Donaldson Reports Record Fourth Quarter and Fiscal Year 2024 Sales and Earnings
Donaldson Company (NYSE: DCI) reported record fourth quarter and fiscal year 2024 results:
- Q4 sales up 6.4% to $935 million
- Q4 GAAP EPS up 20% to $0.90; adjusted EPS up 20.5% to $0.94
- Full-year sales up 4.5% to $3.6 billion
- Full-year GAAP EPS up 16.6% to $3.38; adjusted EPS up 12.5% to $3.42
The company expects fiscal 2025 sales growth of 2-6% and adjusted EPS of $3.56-$3.72. Donaldson also updated its fiscal 2026 targets, forecasting 3-7% sales CAGR and 15.8-16.6% operating margin. The company plans to optimize its footprint for increased efficiency and returned $286 million to shareholders in fiscal 2024 through dividends and share repurchases.
Donaldson Company (NYSE: DCI) ha riportato risultati record per il quarto trimestre e per l'intero anno fiscale 2024:
- Vendite del Q4 aumentate del 6,4% a 935 milioni di dollari
- GAAP EPS del Q4 aumentato del 20% a 0,90 dollari; EPS rettificato aumentato del 20,5% a 0,94 dollari
- Vendite annuali aumentate del 4,5% a 3,6 miliardi di dollari
- GAAP EPS annuale aumentato del 16,6% a 3,38 dollari; EPS rettificato aumentato del 12,5% a 3,42 dollari
L'azienda prevede una crescita delle vendite per l'anno fiscale 2025 tra il 2 e il 6% e un EPS rettificato di 3,56-3,72 dollari. Donaldson ha anche aggiornato i suoi obiettivi per l'anno fiscale 2026, prevedendo una crescita annuale composta delle vendite (CAGR) tra il 3 e il 7% e un margine operativo del 15,8-16,6%. L'azienda prevede di ottimizzare la propria rete per aumentare l'efficienza e ha restituito 286 milioni di dollari agli azionisti nell'anno fiscale 2024 tramite dividendi e riacquisti di azioni.
Donaldson Company (NYSE: DCI) informó resultados récord para el cuarto trimestre y el año fiscal 2024:
- Ventas del Q4 aumentadas un 6.4% a 935 millones de dólares
- GAAP EPS del Q4 aumentado un 20% a 0.90 dólares; EPS ajustado aumentado un 20.5% a 0.94 dólares
- Ventas anuales aumentadas un 4.5% a 3.6 mil millones de dólares
- GAAP EPS anual aumentado un 16.6% a 3.38 dólares; EPS ajustado aumentado un 12.5% a 3.42 dólares
La empresa espera un crecimiento de ventas del año fiscal 2025 del 2 al 6% y un EPS ajustado de 3.56 a 3.72 dólares. Donaldson también actualizó sus objetivos para el año fiscal 2026, pronosticando un crecimiento anual compuesto de ventas (CAGR) del 3 al 7% y un margen operativo del 15.8 al 16.6%. La empresa planea optimizar su huella para aumentar la eficiencia y devolvió 286 millones de dólares a los accionistas en el año fiscal 2024 a través de dividendos y recompra de acciones.
돈다슨 컴퍼니 (NYSE: DCI)는 2024 회계연도 4분기 및 전체 실적에서 기록적인 결과를 발표했습니다:
- 4분기 매출 6.4% 증가한 9억 3500만 달러
- 4분기 GAAP EPS 20% 증가한 0.90달러; 조정 EPS 20.5% 증가한 0.94달러
- 연간 매출 4.5% 증가하여 36억 달러
- 연간 GAAP EPS 16.6% 증가한 3.38달러; 조정 EPS 12.5% 증가한 3.42달러
회사는 2025 회계연도 매출 성장이 2-6%가 될 것으로 예상하며, 조정 EPS는 3.56-3.72달러로 예상하고 있습니다. 돈다슨은 2026 회계연도 목표도 업데이트해, 매출 연평균 성장률(CAGR) 3-7% 및 운영 마진을 15.8-16.6%로 예상했습니다. 회사는 효율성을 높이기 위해 사업 규모를 최적화할 계획이며, 2024 회계연도에 배당금과 자사주 매입을 통해 주주에게 2억 8600만 달러를 환원했습니다.
Donaldson Company (NYSE: DCI) a annoncé des résultats records pour le quatrième trimestre et pour l'exercice fiscal 2024 :
- Ventes du Q4 en hausse de 6,4 % à 935 millions de dollars
- Les bénéfices par action (EPS) GAAP du Q4 augmentent de 20 % à 0,90 dollars ; l'EPS ajusté augmente de 20,5 % à 0,94 dollars
- Ventes annuelles en hausse de 4,5 % à 3,6 milliards de dollars
- Les EPS GAAP pour l'année entière augmentent de 16,6 % à 3,38 dollars ; l'EPS ajusté augmente de 12,5 % à 3,42 dollars
L'entreprise s'attend à une croissance des ventes de 2 à 6 % pour l'exercice fiscal 2025 et un EPS ajusté de 3,56 à 3,72 dollars. Donaldson a également mis à jour ses objectifs pour l'exercice fiscal 2026, prévoyant une croissance annuelle des ventes (CAGR) de 3 à 7 % et une marge opérationnelle de 15,8 à 16,6 %. L'entreprise prévoit d'optimiser son empreinte pour accroître l'efficacité et a restitué 286 millions de dollars aux actionnaires au cours de l'exercice fiscal 2024 par le biais de dividendes et de rachats d'actions.
Donaldson Company (NYSE: DCI) hat Rekordergebnisse für das vierte Quartal und das Geschäftsjahr 2024 gemeldet:
- Umsatz im Q4 um 6,4% auf 935 Millionen USD gestiegen
- GAAP EPS im Q4 um 20% auf 0,90 USD gestiegen; bereinigtes EPS um 20,5% auf 0,94 USD gestiegen
- Jahresumsatz um 4,5% auf 3,6 Milliarden USD gestiegen
- GAAP EPS für das ganze Jahr um 16,6% auf 3,38 USD gestiegen; bereinigtes EPS um 12,5% auf 3,42 USD gestiegen
Das Unternehmen erwartet für das Geschäftsjahr 2025 ein Umsatzwachstum von 2-6% und ein bereinigtes EPS von 3,56-3,72 USD. Donaldson hat auch seine Ziele für das Geschäftsjahr 2026 aktualisiert und rechnet mit einer jährlichen Wachstumsrate des Umsatzes (CAGR) von 3-7% sowie einer betrieblichen Marge von 15,8-16,6%. Das Unternehmen plant, seine Effizienz durch Optimierung seiner Strukturen zu steigern und hat im Geschäftsjahr 2024 286 Millionen USD an die Aktionäre in Form von Dividenden und Aktienrückkäufen zurückgegeben.
- Record Q4 and full-year 2024 sales and earnings
- Q4 sales up 6.4% to $935 million
- Q4 GAAP EPS up 20% to $0.90; adjusted EPS up 20.5% to $0.94
- Full-year sales up 4.5% to $3.6 billion
- Full-year GAAP EPS up 16.6% to $3.38; adjusted EPS up 12.5% to $3.42
- Gross margin improved 170 basis points to 35.8% in Q4
- Operating margin increased 190 basis points to 15.6% in Q4
- Returned $286 million to shareholders through dividends and share repurchases in fiscal 2024
- Off-Road sales fell 13.0% due to weak agriculture markets
- On-Road sales declined 11.8% due to lower equipment production in China and the United States
- Industrial Filtration Solutions sales declined 1.5% due to weaker dust collection demand in Europe
- Life Sciences profitability ramp-up slower than expected due to challenging market conditions and constrained customer capital spending
Insights
Donaldson's Q4 and FY2024 results show strong performance with record sales and earnings. Key highlights include:
- Q4 sales up
6.4% to$935 million - FY2024 sales up
4.5% to$3.6 billion - Q4 adjusted EPS up
20.5% to$0.94 - FY2024 adjusted EPS up
12.5% to$3.42
The company's gross margin expansion and operating expense leverage are particularly impressive, driving significant profitability improvements. The updated FY2026 targets suggest continued confidence in long-term growth, albeit with some adjustments in segment expectations. The robust share repurchases and dividend payments indicate a strong commitment to shareholder returns.
Donaldson's performance reflects divergent trends across its segments. The Aftermarket business in Mobile Solutions shows strength, growing
Donaldson's announcement of footprint optimization and cost reduction initiatives is a strategic move to enhance operational efficiency. The
Fourth Quarter Fiscal 2024 Highlights
(All comparisons against the fourth quarter fiscal 2023 unless otherwise noted)
-
Sales of
$935 million 6.4% -
GAAP EPS of
$0.90 20.0% ; adjusted EPS of$0.94 -
Returned approximately
$82 million - Announced plans to optimize footprint aimed at increased efficiency
Full Year Fiscal 2024 Highlights
(All comparisons against fiscal year 2023 unless otherwise noted)
-
Sales of
$3.6 billion 4.5% -
GAAP EPS of
$3.38 16.6% ; adjusted EPS of$3.42 -
Returned approximately
$286 million
Fiscal 2025 Guidance
-
Expect full year fiscal 2025 sales growth of
2% to6% and adjusted EPS of$3.56 $3.72
“In fourth quarter, we delivered an all-time high level of profitability through solid sales and robust margin expansion while continuing to invest for the future, capping off a record year for Donaldson,” said Tod Carpenter, chairman, president and chief executive officer. “Also in the quarter, we launched a series of footprint and cost optimization programs to strengthen our foundation for long-term profitable growth.
“For fiscal 2025, we expect to achieve another year of record sales and earnings as we execute on our longer-term strategic initiatives. We are updating our fiscal 2026 financial targets to reflect our continued confidence in delivering strong consolidated profitability while adjusting for market-driven and segment-specific sales and margin trends.”
____________________________
1 |
Fourth quarter 2024, 2023, and full-year 2023 earnings include Restructuring and Other Charges. See Restructuring and Other Charges section for more information. |
2 |
All EPS figures refer to diluted EPS. |
3 |
Adjusted EPS is a non-GAAP financial measure that excludes the impact of certain items not related to ongoing operations. |
Fourth Quarter Operating Results
Sales increased
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
July 31, 2024 |
|
July 31, 2024 |
||||
|
Reported %
|
|
Constant
|
|
Reported %
|
|
Constant
|
Mobile Solutions segment |
|
|
|
|
|
|
|
Off-Road |
(13.0)% |
|
(11.7)% |
|
(11.2)% |
|
(11.3)% |
On-Road |
(11.8) |
|
(9.7) |
|
(4.1) |
|
(3.0) |
Aftermarket |
12.6 |
|
13.9 |
|
8.1 |
|
8.2 |
Total Mobile Solutions segment |
6.1 |
|
7.4 |
|
3.5 |
|
3.6 |
|
|
|
|
|
|
|
|
Industrial Solutions segment |
|
|
|
|
|
|
|
Industrial Filtration Solutions |
(1.5) |
|
(0.8) |
|
3.3 |
|
3.2 |
Aerospace and Defense |
39.7 |
|
40.1 |
|
16.0 |
|
15.5 |
Total Industrial Solutions segment |
3.9 |
|
4.6 |
|
5.1 |
|
4.9 |
|
|
|
|
|
|
|
|
Life Sciences segment |
|
|
|
|
|
|
|
Total Life Sciences segment |
20.7 |
|
23.2 |
|
11.5 |
|
11.7 |
|
|
|
|
|
|
|
|
Total Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile Solutions segment (Mobile) sales increased
Industrial Solutions segment (Industrial) sales increased
Life Sciences segment sales increased
Gross margin was
Operating expenses as a percentage of sales were
Operating income as a percentage of sales (operating margin) of
Interest expense was
For the full year, Donaldson paid
Full-Year Restructuring and Other Charges
During fourth quarter fiscal 2024, Donaldson incurred
During fourth quarter and full year fiscal 2023, Donaldson incurred
Fiscal 2025 Outlook
Adjusted full-year EPS is expected to be between
Mobile sales are forecast to be flat to up
Industrial sales are expected to grow between
Life Sciences sales are forecast to grow low-double digits compared with prior year driven by sales increases in all businesses.
Operating margin is forecast to be between
Interest expense is projected to be approximately
Capital expenditures are forecast to be between
Updated Fiscal 2026 Targets
In view of fiscal 2024 results, combined with an updated performance outlook for fiscal 2025 and 2026, Donaldson is revising its fiscal 2026 financial targets as follows:
|
Current Targets |
Prior Targets |
||
|
(announced at 2023 Investor Day) |
|||
|
FY23 - FY26
|
FY26 Operating Margin |
FY23 - FY26
|
FY26 Operating Margin |
Mobile Solutions |
|
|
|
|
|
|
|
|
|
Industrial Solutions |
|
|
|
|
|
|
|
|
|
Life Sciences |
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
Total Company sales through fiscal 2026 are forecast to increase between
Carpenter continued, “In fiscal 2025 and 2026, Mobile and Industrial operating margin strength is forecast to more than offset weaker-than-expected Life Sciences performance. The elongated ramp up in Life Sciences profitability is driven by challenging market conditions and constrained customer capital spending. Overall, we are focused on executing our balanced growth strategy and remain highly confident in our ability to commercialize our innovative technologies and create sustainable long-term value in our Life Sciences business.”
Miscellaneous
The Company will webcast its fourth quarter and full-year 2024 earnings conference call today at 9:00 a.m. CT. To listen to the webcast, visit the “Events & Presentations” section of Donaldson’s Investor Relations website (IR.Donaldson.com), and click on the “listen to webcast” option. The webcast replay will be available at approximately 12:00 p.m. CT today. Also available on the website is the Company’s supplemental quarterly earnings presentation.
Statements in this release 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,” “will allow,” “estimate,” “project,” “believe,” “expect,” “anticipate,” “forecast,” “plan” and similar expressions. These forward-looking statements speak only as of the date such statements are made and are subject to risks and uncertainties that could affect the Company’s performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed. These factors include, but are not limited to, challenges in global operations; impacts of global economic, industrial and political conditions on product demand; impacts from unexpected events; effects of unavailable raw materials, significant demand fluctuations or material cost changes; inability to attract and retain qualified personnel; inability to meet customer demand; inability to maintain competitive advantages; threats from disruptive technologies; effects of highly competitive markets with pricing pressure; exposure to customer concentration in certain cyclical industries; inability to manage productivity improvements; inability to achieve commitments related to ESG; results of execution of any acquisition, divestiture and other strategic transactions; vulnerabilities associated with information technology systems and security; inability to protect and enforce intellectual property rights; costs associated with governmental laws and regulations; impacts of foreign currency fluctuations; and effects of changes in capital and credit markets. These and other factors are described in Part I, Item 1A, “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2023. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law. The results presented herein are preliminary, unaudited and subject to revision until the Company files its results with the United States Securities and Exchange Commission on Form 10-K.
About Donaldson Company, Inc.
Founded in 1915, Donaldson (NYSE: DCI) is a global leader in technology-led filtration products and solutions, serving a broad range of industries and advanced markets. Diverse, skilled employees at over 140 locations on six continents partner with customers - from small business owners to R&D organizations and the world’s biggest OEM brands. Donaldson solves complex filtration challenges through three primary segments: Mobile Solutions, Industrial Solutions and Life Sciences. Additional information is available at www.Donaldson.com.
DONALDSON COMPANY, INC. AND SUBSIDIARIES |
||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
||||||||||||||||||||
(In millions, except per share amounts) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
||||||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||||||||
|
July 31, |
|
July 31, |
|||||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net sales |
$ |
935.4 |
|
$ |
879.5 |
|
|
6.4 |
% |
|
$ |
3,586.3 |
|
|
$ |
3,430.8 |
|
|
4.5 |
% |
Cost of sales |
|
600.6 |
|
|
579.4 |
|
|
3.7 |
|
|
|
2,311.9 |
|
|
|
2,270.2 |
|
|
1.8 |
|
Gross profit |
|
334.8 |
|
|
300.1 |
|
|
11.6 |
|
|
|
1,274.4 |
|
|
|
1,160.6 |
|
|
9.8 |
|
Selling, general and administrative |
|
163.2 |
|
|
157.6 |
|
|
3.6 |
|
|
|
636.7 |
|
|
|
602.3 |
|
|
5.7 |
|
Research and development |
|
25.4 |
|
|
22.0 |
|
|
15.6 |
|
|
|
93.6 |
|
|
|
78.1 |
|
|
19.8 |
|
Operating expenses |
|
188.6 |
|
|
179.6 |
|
|
5.0 |
|
|
|
730.3 |
|
|
|
680.4 |
|
|
7.3 |
|
Operating income |
|
146.2 |
|
|
120.5 |
|
|
21.4 |
|
|
|
544.1 |
|
|
|
480.2 |
|
|
13.3 |
|
Interest expense |
|
5.3 |
|
|
4.9 |
|
|
8.1 |
|
|
|
21.4 |
|
|
|
19.2 |
|
|
11.3 |
|
Other expense (income), net |
|
1.5 |
|
|
(1.7 |
) |
|
NM |
|
|
|
(12.6 |
) |
|
|
(7.7 |
) |
|
62.6 |
|
Earnings before income taxes |
|
139.4 |
|
|
117.3 |
|
|
18.9 |
|
|
|
535.3 |
|
|
|
468.7 |
|
|
14.2 |
|
Income taxes |
|
29.7 |
|
|
25.4 |
|
|
17.0 |
|
|
|
121.3 |
|
|
|
109.9 |
|
|
10.4 |
|
Net earnings |
$ |
109.7 |
|
$ |
91.9 |
|
|
19.4 |
% |
|
$ |
414.0 |
|
|
$ |
358.8 |
|
|
15.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares – basic |
|
120.4 |
|
|
121.4 |
|
|
(0.8 |
)% |
|
|
120.7 |
|
|
|
121.8 |
|
|
(0.9 |
)% |
Weighted average shares – diluted |
|
122.5 |
|
|
123.2 |
|
|
(0.6 |
)% |
|
|
122.6 |
|
|
|
123.6 |
|
|
(0.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net EPS – basic |
$ |
0.91 |
|
$ |
0.76 |
|
|
19.7 |
% |
|
$ |
3.43 |
|
|
$ |
2.95 |
|
|
16.3 |
% |
Net EPS – diluted |
$ |
0.90 |
|
$ |
0.75 |
|
|
20.0 |
% |
|
$ |
3.38 |
|
|
$ |
2.90 |
|
|
16.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Dividends paid per share |
$ |
0.27 |
|
$ |
0.25 |
|
|
8.0 |
% |
|
$ |
1.02 |
|
|
$ |
0.94 |
|
|
8.5 |
% |
Note: Amounts may not foot due to rounding. |
NM = Not meaningful |
DONALDSON COMPANY, INC. AND SUBSIDIARIES |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(In millions) |
|||||
(Unaudited) |
|||||
|
|
|
|
||
|
July 31, |
|
July 31, |
||
|
|
2024 |
|
|
2023 |
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
232.7 |
|
$ |
187.1 |
Accounts receivable, net |
|
629.7 |
|
|
599.7 |
Inventories, net |
|
476.7 |
|
|
418.1 |
Prepaid expenses and other current assets |
|
99.0 |
|
|
81.1 |
Total current assets |
|
1,438.1 |
|
|
1,286.0 |
Property, plant and equipment, net |
|
645.5 |
|
|
652.9 |
Goodwill |
|
478.4 |
|
|
481.1 |
Intangible assets, net |
|
171.9 |
|
|
188.1 |
Other long-term assets |
|
180.4 |
|
|
162.4 |
Total assets |
$ |
2,914.3 |
|
$ |
2,770.5 |
|
|
|
|
||
Liabilities and Stockholders’ Equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Short-term borrowings |
$ |
28.3 |
|
$ |
34.1 |
Current maturities of long-term debt |
|
25.0 |
|
|
125.0 |
Accounts payable |
|
379.4 |
|
|
304.9 |
Accrued employee compensation and related taxes |
|
140.9 |
|
|
119.4 |
Deferred revenue |
|
19.7 |
|
|
25.3 |
Income taxes payable |
|
42.6 |
|
|
32.3 |
Dividends payable |
|
32.5 |
|
|
30.4 |
Other current liabilities |
|
114.1 |
|
|
85.0 |
Total current liabilities |
|
782.5 |
|
|
756.4 |
Long-term debt |
|
483.4 |
|
|
496.6 |
Non-current income taxes payable |
|
39.8 |
|
|
56.5 |
Deferred income taxes |
|
16.1 |
|
|
32.3 |
Other long-term liabilities |
|
103.4 |
|
|
108.0 |
Total liabilities |
|
1,425.2 |
|
|
1,449.8 |
|
|
|
|
||
Total stockholders’ equity |
|
1,489.1 |
|
|
1,320.7 |
Total liabilities and stockholders’ equity |
$ |
2,914.3 |
|
$ |
2,770.5 |
DONALDSON COMPANY, INC. AND SUBSIDIARIES |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(In millions) |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
|
Twelve Months Ended |
||||||
|
July 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Operating Activities |
|
|
|
||||
Net earnings |
$ |
414.0 |
|
|
$ |
358.8 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
98.4 |
|
|
|
92.3 |
|
Deferred income taxes |
|
(24.3 |
) |
|
|
(15.3 |
) |
Stock-based compensation expense |
|
22.0 |
|
|
|
20.4 |
|
Other, net |
|
(1.0 |
) |
|
|
6.3 |
|
Changes in operating assets and liabilities |
|
(16.6 |
) |
|
|
82.0 |
|
Net cash provided by operating activities |
|
492.5 |
|
|
|
544.5 |
|
|
|
|
|
||||
Investing Activities |
|
|
|
||||
Purchases of property, plant and equipment |
|
(85.6 |
) |
|
|
(118.5 |
) |
Proceeds from sale of property, plant and equipment |
|
0.7 |
|
|
|
0.4 |
|
Acquisitions, net of cash acquired |
|
(2.0 |
) |
|
|
(209.2 |
) |
Net cash used in investing activities |
|
(86.9 |
) |
|
|
(327.3 |
) |
|
|
|
|
||||
Financing Activities |
|
|
|
||||
Proceeds from long-term debt |
|
119.7 |
|
|
|
189.2 |
|
Repayments of long-term debt |
|
(228.8 |
) |
|
|
(219.6 |
) |
Change in short-term borrowings |
|
(5.7 |
) |
|
|
30.4 |
|
Purchase of treasury stock |
|
(162.7 |
) |
|
|
(141.8 |
) |
Payment of contingent consideration |
|
(1.7 |
) |
|
|
— |
|
Dividends paid |
|
(122.8 |
) |
|
|
(114.4 |
) |
Tax withholding for stock compensation transactions |
|
(8.0 |
) |
|
|
(4.3 |
) |
Exercise of stock options and other |
|
54.1 |
|
|
|
38.3 |
|
Net cash used in financing activities |
|
(355.9 |
) |
|
|
(222.2 |
) |
Effect of exchange rate changes on cash |
|
(4.1 |
) |
|
|
(1.2 |
) |
Income (decrease) in cash and cash equivalents |
|
45.6 |
|
|
|
(6.2 |
) |
Cash and cash equivalents, beginning of year |
|
187.1 |
|
|
|
193.3 |
|
Cash and cash equivalents, end of year |
$ |
232.7 |
|
|
$ |
187.1 |
|
CONSOLIDATED RATE ANALYSIS |
|||||||
(Unaudited) |
|||||||
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
July 31, |
|
July 31, |
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Gross margin |
35.8 % |
|
34.1 % |
|
35.5 % |
|
33.8 % |
Operating expenses |
20.2 % |
|
20.4 % |
|
20.4 % |
|
19.8 % |
Operating margin |
15.6 % |
|
13.7 % |
|
15.2 % |
|
14.0 % |
Other expense (income), net |
0.2 % |
|
(0.2) % |
|
(0.3) % |
|
(0.2) % |
Depreciation and amortization |
2.7 % |
|
2.9 % |
|
2.7 % |
|
2.7 % |
EBITDA |
18.1 % |
|
16.8 % |
|
18.3 % |
|
16.9 % |
Effective tax rate |
21.3 % |
|
21.7 % |
|
22.7 % |
|
23.4 % |
Earnings before income taxes - Mobile Solutions |
18.3 % |
|
16.2 % |
|
18.0 % |
|
15.2 % |
Earnings before income taxes - Industrial Solutions |
20.1 % |
|
19.2 % |
|
18.6 % |
|
18.4 % |
Earnings (loss) before income taxes - Life Sciences |
(1.2) % |
|
(12.4) % |
|
(3.9) % |
|
4.1 % |
Cash conversion ratio |
97.4 % |
|
179.9 % |
|
98.4 % |
|
118.8 % |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
July 31, |
|
July 31, |
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Adjusted Rates |
|
|
|
|
|
|
|
Gross margin |
36.2 % |
|
34.3 % |
|
35.6 % |
|
33.9 % |
Operating expenses |
19.9 % |
|
20.0 % |
|
20.3 % |
|
19.3 % |
Operating margin |
16.3 % |
|
14.3 % |
|
15.4 % |
|
14.6 % |
Other expense (income), net |
0.2 % |
|
(0.2) % |
|
(0.3) % |
|
(0.2) % |
Depreciation and amortization |
2.7 % |
|
2.9 % |
|
2.7 % |
|
2.7 % |
EBITDA |
18.8 % |
|
17.3 % |
|
18.4 % |
|
17.5 % |
Effective tax rate |
21.5 % |
|
21.8 % |
|
22.7 % |
|
23.5 % |
Earnings before income taxes - Mobile Solutions |
18.3 % |
|
16.2 % |
|
18.0 % |
|
15.2 % |
Earnings before income taxes - Industrial Solutions |
20.1 % |
|
19.2 % |
|
18.6 % |
|
18.4 % |
Earnings (loss) before income taxes - Life Sciences |
(1.2) % |
|
(12.4) % |
|
(3.9) % |
|
4.1 % |
Cash conversion ratio |
93.3 % |
|
173.0 % |
|
97.3 % |
|
113.6 % |
Note: Rate analysis metrics are computed by dividing the applicable amount by net sales, and cash conversion ratio reflects free cash flow divided by net earnings. Adjusted rates exclude charges related to restructuring in fiscal 2024, and the organizational redesign and costs associated with exiting a lower-margin customer program in fiscal 2023. Adjusted rates are non-GAAP measures; see the Reconciliation of Non-GAAP Financial Measures schedule for additional information. |
SEGMENT DETAIL |
|||||||||||||||||||||
(In millions) |
|||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
Three Months Ended July 31, |
|
Twelve Months Ended July 31, |
||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||
Net sales |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mobile Solutions segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Off-Road |
$ |
89.9 |
|
|
$ |
103.4 |
|
|
(13.0 |
)% |
|
$ |
380.8 |
|
|
$ |
428.7 |
|
|
(11.2 |
)% |
On-Road |
|
32.9 |
|
|
|
37.3 |
|
|
(11.8 |
) |
|
|
139.8 |
|
|
|
145.8 |
|
|
(4.1 |
) |
Aftermarket |
|
452.5 |
|
|
|
401.8 |
|
|
12.6 |
|
|
|
1,730.2 |
|
|
|
1,600.3 |
|
|
8.1 |
|
Total Mobile Solutions segment |
|
575.3 |
|
|
|
542.5 |
|
|
6.1 |
|
|
|
2,250.8 |
|
|
|
2,174.8 |
|
|
3.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Industrial Solutions segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Industrial Filtration Solutions |
|
237.4 |
|
|
|
241.0 |
|
|
(1.5 |
) |
|
|
901.1 |
|
|
|
872.2 |
|
|
3.3 |
|
Aerospace and Defense |
|
50.4 |
|
|
|
36.1 |
|
|
39.7 |
|
|
|
165.4 |
|
|
|
142.5 |
|
|
16.0 |
|
Total Industrial Solutions segment |
|
287.8 |
|
|
|
277.1 |
|
|
3.9 |
|
|
|
1,066.5 |
|
|
|
1,014.7 |
|
|
5.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Life Sciences segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Life Sciences segment |
|
72.3 |
|
|
|
59.9 |
|
|
20.7 |
|
|
|
269.0 |
|
|
|
241.3 |
|
|
11.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Company |
$ |
935.4 |
|
|
$ |
879.5 |
|
|
6.4 |
% |
|
$ |
3,586.3 |
|
|
$ |
3,430.8 |
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) before income taxes |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mobile Solutions segment |
$ |
105.2 |
|
|
$ |
88.1 |
|
|
19.4 |
% |
|
$ |
404.5 |
|
|
$ |
330.4 |
|
|
22.4 |
% |
Industrial Solutions segment |
|
57.8 |
|
|
|
53.2 |
|
|
8.6 |
|
|
|
198.8 |
|
|
|
186.2 |
|
|
6.8 |
|
Life Sciences segment |
|
(0.9 |
) |
|
|
(7.4 |
) |
|
87.8 |
|
|
|
(10.4 |
) |
|
|
9.9 |
|
|
NM |
|
Corporate and unallocated |
|
(22.7 |
) |
|
|
(16.6 |
) |
|
(36.7 |
) |
|
|
(57.6 |
) |
|
|
(57.8 |
) |
|
0.3 |
|
Total Company |
$ |
139.4 |
|
|
$ |
117.3 |
|
|
18.9 |
% |
|
$ |
535.3 |
|
|
$ |
468.7 |
|
|
14.2 |
% |
Earnings (loss) before income taxes percentage |
|
|
|
|
|
|
|
|
|
|
|
||||||
Mobile Solutions segment |
18.3 |
% |
|
16.2 |
% |
|
2.1 |
% |
|
18.0 |
% |
|
15.2 |
% |
|
2.8 |
% |
Industrial Solutions segment |
20.1 |
% |
|
19.2 |
% |
|
0.9 |
% |
|
18.6 |
% |
|
18.4 |
% |
|
0.2 |
% |
Life Sciences segment |
(1.2 |
)% |
|
(12.4 |
)% |
|
11.2 |
% |
|
(3.9 |
)% |
|
4.1 |
% |
|
(8.0 |
)% |
Note: Earnings (loss) before income taxes percentage is calculated by dividing earnings before income taxes by net sales. Amounts may not foot due to rounding. |
NM = Not meaningful |
SEGMENT SALES PERCENT CHANGE FROM PRIOR PERIODS BY GEOGRAPHY, AS REPORTED |
||||||||||||||
(Unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Three Months Ended July 31, 2024 |
|||||||||||||
|
TOTAL |
|
|
|
EMEA(3) |
|
APAC(4) |
|
LATAM (5) |
|||||
Mobile Solutions segment |
|
|
|
|
|
|
|
|
|
|||||
Off-Road |
(13.0 |
)% |
|
13.9 |
% |
|
(30.7 |
)% |
|
(18.2 |
)% |
|
(32.6 |
)% |
On-Road |
(11.8 |
) |
|
(6.4 |
) |
|
1.1 |
|
|
(34.1 |
) |
|
47.0 |
|
Aftermarket |
12.6 |
|
|
15.9 |
|
|
7.4 |
|
|
3.5 |
|
|
21.6 |
|
Total Mobile Solutions segment |
6.1 |
|
|
13.5 |
|
|
(4.0 |
) |
|
(4.9 |
) |
|
18.8 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Industrial Solutions segment |
|
|
|
|
|
|
|
|
|
|||||
Industrial Filtration Solutions |
(1.5 |
) |
|
1.4 |
|
|
(8.2 |
) |
|
0.5 |
|
|
22.7 |
|
Aerospace and Defense |
39.7 |
|
|
51.8 |
|
|
13.0 |
|
|
18.3 |
|
|
|
|
Total Industrial Solutions segment |
3.9 |
|
|
10.8 |
|
|
(5.9 |
) |
|
0.8 |
|
|
22.7 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Life Sciences segment |
|
|
|
|
|
|
|
|
|
|||||
Total Life Sciences segment |
20.7 |
|
|
(14.7 |
) |
|
17.4 |
|
|
47.0 |
|
|
36.8 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Company |
6.4 |
% |
|
11.5 |
% |
|
(2.8 |
)% |
|
3.1 |
% |
|
19.5 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
|
Twelve Months Ended July 31, 2024 |
|||||||||||||
|
TOTAL |
|
|
|
EMEA |
|
APAC |
|
LATAM |
|||||
Mobile Solutions segment |
|
|
|
|
|
|
|
|
|
|||||
Off-Road |
(11.2 |
)% |
|
4.4 |
% |
|
(16.9 |
)% |
|
(24.3 |
)% |
|
(25.9 |
)% |
On-Road |
(4.1 |
) |
|
(1.6 |
) |
|
13.4 |
|
|
(18.8 |
) |
|
15.3 |
|
Aftermarket |
8.1 |
|
|
10.5 |
|
|
2.8 |
|
|
5.1 |
|
|
12.5 |
|
Total Mobile Solutions segment |
3.5 |
|
|
8.4 |
|
|
(2.7 |
) |
|
(3.8 |
) |
|
10.2 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Industrial Solutions segment |
|
|
|
|
|
|
|
|
|
|||||
Industrial Filtration Solutions |
3.3 |
|
|
6.6 |
|
|
0.2 |
|
|
(4.2 |
) |
|
16.2 |
|
Aerospace and Defense |
16.0 |
|
|
19.9 |
|
|
4.7 |
|
|
49.0 |
|
|
|
|
Total Industrial Solutions segment |
5.1 |
|
|
9.2 |
|
|
0.7 |
|
|
(3.4 |
) |
|
16.2 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Life Sciences segment |
|
|
|
|
|
|
|
|
|
|||||
Total Life Sciences segment |
11.5 |
|
|
(9.4 |
) |
|
19.6 |
|
|
13.0 |
|
|
35.4 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Company |
4.5 |
% |
|
8.1 |
% |
|
0.5 |
% |
|
(1.2 |
)% |
|
11.2 |
% |
Note: Amounts may not foot due to rounding. |
(1) |
SEGMENT SALES PERCENT CHANGE FROM PRIOR PERIODS BY GEOGRAPHY, CONSTANT CURRENCY |
||||||||||||||
(Unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Three Months Ended July 31, 2024 |
|||||||||||||
|
TOTAL |
|
|
|
EMEA |
|
APAC |
|
LATAM |
|||||
Mobile Solutions segment |
|
|
|
|
|
|
|
|
|
|||||
Off-Road |
(11.7 |
)% |
|
13.9 |
% |
|
(30.0 |
)% |
|
(13.8 |
)% |
|
(30.5 |
)% |
On-Road |
(9.7 |
) |
|
(6.4 |
) |
|
3.4 |
|
|
(29.1 |
) |
|
57.3 |
|
Aftermarket |
13.9 |
|
|
15.9 |
|
|
8.5 |
|
|
6.9 |
|
|
24.0 |
|
Total Mobile Solutions segment |
7.4 |
|
|
13.5 |
|
|
(3.0 |
) |
|
(1.1 |
) |
|
21.2 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Industrial Solutions segment |
|
|
|
|
|
|
|
|
|
|||||
Industrial Filtration Solutions |
(0.8 |
) |
|
1.4 |
|
|
(7.7 |
) |
|
3.8 |
|
|
25.2 |
|
Aerospace and Defense |
40.1 |
|
|
51.8 |
|
|
14.1 |
|
|
22.6 |
|
|
|
|
Total Industrial Solutions segment |
4.6 |
|
|
10.8 |
|
|
(5.3 |
) |
|
4.2 |
|
|
25.2 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Life Sciences segment |
|
|
|
|
|
|
|
|
|
|||||
Total Life Sciences segment |
23.2 |
|
|
(14.7 |
) |
|
18.2 |
|
|
53.0 |
|
|
41.2 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Company |
7.6 |
% |
|
11.5 |
% |
|
(1.9 |
)% |
|
7.1 |
% |
|
21.9 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
|
Twelve Months Ended July 31, 2024 |
|||||||||||||
|
TOTAL |
|
|
|
EMEA |
|
APAC |
|
LATAM |
|||||
Mobile Solutions segment |
|
|
|
|
|
|
|
|
|
|||||
Off-Road |
(11.3 |
)% |
|
4.4 |
% |
|
(19.1 |
)% |
|
(20.6 |
)% |
|
(26.4 |
)% |
On-Road |
(3.0 |
) |
|
(1.6 |
) |
|
12.3 |
|
|
(14.4 |
) |
|
15.9 |
|
Aftermarket |
8.2 |
|
|
10.5 |
|
|
1.3 |
|
|
8.6 |
|
|
11.8 |
|
Total Mobile Solutions segment |
3.6 |
|
|
8.4 |
|
|
(4.4 |
) |
|
(0.2 |
) |
|
9.6 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Industrial Solutions segment |
|
|
|
|
|
|
|
|
|
|||||
Industrial Filtration Solutions |
3.2 |
|
|
6.6 |
|
|
(1.6 |
) |
|
(1.0 |
) |
|
16.1 |
|
Aerospace and Defense |
15.5 |
|
|
19.9 |
|
|
2.4 |
|
|
53.5 |
|
|
(56.8 |
) |
Total Industrial Solutions segment |
4.9 |
|
|
9.2 |
|
|
(1.2 |
) |
|
(0.2 |
) |
|
16.1 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Life Sciences segment |
|
|
|
|
|
|
|
|
|
|||||
Total Life Sciences segment |
11.7 |
|
|
(9.4 |
) |
|
16.7 |
|
|
16.6 |
|
|
35.3 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Company |
4.5 |
% |
|
8.1 |
% |
|
(1.4 |
)% |
|
2.3 |
% |
|
10.6 |
% |
Note: The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. The Company believes providing constant currency information provides valuable supplemental information regarding its results of operations. The Company calculates constant currency percentages by converting its current period local currency financial results using the prior period exchange rates and compares these adjusted amounts to its prior period reported results. Amounts may not foot due to rounding. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||
(In millions, except per share amounts) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
July 31, |
|
July 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
126.0 |
|
|
$ |
190.8 |
|
|
$ |
492.5 |
|
|
$ |
544.5 |
|
Net capital expenditures |
|
(19.1 |
) |
|
|
(25.5 |
) |
|
|
(84.9 |
) |
|
|
(118.1 |
) |
Free cash flow |
$ |
106.9 |
|
|
$ |
165.4 |
|
|
$ |
407.6 |
|
|
$ |
426.3 |
|
|
|
|
|
|
|
|
|
||||||||
Net earnings |
$ |
109.7 |
|
|
$ |
91.9 |
|
|
$ |
414.0 |
|
|
$ |
358.8 |
|
Income taxes |
|
29.7 |
|
|
|
25.4 |
|
|
|
121.3 |
|
|
|
109.9 |
|
Interest expense |
|
5.3 |
|
|
|
4.9 |
|
|
|
21.4 |
|
|
|
19.2 |
|
Depreciation and amortization |
|
24.9 |
|
|
|
25.1 |
|
|
|
98.4 |
|
|
|
92.3 |
|
EBITDA |
$ |
169.6 |
|
|
$ |
147.3 |
|
|
$ |
655.1 |
|
|
$ |
580.2 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net earnings |
$ |
114.5 |
|
|
$ |
95.6 |
|
|
$ |
418.8 |
|
|
$ |
375.2 |
|
Adjusted income taxes |
|
31.3 |
|
|
|
26.6 |
|
|
|
122.9 |
|
|
|
115.3 |
|
Interest expense |
|
5.3 |
|
|
|
4.9 |
|
|
|
21.4 |
|
|
|
19.2 |
|
Depreciation and amortization |
|
24.9 |
|
|
|
25.1 |
|
|
|
98.4 |
|
|
|
92.3 |
|
Adjusted EBITDA |
$ |
176.0 |
|
|
$ |
152.2 |
|
|
$ |
661.5 |
|
|
$ |
602.0 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
$ |
334.8 |
|
|
$ |
300.1 |
|
|
$ |
1,274.4 |
|
|
$ |
1,160.6 |
|
Restructuring and other charges |
|
3.8 |
|
|
|
1.4 |
|
|
|
3.8 |
|
|
|
2.9 |
|
Adjusted gross profit |
$ |
338.6 |
|
|
$ |
301.5 |
|
|
$ |
1,278.2 |
|
|
$ |
1,163.5 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expense |
$ |
188.6 |
|
|
$ |
179.6 |
|
|
$ |
730.3 |
|
|
$ |
680.4 |
|
Restructuring and other charges |
|
(2.6 |
) |
|
|
(3.5 |
) |
|
|
(2.6 |
) |
|
|
(18.9 |
) |
Adjusted operating expense |
$ |
186.0 |
|
|
$ |
176.1 |
|
|
$ |
727.7 |
|
|
$ |
661.5 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
$ |
146.2 |
|
|
$ |
120.5 |
|
|
$ |
544.1 |
|
|
$ |
480.2 |
|
Restructuring and other charges |
|
6.4 |
|
|
|
4.9 |
|
|
|
6.4 |
|
|
|
21.8 |
|
Adjusted operating income |
$ |
152.6 |
|
|
$ |
125.4 |
|
|
$ |
550.5 |
|
|
$ |
502.0 |
|
|
|
|
|
|
|
|
|
||||||||
Net earnings |
$ |
109.7 |
|
|
$ |
91.9 |
|
|
$ |
414.0 |
|
|
$ |
358.8 |
|
Restructuring and other charges, net of tax |
|
4.8 |
|
|
|
3.7 |
|
|
|
4.8 |
|
|
|
16.4 |
|
Adjusted net earnings |
$ |
114.5 |
|
|
$ |
95.6 |
|
|
$ |
418.8 |
|
|
$ |
375.2 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted EPS |
$ |
0.90 |
|
|
$ |
0.75 |
|
|
$ |
3.38 |
|
|
$ |
2.90 |
|
Restructuring and other charges per share |
|
0.04 |
|
|
|
0.03 |
|
|
|
0.04 |
|
|
|
0.14 |
|
Adjusted diluted EPS |
$ |
0.94 |
|
|
$ |
0.78 |
|
|
$ |
3.42 |
|
|
$ |
3.04 |
|
2025 Adjusted EPS Guidance
A reconciliation of the Company’s fiscal 2025 adjusted EPS guidance to fiscal 2025 GAAP EPS guidance is not included in this release due to the number of variables in the projected GAAP EPS range and the Company’s current inability to reasonably quantify certain amounts, such as restructuring or other charges, that would be included in the GAAP measure or the individual adjustments for such reconciliation.
Note: Although free cash flow, EBITDA, adjusted EBITDA, adjusted gross profit, adjusted operating expense, adjusted operating income, adjusted income taxes, adjusted net earnings and adjusted diluted EPS are not measures of financial performance under GAAP, the Company believes they are useful in understanding its financial results. Free cash flow is a commonly used measure of a company’s ability to generate cash in excess of its operating needs. EBITDA is a commonly used measure of operating earnings less non-cash expenses. The adjusted basis presentation excludes the impact of certain matters not related to the Company’s ongoing operations. Management believes that the adjusted basis presentation reflects management’s performance in operating the Company and provides a meaningful representation of the performance of the Company’s core business and is useful to understanding its financial results. A shortcoming of these financial measures is that they do not reflect the Company’s actual results under GAAP. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures. Amounts may not foot due to rounding.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240828284425/en/
Sarika Dhadwal (952) 887-3753
Sarika.Dhadwal@Donaldson.com
Source: Donaldson Company, Inc.
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