DOV - Earnings call transcript Q3 2024

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Operator

Good morning and welcome to Dover's Third 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; Jack Dickens, Senior Director, Investor Relations. [Operator Instructions] As a reminder, ladies and gentlemen, this conference 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

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

Jack Dickens

call audio Thank and you, XX, will of and an the link through days. be thank everyone, available the version webcast you for a our Connie. joining our November Good website will be morning, archived of XX on replay call. for

historical the results. a impact is reference further presentation on continuing equipment operations business to for tolling today filed from our of X-K exclude Please divested the XX on waste Our basis October information.

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

And turn with to call Rich. over that, will the I

Richard Tobin

everyone. Good morning, Thanks, Jack.

performance Let's slides. across was our better than quarter start Page the the with segment the which in the X. was Overall, broad-based modestly line cover performance upcoming forecast, highlights internal portfolio. on I'll Top results

businesses pleased for especially cycle our the longer margin has our portfolio. drive growth rotation platforms total from are that continued mix the to We to positive

be We an as that into theme XXXX. to expect head we underlying

in was bolstering for components, EPS from up quarter energy, were biopharma performance strength [indiscernible]. Dover's mix consolidated quarter thermal solid operations up the and and at portfolio. positive $X.XX connectors, systems further X% XX.X% clean X% an margin per outlook. Segment the particular continuing with Bookings all-time was COX represents high for our organically to Adjusted in

capital reducing Group of divestiture we our During our completed the the exposure the to sector. Solutions business, goods Environmental quarter,

full of to bottom guidance see the right can operations. slide, our the from this reconciliation adjusted of continuing from As EPS the impact year you

XXXX capital opportunities of of record a firepower, we forward. with us variety going transaction, with deployment, value-creation providing a will exit As result this

Our year. the outlook the for constructive remains balance of

flow cash to by managing to us optimization capacity manage thoughtfully demand quarter utilization. drive third room performance has given through Our seasonality year-end

businesses our Our lap year. optionality exceptional positive and XXXX by strategies. cycle deployment with long margin we as capital is higher the into setup easy value-creating for through further compelling balance sheet, This is pursue to augmented portfolio rotation comps

energy fueling lower components are in offset most the by performance in near-term recent retail segment with down strong performance aerospace Let's growth & industrial because Products of winches. as our Fueling skip comparable inflecting favorable Margin along to performance. fueling shipment positive X% a wash and in as clean organic vehicle top and acquisitions. mix quarter was Engineered period retail product costs lower down difficult was mix line and on defense services quarter. equipment on and vehicle in integration in in fueling retail Bookings Energy posted due X Slide Asia. were Aerospace by on volume and components. defense and positively was North was timing cryogenic below-ground was Europe Clean of flat American reduced volumes to Margin the and positive margin as volumes. modestly volumes offset was

we integration dynamic material a our XXXX. We as activities expect this margin to swing have positive through complete

Imaging Europe. & and U.S. quarter on an and coating in performance solid Identification posted marketing excellent the

for optimization on cost customer shipments continued actions serve good printer during which inflected management performance as footprint margins. a quarter, was incremental positively to New is spending. drive the signal robust capital to Margin and

year-to-date robust the is XX% components and up up Process on & Solutions pumps, of quarter mid-teens versus precision and organically thermal Pumps shipments biopharma the X% over connectors connectors was comparable biopharma prior in revenue year.

on Solutions Biopharma Polymers acquisition drove XX% volume growth in, segment biopharma in and the processing inflected mix platform Segment Pumps bookings were & performance XXX forecasted, down basis up equipment and positively. in and the cycles from -- performance. quarter in revenue FW All As was margin the mix thermal in polymer points controls of growth -- organically margin cost business. Process FW period. Murphy excellent in tight Production improvement the on as

complex, quarter, business. inflection bookings in particularly down European in hoped by solid but the was residential the Sustainability can in heat Climate our exchanger that exchangers & had see weak brazed systems was heat demand was equipment in in food heat in retail the comps positive as Technologies tough the pumps, Revenue and plate on in not We making to case. quarter offset HVAC broader beverage in demand

market to The excellent year which have by of performance to was we the production flat the good So exchanges, results refrigeration increasing higher COX down accretive. segment volumes in XXXX. that heat into hold COX performance we back business in that augmented preserve of demand, lower to setup challenges, half rates able like exceptionally retail where systems. margins shipment both recovery expect we as our despite are in Despite frustrating and with 'XX business short-term our taken going on based due to materially for bookings the inflect together margin the the forecast in were we

to pass I'll it Brad here.

Brad Cerepak

Thanks, Rich. Good morning, everyone.

to Slide X. Let's go

today reminder a basis, continuing a excluding presentation is Just operations business Solutions the results. Environmental our on historical our from Group divested that

Asia processing. XX% of was our March due timing to bridge closed healthy in year top disposition broad-based within million, of while down the was our demand. revenue shipment polymer China, on quarter $XX largest represents Let's respectively. FX were on by in perspective, a and XX%, basically and this our Europe down primarily base half organically than quarter, XX X% X% Asia the shows growth. the about U.S., businesses which more impact the was the flat. geographic market, go acquired up to revenue in charts. offset From which DESTACO The The

broad-based acquisition unfavorable up bottom deal year-over-year the end slightly demand $XX to related organically On solid below-the-line in on across a million chart, most quarter corporate were higher year-over-year costs. costs, mostly markets. the bookings on on items basis were

gain quarter are nonoperational statement which We Slide flow cash in chart cash expect taxes XX% on flow of the favorable revenue. of over is X. rest the this Year-to-date free the our more DESTACO, we fourth highest of balances revenue nature, XX% quarter, The is year-over-year. up cash paid flow was year. is working Our on cash as of quarter capital the $XX for our flow in million Adjusting historically on

full We free cash of are XX% deliver on guidance. from prior track to flow year our of adjusted to XX% revenue, guidance unchanged

turn to it that, With back let me Rich.

Richard Tobin

a the within and the Brad. busy X. on It I'm counter ops moves, was cyclicality with some portfolio Thanks, discontinued quarter Slide portfolio.

helpful the prudent a As we lay to groundwork provide views. earlier XXXX of result it to thought for some that, hopefully

that XXXX. macro, of our portfolio. the view individual of across ours, articulated markets business as that many a marks the portfolio such is we the end position. competitive cycles and each case a cycle, the and our year underlying Let's the demand look throughout we We enter diverse into With remains with forward overall constructing as end start solid, planning

In as of XXXX, long-cycle the post-COVID familiar we a shown and as biopharma the period right on we down a the cycle. cheeses portfolio had we regulatory stocking XXXX, of cycle challenge In managed did as on navigating exchangers much side demand our high like heat idiosyncrasies, page. the well and the portion in the

augmented cycle to in up As both we see slide, by with you growth mixing and headwind inorganically. we significant the invested margin which consolidated managed our the organically offset short-cycle our on can on platforms, improvement broader

view forming demand we portfolio. and a platforms and XXXX cycle. forecasts the complete multi-period begin we our indicate are growth do As countercyclicality same XXXX, our Bookings in receive customer for not that in the

margin rate ] [ growth are portfolio. pleased and particularly attributes accretion components precision connectors, and all the with with systems, We components, the thermal to biopharma COX

growth applications are expect exchanges production We for large-format which we and the XXXX expanding capacity to heat heat today. center in and recovery return pumps on heating data district demand to in

Slide to have return front to move Organic in Let's inorganic done all and far investment, so we shareholder-friendly XXXX. growth our X center strategy, X. and remain capital and

We cyclical secular have more valuations on reshaped and been market methodically growth less higher attractive end at portfolio exposures. as pruning this year portfolio active the to we

is will sheet on capital mentioned exit As capacity reflected with capital right. on balance and/or the bar deployment earlier, for we return, the optionality significant which 'XX

up summarized deck, the in to of I've finish At time we the XX. guidance adjusted earlier accommodate EPS is left. operations announcement, the the Slide the Let's ESG already with on the which asked covered offset earnings often to provide lost slide the the on direction from bridge about the basis. prepared the moving forma the assumptions to a on needed We pro divestitures are on in some XXXX. discontinued pieces

Let's too get not excited.

but $X.XX which the it rebased clarity to to Left -- organic year base earnings a treat year, model get as forward on liquid close $X.XX is XXXX, year. $X.XX be guidance you get as where a underway million next $XX that XXXX rate that held treat organic the it basis. but assumes would full already X% a view XXXX the forma the from I presently, find a restructuring EPS that that acquisitions I We balance conversion or formal model we is our which XX% completed EPS. after I hope we year reasonable roll of of disposals of roll always, right, We We to growth additional in of cash a retirement pro thought with year, provides parts. includes paper will, If forward term it on we commercial the provide positions 'XX XXXX. X costs and the $X.XX moving full to previous the retrospectively it X% to We in the includes to start highly in a benefit. the at short prospectively guide. in EPS for growth ever in predisposal We this an on thought,

from contribution footprint higher accelerating As expect be are our I I including we earlier, consolidation, the XXXX. recent acquisitions, so would restructuring what capture in synergy to mentioned

in cycle X, that top seem Slide line what platform's assumptions on covered reasonable. the incremental the and growth mix was trajectory, we margin comparable Considering margin long discussed and growth performance

sit a and share to is this doubt but repurchases timing the an liquidity certainly Clearly, macro. amount of And we'll Now it is drastic case, that model flexed on there in insurance that change I negative be M&A, the can then problematic. policy. is nice have in model unless that for

So simple value view. this is a

to the is getting on M&A better. active that at be environment preference And Our front. is present,

the opportunity with that proceed interesting capital assured, we rest We we but will have pipeline, in the an have demonstrated past. discipline

any say Q&A. With of won't I opacities that, And to go whatever. or let's

Okay.

Let's go.

Operator

our we'll Instructions] question Research Jeff Partners. Sprague from [Operator take And Vertical first

Jeffrey Sprague

you in that comment? comment kind particular? of the comment was The on that that you you through Can just comment, climate heat on higher a -- in on materially going pump within pieces comments. about segment opening Rich, segment made elaborate moving sustainability, the Just maybe as total the were a

Richard Tobin

have to than a we in more hope mean had you else. I heat heat seen We case. last for that brazed increase back bookings European Yes. -- That bookings quarter, anything I exchanges plate the there was if comment we said think was pumps. recall would not

product taken have our in year that we down particular line. full So estimates

now. going between whatever So clearing to let end that's year. to production take just the and to to bookings take event down negative place the the needs of We're remaining now

But So of heat terms At it's from we'll in systems there. the fair forward on say we're and I in our that QX positively and based in market of bookings QX, getting that whether that up XXXX. for point, bookings see. amount we get think inflect feedback on QX in also COX between estimates. see to terms demand going COX all cut pumps what it be should going expect splits production in that forecast 'XX of based there. on a in market QX, materially our whether we spend, it based think and systems to we're in there, material we we'll read the we on would inflection

Jeffrey Sprague

here, definitely bridge then And the it's appreciate helpful. I

right think you $X.XX, about stuff active you're vary right, it's deal Obviously, light that about of foresee scenario $X.XX more -- on the M&A can we the depending that's on you Do to cash and pay where a thinking should that? Just impact on less hand. than what How tied because sort the on for multiples. front.

Richard Tobin

as day, the sit the would I rate commentary, that in Look, don't -- on result. bag, just happening. you the the say drive can I that cover the kind end in -- liquidity described foresee would of of that Yes. said, it liquidity, in I just deposit at the my someone -- basically to that comments, tried that's the and at with In factoring the and be mean, to actually rates cuts, I that even Jeff.

you But does billion, share repurchases, do on And or accretive, if got it's but what if only that funky, whether it's that thought of your was of what M&A what it's did Because close holding models like? does cost those of repurchase it where Now look not to a look can to here if kind we like? zero-sum we done math that you the a we've of start, like? give You gets not and to just XXXX share and scenarios. optically XXx that because view negative. the it's Or if does that right? paid QX, said, you margin look $X a carry -- anymore, not was neutral, liquidity we game into

And to if the of that because we're meaningful. and our on you here gap have lost it's in commercial cost carry. significantly again, trying Now go in add really we what 'XX look that interest earnings you reduced paper the back at is is that and show back

just expect line deploy just the cash But our income I would to in hope a after-tax I note, us is proceeds would cash because is be proceeds the going to it the So and overstated of disposals capital. that doesn't and I QX as that factor and really M&A balance the interest expect flow.

number that a understated anyway. little So is bit

Jeffrey Sprague

leverage Right. you you want And to got also if to. deploy Great. additional

Operator

Julian Barclays. from And Mitchell our question next we'll take from

Julian Mitchell

of thing lot the a growth organic on was the just good to I touch slides. wanted overall Maybe Maybe color backdrop. one on

confident. pretty Your tone sounds

I think broadly bookings sort up what mid-single expected. digit is organic of you

on core down digit, single the we're to of digits. much in what low growth. narrower to notable sort broader that, terms XX division in you high XXXX, thinking is the of is was the up outcomes. spread your of segments the double environment and variability One the QX, have And are X% X X% of segments, at wide we customer about organic say contributing look When wondered anything your Slide kind that framework activity, for Just very moving one assumption growth to when all of very, impression sort across around? tied of

Richard Tobin

I Julian, $XXX we were of the that's to I X% growth was mean, this year think kind to -- investments into X% I a offset we the that X. Yes, think we that what do by exposures. in headwind the with able headwind or trying like growth the Slide million our carried were

QX QX a see we exchanges. headwind into point we has to cutting channel into demand I that checks, would processing, any year. we basically, have, making, see indication saying at But say polymer we're going another exchanges will growth heat heat rate, out what growth year. guess, what law we're course, and about here at which like what pace, everybody small push So the it that believe in the same undercut going and to is, see don't production from figure the of can is by expect for to and that in probably on numbers, then bottomed just to is market will next terms quarter can lap we next we'll continue platforms what which I'd at our completely growth long is going of part, And cycle in which forward. is beverage begin the bottomed we that which is this the

look So just -- 'XX. year. the that don't at anything see X% X% -- getting this was to And that X% headwind to if behind down is else or us. in I portfolio, I in a that cycle to We're X% X% to X% core

year you restructuring the always to X% [ ]. that's modeled take XX was reasonable XX margin, to we where when ] benefit at expect I is think it's been So why and I think the [ basically incremental if the to X% we've out

Julian Mitchell

superlative on attention, doesn't just in DII then the follow-up one but that of That's again very business margin performance helpful. get often QX. in one And maybe much quick segments.

also. half first the in that seen You've

flip clarify. tailwind year? sort as something may the I equipment mix a you've maybe how around for business But there's structural of I -- and kind DII. dynamic know terms don't know, a repositioned of simply it's that just in or next that mix commentary consumables changing that is the of So in versus

Richard Tobin

The quarter. meaningful. you consumables longer it over it's periods, at quarter not But equipment by fluctuate if overly look will

up does same management XX-month business the Really, performance -- over always that a about here in is ends the team of There job the business. serve cycle, it cost on spot. it, hear a to it quarter-to-quarter So you done the has comments an but is margin -- basis. cost global that to excellent global on from it's synergy particular This extraction serve. a

it's I So of -- and the been model go change. mean that's back look X last majority been generally if business over volume, the you to not years, X a

these that posting we're for don't I is know think that and now because 'XX the So margins what pipeline 'XX. I

delivering. is reasonable of business I capable think a approximation where this this is that

Operator

Davis Scott We'll take next question from Melius from our Research.

Scott Davis

a follow I question. the wanted up to bit on M&A little

was be kind seen I there seems to net Is in look It level of in best asset? -- the are of things what make that that's at synergies. the it The that come the, fair longer say, able deals case? multiple to think this multiples we've you is guys I'll are the bolt-on to down only Jeff. of portfolio, where years that of where a wide deals enough a the there -- -- working that something or ranges. couple of ones is kind existing owner do buy Or to think that when the the is the no your last there's you amount you

Richard Tobin

deals, building we had to we existing 'XX, on we've of of return from do. that our not about deals, lot which built good you when on was is of 'XX And this years. lot really a announcement material for of X multiples margin I there's benefit own X expansion, think basically I through same they've we engines, of reasonable. extraction. ourselves just on a at if because last time about But the playbook our -- to on an bigger the smaller more do built a out back will, and deals, years, portfolio, over the when think paid there you if based do that the while drove the kind The always extract an think practice here to the was X synergies we the of if those we synergy to go engine went look at you engine been just the portion M&A, core

ones I of did they at look So you decent size, be need had that finish drive side, we transcript margin and if but posted that think [ those extraction. And three take clean 'XX extraction synergy to a we XX% fully everything amount Energy go bigger of back you this expect good to but up I to footprint probably a in and on to quarters enough the a Clean of up think to energy us and on the the It's ] alone. recently XX on look synergy we else, year. businesses the everything going of

Scott Davis

That's But in who's -- a the still Okay. Guys, Or selling cloud guys? your question. Is the I when design. is these cooling get dumb good specking it want it maybe good And guys? back on color. you're connectors, in the thermal that product? go

Richard Tobin

answer for Look, while. quite it this Yes. in I'll business been We've way. this a

supercomputing the product a ones built water not the using past. up that is was because cooling only we're of are ramping product AI for volume build-out. in were it's low relatively So This that applications, which actually

sell set to you specs, still there but builder. the are user is out the need recommended it and/or to So and

-- we use the the complicated, ones, claim today. think, that we're in in but would most I of ecosystem So the to actually have we that's it's can product kind

Scott Davis

it's of replaced whatever, preventive kind it's But if point Right. be it to is needs right? spec-ed once to like-for-like, in, or maintenance the

Richard Tobin

yes. I be would think that assumption, the

Operator

our RBC. take next Dray, Deane from we'll question And

Deane Dray

there the you're of is saw color green in for the you period anything is terms On think that single-use are in We destocking broader the the there in any underway would the so everyone, recovery that what most going results extended looking biopharma, just but because suggest -- from be Danaher would for? it's shoots helpful? particular, been on how

Richard Tobin

put because led operate. of because the these periods that don't these sold just in post builds of channel, are and consumable that systems. systems leading new into so They COVID the we're had Sure. have new out, products, to to been require right, continue Look, need previous we of down inventory the amount

customers bit participants, for down of what reports from think early been are while, So and we've little reading I going the there saying, de-linkage and market in was line the that because were a a now. we we're from mostly our

thing we're trajectory in And consumables growth I terms of our all the think the that of in is and terms the rates think saying portion in that I the recovery. that, same of reflected it. basically

Deane Dray

you'll get. now that questions have And doubled the of Good. typically amount imaging you

but a would source that that broadening made lot competitor up in. integrated there, call is you from they're they they participating a have platform, our primary a paid about you what more business? Do all of in interested shelf noise Your vertically for be you to than SaaS broader platform guys, aspirations sizably pretty

Richard Tobin

Deane, made? acquisition that about the they are talking just we

Deane Dray

Yes. But then the...

Richard Tobin

today. Yes. platform that I got business track mean within good we've and sized a trace

it's think chain, we're I you in I oriented. it, food-oriented. it's the where So pharma And haven't that more are more like looks in studied terms of nuanced

space. actually over pretty right So we've years got big in well that that's been couple the last doing quite now a of business

there. So we're already

Operator

Nigel Wolfe Coe, And take from question our Research. next we'll

Nigel Coe

there. Thanks out help for 'XX of kind the

So base laid range it there. out the would the like Rich, case of sounds, -- like be organic you're pretty you sort

at you'd what us we 'XX If you the that look of Belvac kind businesses? the that range. use at year, businesses, year, next impact stabilize assume the businesses? mechanical capital out maybe kind of those from this did and performance, what But those bottoming are what we of is the Maag, SAB So European look encourage when the is I'm impact to of have curious

Richard Tobin

$XXX year about last growth. we're and It's million that to you taking the absolute QX X% on and the headwind basis, I'm that X% -- or of this -- that's to X% it is give a X% X, through on X% Slide year. number. presentation. to if to of get us you headwinds QX We it's go X% cost rolling wrong, correct? Nigel, XX-month going And

Nigel Coe

missed completely I Okay. that.

if so Is then improvement know, again, So no seems of businesses. in the react? to don't out, rest right I -- to flattens your that that the X% X% way the

Richard Tobin

but of quarter to let the Like on on you look an have And was have to the to in beginning give discontinued the with and that mean but they important of everything that the saying another not exactly us giving using we'll are get exposures not out just 'XX because understanding missed I'm and guidance, numbers headwinds assured, 'XX ops of you the give our thought all else kind we're noise else. everything may But growth be we we we out rates macro rest and those I it for seems here. the going to have guidance, then your approximation, here's look means." lapping thing didn't out them reasonable. rebase reasonable you I we'll of in growth a update we all what on it's 'XX. come "Well, ops, January. January, discontinued secular reasonable say, and a want that that So that based tell and this to that

Nigel Coe

interest plate Okay. XQ the income pass of $X.XX -- clarification just EPS on. just quarter guide the then I'm -- about it full fourth and the -- good in there's from on response, the And Rich. coming That's through then I'll sorry, boiled a divestment on guessing proceeds. the XQ The ESG so quick year a

kind the any bump XXX is Just to of sort -- [ the or $X.XX end? low ] up that the help that wrapped there. is of into within So

Richard Tobin

down, have some production I taking I making back look interest that's offset to about it. what don't there. to it's earlier an volumes the is That There know heat at I'd and helps whether cuts income of deconstruct mentioned we're in amount we're $X.XX. go exchanger and bump.

So end yes, day, the we're the And the range driving usual. now. at top as of in it's right towards all of the

Operator

Joe our Fargo. Wells next take question we'll And from O'Dea,

Joseph O'Dea

now wanted you're and terms of inflecting what of belowground in are and touch Just the perspective and how in there trends or early fueling, context seeing positively on we growth? in the some to fueling any of sort seeing around cycle comments on terms

Richard Tobin

been labor for suffered Three for think, a that the of gone variety retail and Yes. and their a just they system. and that you it inputs inflation right, things projections ability CapEx the was lack at I the I mean us numbers that's operators, for inflationary through looked headwind because with because of had going never the hit of years, of

availability, So positively, we labor, We've that to which just it's inflect costs business. begin labor to better. great seen getting that and is particular accretive had because margin

-- that to we cycle would and here. So from expect forward

of On but you it, it, been us. is can't muted, relatively the so demand side that see it's

think for business this Europe that managing are and some about made margin, in We Asia. decisions I take, and particularly we've would tougher business we

growth an to rate EBITDA the least margin -- cryogenic ] can with that this in at up exit has kind because So the because XX% at line XX [ or muted goal. combination we components, the top segment of at if get we entire right, we get the

Joseph O'Dea

And just circle that. to restructuring. appreciate wanted then I the on back

comments but be of think that about $XX more. year, carryover you head talked as next also million some I into you there made could

terms And -- planning that happening sort of heard in there additional where of more correctly make and are I wanted to just sure the we underway efforts see that across I of business? so could

Richard Tobin

Yes.

million either 'XX. I year think or that completed the $XX be in is completed to fiscal

go. So this year. of about forward that's cryogenic lot XX-ish. to that I we've I Like synergy But target previously, got we mentioned acquisitions the that the what had get a in put the was think roll we done

which consolidation requires takes that of longer. over time, Some footprint

up will the about be year, that my pick some in driving restructuring which clearly to XX to through segment forward. [ incurring roll quarters next will require back further ], of to more So which costs costs, we'll comment X the kind first of X

you in the in see that be or completed to is fiscal 'XX. number that again, year incurred chart, So

Operator

our take from we'll question Tusa, And next JPMorgan. Steve

C. Stephen Tusa

dumber kind the than of guiding revenue guidance of to is an this ask absolute for you're Scott. I'm this actual year, even like the year? going question for to What kind rough number

Richard Tobin

know. don't I

we [ X right in to ] line, [ the top X think a ]. you gave at I range

So...

C. Stephen Tusa

a like billion that it comes Right. But number, -- is off $X.X to? out of something like like

Richard Tobin

off I of me. the Got don't my head. know top

C. Stephen Tusa

dumb it's of kind -- not I I'm question. a guess

Richard Tobin

sure the it I'm baseline I can to Jack know and don't get exact with you give can we what number to it, you, comes follow it off. but up that

C. Stephen Tusa

I that. wanted think X to [ double by my math, check X ], it's just

are So how big headwinds... the

Richard Tobin

questions and This your going. interest boss keep net address is about that. income like Anyway,

C. Stephen Tusa

Sorry, think. line kind absolute sales think? total I you top important, like of Don't

Richard Tobin

Well, you'd But that. I model be think to go that able ahead.

C. Stephen Tusa

you you people Like is big stuff billion like and and company you like the should parties, like ask run know kind cocktail that, right? don't you of how out $X throw

Richard Tobin

I'm guy, but curtail going. not anyway, party a keep

C. Stephen Tusa

about businesses, how those headwind call $X them, big The year? those are billion in total? like Are this as we'll

Richard Tobin

No, no. no,

C. Stephen Tusa

$X billion.

that? like Something

Richard Tobin

I'd my the I basis? full mean, math in 'XX a we year to talking head. are have on do what

C. Stephen Tusa

I just million like what $XXX of what like... -- mean like off the was like base, Yes. were

Richard Tobin

like it it's the like $X billion billion. Yes I'm doing $X of in -- back my head,

C. Stephen Tusa

Yes.

it it. is modestly Got of your And something year? it pressure? it or like for little more even or as of is price for kind a as far that maybe kind Or next any point year seeing pricing, that a outlook Is Okay. positive you're next like normal? anywhere like

Richard Tobin

of end, on else, advantage but XX into Modestly pricing to And favorable. input is than -- ] we've mix [ anything modestly going taking positive metals that long -- modest pricing. because on more pretty commodity been

actually going been to [ that help of the XX ] out. we've So gone out

C. Stephen Tusa

for one just one you. Okay. And last then

course, of worry year? business? are declines businesses like next of other in not the of the and businesses, of other for not like headwind not mixed any DII, kind businesses growth, -- on watch the And you of the those the that that there For kind bag the out of like any DII outside secular other

Richard Tobin

knew We the got exchangers. in cover we wrong of Maag. knew on portfolio heat kind There's about of business not 'XX. to We the kind Belvac. about commentary. knew it as into We but with Try quantum another that look headwind in

kind that we'll only the would have the of macro, worry we see. So about then and would be

Operator

our Goldman And we'll Joe question take Ritchie, next Sachs. from

Joseph Ritchie

project -- financing the arguably better ask there. I so class getting The follow month getting positively -- sometime because hopefully certainty so. Steve's slightly question or election to act Tough If more full. have rates. or in next going maybe we're to, interest hopefully, of to I'm

really call of impacted out fact their that's one carwash your had the competitors You've business. that,

think both playing you interest see rates, of point. see And is potentially how business? kind macro ball, like XXXX? you you don't out kind your could have which that a like that this in where that know guess to And and you crystal benefit element, of As at through do election best your a so

Richard Tobin

do we fail, but would business into that's extent a get we right? takes -- about, into a I for you'll stays you feel have half this capital more quotes other at we in mean -- hoped the things the caution the kind at think not It's impact I pushed of things, and could expect interest bigger uncertainty look have and it of variety it's that 'XX -- of some that related that that -- on of of I actual we that think I project-based to we So had can that amount a notion you because second kind take if Yes. But would of rates lot volume. we the can that call you would going turn our project hear to of businesses a certainty expect a a that and inflect down cost bit the those orders election positively. like a to if 'XX, out that there. bad, for not look of of quoting of -- being some little time not amount take versus would

Joseph Ritchie

recovery Okay. And to XX-plus feeling kind Fair see. of then we get we up I that biopharma, the know logical talked The that in bit And the that margins is back recovery can good next to question awesome little XXXX. like the you're which range. when is into about enough. business a of about

of to And so around back any thoughts next year. XX% just getting kind

Richard Tobin

Maag's that's Well, that credit period And XX% excellent. is headwinds, way, taking ability to top the the preserve now. in -- account is was was it bottoming line that during by And into their margins still despite taking to into Maag the account quarter. probably

got is extent stays the to growth positive more rate on the particular everything that be segment to we've the to So track and of that margin and me, that single-use it's going incremental is, all it thermal in we to XX% posted. in what pumps, that it the it's biopharma just

Operator

Citigroup. question from Kaplowitz take from Andy our We'll next

Andrew Kaplowitz

just aren't tailwind XX% understanding that you mix to long-term do some guidance, the say with restructuring as XX% you've you you that giving and out incremental. know, 'XX Rich, about as with you did incrementals said, benefits. XX% And talked

to transformation, margin accelerated that we So Or portfolio making a this excited that at is is bit Dover higher -- that more get incremental transition capable really should a with company? premature? point

Richard Tobin

margins is, day. don't high-growth think but of end the of we had we part matter other greater mean, that all portfolio. than action business and cyclicality that No, of I that fact took. the that's the was the decremental ESG, the it's the -- we [indiscernible] I love to market the And at at end reason premature it a took

is repeating investing talked is you and but should myself, Day, we Slide doing about to in back go Slide -- want the to this organically don't we're we last and So where hopefully, higher have it action be Conyers, in what I down if higher high-growth X -- Investor a went margin And keep that and saw X, profiles incremental to that you is at inorganically. to the DFR high mean business. business I margin that segment growth when saw you COX businesses I you an rates it to them. mean systems yourself and back

to to by hook investment, And parcel by there we're fire, in irons going or it's investment driving the ], or consolidated part organic crook. it's XX whether all portfolio -- inorganic get the we've the margin or got segment to it's right? all So construction [ and

Andrew Kaplowitz

Love it.

Okay. around just And question then love another bookings. you

exchanger stuff, clarification, thought that back. in heat X. one is you holding the DCST know of macro the what mentioned was projects big book-to-bill Just I you difference like some versus really maybe still

As side? you getting closer if begin CST look heat show book-to-bill X some the you does life to see at exchanger to QX, on do

Richard Tobin

It down taking assumptions basically systems bookings going COX because we're to depends intake be the in order on is what for heat pumps.

forecast So which I into going Whether heat for -- pumps be forecast. can what we is -- we maybe into we that definitive. is worse should accommodated had know QX, originally our

will materially QX can get we bookings or of orders question in we from systems. It's higher on them a inflect whether in not. that COX forecasting expect just We to

Andrew Kaplowitz

of the in a question when. Got it. next But coming of quarters, couple it's just

Richard Tobin

Yes.

Operator

final our Mike question And Halloran comes from Baird. from

Michael Halloran

-- quick quick couple couple ones. of So

Just comments on would anything the -- Or you to the comment in that inventory of and broader the managing capacity about is utilization, Is just quarter heat I of there fourth piece? scale talked have levels year. don't last on channel? think any this tied exchanger this is the

Richard Tobin

production backlog, believe Yes. -- Overall, in how on assumptions we'd that push like can then in end and we performance to maximize to are it year. absorption flow depending and it's cash terms the next cash delivery do out flexes QX, flow of backlog if fixed right, it we and day, of into prudent the in at we up the of of because January cost so preserves

that trying we consciously comment. businesses So right? we So in we'll in room wider kind decision beginning the to us to about in made it's of to margin selective This the a is across be buys don't in it that not QX, we're it a want like where QX do because QX in that back by why building the was to because nearly portfolio. the what destocking more and happy that's do the select days of inventory, results do protect

Michael Halloran

that I want applicable just piece horse or the margin And the here. to sense. Makes not more to make XX% understand. comments insular beating sure segment, something [indiscernible]. just gas I a whole The was for dead not DCF,

Richard Tobin

segment. whole The

Operator

That question-and-answer XXXX period Third Thank Dover's our you. Call. and concludes Earnings Quarter Conference

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

Dover (DOV) 24 Oct 242024 Q3 Earnings call transcript