Filtration products maker Donaldson beats Q4 sales estimates

Overview

• Donaldson Q4 sales rise 4.8% to $981 mln, beating analyst expectations

• Adjusted EPS for Q4 increases 9.6% to $1.03, surpassing estimates

• Company returned $95 mln to shareholders via repurchases and dividends

Outlook

• Donaldson expects fiscal 2026 sales to reach $3.8 bln

• Company forecasts fiscal 2026 EPS between $3.92 and $4.08

• Donaldson anticipates operating margin expansion in fiscal 2026

• Company projects fiscal 2026 capital expenditures between $65 mln and $85 mln

Result Drivers

• SALES GROWTH - Sales increased 4.8% due to higher volume, favorable currency translation, and pricing benefits

• SEGMENT PERFORMANCE - Mobile Solutions saw growth in Off-Road and Aftermarket, while On-Road sales declined

• GROSS MARGIN CHALLENGES - Gross margin compressed due to tariff-related inflation, partially offset by improved operating expense management

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the environmental services & equipment peer group is "buy."

• Wall Street's median 12-month price target for Donaldson Company Inc is $72.11, about 4.9% below its August 26 closing price of $75.63

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw47xqNda