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Dover Boosts PSG Business Portfolio With Cryo-Mach Acquisition

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Dover Corporation (DOV - Free Report) 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%.

 

Zacks Investment Research Image Source: Zacks Investment Research

 

Dover’s Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Industrial Products sector are Graham Corporation (GHM - Free Report) , Applied Industrial Technologies (AIT - Free Report) and Tenaris S.A. (TS - Free Report) . GHM sports a Zacks Rank #1 (Strong Buy), and AIT and TS have a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.

Graham delivered an average trailing four-quarter earnings surprise of 101.85%. The Zacks Consensus Estimate for GHM’s 2024 earnings is pinned at $1.03 per share, which indicates a year-over-year upsurge of 145.2%. The company’s shares have skyrocketed 127% in a year.

Applied Industrial delivered an average trailing four-quarter earnings surprise of 4.9%. The Zacks Consensus Estimate for AIT’s fiscal 2025 earnings is pinned at $9.77 per share, which indicates year-over-year growth of 0.2%. The company’s shares have gained 46.4% in a year.

The Zacks Consensus Estimate for Tenaris’ 2024 earnings is pegged at $3.29  per share. The company delivered a trailing four-quarter average earnings surprise of 24.5%. TS shares have gained 25.5% in a year.


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