, worse

mop of have to up going we're some So to that.

and Joe's of into in is questions offsetting we decline. the baked extent I just able market mop what that the And And should solid, always that demand be the have forecast. so right? to Belvac that Now to the COX, some to about continues trajectory be answered we our up was

exactly the just that inflect positively, demand. we particular balance are businesses think bottoms where growth to QX, top of don't depending we segment large, and post we'd from expect until The So we by on had tracking hopefully, basically forecasted. Belvac that line there. then in And in will COX

going when mentioned far, and into I about was full so all so order the really quarter good. did the they're I think results, So momentum because that we year it

Andrew Kaplowitz

and year more you helpful. about through where That's Can into start. for color after programs, I have get maybe on that help And QX a DCEF. to how Rich, to you that that made the give us cost little so flow be? you want in know margin then, you comment do you year just of up the does the

Richard Tobin

margin we've work. most I got of lifting where that's I I view, Look, point to heavy a mean, from think do think the

I think management the team on is it.

that's you us exposed of seen of you've is need out most business. that So cost view, understand a to is that proportion to business What the take structural some from distribution, point right? one

a had let's during it's phase destocking pretty XXXX. the the, of good it, So call headwind

run So look be flexes that it was business that positive as volume can should okay, says, to a should we upward. that incremental margin

Operator

comes of Andrew Obin question with from next Bank America. Our

David Ridley-Lane

here. This a picture is little question David bit bigger Andrew A Ridley-Lane on Obin. for of

seeing PMI you're orders So $XX. back improvement, broad-based above manufacturing

is a you take weakness there back, looking you to demand just getting the all Or function had was do actual of year? getting trend at demand trend is a was think better comps it and -- destocking last now? If i.e., underlying underlying right, cut

Richard Tobin

And you but was X right? even demand a marketplace, of look pricing last now that, back think you the destocking. headwind was we then in get through to previous had and flat, And the demand getting unitary better I idiosyncratic lines lot of is after terms of year want in if that last relatively because flowing is a trend macro year from interest There you and demand it of The comps. addressed comment, a the destocking but then rates, negative flat. was relatively right? geographies, product the headwind if business you because years, then And unitary

have categorically whether positively, the destocking thinking pass-through. right, it's them, So going we you're but don't because year, demand know this say, year-over-year, you into just about headwind it that inflects that what let's unitary is we'll from see up,

Julian Mitchell

and guide? And a effective count the housekeeping question. tax share What quick is embedded in the EPS just assumption rate XXXX then

Richard Tobin

about You can that. call Jack

units. into Let's all page I'm not stock through -- get these not to going

Operator

next question Jeff from with comes Vertical Our Partners. Research Sprague

Jeffrey Sprague

you Rich, view -- about you customers? OEM Do on going kind your going of addressed know you what's view waiting way they product in the one if on for other, of Like the heat underlying have distribution. or the kind on sitting think what Europe a your pumps, do if you're or what's really or of inventory kind actually just the we view kind of of on for would are order demand you might on a with be.

pumps is So that one there's of question a kind that's some out, others stands heat kind the also. but maybe of where

Richard Tobin

clearly product sitting inventory. on They're our in

got of kind got down you've our got inventory with going then and a market we're you've partners. subcomponent with So because -- like you've the

the allow the I So for up down estimates inventory guess, goes everybody of their you've lower to out and We up got that's turning and kind what to puts is on going we're inventory to when and that I'm has first, pull-through go got depleted. builds went there saying. get market first as so demand now

our our expectation is of demand bottoms. end that before up So the will demand kind inflect market

Jeffrey Sprague

have stuff, but name kind you're a and the expect Yes. customers to not or the And I by and on like, then just words, liquid names, X I'm market? that than chip parse had number you you this there's do And actually competitors and specified a X was to of cooling-related if misspeaking HVAC-related by wondering That you sense. cooling cooling the more in were makes but companies. you of indicated OEMs, also specified don't

Just curious on detail. that

Richard Tobin

into the So will to sell on clearly, you do hard the getting work the of our we're to in depends in customer it, are maker recommendations Not But the at did the to the the build specified by going those need be up ultimately it makes have as chip it without wasn't a built. but end. chip getting about into how and builder, customers depends channel units we misspeaking, terms the specified on details right? get who it to

Jeffrey Sprague

hand count And than or it's customers more than I talk... you can more one on now

Richard Tobin

us. unique pharma it's that very to Apparently, everybody much a us is because product, in number you tell and I in space, facility not and can we or is one; the -- going look but run production including it is biopharma. good way the business number same that it's like run dedicated two, facility. What the building requirements for for we're basically less these We've products these our the for a more products, we're connector a got

So point in from I think capacity. we're terms in in an good we're view, of shape good and production IP of shape

Operator

question Melius comes from next with Our Scott Davis Research.

Scott Davis

perhaps bit bit successful with you little a the price than probably can were able to thought? mark-to-market little You little may skeptical price, ability get April? of more bit Have 'XX price that than on have and a more kind a some of others here we in in more been you be to

Richard Tobin

we're that else, during be sure. price the weren't us year. price And there think would expect for just that the by was winners the on supply perfectly end not negative days in big solid to going we chain to going there bit be I everything think I to of be and price, of I to a the passing frank. on. issues little positive

look our have If should you realization go period, back and that more. arguably, taken at price through we

we're think months. have price a give price lot back going forward the out we're it's the demand that's that positioned think exactly me, take because that to not robust. at I there last headwind of going were to not all market don't is of appropriately if because more a that day, there's XX of good, but been got capacity I end non to But -- over the built

Scott Davis

gears, the just -- but switching it's And broad. sense. totally Rich, portfolio Makes you It's you with have? very are happy

sell So M&A opposite at is value. market opportunity be bad. good perhaps to and things there's of expensive But got an the market to the above

portfolio the departing think that of look at you parts there makes to is sense So with.

Richard Tobin

looked partner, so view, think to How at it a right? we De-Sta-Co where first answer good Dover from I'm and months. a part a margin the portfolio, we do in market you is find give like, of partners Did pieces the on to had the found taken exposure of terms portfolio, the I XX not think, I trading want right? multiple end De-Sta-Co but within that, me point clock, we and at I That's we the of a monetized business optionality it, is need of ruling that? you remains know to the a I that that this question. on other that example, that

creating than if the to partner part said just I go we not margin 'XX I margin expansion. willing of of around a second We've 'XX, going dress here to back the end that moved going would to that and shareholder So value. can stuff here think lot to that to to find the just Scott, we The creating that it's 'XX, the portfolio, we right? there. pieces It's we're unlike to we think substantially optics. been at of 'XX the extent the up more get a were monetize then have That's easy around day, we up question, back if is but were do don't go we selling

to view, portfolio. been is going portfolio creation the difficult thematic we've point the that So extract the of but of value a the not apologize I to issue of for understand that a -- from complexity from able I'm

So we'll forward. just going retain that optionality

Operator

question Joe with Our from comes Wells Fargo. O'Dea next

Joseph O'Dea

of in moving of quarter in customers It in above XXXX happened versus more a ask QX every just of what sustainable little terms of sounds quarter each brought forward. you up like orders about QX quarter, of XXXX, pretty the notable what Rich, sort order and climate more I bit in a well understand trying level saw the forward. step wanted levels to that to so is

stronger kind just that from the flip calendar So demand. a much behind of and switch catalyst

Richard Tobin

new our Well, -- when order down heat you rate exchangers, down take in but several in dropping because heat in that systems. built launching that exchangers the into backlog exclusively is years account that COX we're are ago, fact in line Belvac not orders a product Belvac the in and maybe down

that's what's So different.

Joseph O'Dea

lumpy. you wouldn't that call But

Climate. QX saying lumpy. It's there's at You're sustainable in like that not like is demand level

Richard Tobin

to going continue going exchanger the continue to business. offset Look, I to is mean COX they're heat well,

inflected August the get Now we comps business heat easier year. September last of because I that in beyond exchanger has down think once

COX of going it in a So bit take may then every look to large over forward, I think should for that in down. year be up half order between a now we tend and But and while to orders the from little it because time, flex and sure. good systems, once put rates get

Joseph O'Dea

better. sequentially on the has say, end destock gotten really environment reflective of and the we this reflection And takeaway of what question, understand see sell-through just is seeing kind demand it. sort saw to David's XQ it of of I for you reductions. this to levels sounds you're back is the demand XQ It's so just that sell-through making that is what of Got through the the not like from, order It's in of just XQ, saying really circling channel really demand. absence this to pressure mean the sure then is working that

Richard Tobin

headwind in last Right. That's decline the year -- a if it, because destocking. had go right? back demand Because of of and reflection wasn't that the pull-through it revenue we

is you just have basically, let's just what call Now pass-through. it

see we just stocking. see So don't We pass it it.

Operator

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

Deane Dray

the state also imaging, like some business on packaged the seeing? have Can consumer is we demand, what beginning just but goods, in been world sounded you guys it that see of to get normal

Richard Tobin

Deane. stable, It's

down have flex between up equipment side You eddy. inflection or portion down. doesn't that steady the up some consumable and is It generally the a

be wouldn't there through that that year. of of is because I through rolling the lot at movements truly fact day, just price the on there's only because that real a tend bit don't the goes high You end of of I it and think FX have. to be the global have concerned a every quarter-to-quarter very little true we too business they

see of So consumer rates it's and steady, up seems improving. to terms seems a year, an inflection be products. be, which We was production sequentially next right? headwind in don't China to

a against strengthening from but run dollar. see we'll So does up there, it

Deane Dray

a discussions of cleanup call. just couple the questions then And on this data on center Understood.

a on with is what and projects data the connectors in SWEP you for then to chip negotiated I are the where's bid first in asked centers you in about but And highlighting data are SWEP the being being because you got U.S., SWEP Europe? of heat makers? these big Or lots know in a differentiator. The is, I were headaches on design you've that's in centers know exchangers, Europe?

Richard Tobin

teams question our the sure Let commercial I'm designed is take last me But in. that design that easy. first, matter predominantly. the it's it's in not will say fact the of it's

but have with think there. it's we important the business meaningful. going Europe, don't in it's I will out early and the win the a to then from kind that on you. where of there centers back building to different spec the participants see Now be get go most part, we Data I'm infrastructure, negotiations are to of variety

more that we the that North data think American-based. I is see activity center

Operator

thank And Call. First and gentlemen. and That XXXX our concludes Quarter Earnings ladies Dover's question-and-answer you, Conference period

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

Dover (DOV) 25 Apr 242024 Q1 Earnings call transcript