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Dover Corporation DOV announced that it acquired a specialized designer and manufacturer, Cryogenic Machinery Corp. ("Cryo-Mach"). This move will boost DOV’s position in the cryogenic end market.
Buyout to Aid DOV’s Participation in Cryogenic Applications
Cryo-Mach, headquartered in California, specializes in the designing and manufacturing of mission-critical cryogenic centrifugal pumps, mechanical seals and accessories. It will become part of Dover’s PSG business within the Pumps & Process Solutions segment.
The PSG business will benefit from Cryo-Mach’s products and will boost the company’s participation in cryogenic applications, such as liquified oxygen, argon and nitrogen. This will aid the company’s presence in the industrial gas and transportation markets.
With this deal, the core portfolio of the PSG business will expand to cryogenic centrifugal pump technology. The transaction is in sync with Dover’s strategy to expand its core and gain access to adjacent markets that enable sustainability and growth.
Dover’s Focus on Growth
DOV has been focused on expanding its portfolio. On Jan. 13, 2025, the company announced that it acquired certain assets of Carter Day International, Inc.'s petrochemical division. The assets became part of Dover’s MAAG business unit within the Pumps & Process Solutions segment.
The acquisition strengthens MAAG's pelletizing-system portfolio of dewatering and drying equipment for the plastics industry with highly engineered products and patented technologies. It adds high-volume dryer technology to Dover's portfolio.
DOV’s Q3 Performance
The company reported third-quarter 2024 adjusted earnings per share (EPS) from continuing operations of $2.27, beating the Zacks Consensus Estimate of $2.16. In the year-ago quarter, it reported an adjusted EPS of $2.14 (excluding after-tax purchase accounting expenses and after-tax gain on disposition of a minority-owned equity method investment).
Total revenues in the third quarter were $1.98 billion, up 1.3% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $1.99 billion. Organic growth was 0.3% in the quarter.
The Pumps & Process Solutions segment’s revenues rose 9.5% year over year to $472 million in the third quarter and surpassed our estimate of $465 million. The adjusted EBITDA of the segment totaled $151 million, up 16.2% from the year-ago quarter’s $130 million. The reported figure lagged our projection of $151 million.
DOV Stock’s Price Performance
DOV shares have gained 32.9% in the past year compared with the industry’s growth of 14.4%.