Latest news with #TodCarpenter
Business Wire
3 days ago
- Business
- Business Wire
Donaldson to Present at the William Blair 45 th Annual Growth Stock Conference
MINNEAPOLIS--(BUSINESS WIRE)--Donaldson Company, Inc. (NYSE: DCI), a leading worldwide provider of innovative filtration products and solutions, today announced that Tod Carpenter, chairman, president, and chief executive officer will present at the William Blair 45 th Annual Growth Stock Conference on Thursday, June 5, 2025, beginning at 10:40 a.m. CT. WEBCAST: To listen to a live webcast of the presentations, visit the 'Events & Presentations' section of Donaldson's Investor Relations website at and click on the 'listen to webcast' option. REPLAY: The webcast replays will be available within the 'Events & Presentations' section of Donaldson's Investor Relations website for approximately 90 days following the event. Expand About Donaldson Company Founded in 1915, Donaldson (NYSE: DCI) is a global leader in technology-led filtration products and solutions, serving a broad range of industries and advanced markets. Diverse, skilled employees at over 140 locations on six continents partner with customers - from small business owners to R&D organizations and the world's biggest OEM brands. Donaldson solves complex filtration challenges through three primary segments: Mobile Solutions, Industrial Solutions and Life Sciences. Additional information is available at
Yahoo
3 days ago
- Business
- Yahoo
Donaldson Co Inc (DCI) Q3 2025 Earnings Call Highlights: Record Sales Amidst Market Challenges
Sales: Increased 1% year over year to $940 million. Operating Margin: Improved by 80 basis points over 2024. Adjusted EPS: $0.99, up approximately 8% versus prior year. Mobile Solutions Sales: $583 million, roughly flat with prior year. Industrial Solutions Sales: Rose 5% to $283 million. Aerospace and Defense Sales: Reached a record $52 million. Life Sciences Sales: $74 million, grew 1% compared with prior year. Gross Margin: 34.5%, a decrease of 110 basis points from last year. Pre-tax Profit Margin (Mobile Solutions): 18.1%, down 30 basis points year over year. Pre-tax Profit Margin (Industrial Solutions): 18.1%, down 60 basis points. Pre-tax Profit Margin (Life Sciences): Improved to 7.8%. Share Repurchase: 2.4% of outstanding shares for $192 million in Q3. Dividend Increase: Announced an 11% increase in quarterly dividend. Warning! GuruFocus has detected 7 Warning Signs with SPWH. Release Date: June 03, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Donaldson Co Inc (NYSE:DCI) achieved record sales and adjusted earnings despite macroeconomic uncertainties. The company announced an 11% increase in its quarterly dividend, reflecting strong financial health. Sales growth was observed across all three segments, with significant contributions from the aftermarket business. The aerospace and defense segment reached an all-time high in sales, showcasing strong market demand. Donaldson Co Inc (NYSE:DCI) maintained a strong balance sheet, enabling significant share repurchases and strategic investments. The company faced a $62 million impairment charge related to intangible assets in its bioprocessing businesses. Gross margin decreased by 110 basis points due to higher manufacturing costs and footprint optimization initiatives. First-fit businesses in developed regions are experiencing cyclical headwinds, particularly in the transportation and agriculture markets. The bioprocessing segment continues to face market headwinds, impacting sales and profitability. Currency translation posed a headwind, partially offsetting sales growth. Q: Can you discuss the gross profit margin dynamics and the impact of footprint optimization initiatives? A: The majority of the decline in gross margin was due to footprint optimization initiatives, including plant rationalization activities in the US and UK. We are confident in remaining price-cost neutral and will continue to hold on to pricing where possible. (Brad Pogalz, CFO) Q: What is driving the lowered CapEx outlook for the year, and how do you see strategic capital investments evolving? A: We launch CapEx projects when we can execute them effectively. Current focus is on managing supply chain pressures and maintaining inventory levels to prioritize customer needs. Strategic capital investments will continue as conditions stabilize. (Tod Carpenter, CEO) Q: Can you provide more color on industrial solutions top-line trends and connected service revenue? A: The equipment side of industrial solutions is pressured, but aftermarket growth and share gains in stationary hydraulics are offsetting this. Connected service revenue continues to grow, providing a solid foundation despite softening CapEx. (Tod Carpenter, CEO) Q: What was the margin impact of reversing the Purilogics earn-out reserves, and are fiscal '26 targets for life sciences still in play? A: The Purilogics earn-out reserve reversal was about $6 million. We are reviewing fiscal '26 targets and will provide updates in the fourth quarter. Life sciences profitability has improved sequentially each quarter. (Brad Pogalz, CFO) Q: How is the aftermarket business expected to perform in the next fiscal year? A: The aftermarket business is expected to continue its strong performance, driven by vehicle utilization and share gains. The cyclicality of the business typically results in stronger third and fourth quarters. (Tod Carpenter, CEO) Q: What is the visibility like for the aerospace and defense segment, and how does it impact fiscal 2026? A: We have long visibility on aerospace and defense projects, with some extending to fiscal year '28. Despite supply chain uncertainties, the segment is performing well, and we expect continued strength. (Tod Carpenter, CEO) Q: How should we think about the timing of tariff impacts and mitigation efforts? A: The annualized impact of tariffs is estimated at around $35 million, which we expect to offset through pricing and supply chain adjustments. The region-to-region footprint provides a natural hedge against tariff impacts. (Brad Pogalz, CFO) Q: What are your preliminary thoughts on fiscal '26, and how do you view mobile aftermarket inventory levels? A: Mobile aftermarket inventory levels are at pull-through levels, and we expect normal cyclicality in the fourth quarter. For fiscal '26, we are well-positioned to leverage economic improvements, with plans to be finalized in the coming months. (Tod Carpenter, CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
3 days ago
- Business
- Yahoo
Donaldson (NYSE:DCI) Misses Q1 Revenue Estimates
Filtration equipment manufacturer Donaldson (NYSE:DCI) fell short of the market's revenue expectations in Q1 CY2025 as sales only rose 1.3% year on year to $940.1 million. Its non-GAAP profit of $0.99 per share was 4.5% above analysts' consensus estimates. Is now the time to buy Donaldson? Find out in our full research report. Revenue: $940.1 million vs analyst estimates of $948 million (1.3% year-on-year growth, 0.8% miss) Adjusted EPS: $0.99 vs analyst estimates of $0.95 (4.5% beat) Adjusted EBITDA: $183 million vs analyst estimates of $178.2 million (19.5% margin, 2.7% beat) Management slightly raised its full-year Adjusted EPS guidance to $3.67 at the midpoint Operating Margin: 9.3%, down from 15.5% in the same quarter last year Free Cash Flow Margin: 7.8%, down from 13% in the same quarter last year Constant Currency Revenue rose 1.6% year on year (6.8% in the same quarter last year) Market Capitalization: $8.27 billion 'I am proud of our third quarter earnings results which are a testament to the durability of our business model and the strength of the Donaldson team,' said Tod Carpenter, chairman, president and CEO. Playing a vital role in the historic Apollo 11 mission, Donaldson (NYSE:DCI) manufacturers and sells filtration equipment for various industries. A company's long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Regrettably, Donaldson's sales grew at a mediocre 6.3% compounded annual growth rate over the last five years. This fell short of our benchmark for the industrials sector and is a rough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Donaldson's recent performance shows its demand has slowed as its annualized revenue growth of 2.9% over the last two years was below its five-year trend. We can dig further into the company's sales dynamics by analyzing its constant currency revenue, which excludes currency movements that are outside their control and not indicative of demand. Over the last two years, its constant currency sales averaged 3.1% year-on-year growth. Because this number aligns with its normal revenue growth, we can see that Donaldson has properly hedged its foreign currency exposure. This quarter, Donaldson's revenue grew by 1.3% year on year to $940.1 million, falling short of Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 2.4% over the next 12 months, similar to its two-year rate. This projection is underwhelming and suggests its newer products and services will not lead to better top-line performance yet. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Donaldson has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 13.8%. This result isn't too surprising as its gross margin gives it a favorable starting point. Looking at the trend in its profitability, Donaldson's operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. In Q1, Donaldson generated an operating margin profit margin of 9.3%, down 6.2 percentage points year on year. Since Donaldson's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Donaldson's EPS grew at a solid 11.1% compounded annual growth rate over the last five years, higher than its 6.3% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't expand. We can take a deeper look into Donaldson's earnings to better understand the drivers of its performance. A five-year view shows that Donaldson has repurchased its stock, shrinking its share count by 5.8%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Donaldson, its two-year annual EPS growth of 7.6% was lower than its five-year trend. We hope its growth can accelerate in the future. In Q1, Donaldson reported EPS at $0.99, up from $0.92 in the same quarter last year. This print beat analysts' estimates by 4.5%. We also like to analyze expected EPS growth based on Wall Street analysts' consensus projections, but there is insufficient data. It was great to see Donaldson slightly lift its full-year EPS guidance. We were also happy its EPS and EBITDA topped analysts' expectations. On the other hand, its constant currency revenue fell slightly short of Wall Street's estimates. Zooming out, we think this was a mixed quarter. The stock remained flat at $68.90 immediately after reporting. Big picture, is Donaldson a buy here and now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
3 days ago
- Business
- Yahoo
Donaldson CEO Says Tariff Impact Is Immaterial, Raises Annual Profit Outlook
Donaldson Company, Inc. (NYSE:DCI) announced its third-quarter results on Tuesday. Sales rose 1.3% year over year (Y/Y) to $940.1 million, led by favorable pricing and volume growth. It missed the consensus estimate of $943.02 million. GAAP net earnings significantly decreased to $57.8 million (or 48 cents per share) from $113.5 million (or 92 cents per share) in the prior year. This drop was primarily due to $65.8 million in pre-tax, non-recurring net charges, including a substantial $62.0 million impairment of intangible assets for two upstream bioprocessing businesses. The company reported adjusted EPS of 99 cents in line with the Segment, Mobile Solutions sales declined 0.4% Y/Y due to lower volumes, and aftermarket sales rose 3.3% Y/Y, aided by strong OE channel demand and independent channel market share gains. Industrial Filtration Solutions sales upped 5.3% Y/Y on strong volume and pricing growth, while Aerospace and Defense sales rose 27.1% Y/Y, led by strong Aerospace end-market conditions. Life Sciences segment sales increased 0.7% Y/Y, led by continued strength in Disk Drive market and higher Food and Beverage replacement part sales. Gross margin stood at 34.2% in the quarter compared to 35.6% a year ago quarter owing to higher manufacturing costs, including footprint optimization initiatives. Year-to-date, Donaldson paid $96.9 million in dividends and repurchased shares worth $273.8 million. Last month, the Board of Directors increased cash dividend per share by 11.1% from the prior quarterly dividend to 30 cents, payable on June 30, 2025, to shareholders of record as on June 16, 2025. Donaldson revised its FY25 guidance for adjusted EPS to $3.64-$3.70 (vs. consensus of $3.60) from the previous range of $3.60-$3.68. The company revised sales growth to be up 1% to 3% (vs. earlier guidance of flat to up 4%), with pricing expected to contribute one percentage point of the increase and impacts from currency translation and tariffs to be immaterial. Donaldson projects mobile sales growth to be flat to up 2% (vs. down 1% to up 3% prior), Industrial sales growth of 2% and 4% (vs. 1% to 5% earlier), and Life Sciences sales to increase in the high single digits. For the full year, Donaldson anticipates repurchasing approximately 3.5% and 4.0% of its shares outstanding. Tod Carpenter, chairman, president, and chief executive officer, said, 'For the full year, we expect to generate record sales and adjusted earnings. Importantly, our region-for-region footprint combined with the speed of decision making following our organizational redesign contribute to our expectation that the net impact on earnings from current tariffs will be immaterial.' Investors can gain exposure to the stock via VanEck Green Infrastructure ETF (NASDAQ:RNEW) and VanEck Environmental Services ETF (NYSE:EVX). Price Action: DCI shares are trading higher by 6.98% to $74.00 premarket at last check Tuesday. Read Next:Photo via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? DONALDSON (DCI): Free Stock Analysis Report This article Donaldson CEO Says Tariff Impact Is Immaterial, Raises Annual Profit Outlook originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Donaldson Reports Third Quarter Fiscal Year 2025 Sales and Earnings
Record third quarter sales driven by continued growth of replacement parts Further progress on cost and footprint optimization efforts Accelerated share repurchase, announced 11% quarterly dividend increase Raising fiscal 2025 adjusted EPS guidance MINNEAPOLIS, June 03, 2025--(BUSINESS WIRE)--Donaldson Company, Inc. (NYSE: DCI) (Donaldson or the Company), a global leader in technology-led filtration products and solutions, today reported third quarter fiscal 2025 generally accepted accounting principles (GAAP) net earnings of $57.8 million, compared with $113.5 million a year ago. Earnings per share (EPS)1 were $0.48 compared with 2024 EPS of $0.92. These results include $65.8 million of pre-tax, non-recurring net charges, including $62.0 million for the impairment of certain intangible assets for two upstream bioprocessing businesses. Excluding these items, adjusted third quarter results2 reflect net earnings of $118.9 million, up 4.8% compared with prior year, and EPS of $0.99, a 7.6% increase versus 2024. "I am proud of our third quarter earnings results which are a testament to the durability of our business model and the strength of the Donaldson team," said Tod Carpenter, chairman, president and chief executive officer. "Showing our company strength, we reported record sales and record adjusted earnings per share, raised full-year adjusted earnings per share guidance, accelerated share repurchase to 3.3% of outstanding shares year-to-date, and recently announced an 11% increase to our quarterly dividend. "For the full year, we expect to generate record sales and adjusted earnings. Importantly, our region-for-region footprint combined with the speed of decision making following our organizational redesign contribute to our expectation that the net impact on earnings from current tariffs will be immaterial. We are focused on disciplined execution and purposeful investments for future growth in all three of our segments, solidifying our long-term ability to return cash to shareholders and remain the leader in technology-led filtration." _____________________________ 1 All EPS figures refer to diluted EPS. 2 Adjusted figures are non-GAAP financial measures that excludes the impact of certain items not related to ongoing operations. The tables attached to this press release include a reconciliation of GAAP to non-GAAP measures. Third Quarter Operating Results Sales of $940.1 million increased 1.3% compared with 2024 driven by pricing benefits and volume growth. Three Months Ended Nine Months Ended April 30, 2025 April 30, 2025 Reported %Change ConstantCurrency %Change Reported % Change ConstantCurrency %Change Mobile Solutions segment Off-Road (8.3 )% (8.0 )% (8.9 )% (8.5 )% On-Road (24.5 ) (24.3 ) (21.1 ) (20.6 ) Aftermarket 3.3 4.0 5.9 6.6 Total Mobile Solutions segment (0.4 ) 0.2 1.6 2.3 Industrial Solutions segment Industrial Filtration Solutions 1.4 1.5 (1.8 ) (1.7 ) Aerospace and Defense 27.1 27.0 24.2 24.2 Total Industrial Solutions segment 5.3 5.3 2.0 2.1 Life Sciences segment Total Life Sciences segment 0.7 (0.2 ) 8.3 7.7 Total Company 1.3 % 1.6 % 2.2 % 2.6 % Mobile Solutions segment (Mobile) sales decreased 0.4%, however increased 0.2% in constant currency as a result of pricing offset by volume declines. On-Road sales decreased 24.5% and Off-Road sales declined 8.3% from ongoing weakness in transportation and agriculture markets, respectively. Aftermarket sales rose 3.3% driven by strong OE channel demand and independent channel market share gains. Industrial Solutions segment (Industrial) sales increased 5.3%, primarily from solid volume growth and pricing. Aerospace and Defense sales grew 27.1% as a result of robust Aerospace end-market conditions. Industrial Filtration Solutions (IFS) sales rose 1.4% driven by replacement part sales strength in several key businesses, partially offset by weakness in new equipment sales. Life Sciences segment (Life Sciences) sales increased 0.7% as a result of continued Disk Drive market strength and Food and Beverage replacement part sales, partially offset by unfavorable timing of bioprocessing sales. Gross margin was 34.2%, down versus 35.6% in 2024 due to higher manufacturing costs, including for footprint optimization initiatives. Adjusted gross margin, excluding restructuring charges, was 34.5%. Operating expenses as a percentage of sales were 24.9%, an increase from 20.1% in the prior year, driven by impairment of intangible assets, restructuring, and business development charges. Excluding these charges and a gain on the sale of fixed assets, adjusted operating expenses as a percentage of sales were 18.2%, a 190-basis point improvement versus prior year, driven by the reversal of an earn-out reserve related to Purilogics, lower warranty expense, and ongoing expense discipline. Operating income as a percentage of sales (operating margin) was 9.3% compared with 15.5% in 2024 driven by gross margin pressure and higher operating expenses due to non-recurring charges. Adjusted operating margin was 16.3%, an 80-basis point year-over-year increase resulting from expense leverage. Interest expense was $5.7 million versus $5.0 million a year ago due to higher interest rates. Other income, net was $5.3 million compared with $5.4 million in 2024. The Company's effective tax rate was 33.6% compared with 21.2% a year ago. The adjusted effective tax rate was 22.1%. During the third quarter, Donaldson paid $32.3 million in dividends and repurchased 2.4% of its shares outstanding for $192.4 million. Year-to-date, Donaldson paid $96.9 million in dividends and repurchased 3.3% of its outstanding shares for $273.8 million. Impairment of Intangible Assets Third quarter fiscal 2025 adjusted results exclude $62.0 million of charges for the pre-tax impairment of certain intangible assets for two upstream bioprocessing businesses. Of the total, $46.6 million of charges relate to Univercells Technologies as bioprocessing capital spending remains weak, particularly for early-stage assets, and drug development timelines are longer than previously anticipated. The remaining $15.4 million of charges relate to Solaris as market demand for industrial bioreactors has significantly softened. Updated Fiscal 2025 Outlook Adjusted full-year EPS guidance is narrowed to between $3.64 and $3.70, the midpoint of which is $0.03 above prior guidance, and excludes $0.56 of year-to-date non-GAAP charges and gains. Fiscal 2024 GAAP and adjusted EPS were $3.38 and $3.42, respectively. Sales are forecast to increase 1% to 3% year over year, consistent with previous expectations. Pricing is expected to contribute one percentage point of the increase. Impacts from currency translation and tariffs are projected to be immaterial. Mobile sales are projected to be flat to up 2% versus prior year. Off-Road sales are forecast to decline mid-single digits as weak end-market conditions persist, particularly in agriculture. On-Road sales are expected to decrease high teens driven by an exit from non-strategic product sales, as well as a decrease in global truck production. Aftermarket sales are forecast to grow low-single digits, resulting from robust OEM channel demand and market share gains. Industrial sales are forecast to increase between 2% and 4% compared with 2024. IFS sales are expected to grow low-single digits, driven by growth across most businesses, including dust collection, Industrial Hydraulics and Industrial Gases. Aerospace and Defense sales are forecast to increase low teens, supported by strong end-market conditions. Life Sciences sales are projected to grow high-single digits versus 2024 as a result of healthy market demand in Disk Drive and Food & Beverage replacement parts sales. Adjusted 2025 operating margin is expected to improve to between 15.6% and 16.0% versus 15.2%, or 15.4% on an adjusted basis, in 2024, driven by operating expense discipline and sales leverage. Interest expense is estimated to be approximately $23 million and other income is forecast to be between $18 million and $20 million. Donaldson projects a fiscal 2025 adjusted effective income tax rate of between 23% and 24%. Capital expenditures are forecast to be between $75 million and $90 million and adjusted free cash flow conversion is expected to be between 80% and 90%. For the full year, Donaldson anticipates repurchasing between 3.5% and 4.0% of its shares outstanding. Miscellaneous The Company will webcast its third quarter fiscal 2025 earnings conference call today at 9:00 a.m. CT. To listen to the webcast, visit the "Events & Presentations" section of Donaldson's Investor Relations website ( and click on the "listen to webcast" option. The webcast replay will be available at approximately 12:00 p.m. CT today. Also available on the website is the Company's supplemental quarterly earnings presentation. Statements in this release regarding future events and expectations, such as forecasts, plans, trends and projections relating to the Company's business and financial performance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are identified by words or phrases such as "will likely result," "are expected to," "will continue," "will allow," "estimate," "project," "believe," "expect," "anticipate," "forecast," "plan" and similar expressions. These forward-looking statements speak only as of the date such statements are made and are subject to risks and uncertainties that could affect the Company's performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed. These factors include, but are not limited to, challenges in global operations; impacts of global economic, industrial and political conditions on product demand; impacts from unexpected events, including natural disasters; effects of unavailable raw materials or material cost inflation; inability to attract and retain qualified personnel; inability to meet customer demand; inability to maintain competitive advantages; threats from disruptive technologies; effects of highly competitive markets with pricing pressure; exposure to customer concentration in certain cyclical industries; inability to manage productivity improvements; inability to achieve commitments to ESG; results of execution of any acquisition, divestiture and other strategic transactions; vulnerabilities associated with information technology systems and security; inability to protect and enforce intellectual property rights; costs associated with governmental laws and regulations; impacts of foreign currency fluctuations; and effects of changes in capital and credit markets. These and other factors are described in Part I, Item 1A, "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended July 31, 2024. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law. The results presented herein are preliminary, unaudited and subject to revision until the Company files its results with the United States Securities and Exchange Commission on Form 10-Q. About Donaldson Company, Inc. Founded in 1915, Donaldson (NYSE: DCI) is a global leader in technology-led filtration products and solutions, serving a broad range of industries and advanced markets. Diverse, skilled employees at over 140 locations on six continents partner with customers – from small business owners to R&D organizations and the world's biggest OEM brands. Donaldson solves complex filtration challenges through three primary segments: Mobile Solutions, Industrial Solutions and Life Sciences. Additional information is available at DONALDSON COMPANY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (In millions, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended April 30, April 30, 2025 2024 Change 2025 2024 Change Net sales $ 940.1 $ 927.9 1.3 % $ 2,710.2 $ 2,650.9 2.2 % Cost of sales 618.2 597.8 3.4 1,762.8 1,711.3 3.0 Gross profit 321.9 330.1 (2.5 ) 947.4 939.6 0.8 Selling, general and administrative 151.1 161.7 (6.5 ) 476.4 473.5 0.6 Loss on impairment of intangible assets 62.0 — 100.0 62.0 — 100.0 Research and development 21.4 24.8 (14.0 ) 65.3 68.2 (4.4 ) Operating expenses 234.5 186.5 25.7 603.7 541.7 11.4 Operating income 87.4 143.6 (39.1 ) 343.7 397.9 (13.6 ) Interest expense 5.7 5.0 14.7 17.1 16.1 6.4 Other income, net (5.3 ) (5.4 ) (3.3 ) (15.9 ) (14.1 ) 12.4 Earnings before income taxes 87.0 144.0 (39.6 ) 342.5 395.9 (13.5 ) Income taxes 29.2 30.5 (4.5 ) 89.8 91.6 (2.0 ) Net earnings $ 57.8 $ 113.5 (49.1 )% $ 252.7 $ 304.3 (16.9 )% Weighted average shares – basic 118.8 120.8 (1.7 )% 119.4 120.8 (1.1 )% Weighted average shares – diluted 120.3 122.9 (2.1 )% 121.2 122.6 (1.1 )% Net EPS – basic $ 0.49 $ 0.94 (48.2 )% $ 2.12 $ 2.52 (16.0 )% Net EPS – diluted $ 0.48 $ 0.92 (48.0 )% $ 2.09 $ 2.48 (16.0 )% Dividends paid per share $ 0.27 $ 0.25 8.0 % $ 0.81 $ 0.75 8.0 % Note: Amounts may not foot due to rounding. DONALDSON COMPANY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) April 30, July 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 178.5 $ 232.7 Accounts receivable, net 665.6 629.7 Inventories, net 529.4 476.7 Prepaid expenses and other current assets 102.0 99.0 Total current assets 1,475.5 1,438.1 Property, plant and equipment, net 648.3 645.5 Goodwill 489.8 478.4 Intangible assets, net 101.7 171.9 Other long-term assets 281.2 180.4 Total assets $ 2,996.5 $ 2,914.3 Liabilities and Stockholders' Equity Current liabilities: Short-term borrowings $ 83.6 $ 28.3 Current maturities of long-term debt — 25.0 Accounts payable 362.0 379.4 Accrued employee compensation and related taxes 134.8 140.9 Deferred revenue 23.4 19.7 Income taxes payable 42.5 42.6 Dividends payable — 32.5 Other current liabilities 113.8 114.1 Total current liabilities 760.1 782.5 Long-term debt 638.8 483.4 Non-current income taxes payable 20.1 39.8 Deferred income taxes 11.1 16.1 Other long-term liabilities 102.2 103.4 Total liabilities 1,532.3 1,425.2 Total stockholders' equity 1,464.2 1,489.1 Total liabilities and stockholders' equity $ 2,996.5 $ 2,914.3 DONALDSON COMPANY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Nine Months Ended April 30, 2025 2024 Operating Activities Net earnings $ 252.7 $ 304.3 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 75.1 73.5 Deferred income taxes (19.2 ) (16.6 ) Stock-based compensation expense 20.1 18.3 Loss on impairment of intangible assets 62.0 — Other, net (10.6 ) 2.0 Changes in operating assets and liabilities (129.1 ) (15.0 ) Net cash provided by operating activities 251.0 366.5 Investing Activities Purchases of property, plant and equipment (58.6 ) (65.8 ) Equity investment (71.2 ) — Acquisitions, net of cash acquired — (2.0 ) Net cash used in investing activities (129.8 ) (67.8 ) Financing Activities Proceeds from long-term debt 190.0 119.7 Repayments of long-term debt (65.0 ) (228.8 ) Change in short-term borrowings 54.1 15.9 Purchase of treasury stock (272.2 ) (113.8 ) Payment of contingent consideration (2.8 ) (1.7 ) Dividends paid (96.9 ) (90.3 ) Exercise of stock options and other 17.4 41.5 Net cash used in financing activities (175.4 ) (257.5 ) Effect of exchange rate changes on cash — (4.6 ) (Decrease) increase in cash and cash equivalents (54.2 ) 36.6 Cash and cash equivalents, beginning of period 232.7 187.1 Cash and cash equivalents, end of period $ 178.5 $ 223.7 CONSOLIDATED RATE ANALYSIS (Unaudited) Three Months Ended Nine Months Ended April 30, April 30, 2025 2024 2025 2024 Gross margin 34.2 % 35.6 % 35.0 % 35.4 % Operating expenses 24.9 % 20.1 % 22.3 % 20.4 % Operating margin 9.3 % 15.5 % 12.7 % 15.0 % Other income, net (0.6 )% (0.6 )% (0.6 )% (0.5 )% Depreciation and amortization 2.6 % 2.7 % 2.8 % 2.8 % EBITDA 12.5 % 18.7 % 16.0 % 18.3 % Effective tax rate 33.6 % 21.2 % 26.2 % 23.1 % Earnings before income taxes - Mobile Solutions 18.1 % 18.4 % 17.9 % 17.9 % Earnings before income taxes - Industrial Solutions 18.1 % 18.7 % 16.8 % 18.1 % Earnings (loss) before income taxes - Life Sciences 7.8 % 0.7 % — % (4.8 )% Cash conversion ratio 126.2 % 105.9 % 76.1 % 98.8 % Three Months Ended Nine Months Ended April 30, April 30, 2025 2024 2025 2024 Adjusted Rates Gross margin 34.5 % 35.6 % 35.1 % 35.4 % Operating expenses 18.2 % 20.1 % 19.6 % 20.4 % Operating margin 16.3 % 15.5 % 15.5 % 15.0 % Other income, net (0.6 )% (0.6 )% (0.6 )% (0.5 )% Depreciation and amortization 2.6 % 2.7 % 2.8 % 2.8 % EBITDA 19.5 % 18.7 % 18.8 % 18.3 % Effective tax rate 22.1 % 21.2 % 23.1 % 23.1 % Earnings before income taxes - Mobile Solutions 18.1 % 18.4 % 17.9 % 17.9 % Earnings before income taxes - Industrial Solutions 18.1 % 18.7 % 16.8 % 18.1 % Earnings (loss) before income taxes - Life Sciences 7.8 % 0.7 % — % (4.8 )% Cash conversion ratio 61.3 % 105.9 % 59.8 % 98.8 % Note: Rate analysis metrics are computed by dividing the applicable amount by net sales, and cash conversion ratio reflects free cash flow divided by net earnings. Adjusted rates exclude the impact of certain items not related to ongoing operations. Adjusted rates are non-GAAP measures; see the Reconciliation of Non-GAAP Financial Measures schedule for additional information. SEGMENT DETAIL (In millions) (Unaudited) Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 Change 2025 2024 Change Net sales Mobile Solutions segment Off-Road $ 95.6 $ 104.2 (8.3 )% $ 264.9 $ 290.9 (8.9 )% On-Road 26.9 35.7 (24.5 ) 84.3 106.9 (21.1 ) Aftermarket 460.1 445.3 3.3 1,353.4 1,277.7 5.9 Total Mobile Solutions segment 582.6 585.2 (0.4 ) 1,702.6 1,675.5 1.6 Industrial Solutions segment Industrial Filtration Solutions 231.8 228.6 1.4 651.8 663.7 (1.8 ) Aerospace and Defense 51.5 40.5 27.1 142.8 115.0 24.2 Total Industrial Solutions segment 283.3 269.1 5.3 794.6 778.7 2.0 Life Sciences segment Total Life Sciences segment 74.2 73.6 0.7 213.0 196.7 8.3 Total Company $ 940.1 $ 927.9 1.3 % $ 2,710.2 $ 2,650.9 2.2 % Earnings (loss) before income taxes Mobile Solutions segment $ 105.3 $ 107.9 (2.4 )% $ 305.5 $ 299.3 2.1 % Industrial Solutions segment 51.2 50.3 1.8 133.1 141.0 (5.6 ) Life Sciences segment 5.8 0.5 NM(1) — (9.5 ) NM(1) Corporate and unallocated (75.3 ) (14.7 ) NM(1) (96.1 ) (34.9 ) NM(1) Total Company $ 87.0 $ 144.0 (39.6 )% $ 342.5 $ 395.9 (13.5 )% Earnings (loss) before income taxes percentage Mobile Solutions segment 18.1 % 18.4 % (0.3 )% 17.9 % 17.9 % — % Industrial Solutions segment 18.1 % 18.7 % (0.6 )% 16.8 % 18.1 % (1.3 )% Life Sciences segment 7.8 % 0.7 % 7.1 % — % (4.8 )% 4.8 % Note: Earnings before income taxes percentage is calculated by dividing earnings before income taxes by net sales. Amounts may not foot due to rounding. (1) NM = not meaningful SEGMENT SALES PERCENT CHANGE FROM PRIOR PERIODS BY GEOGRAPHY, AS REPORTED (Unaudited) Three Months Ended April 30, 2025 TOTAL U.S.(1)/CA(2) EMEA(3) APAC(4) LATAM(5) Mobile Solutions segment Off-Road (8.3 )% (19.4 )% (11.2 )% 20.6 % 41.3 % On-Road (24.5 ) (35.8 ) (8.0 ) (1.5 ) (37.8 ) Aftermarket 3.3 3.2 4.5 1.8 5.8 Total Mobile Solutions segment (0.4 ) (4.7 ) — 4.9 6.2 Industrial Solutions segment Industrial Filtration Solutions 1.4 5.5 1.8 (5.2 ) (20.9 ) Aerospace and Defense 27.1 40.2 (9.9 ) (0.3 ) N/A Total Industrial Solutions segment 5.3 12.9 0.4 (5.2 ) (20.9 ) Life Sciences segment Total Life Sciences segment 0.7 (13.7 ) (6.6 ) 18.0 (14.3 ) Total Company 1.3 % 0.9 % (0.6 )% 5.2 % 2.3 % Nine Months Ended April 30, 2025 TOTAL U.S./CA EMEA APAC LATAM Mobile Solutions segment Off-Road (8.9 )% (7.0 )% (21.7 )% 11.3 % 12.9 % On-Road (21.1 ) (26.9 ) (7.1 ) (15.9 ) (17.7 ) Aftermarket 5.9 6.8 6.3 3.9 5.1 Total Mobile Solutions segment 1.6 1.7 (1.7 ) 3.4 5.1 Industrial Solutions segment Industrial Filtration Solutions (1.8 ) 0.1 (2.3 ) (2.9 ) (15.0 ) Aerospace and Defense 24.2 37.2 (11.8 ) 8.4 N/A Total Industrial Solutions segment 2.0 7.5 (3.4 ) (2.6 ) (15.0 ) Life Sciences segment Total Life Sciences segment 8.3 8.0 (3.6 ) 22.2 1.0 Total Company 2.2 % 3.9 % (2.5 )% 5.4 % 2.7 % Note: Amounts may not foot due to rounding. (1) United States (U.S.) (2) Canada (CA) (3) Europe, Middle East and Africa (EMEA) (4) Asia Pacific (APAC) (5) Latin America (LATAM) SEGMENT SALES PERCENT CHANGE FROM PRIOR PERIODS BY GEOGRAPHY, CONSTANT CURRENCY (Unaudited) Three Months Ended April 30, 2025 TOTAL U.S./CA EMEA APAC LATAM Mobile Solutions segment Off-Road (8.0 )% (19.4 )% (11.6 )% 22.2 % 47.1 % On-Road (24.3 ) (35.8 ) (8.6 ) (1.5 ) (31.6 ) Aftermarket 4.0 3.2 3.5 4.0 9.0 Total Mobile Solutions segment 0.2 (4.7 ) (0.8 ) 6.8 9.6 Industrial Solutions segment Industrial Filtration Solutions 1.5 5.5 1.1 (4.0 ) (18.7 ) Aerospace and Defense 27.0 40.2 (10.6 ) 3.0 N/A Total Industrial Solutions segment 5.3 12.9 (0.4 ) (3.8 ) (18.7 ) Life Sciences segment Total Life Sciences segment (0.2 ) (13.7 ) (6.9 ) 15.4 (11.4 ) Total Company 1.6 % 0.9 % (1.4 )% 6.1 % 5.5 % Nine Months Ended April 30, 2025 TOTAL U.S./CA EMEA APAC LATAM Mobile Solutions segment Off-Road (8.5 )% (7.0 )% (21.8 )% 13.0 % 17.9 % On-Road (20.6 ) (26.9 ) (6.5 ) (15.4 ) (9.1 ) Aftermarket 6.6 6.8 5.8 5.1 8.6 Total Mobile Solutions segment 2.3 1.7 (2.1 ) 4.6 8.7 Industrial Solutions segment Industrial Filtration Solutions (1.7 ) 0.1 (2.8 ) (2.0 ) (12.3 ) Aerospace and Defense 24.2 37.2 (12.0 ) 11.1 N/A Total Industrial Solutions segment 2.1 7.5 (3.9 ) (1.7 ) (12.3 ) Life Sciences segment Total Life Sciences segment 7.7 8.0 (3.7 ) 20.3 6.1 Total Company 2.6 % 3.9 % (2.8 )% 6.0 % 6.2 % Note: The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. The Company believes providing constant currency information provides valuable supplemental information regarding its results of operations. The Company calculates constant currency percentages by converting its current period local currency financial results using the prior period exchange rates and compares these adjusted amounts to its prior period reported results. Amounts may not foot due to rounding. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (In millions) (Unaudited) Three Months Ended Nine Months Ended April 30, April 30, 2025 2024 2025 2024 Net cash provided by operating activities $ 87.7 $ 141.5 $ 251.0 $ 366.5 Net capital expenditures (14.7 ) (21.3 ) (58.6 ) (65.8 ) Free cash flow $ 73.0 $ 120.2 $ 192.4 $ 300.7 Net earnings $ 57.8 $ 113.5 $ 252.7 $ 304.3 Income taxes 29.2 30.5 89.8 91.6 Interest expense 5.7 5.0 17.1 16.1 Depreciation and amortization 24.6 24.6 75.1 73.5 EBITDA $ 117.3 $ 173.6 $ 434.7 $ 485.5 Adjusted net earnings $ 118.9 $ 113.5 $ 321.4 $ 304.3 Adjusted income taxes 33.8 30.5 96.7 91.6 Interest expense 5.7 5.0 17.1 16.1 Depreciation and amortization 24.6 24.6 75.1 73.5 Adjusted EBITDA $ 183.0 $ 173.6 $ 510.3 $ 485.5 Gross profit $ 321.9 $ 330.1 $ 947.4 $ 939.6 Impairment of intangible assets — — — — Restructuring charges 2.6 — 4.3 — Gain on the sale of fixed assets — — — — Business development charges — — — — Adjusted gross profit $ 324.5 $ 330.1 $ 951.7 $ 939.6 Operating expense $ 234.5 $ 186.5 $ 603.7 $ 541.7 Impairment of intangible assets (62.0 ) — (62.0 ) — Restructuring charges (1.6 ) — (5.3 ) — Gain on the sale of fixed assets 1.2 — 1.2 — Business development charges (0.8 ) — (5.2 ) — Adjusted operating expense $ 171.4 $ 186.5 $ 532.4 $ 541.7 Operating income $ 87.4 $ 143.6 $ 343.7 $ 397.9 Impairment of intangible assets 62.0 — 62.0 — Restructuring charges 4.2 — 9.6 — Gain on the sale of fixed assets (1.2 ) — (1.2 ) — Business development charges 0.8 — 5.2 — Adjusted operating income $ 153.1 $ 143.6 $ 419.3 $ 397.9 Net earnings $ 57.8 $ 113.5 $ 252.7 $ 304.3 Impairment of intangible assets, net tax 58.3 — 58.3 — Restructuring charges, net tax 3.2 — 7.3 — Gain on the sale of fixed assets, net tax (0.8 ) — (0.8 ) — Business development charges, net tax 0.5 — 3.9 — Adjusted net earnings $ 118.9 $ 113.5 $ 321.4 $ 304.3 Diluted EPS $ 0.48 $ 0.92 $ 2.09 $ 2.48 Impairment of intangible assets 0.48 — 0.48 — Restructuring charges 0.03 — 0.06 — Gain on the sale of fixed assets (0.01 ) — (0.01 ) — Business development charges 0.01 — 0.04 — Adjusted diluted EPS $ 0.99 $ 0.92 $ 2.65 $ 2.48 2025 Adjusted EPS Guidance A reconciliation of the Company's fiscal 2025 adjusted EPS guidance to fiscal 2025 GAAP EPS guidance is not included in this release due to the number of variables in the projected GAAP EPS range and the Company's current inability to reasonably quantify certain amounts, such as restructuring or other charges, that would be included in the GAAP measure or the individual adjustments for such reconciliation. Note: Although free cash flow, EBITDA, adjusted EBITDA, adjusted gross profit, adjusted operating expense, adjusted operating income, adjusted net earnings and adjusted diluted EPS are not measures of financial performance under GAAP, the Company believes they are useful in understanding its financial results. Free cash flow is a commonly used measure of a company's ability to generate cash in excess of its operating needs. EBITDA is a commonly used measure of operating earnings less non-cash expenses. The adjusted basis presentation excludes the impact of certain matters not related to the Company's ongoing operations. Management believes that the adjusted basis presentation reflects management's performance in operating the Company and provides a meaningful representation of the performance of the Company's core business and is useful to understanding its financial results. A shortcoming of these financial measures is that they do not reflect the Company's actual results under GAAP. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures. Amounts may not foot due to rounding. View source version on Contacts For more information, contact: Sarika Dhadwal (952) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
