Dover Corp at Robert W Baird Global Industrial Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Halloran - Baird - Analyst : <_ALACRA_META_ABSTRACT>Yeah, why don't we keep it generic then. What's the state of the union from your perspective?

Question: Michael Halloran - Baird - Analyst : Yeah, why don't we do the portfolio stuff and then for everyone here, again, (Operator Instructions) but we'll do portfolio, macro kind of current environment, how you think about it, then any kind of subset questions from there.

Question: Michael Halloran - Baird - Analyst : So what's the goal then, right? I mean, at the end of the day, we're trying to get rid of cap goods. We're trying to focus on, call it, higher-value componentry or subsystems, however you want to put it. Journey is towards an end. I wouldn't say at the end, but you're towards an end, right?

Question: Michael Halloran - Baird - Analyst : So why don't we talk about what we're trying to accomplish with the gas platform because I don't know if people totally understand the uniqueness of the approach you've taken in that area and why you think it's such a good bet on growth and profitability.

Question: Michael Halloran - Baird - Analyst : And to the point, just to emphasize, it's not a bet on one gas, right? I mean, you're going to be relatively agnostic to this sphere.

Question: Michael Halloran - Baird - Analyst : And so maybe talk a little bit about what you're seeing from a pipeline perspective and why you're so confident the next couple of years are going to lead to some outsized opportunities for you in the market?

Question: Michael Halloran - Baird - Analyst : Yeah. I had one -- a different company earlier today, yesterday, it all blurs. But they basically said, look, I think one of the challenges from our seat -- my seat, investors, is that you don't see all the conversations behind the scenes, you just see the end product. But there's just a ton of conversations, pipeline work that eventually will have to come forward. Do you agree?

Question: Michael Halloran - Baird - Analyst : So back to the M&A side of things. I know you've been outspoken about the amount of content in the marketplace that's going to come up for bid. Is it the type of businesses that you're interested in? I mean, talk about your actionability within the context of amount of private equity stock, some of these private companies saying, maybe I don't want to deal with another war or another round of -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 13, 2024 / 3:40PM, DOV.N - Dover Corp at Robert W Baird Global Industrial Conference

Question: Michael Halloran - Baird - Analyst : It's more targeted too, right? As far as the divestiture side goes, how are you thinking then about the portfolio? I know there's going to be a restructuring of the segments coming up here, very well telegraphed, I appreciate it. But how are you thinking about what's left to do on the pruning side?

Question: Michael Halloran - Baird - Analyst : Yeah. No, makes sense. Last one on the kind of capital allocation side, external. What's the capacity sit at today? And then how do you factor in buyback into this equation? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 13, 2024 / 3:40PM, DOV.N - Dover Corp at Robert W Baird Global Industrial Conference

Question: Michael Halloran - Baird - Analyst : So let's use that as a segue way to growth. If I look back to the Analyst Day, what? 4%, 6%-ish kind of topline growth in a, call it, normal environment. We'll talk about the fact that you think we're transitioning to a normal environment in a sec here. But the portfolio moves inherently seem like they're either at the low end making that growth profile that much more achievable or maybe even being additive to the growth. So maybe put the growth profile in the context of some of the recent moves you made on the portfolio swapping almost, right?

Question: Michael Halloran - Baird - Analyst : Now you can compliment Jack, right? So you can do both.

Question: Michael Halloran - Baird - Analyst : And the moves you made have concentrated you on the left side of the panel.

Question: Michael Halloran - Baird - Analyst : The moves you've made have concentrated you on the left side of this.

Question: Michael Halloran - Baird - Analyst : And this basically is the template for why you're confident next year is normal-ish, right, as a starting point, and then we'll see what we get when we get into.

Question: Michael Halloran - Baird - Analyst : So if I phrase it a different way and if you look at kind of the month-to-month cadencing or week to week, are you at the point where you're getting more stability in the underlying patterns on orders? Is it sequentially normal yet? Or is it still pretty choppy?

Question: Michael Halloran - Baird - Analyst : And the inventory side is pretty flattened out.

Question: Michael Halloran - Baird - Analyst : So if I think about your equation for next year, is it as simple as the $300 million goes away, you still have these good growth vectors. And the pieces not addressed on this slide are stable from current levels, and we'll see if they get a little better, right?

Question: Michael Halloran - Baird - Analyst : So speaking of thousands and thousands of other issues, what's your early take on the election, tariffs, impact for you, any of the high-level thoughts?

Question: Michael Halloran - Baird - Analyst : What worries you at this point then? I mean, it feels like if I think back over the last 2, 2.5 years, we've had a few more stress points, this probably feels the least amount of stress, least amount of concern points in the portfolio. I mean, agree, disagree, what's the pressure point at this point?

Question: Michael Halloran - Baird - Analyst : So a couple -- just a quick one on the margins before we transition to some of the unique end markets. Where do we stand in the margin journey here? Some of the puts and takes in the portfolio are going to be additive to that profile over time, the internal things you're working on are additive, return to volume growth should be helpful. How should we think about that trajectory?

Question: Michael Halloran - Baird - Analyst : All right. So a couple of end markets here then. Biopharma, how do you think about the growth trajectory there? And then maybe if China doesn't really come back, can that market grow similarly to what it did historically?

Question: Michael Halloran - Baird - Analyst : And is that core end market growth, just inventory levels, meaning that you're finally doing sell in, sell out? Is there an exploration component to it because I know those things do tap --

Question: Michael Halloran - Baird - Analyst : Makes sense. Imaging side, some leading indicators there are turning a little more positive. Do you think that has systemic legs? Or is this just a little bit of a catch-up from some underinvestment?

Question: Michael Halloran - Baird - Analyst : Absolutely. Heat exchangers you mentioned earlier, I mean, you look at the data coming out of Germany as an example, it's bottomed, right? It can't get much worse.

Question: Michael Halloran - Baird - Analyst : Is there a true recovery behind this? Or is this -- at least we found the bottom and then when the recovery hits then we're in a better spot.

Question: Michael Halloran - Baird - Analyst : Yeah. At least at the minimum, it's floating along the bottom. So the thermal connector piece, got a question here. I know with the gas platform, you talked about how you are at the front end of that curve from an electrification perspective. Does the thermal connector piece tie into the data center side? And what kind of application might that look like if so? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 13, 2024 / 3:40PM, DOV.N - Dover Corp at Robert W Baird Global Industrial Conference

Question: Michael Halloran - Baird - Analyst : Any thoughts generically on short-cycle dynamics versus more project and CapEx dynamics. And I'm kind of asking the question from what are your customers saying on the content projects and getting those to move forward more aggressively versus -- and compare and contrast to kind of the short cycle commentary they might have or the buying patterns they might have?