Company Reports

Donaldson increased its fourth-quarter fiscal 2026 adjusted EPS by 12% from the prior-year period to $1.15. For the full year, the company reported record-high sales of roughly $3.9 billion, up 5% year over year thanks to solid growth across all three segments.

Donaldson, a leading manufacturer of air and liquid filtration systems, has built a narrow moat around its large installed base of equipment coupled with a razor-and-blade business model that continues to generate a relatively steady and high-margin stream of recurring revenue from aftermarket parts and consumables. The firm generates an increasing portion of its sales from proprietary solutions, which enjoy higher margins and greater customer retention rates. As a result, recurring revenue has steadily increased, from roughly 50% in 2012 to around 65% in fiscal 2025. We expect this trend to continue as the company scales its new life sciences segment both through organic investment and acquisitions.

Donaldson's fiscal third-quarter adjusted EPS of $1.06 came in a penny above the FactSet consensus estimate, and revenue of $995 million beat consensus expectations by $21 million.

Donaldson, a leading manufacturer of air and liquid filtration systems, has built a narrow moat around its large installed base of equipment coupled with a razor-and-blade business model that continues to generate a relatively steady and high-margin stream of recurring revenue from aftermarket parts and consumables. The firm generates an increasing portion of its sales from proprietary solutions, which enjoy higher margins and greater customer retention rates. As a result, recurring revenue has steadily increased, from roughly 50% in 2012 to around 65% in fiscal 2025. We expect this trend to continue as the company scales its new life sciences segment both through organic investment and acquisitions.

Donaldson, a leading manufacturer of air and liquid filtration systems, has built a narrow moat around its large installed base of equipment coupled with a razor-and-blade business model that continues to generate a relatively steady and high-margin stream of recurring revenue from aftermarket parts and consumables. The firm generates an increasing portion of its sales from proprietary solutions, which enjoy higher margins and greater customer retention rates. As a result, recurring revenue has steadily increased, from roughly 50% in 2012 to around 65% in fiscal 2025. We expect this trend to continue as the company scales its new life sciences segment both through organic investment and acquisitions.

Donaldson's fiscal second-quarter adjusted earnings per share of $0.83 missed the FactSet consensus estimate by $0.06, sending the shares down roughly 12% in Feb. 26 trading.

Donaldson, a leading manufacturer of air and liquid filtration systems, has built a narrow moat around its large installed base of equipment coupled with a razor-and-blade business model that continues to generate a relatively steady and high-margin stream of recurring revenue from aftermarket parts and consumables. The firm generates an increasing portion of its sales from proprietary solutions, which enjoy higher margins and greater customer retention rates. As a result, recurring revenue has steadily increased, from roughly 50% in 2012 to 65% in fiscal 2024. We expect this trend to continue, as the firm continues to scale their new life sciences segment both through organic investment and acquisitions.

Donaldson grew its fiscal first-quarter revenue by 4% from the prior-year period, driven by 5% growth in mobile solutions and 13% growth in life sciences. Industrial solutions sales remained flat, as higher pricing was offset by volume declines in the aerospace and defense end market.

Donaldson, a leading manufacturer of air and liquid filtration systems, has built a narrow moat around its large installed base of equipment coupled with a razor-and-blade business model that continues to generate a relatively steady and high-margin stream of recurring revenue from aftermarket parts and consumables. The firm generates an increasing portion of its sales from proprietary solutions, which enjoy higher margins and greater customer retention rates. As a result, recurring revenue has steadily increased, from roughly 50% in 2012 to 65% in fiscal 2024. We expect this trend to continue, as the firm continues to scale their new life sciences segment both through organic investment and acquisitions.

Donaldson's fiscal fourth-quarter revenue increased 5% with growth in all segments. Adjusted gross margin declined 140 basis points due to tariff-related inflation, while adjusted operating margin increased 10 basis points on positive operating leverage and cost management.

Donaldson, a leading manufacturer of air and liquid filtration systems, has built a narrow moat around its large installed base of equipment coupled with a razor-and-blade business model that continues to generate a relatively steady and high-margin stream of recurring revenue from aftermarket parts and consumables. The firm generates an increasing portion of its sales from proprietary solutions, which enjoy higher margins and greater customer retention rates. As a result, recurring revenue has steadily increased, from roughly 50% in 2012 to 65% in fiscal 2024. We expect this trend to continue, as the firm continues to scale their new life sciences segment both through organic investment and acquisitions.

Narrow-moat-rated Donaldson reported solid fiscal third-quarter results, as adjusted EPS increased 7.6% year over year to $0.99. Management has raised its fiscal 2025 outlook and now anticipates full-year adjusted EPS of $3.64 to $3.70, up from $3.60 to $3.68 previously. We've slightly increased our fair value estimate to $71 per share from $70, mostly due to the time value of money since our last update. We see the stock as fairly valued at current levels.

Donaldson, a leading manufacturer of air and liquid filtration systems, has built a narrow moat around its large installed base of equipment coupled with a razor-and-blade business model that continues to generate a relatively steady and high-margin stream of recurring revenue from aftermarket parts and consumables. The firm generates an increasing portion of its sales from proprietary solutions, which enjoy higher margins and greater customer retention rates. As a result, recurring revenue has steadily increased, from roughly 50% in 2012 to 65% in fiscal 2024. We expect this trend to continue, as the firm continues to scale their new life sciences segment both through organic investment and acquisitions.

Narrow-moat-rated Donaldson reported disappointing fiscal second-quarter results as the company’s mobile solutions and industrial solutions segments both posted top-line decreases. Total sales were down 1% year over year, including a significant negative effect from currency translation. Adjusted EPS was $0.83 in the quarter, marking an improvement from the prior-year period but narrowly missing consensus estimates. Management opted to lower guidance for full-year revenue by 2 percentage points, while the outlook for operating margin improved slightly. We maintain our fair value estimate of $70 per share, as time value of money was offset by tempered near-term growth assumptions.

Donaldson, a leading manufacturer of air and liquid filtration systems, has built a narrow moat around its large installed base of equipment coupled with a razor-and-blade business model that continues to generate a relatively steady and high-margin stream of recurring revenue from aftermarket parts and consumables. The firm generates an increasing portion of its sales from proprietary solutions, which enjoy higher margins and greater customer retention rates. As a result, recurring revenue has steadily increased, from roughly 50% in 2012 to 65% in fiscal 2022. We expect this trend to continue, as the firm continues to scale their new life sciences segment both through organic investment and acquisitions.

Narrow-moat-rated Donaldson’s fiscal first-quarter adjusted EPS of $0.83 came in a penny above the FactSet consensus estimate. Despite the earnings beat and unchanged guidance for full-year fiscal 2025, the stock price declined by around 6%, which we think reflects overvaluation heading into the earnings announcement, as the stock was trading at a nearly 15% premium to our previous $68 per share fair value estimate. We’ve increased our fair value estimate by $2 to $70, mostly due to time value of money, and view the stock as fairly valued after the pullback.

Donaldson, a leading manufacturer of air and liquid filtration systems, has built a narrow moat around its large installed base of equipment coupled with a razor-and-blade business model that continues to generate a relatively steady and high-margin stream of recurring revenue from aftermarket parts and consumables. The firm generates an increasing portion of its sales from proprietary solutions, which enjoy higher margins and greater customer retention rates. As a result, recurring revenue has steadily increased, from roughly 50% in 2012 to 65% in fiscal 2022. We expect this trend to continue, as the firm continues to scale their new life sciences segment both through organic investment and acquisitions.

Narrow-moat Donaldson reported mixed fourth-quarter results, as solid financial performance was overshadowed by updated guidance for fiscal 2026. Management lowered its growth and profitability expectations for the life sciences segment. Shares closed down 3.5%, though we believe the market overlooked improved profitability expectations in the other two segments. As a result, we have slightly increased our fair value estimate by $1 to $68 per share.

Donaldson, a leading manufacturer of air and liquid filtration systems, has built a narrow moat around its large installed base of equipment coupled with a razor-and-blade business model that continues to generate a relatively steady and high-margin stream of recurring revenue from aftermarket parts and consumables. The firm generates an increasing portion of its sales from proprietary solutions, which enjoy higher margins and greater customer retention rates. As a result, recurring revenue has steadily increased, from roughly 50% in 2012 to 65% in fiscal 2022. We expect this trend to continue, as the firm continues to scale their new life sciences segment both through organic investment and acquisitions.

Donaldson, a leading manufacturer of air and liquid filtration systems, has built a narrow moat around its large installed base of equipment coupled with a razor-and-blade business model that continues to generate a relatively steady and high-margin stream of recurring revenue from aftermarket parts and consumables. The firm generates an increasing portion of its sales from proprietary solutions, which enjoy higher margins and greater customer retention rates. As a result, recurring revenue has steadily increased, from roughly 50% in 2012 to over 60% in fiscal 2022. We expect this trend to continue, as the firm continues to scale their new life sciences segment both through organic investment and acquisitions.