Core Insights - Donaldson (DCI) reported revenue of $940.1 million for the quarter ended April 2025, reflecting a year-over-year increase of 1.3% and exceeding the Zacks Consensus Estimate of $938.8 million by 0.14% [1] - Earnings per share (EPS) for the quarter was $0.99, up from $0.92 in the same quarter last year, representing an EPS surprise of 4.21% against the consensus estimate of $0.95 [1] Financial Performance - Net Sales in the Industrial Solutions segment were $283.30 million, slightly below the average estimate of $284.11 million, but up 5.3% year-over-year [4] - Mobile Solutions reported net sales of $582.60 million, surpassing the average estimate of $577.91 million, but down 0.4% compared to the previous year [4] - Life Sciences segment net sales were $74.20 million, below the estimate of $75.23 million, with a year-over-year increase of 0.8% [4] - Industrial Filtration Solutions within Industrial Solutions had net sales of $231.80 million, below the estimate of $239.58 million, reflecting a 1.4% year-over-year increase [4] - Aerospace and Defense within Industrial Solutions saw net sales of $51.50 million, exceeding the estimate of $42.98 million, with a significant year-over-year increase of 27.2% [4] - Off-Road Mobile Solutions reported net sales of $95.60 million, below the estimate of $97.26 million, with a year-over-year decline of 8.3% [4] - On-Road Mobile Solutions had net sales of $26.90 million, significantly below the estimate of $32.98 million, representing a 24.7% year-over-year decrease [4] - Aftermarket Mobile Solutions reported net sales of $460.10 million, exceeding the estimate of $446.85 million, with a year-over-year increase of 3.3% [4] Earnings Analysis - Earnings before income taxes for Mobile Solutions were $105.30 million, slightly below the average estimate of $106.15 million [4] - Industrial Solutions reported earnings before income taxes of $51.20 million, compared to the estimate of $52.13 million [4] - Life Sciences segment earnings before income taxes were $5.80 million, significantly above the estimate of $1.80 million [4] - Corporate and unallocated earnings before income taxes showed a loss of $75.30 million, much worse than the estimate of -$7.78 million [4] Stock Performance - Over the past month, Donaldson's shares returned +3.8%, while the Zacks S&P 500 composite increased by +4.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Company Performance - Donaldson reported quarterly earnings of $0.99 per share, exceeding the Zacks Consensus Estimate of $0.95 per share, and up from $0.92 per share a year ago, representing an earnings surprise of 4.21% [1] - The company posted revenues of $940.1 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.14%, and an increase from $927.9 million year-over-year [2] - Over the last four quarters, Donaldson has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Outlook - The immediate price movement of Donaldson's stock will depend on management's commentary during the earnings call and future earnings expectations [3][4] - Donaldson shares have increased approximately 2.7% since the beginning of the year, compared to a 0.9% gain for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.98 on revenues of $944.8 million, and for the current fiscal year, it is $3.61 on revenues of $3.66 billion [7] Industry Context - The Pollution Control industry, to which Donaldson belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

D O N AL D S O N C O M P AN Y THIRD QUARTER FISCAL YEAR 2025 J UN E 2 02 5 Forward-Looking Statement Safe Harbor Statements in this presentation 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," "w ...

Financial Performance - Third quarter fiscal 2025 net earnings were $57.8 million, down 49.1% from $113.5 million a year ago, with diluted EPS of $0.48 compared to $0.92 in 2024[1][23] - Net earnings for the nine months ended April 30, 2025, were $252.7 million, a decrease from $304.3 million in the same period of 2024[28] - The diluted EPS for the nine months ended April 30, 2025, was $2.09, down from $2.48 in the previous year[44] - Adjusted net earnings for the nine months ended April 30, 2025, were $321.4 million, compared to $304.3 million in the prior year[44] Sales and Revenue - Total sales for the third quarter reached $940.1 million, a 1.3% increase compared to $927.9 million in the same period last year, driven by pricing benefits and volume growth[3][23] - Total net sales for the company increased by 1.3% to $940.1 million in the three months ended April 30, 2025, compared to $927.9 million in the same period of 2024[33] - Life Sciences sales are projected to grow high-single digits versus 2024, driven by strong demand in Disk Drive and Food & Beverage replacement parts[17] - The Mobile Solutions segment reported a decline in net sales by 0.4% to $582.6 million, with the Off-Road and On-Road categories decreasing by 8.3% and 24.5% respectively[33] - The Industrial Solutions segment saw an increase in net sales by 5.3% to $283.3 million, driven by a 27.1% increase in the Aerospace and Defense category[33] - Life Sciences segment net sales increased by 0.7% to $74.2 million, reflecting a growth of 8.3% for the nine months ended April 30, 2025[33] - Total company revenue increased by 2.2% for the nine months ended April 30, 2025, with a notable growth of 5.4% in the APAC region[37] - The Aerospace and Defense segment saw a significant revenue increase of 24.2% for the nine months ended April 30, 2025, driven by strong demand[40] - The Industrial Solutions segment experienced a total revenue increase of 2.1% for the nine months ended April 30, 2025, despite a decline in EMEA[40] Margins and Expenses - Gross margin decreased to 34.2% from 35.6% in 2024, attributed to higher manufacturing costs[7] - Operating expenses as a percentage of sales rose to 24.9%, up from 20.1% in the prior year, driven by impairment charges and restructuring costs[8] - Operating margin fell to 9.3% for the three months ended April 30, 2025, compared to 15.5% in the prior year[30] - The company reported a gross profit of $947.4 million for the nine months ended April 30, 2025, compared to $939.6 million in the prior year[43] - The adjusted EBITDA for the nine months ended April 30, 2025, was $510.3 million, an increase from $485.5 million in the previous year[43] Cash Flow and Capital Expenditures - Free cash flow for the nine months ended April 30, 2025, was $192.4 million, down from $300.7 million in the same period last year[43] - Capital expenditures for fiscal 2025 are forecasted to be between $75 million and $90 million, with adjusted free cash flow conversion expected to be between 80% and 90%[18] - The company reported a cash conversion ratio of 126.2% for the three months ended April 30, 2025, up from 105.9% in the prior year[30] Shareholder Actions and Debt - The company repurchased 2.4% of its outstanding shares for $192.4 million during the third quarter, with a year-to-date total of 3.3% repurchased for $273.8 million[11] - Long-term debt increased to $638.8 million as of April 30, 2025, compared to $483.4 million as of July 31, 2024[26] Guidance and Future Outlook - Adjusted full-year EPS guidance for fiscal 2025 is narrowed to between $3.64 and $3.70, reflecting an increase from prior guidance[13] - The company anticipates continued growth in adjusted EPS for fiscal 2025, although specific guidance is not provided due to variable factors[45] - The effective tax rate for the nine months ended April 30, 2025, was 26.2%, an increase from 23.1% in the same period of 2024[30]

Core Insights - Donaldson Company, Inc. (DCI) has announced an 11.1% increase in its quarterly dividend to 30 cents per share, marking its 29th consecutive year of annual dividend increases and 69 years of uninterrupted payouts [1][2][8] Financial Performance - The new dividend will be paid on June 30, 2025, to shareholders of record as of June 16 [1] - DCI's dividend payments totaled $64.6 million in the first six months of fiscal 2025 and $122.8 million in fiscal 2024 [3] - The company repurchased shares worth $81.6 million in the first six months of fiscal 2025 and $162.7 million in fiscal 2024, indicating strong cash flow and commitment to enhancing shareholder wealth [3][8] Market Position - DCI is benefiting from higher volume in the aftermarket business and expanded market share within the Mobile Solutions segment, alongside persistent strength in the aerospace and defense business [4] - Year-to-date, DCI's shares have gained 3.3%, contrasting with a 6.4% decline in the industry [4] Challenges - DCI faces challenges from high selling, general, and administrative expenses, as well as foreign exchange issues due to its diverse presence [6]

Group 1 - The article revisits Donaldson Company (NYSE: DCI), which operates in the filtration products and solutions industry, noting that the stock had been rising significantly prior to November of last year [1] - The focus of the investment service provided by Crude Value Insights is on cash flow and companies that generate it, highlighting the potential for value and growth in the oil and natural gas sector [1] Group 2 - Subscribers to the service benefit from a 50+ stock model account, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [2] - The service offers a two-week free trial, encouraging new users to engage with the oil and gas market [3]

Donaldson Company, Inc. (DCI) is scheduled to release third-quarter fiscal 2025 (ended April 30) results on June 3, before market open.The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing the mark in one. The average surprise was 3.8%. In the last reported quarter, its earnings of 83 cents per share missed the Zacks Consensus Estimate of 85 cents by 2.4%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Let’s see how thin ...

In its upcoming report, Donaldson (DCI) is predicted by Wall Street analysts to post quarterly earnings of $0.95 per share, reflecting an increase of 3.3% compared to the same period last year. Revenues are forecasted to be $940.49 million, representing a year-over-year increase of 1.4%.The current level reflects a downward revision of 0.6% 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 pr ...

Donaldson Company, Inc. (DCI) has failed to impress investors with its recent operational performance due to softness in the off-road and on-road businesses. Also, increasing expenses are likely to impede the company’s earnings in the quarters ahead.Based in Bloomington, MN, Donaldson manufactures and sells filtration systems and replacement parts across the globe. Leading filtration technology, strong customer relationships and solid presence across diverse geographies are DCI's three core strengths.In the ...

Summary of Donaldson Company (DCI) FY Conference Call - May 05, 2025 Company Overview - **Company**: Donaldson Company (DCI) - **Industry**: Filtration technology - **Market Cap**: Approximately $8.7 billion - **Employees**: About 14,000, with two-thirds in production - **History**: Over 100 years in operation, with a strong focus on filtration technology and innovation - **Dividend Growth**: Part of the S&P High Yield Dividend Aristocrat fund, with nearly 30 years of annual dividend increases [10][11] Core Business and Strategy - **Filtration Leadership**: Donaldson is a leader in filtration technology, focusing on leveraging its technology across various markets rather than chasing specific markets [4][5] - **Market Opportunities**: The company aims to meet evolving environmental and operational goals through advanced filtration solutions, particularly in on-road transportation and industrial applications [5][6] - **Recurring Revenue**: Approximately 66% of revenue is recurring, driven by a "razor-razor blade" model where initial equipment sales lead to ongoing filter sales [13][26] - **Growth Segments**: Key segments include mobile solutions, industrial solutions, aerospace and defense, and life sciences, with a focus on connected services and aftermarket business [11][12][20] Financial Performance - **Revenue**: Reported revenue for fiscal year 2024 was $3.6 billion, with a forecasted growth of 0% to 4% for fiscal year 2025 [15][17] - **Earnings Per Share (EPS)**: Adjusted EPS for fiscal year 2024 was $3.42, with a midpoint guidance of over $3.6 for fiscal year 2025 [15][17] - **CAGR**: Sales CAGR of 4% and earnings growth CAGR of 13% over recent years, indicating strong operational performance [16][17] Market Dynamics and Risks - **Alternative Power Solutions**: The company is exploring opportunities in alternative power solutions, including hydrogen fuel cells and hybrid equipment, which may present more opportunities than risks [21][36] - **Tariff Management**: Donaldson has a natural hedge against tariffs, with 75% of production consumed in the same region, minimizing supply chain disruptions [23][25] - **Customer Relationships**: Strong relationships with large manufacturers create high barriers to entry for competitors, emphasizing the importance of trust and technology in customer solutions [19][20] Life Sciences and Bioprocessing - **Expansion into Life Sciences**: Donaldson has made several acquisitions in the bioprocessing space, focusing on disruptive technologies rather than "me too" products [8][52] - **Acquisitions**: The company has acquired four companies in the bioprocessing sector, with a focus on bioreactors and innovative technologies [53][54] - **Long-Term Vision**: The life sciences segment is still in early stages, with a focus on strategic growth and partnerships to enhance market presence [56][60] Capital Allocation and Shareholder Returns - **Capital Deployment**: Priorities include organic investment (21%), share repurchase (34%), and M&A (20%), with a focus on business growth [28][29] - **Shareholder Returns**: The company emphasizes returning value to shareholders through dividends and share repurchases [17][29] Conclusion - **Outlook**: Donaldson is well-positioned to capitalize on growth opportunities in filtration technology and life sciences, with a strong focus on innovation, customer relationships, and strategic market expansion [30][37]