Donaldson Company, Inc. (NYSE:DCI) Q1 2025 Earnings Conference Call December 3, 2024 10:00 AM ET Company Participants Tod Carpenter - Chairman, President, Chief Executive Officer Brad Pogalz - Chief Financial Officer Scott Robinson - Former CFO, Strategic Advisor Sarika Dhadwal - Senior Director of Investor Relations Conference Call Participants Angel Castillo - Morgan Stanley Bryan Blair - Oppenheimer Brian Drab - William Blair Dan Rizzo - Jeffries Adam Farley - Stifel Rob Mason - Baird Operator Thank you ...

| --- | --- | --- | --- | --- | --- | --- | |--------------------------------|-------|---------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | D O N A L D S O N C O M P A N Y | | | | | | FIRST QUARTER FISCAL YEAR 2025 | | D e c e m b e r 2 0 2 4 | | | | | | | | | | | | | Forward-Looking Statement Safe Harbor Statements in this presentation regarding future events and expectations, such as forecasts, plans, trends, and projections relating to th ...

For the quarter ended October 2024, Donaldson (DCI) reported revenue of $900.1 million, up 6.4% over the same period last year. EPS came in at $0.83, compared to $0.75 in the year-ago quarter.The reported revenue represents a surprise of +1.00% over the Zacks Consensus Estimate of $891.18 million. With the consensus EPS estimate being $0.82, the EPS surprise was +1.22%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expe ...

Donaldson (DCI) came out with quarterly earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.82 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.22%. A quarter ago, it was expected that this maker of filtration systems would post earnings of $0.88 per share when it actually produced earnings of $0.94, delivering a surprise of 6.82%.Over the last four quarters, t ...

Exhibit 99.1 Donaldson Reports Record First Quarter Fiscal 2025 Sales and Earnings First quarter sales of $900.1 million, a 6.4% year-over-year increase GAAP EPS of $0.81, up 8.1% versus prior year; adjusted EPS of $0.83 Reaffirming fiscal 2025 outlook MINNEAPOLIS (December 3, 2024) — Donaldson Company, Inc. (NYSE: DCI) (Donaldson or the Company), a global leader in technology-led filtration products and solutions, today reported first quarter fiscal 2025 generally accepted accounting principles (GAAP) net ...

The upcoming report from Donaldson (DCI) is expected to reveal quarterly earnings of $0.82 per share, indicating an increase of 9.3% compared to the year-ago period. Analysts forecast revenues of $891.18 million, representing an increase of 5.3% year over year.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Ahead of a compa ...

Donaldson Company, Inc. (DCI) is poised to gain from solid momentum across its segments. The Mobile Solutions segment has been benefiting from higher volume in the aftermarket business, driven by healthy demand for replacement filters for both air and liquid filtration applications. The Industrial Solutions segment is driven by persistent strength in the aerospace and defense business. Robust momentum in the commercial aerospace and rotorcraft markets, as well as solid demand in defense markets due to the m ...

Group 1 - The core viewpoint is that Donaldson Company, Inc. (NYSE: DCI) has been upgraded to a Buy rating due to improving margins and strong volume in the Mobility segment, along with positive fundamentals in the Industrial Solutions and Life Sciences segments [1] Group 2 - The investment strategy involves purchasing undervalued profitable stocks with strong balance sheets and minimal debt, and potentially writing calls against positions for additional income [1]

Donaldson Company, Inc. (DCI) announced that it would open a distribution center in Olive Branch, MS. This new center will boost the company's ability to meet increasing customer demand in the mobile solutions aftermarket, which includes heavy-duty trucking, construction, mining and agriculture sectors. Located in the Memphis, TN metropolitan area, the new distribution center will expand Donaldson's warehouse space by 200,000 square feet. The Olive Branch facility will provide important space for business g ...

Financial Performance - Net sales for the year ended July 31, 2024, increased by $155.5 million, or 4.5%, to $3,586.3 million compared to $3,430.8 million in fiscal 2023[81] - Net earnings for the year ended July 31, 2024, were $414.0 million, a 15.4% increase from $358.8 million in fiscal 2023, with diluted EPS rising to $3.38 from $2.90[85] - The Mobile Solutions segment reported net sales of $2,250.8 million for the year ended July 31, 2024, an increase of $76.0 million, or 3.5%, from the previous year[81] - The Industrial Solutions segment's net sales increased by $51.8 million, or 5.1%, to $1,066.5 million for the year ended July 31, 2024[81] - Life Sciences segment net sales grew by $27.7 million, or 11.5%, reaching $269.0 million for the year ended July 31, 2024[81] Profitability Metrics - Gross profit margin improved to 35.5% for the year ended July 31, 2024, up from 33.8% in the previous year, driven by lower input costs and pricing actions[82] - Earnings before income taxes for the Mobile Solutions segment increased to $404.5 million, representing 18.0% of net sales, up from 15.2% in 2023[92] - The Industrial Solutions segment's earnings before income taxes were $198.8 million, or 18.6% of net sales, an increase from 18.4% in 2023[95] - Operating margin improved to 18%, up from 15% in the previous quarter[32] Expenses - Research and development expenses rose to $93.6 million, or 2.6% of net sales, reflecting a 19.8% increase from $78.1 million, or 2.3% of net sales, in fiscal 2023[84] - Selling, general and administrative expenses increased to $636.7 million, or 17.8% of net sales, compared to $602.3 million, or 17.6% of net sales, in fiscal 2023[83] - Interest expense for the year ended July 31, 2024, was $21.4 million, reflecting an increase of 11.3% from $19.2 million in the previous year[85] Cash Flow and Capital Structure - Cash provided by operating activities decreased to $492.5 million in 2024 from $544.5 million in 2023, primarily due to increased working capital requirements[100] - Cash used in investing activities significantly decreased to $86.9 million in 2024 from $327.3 million in 2023, mainly due to lower cash used for acquisitions[101] - Cash used in financing activities increased to $355.9 million for the year ended July 31, 2024, up from $222.2 million in 2023, primarily due to net debt repayments of $114.8 million[102] - Total debt decreased to $536.7 million as of July 31, 2024, representing 26.5% of total capitalization, down from 33.2% in 2023[107] Investments and Future Outlook - The Company expects cash paid for capital expenditures in fiscal 2025 to be between $85 million and $105 million, primarily for capacity expansion and new products[106] - The company is investing $200 million in R&D for new technologies aimed at enhancing user experience[32] - The company plans to enter the Asian market by Q1 2024, targeting a revenue contribution of $300 million in the first year[32] Market and Customer Metrics - User base grew to 10 million active users, a 20% increase compared to the previous quarter[32] - Customer retention rate improved to 85%, up from 80% in the previous quarter[32] - Market expansion efforts in Europe resulted in a 30% increase in market share[32] Acquisitions and Strategic Moves - The company completed a strategic acquisition of a tech startup for $50 million to bolster its product offerings[32] - New product launches contributed to a 25% increase in sales in the last quarter[32] Tax and Compliance - The effective tax rate decreased to 22.7% for the year ended July 31, 2024, down from 23.4% in fiscal 2023, primarily due to increased excess tax benefits on stock-based compensation[85] - The Company maintains compliance with all financial covenants related to interest coverage and leverage ratios as of July 31, 2024[105] Risk and Liabilities - The liability for unrecognized tax benefits, accrued interest, and penalties was $23.0 million as of July 31, 2024, compared to $16.7 million in 2023, indicating an increase of approximately 37.7%[116] - The Company is exposed to market risk from fluctuating prices of commodity raw materials, which could result in lower gross profit if prices increase[129]