NASHVILLE, Tenn.--(BUSINESS WIRE)--Atmus Filtration Technologies Inc. ("Atmus†; NYSE: ATMU), a global leader in filtration and media solutions, today announced that it has closed its acquisition of Koch Filter Corporation ("Koch Filter†) from Air Distribution Technologies, Inc. ("ADTi†), a portfolio company of Truelink Capital, for a total cash consideration of approximately $450 million, subject to customary purchase price adjustments. The completion of the Koch Filter acquisition establishes. ...

Market Overview - Major U.S. stock indices experienced a significant decline on December 12, 2025, primarily driven by sell-offs in technology stocks due to concerns over an AI bubble narrative [1] - Investors reacted negatively to news from Broadcom, which indicated expected margin pressure in its AI business for the first quarter of fiscal 2026, despite exceeding fiscal fourth-quarter earnings estimates [1] Investment Strategy - In the current market environment, equity investors may favor dividend-growth stocks over high price-growth stocks, as companies with a history of raising dividends typically demonstrate strong financial health, providing a defensive hedge against economic uncertainty [2] - Stocks with a strong history of year-over-year dividend growth are suggested to form a healthier portfolio with greater potential for capital appreciation compared to simple dividend-paying stocks or those with high yields [2] Selected Dividend Growth Stocks - Five dividend growth stocks have been identified as potential solid choices for investment: TE Connectivity (TEL), Enersys (ENS), Donaldson (DCI), Lam Research (LRCX), and Leidos Holdings (LDOS) [3][9] - These stocks exhibit positive sales and earnings per share (EPS) growth histories, consistent dividend increases, solid fundamentals, and favorable valuation metrics [9] Characteristics of Dividend Growth Stocks - Stocks with a strong history of dividend growth are typically associated with mature companies that are less vulnerable to market volatility, thus providing a hedge against economic or political uncertainties [4] - These stocks are characterized by superior fundamentals, including sustainable business models, long-term profitability, rising cash flows, good liquidity, strong balance sheets, and value characteristics [5] - Although these stocks may not have the highest yields, they have historically outperformed the broader stock market and other dividend-paying stocks [6] Performance Metrics - Selected stocks must meet specific criteria, including: - 5-Year Historical Dividend Growth Greater Than Zero - 5-Year Historical Sales Growth Greater Than Zero - 5-Year Historical EPS Growth Greater Than Zero - Next 3-5 Year EPS Growth Rate Greater Than Zero [7] - Additional metrics include a Price/Cash Flow ratio less than the industry median and a 52-Week Price Change greater than the S&P 500 [8] Individual Stock Insights - **TE Connectivity (TEL)**: Expected fiscal 2026 revenue growth of 10.2%, long-term earnings growth rate of 12.3%, and an annual dividend yield of 1.23% [10][11] - **Enersys (ENS)**: Projected fiscal 2026 revenue growth of 4%, long-term earnings growth rate of 15%, and an annual dividend yield of 0.71% [11][12] - **Donaldson (DCI)**: Anticipated fiscal 2026 revenue growth of 3.4%, long-term earnings growth rate of 10%, and an annual dividend yield of 1.30% [12] - **Lam Research (LRCX)**: Expected fiscal 2026 revenue growth of 14.1%, long-term earnings growth rate of 20.3%, and an annual dividend yield of 0.65% [13] - **Leidos Holdings (LDOS)**: Projected fiscal 2025 revenue growth of 3.4%, long-term earnings growth rate of 11.6%, and an annual dividend yield of 0.84% [14]

Core Insights - Donaldson Company, Inc. (DCI) reported adjusted earnings of 94 cents per share for Q1 fiscal 2026, surpassing the Zacks Consensus Estimate of 93 cents, reflecting a year-over-year increase of 13.3% [1] - Total revenues reached $935.4 million, exceeding the Zacks Consensus Estimate of $924 million, with a year-over-year growth of 3.9% [2] Revenue Results - Revenue breakdown shows a 0.6% decline in the United States/Canada, while Europe, the Middle East, and Africa saw a 9.1% increase, and Latin America increased by 5.9%. The Asia Pacific region improved by 6.6% [2] - Mobile Solutions segment, accounting for 64% of net sales, generated $598.3 million, up 4.5% year-over-year, with Off-Road sales rising 6.1% and On-Road sales declining 27.1% [3] - Industrial Solutions segment revenues were $257.8 million, a slight increase of 0.1% year-over-year, impacted by a 7.1% decline in Aerospace and Defense [4] - Life Sciences segment revenues increased by 13.1% year-over-year to $79.3 million, driven by new equipment and replacement part sales in the food and beverage sector [4] Margin Profile - Cost of sales rose 4.5% year-over-year to $606.6 million, while gross profit increased by 2.9% to $328.8 million, resulting in a gross margin of 35.2%, down 30 basis points due to inflation and inventory valuation issues [5] - Operating expenses decreased by 4.9% year-over-year to $179.5 million, leading to a 14.2% increase in operating profit to $149.3 million, with an operating margin of 16%, up 150 basis points [5] Balance Sheet & Cash Flow - Cash and cash equivalents at the end of Q1 were $210.7 million, up from $180.4 million in the previous quarter, while long-term debt increased to $671.5 million from $630.4 million [7] - The company generated net cash of $125.4 million from operating activities, a 72% increase year-over-year, with free cash flow rising 154.7% to $122 million [8] FY26 Outlook - For fiscal 2026, DCI expects adjusted EPS in the range of $3.95-$4.11, with sales growth anticipated between 1-5% from fiscal 2025 levels [11] - Segment-wise, Mobile Solutions sales are expected to be flat to increase by 4%, Industrial Solutions by 2-6%, and Life Sciences by 1-5% [12] - Capital expenditure is projected between $65 million and $85 million, with free cash flow conversion expected to be in the range of 85-95% [13]

Financial Performance - First quarter sales increased by 4% year-over-year to $935 million[7] - Adjusted diluted EPS increased by 13% year-over-year to $0.94[7] - Adjusted operating margin increased by 60 bps year-over-year[7] - Adjusted free cash flow conversion was 101%[7] Segment Results - Mobile Solutions segment sales increased by 5% year-over-year to $598 million[12] - Life Sciences segment sales increased by 13% year-over-year to $79 million[20] - Industrial Solutions segment sales remained flat year-over-year at $258 million[16] Fiscal Year 2026 Guidance - Sales outlook projects growth of 1% to 5%[7] - Adjusted operating margin is expected to be between 16.2% and 16.8%[7] - Adjusted EPS guidance is within a range of $3.95 to $4.11[7] Balance Sheet and Cash Flow - The company returned $127 million to shareholders through dividends and share repurchases in the first quarter[7] - Net debt to adjusted EBITDA ratio is 0.7x[25]

MINNEAPOLIS--(BUSINESS WIRE)--Donaldson Company, Inc. (NYSE: DCI) (Donaldson or the Company), a global leader in technology-led filtration products and solutions, today reported first quarter fiscal 2026 generally accepted accounting principles (GAAP) net earnings of $113.9 million, compared with $99.0 million a year ago. Earnings per share (EPS)1 were $0.97 compared with first quarter fiscal 2025 EPS of $0.81. First quarter fiscal 2026 results include a $4.3 million pre-tax, non-recurring net. ...

Core Viewpoint - Atmus Filtration Technologies (ATMU) has received a Zacks Rank 2 (Buy) upgrade due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that influence stock prices [4]. Company Performance and Outlook - The upgrade reflects an improvement in Atmus Filtration's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - For the fiscal year ending December 2025, Atmus Filtration is expected to earn $2.64 per share, with a 2.6% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - Atmus Filtration's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Insights - Donaldson Company, Inc. (NYSE:DCI) is recognized as a high-quality dividend stock suitable for long-term investors [1] - Morgan Stanley upgraded Donaldson's rating to Equal Weight from Underweight and increased its price target to $84 from $72, citing balanced risk/reward dynamics [2] - The company announced a quarterly dividend of $0.30 per share, marking its 30th consecutive year of increasing its annual dividend [3] Group 1: Company Performance - Donaldson's filters are essential for gas turbine air intake systems, and the ongoing investment in data centers and AI infrastructure is expected to support earnings [2] - The company has maintained a cash dividend every quarter for 70 years, reflecting its strong financial health and commitment to returning value to shareholders [3] Group 2: Market Position - Donaldson is recognized as a global leader in filtration technology, providing products and solutions across various industries and advanced markets [4]

Core Insights - Atmus Filtration Technologies Inc. (NYSE:ATMU) is recognized as one of the 14 best up-and-coming dividend stocks to buy [1] - Northland raised its price target for Atmus from $50 to $59 while maintaining an Outperform rating, citing strong quarterly results and solid shareholder returns despite challenging market conditions [2] - Atmus announced an agreement to acquire Koch Filter for $450 million, planning to finance the deal through cash and credit facility borrowings, with the acquisition expected to close in Q1 2026 [3] - The company reiterated its revenue guidance for 2025, projecting sales between $1.72 billion and $1.745 billion [3] - Atmus specializes in designing, manufacturing, and selling filtration products for heavy-duty vehicles and industrial equipment [4]

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Core Viewpoint - Truelink Capital has entered into a definitive agreement to sell Koch Filter Corporation to Atmus Filtration Technologies for $450 million in cash, with the transaction expected to close in the first quarter of 2026, subject to customary closing conditions [1]. Company Overview - Koch Filter, founded in 1966, designs and manufactures a wide range of air filtration products, including pleated filters, high efficiency filters, and HEPA filters, serving various commercial markets [2]. - The company operates manufacturing facilities in Louisville, KY, East Greenville, PA, Houston, TX, and Mira Loma, CA, making it one of the few independent scaled platforms in the air filtration industry [2]. - Koch Filter is recognized for its innovation and commitment to enhancing indoor air quality in critical environments [5]. Transaction Details - The sale of Koch Filter is seen as a strategic move that will allow the company to continue its growth under Atmus, which is committed to innovation and operational excellence [2]. - Todd Golditch, Co-Founder and Managing Partner of Truelink, emphasized that the transaction aligns with ADTi's long-term vision to focus on engineered air distribution solutions [3]. - Mark Mattingly, CEO of Koch Filter, expressed confidence that the company is well-positioned for growth following recent investments and the transition to Atmus [3]. Strategic Implications - The transaction is viewed as a significant milestone for both Koch Filter and Air Distribution Technologies, enabling ADTi to concentrate on creating value through efficiencies and growth across its business units [3]. - Atmus Filtration Technologies is described as a global leader in filtration and media solutions, serving diverse markets including truck, bus, agriculture, construction, mining, marine, and power generation [6][7].