Adjusted segment EBITDA margins reached a record above 25%, supported by portfolio actions, positive mix, and rigorous cost containment and productivity.
Dover's second quarter results were strong, driven by excellent production performance, positive margin mix from growth platforms, and carryforward cost actions from prior periods.
Margin improvements were noted across segments, including 80 basis points in Clean Energy & Fueling and 60 basis points in Climate Sustainability.
Order trends were positive, up 7% year-over-year, with the majority of third quarter revenue already in backlog and July orders tracking well.
Segment revenue performance varied: Engineered Products down on vehicle services volumes; Clean Energy & Fueling up 8%; Imaging & ID stable; Pumps & Process Solutions up 4% organically; Climate Sustainability down due to declines in food retail cases and engineering services.
Top line performance accelerated with broad-based shipment growth in short-cycle components and outperformance over secular growth exposed end markets.
Year-to-date free cash flow was $261 million or 7% of revenue, up $41 million over prior year, with expectations to accelerate in the second half of the year.
Aerospace segment posted 10% order growth on a rolling 12-month basis and backlog expansion of 16% year-over-year.
Data center market showed exceptional growth with orders up approximately 55% and sales up 50% versus Q2 2024.
Eaton posted record quarterly revenue of $7 billion in Q2 2025, with adjusted EPS of $2.95, up 8% year-over-year, hitting the high end of guidance.
Electrical Americas backlog grew 17% year-over-year to $11.4 billion, with orders accelerating to +2% on a trailing 12-month basis from -4% last quarter.
Organic sales growth was 8% overall, driven by strong performance in Electrical Americas (12%), Electrical Global (7% organic plus 2% FX), and Aerospace (11%).
Segment margins expanded by 20 basis points to 23.9%, with Electrical Americas operating margin at 29.5%, Electrical Global at 20.1%, Aerospace at 22.2%, Vehicle at 17%, and eMobility operating loss of $10 million.
Vehicle segment declined 8% organically due to weakness in North America truck market, while eMobility revenue decreased 4% with an operating loss.
Bookings in Q4 were a record $342 million with a book-to-bill ratio of 1.25, resulting in a record backlog of $1.4 billion, up 6% year-over-year.
Free cash flow for Q4 was $34 million, exceeding expectations, and full year free cash flow was a record $119 million.
GAAP net income in Q4 was $16 million versus a net loss of $11 million in the prior year quarter; full year GAAP net loss improved to $38 million from $138 million.
Q4 adjusted EBITDA was $51 million with a margin of 18.8%, up over 700 basis points sequentially; full year adjusted EBITDA was $119 million with a 13.1% margin.
Q4 revenue was $273 million, up 9.9% year-over-year, with full year revenue of $912 million, up 9.2%.
Dafinchi