Donaldson Reports Second Quarter Fiscal Year 2025 Sales and Earnings
Donaldson Company (NYSE: DCI) reported second quarter fiscal 2025 results with sales of $870.0 million, down 0.8% year over year but up 0.9% in constant currency. GAAP earnings per share (EPS) decreased 2.2% to $0.79, while adjusted EPS grew 2.5% to $0.83.
The company showed mixed performance across segments:
- Mobile Solutions segment saw Aftermarket sales increase 4.0%, while Off-Road and On-Road sales declined 12.8% and 24.4% respectively
- Industrial Solutions segment decreased 3.7%, though Aerospace and Defense grew 18.7%
- Life Sciences segment increased 9.2%
For fiscal 2025, Donaldson narrowed its adjusted EPS guidance to between $3.60 and $3.68, expecting sales to be flat to up 4% compared to prior year. The company maintains its commitment to shareholder returns, having paid $64.6 million in dividends and repurchased 0.9% of outstanding shares for $81.4 million year-to-date.
Donaldson Company (NYSE: DCI) ha riportato i risultati del secondo trimestre dell'esercizio fiscale 2025 con vendite di 870,0 milioni di dollari, in calo dello 0,8% rispetto all'anno precedente, ma in aumento dello 0,9% a valuta costante. Gli utili per azione (EPS) GAAP sono diminuiti del 2,2% a 0,79 dollari, mentre l'EPS rettificato è cresciuto del 2,5% a 0,83 dollari.
L'azienda ha mostrato performance miste tra i vari segmenti:
- Il segmento Soluzioni Mobili ha visto un aumento delle vendite nel mercato secondario del 4,0%, mentre le vendite Off-Road e On-Road sono diminuite rispettivamente del 12,8% e del 24,4%
- Il segmento Soluzioni Industriali è diminuito del 3,7%, anche se Aerospaziale e Difesa è cresciuto del 18,7%
- Il segmento Scienze della Vita è aumentato del 9,2%
Per l'esercizio fiscale 2025, Donaldson ha ristretto la sua guida EPS rettificata a un intervallo tra 3,60 e 3,68 dollari, prevedendo vendite stabili o in aumento del 4% rispetto all'anno precedente. L'azienda mantiene il proprio impegno verso i ritorni per gli azionisti, avendo pagato 64,6 milioni di dollari in dividendi e riacquistato lo 0,9% delle azioni in circolazione per 81,4 milioni di dollari dall'inizio dell'anno.
Donaldson Company (NYSE: DCI) reportó los resultados del segundo trimestre del ejercicio fiscal 2025 con ventas de 870,0 millones de dólares, una disminución del 0,8% en comparación con el año anterior, pero un aumento del 0,9% en moneda constante. Las ganancias por acción (EPS) GAAP disminuyeron un 2,2% a 0,79 dólares, mientras que el EPS ajustado creció un 2,5% a 0,83 dólares.
La empresa mostró un rendimiento mixto en los segmentos:
- El segmento de Soluciones Móviles vio un aumento del 4,0% en las ventas del mercado secundario, mientras que las ventas Off-Road y On-Road disminuyeron un 12,8% y un 24,4%, respectivamente
- El segmento de Soluciones Industriales disminuyó un 3,7%, aunque Aeroespacial y Defensa crecieron un 18,7%
- El segmento de Ciencias de la Vida aumentó un 9,2%
Para el ejercicio fiscal 2025, Donaldson ha ajustado su guía de EPS ajustado a un rango de entre 3,60 y 3,68 dólares, esperando que las ventas se mantengan estables o aumenten un 4% en comparación con el año anterior. La empresa mantiene su compromiso con los retornos a los accionistas, habiendo pagado 64,6 millones de dólares en dividendos y recomprado el 0,9% de las acciones en circulación por 81,4 millones de dólares en lo que va del año.
돈얼드슨 컴퍼니 (NYSE: DCI)는 2025 회계연도 2분기 실적을 보고하며 매출이 8억 7천만 달러로 전년 대비 0.8% 감소했지만, 상수 환율 기준으로는 0.9% 증가했다고 발표했습니다. GAAP 주당 순이익 (EPS)은 2.2% 감소하여 0.79달러에 이르렀고, 조정된 EPS는 2.5% 증가하여 0.83달러가 되었습니다.
회사는 각 부문에서 혼합된 성과를 보였습니다:
- 모바일 솔루션 부문은 애프터마켓 매출이 4.0% 증가한 반면, 오프로드 및 온로드 매출은 각각 12.8% 및 24.4% 감소했습니다.
- 산업 솔루션 부문은 3.7% 감소했지만, 항공우주 및 방산 부문은 18.7% 성장했습니다.
- 생명과학 부문은 9.2% 증가했습니다.
2025 회계연도에 대해, 돈얼드슨은 조정된 EPS 가이던스를 3.60달러에서 3.68달러 사이로 좁히며, 전년 대비 매출이 안정적이거나 4% 증가할 것으로 예상하고 있습니다. 회사는 주주 수익에 대한 약속을 유지하고 있으며, 올해 현재까지 6460만 달러의 배당금을 지급하고 8140만 달러에 해당하는 0.9%의 발행 주식을 재매입했습니다.
Donaldson Company (NYSE: DCI) a annoncé les résultats du deuxième trimestre de l'exercice fiscal 2025 avec des ventes de 870,0 millions de dollars, en baisse de 0,8 % par rapport à l'année précédente, mais en hausse de 0,9 % en monnaie constante. Le bénéfice par action (EPS) GAAP a diminué de 2,2 % pour atteindre 0,79 dollar, tandis que l'EPS ajusté a augmenté de 2,5 % pour atteindre 0,83 dollar.
L'entreprise a montré des performances variées selon les segments :
- Le segment Solutions Mobiles a connu une augmentation des ventes sur le marché secondaire de 4,0 %, tandis que les ventes Off-Road et On-Road ont chuté de 12,8 % et 24,4 % respectivement.
- Le segment Solutions Industrielles a diminué de 3,7 %, bien que l'Aérospatial et la Défense aient progressé de 18,7 %.
- Le segment Sciences de la Vie a augmenté de 9,2 %.
Pour l'exercice 2025, Donaldson a réduit ses prévisions d'EPS ajusté à un intervalle compris entre 3,60 et 3,68 dollars, s'attendant à ce que les ventes restent stables ou augmentent de 4 % par rapport à l'année précédente. L'entreprise maintient son engagement envers les rendements des actionnaires, ayant versé 64,6 millions de dollars en dividendes et racheté 0,9 % des actions en circulation pour 81,4 millions de dollars depuis le début de l'année.
Donaldson Company (NYSE: DCI) hat die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025 mit einem Umsatz von 870,0 Millionen Dollar veröffentlicht, was einem Rückgang von 0,8% im Vergleich zum Vorjahr entspricht, aber einem Anstieg von 0,9% in konstanten Währungen. Die GAAP-Ergebnisse pro Aktie (EPS) sanken um 2,2% auf 0,79 Dollar, während das bereinigte EPS um 2,5% auf 0,83 Dollar anstieg.
Das Unternehmen zeigte gemischte Leistungen in den Segmenten:
- Das Segment Mobile Lösungen verzeichnete einen Anstieg der Aftermarket-Verkäufe um 4,0%, während die Off-Road- und On-Road-Verkäufe um 12,8% bzw. 24,4% zurückgingen.
- Das Segment Industrie-Lösungen sank um 3,7%, während Luft- und Raumfahrt sowie Verteidigung um 18,7% wuchsen.
- Das Segment Lebenswissenschaften stieg um 9,2%.
Für das Geschäftsjahr 2025 hat Donaldson seine Prognose für das bereinigte EPS auf einen Bereich zwischen 3,60 und 3,68 Dollar eingegrenzt und erwartet, dass die Umsätze stabil bleiben oder um 4% im Vergleich zum Vorjahr steigen. Das Unternehmen bekräftigt sein Engagement für die Renditen der Aktionäre und hat bisher 64,6 Millionen Dollar an Dividenden gezahlt und 0,9% der ausgegebenen Aktien für 81,4 Millionen Dollar im laufenden Jahr zurückgekauft.
- Adjusted EPS grew 2.5% to $0.83
- Aerospace and Defense sales up 18.7%
- Life Sciences segment sales increased 9.2%
- Aftermarket sales grew 4.0%
- Adjusted operating margin improved 40 basis points
- Maintained strong shareholder returns through dividends and buybacks
- Overall sales declined 0.8% to $870.0 million
- GAAP EPS decreased 2.2% to $0.79
- Off-Road sales declined 12.8%
- On-Road sales dropped 24.4%
- Industrial Solutions sales decreased 3.7%
Insights
Donaldson's Q2 FY2025 results demonstrate the company's ability to maintain profitability despite challenging market conditions. While overall sales declined 0.8% to
The company's portfolio diversification is proving valuable as a counterbalance to sector-specific weaknesses. Robust growth in Aerospace and Defense (
Management's narrowed EPS guidance of
The outlook for flat to
Second quarter sales of
GAAP EPS of
Continuing to project record fiscal 2025 EPS
“The Donaldson team delivered robust margins this quarter, displaying resilience and agility despite ongoing macroeconomic headwinds,” said Tod Carpenter, chairman, president and chief executive officer. “We generated sales growth in Aftermarket, Aerospace and Defense, and Life Sciences, while also diligently managing costs and further optimizing operating expenses.
“Our diversified portfolio of businesses, once again, provides balance in an uncertain environment, giving us confidence in our ability to drive record earnings in fiscal 2025. We remain committed to delivering long-term value creation through the execution of our strategic initiatives, with a focus on new product innovation and investments across all verticals.”
Second Quarter Operating Results
Sales of
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
January 31, 2025 |
|
January 31, 2025 |
||||||||
|
Reported %
|
|
Constant
|
|
Reported %
|
|
Constant
|
||||
Mobile Solutions segment |
|
|
|
|
|
|
|
||||
Off-Road |
(12.8 |
)% |
|
(10.9 |
)% |
|
(9.3 |
)% |
|
(8.8 |
)% |
On-Road |
(24.4 |
) |
|
(22.7 |
) |
|
(19.5 |
) |
|
(18.7 |
) |
Aftermarket |
4.0 |
|
|
6.0 |
|
|
7.3 |
|
|
8.0 |
|
Total Mobile Solutions segment |
(0.5 |
) |
|
1.4 |
|
|
2.7 |
|
|
3.4 |
|
|
|
|
|
|
|
|
|
||||
Industrial Solutions segment |
|
|
|
|
|
|
|
||||
Industrial Filtration Solutions |
(7.5 |
) |
|
(6.5 |
) |
|
(3.5 |
) |
|
(3.4 |
) |
Aerospace and Defense |
18.7 |
|
|
19.6 |
|
|
22.6 |
|
|
22.7 |
|
Total Industrial Solutions segment |
(3.7 |
) |
|
(2.6 |
) |
|
0.3 |
|
|
0.4 |
|
|
|
|
|
|
|
|
|
||||
Life Sciences segment |
|
|
|
|
|
|
|
||||
Total Life Sciences segment |
9.2 |
|
|
10.9 |
|
|
12.8 |
|
|
12.4 |
|
|
|
|
|
|
|
|
|
||||
Total Company |
(0.8 |
)% |
|
0.9 |
% |
|
2.7 |
% |
|
3.2 |
% |
Mobile Solutions segment (Mobile) sales decreased
Industrial Solutions segment (Industrial) sales decreased
Life Sciences segment (Life Sciences) 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
Year-to-date, Donaldson paid
Updated Fiscal 2025 Outlook
Adjusted full-year EPS guidance is narrowed to between
Mobile sales are projected to be down
Industrial sales are forecast to grow between
Life Sciences sales are forecast to grow high-single digits compared with 2024 driven by growth in Disk Drive and Food & Beverage.
Adjusted operating margin, resulting from solid gross margin and operating expense leverage, is expected to be between
Interest expense is estimated to be approximately
Capital expenditures are forecast to be between
| _____________________________ |
1 All EPS figures refer to diluted EPS. |
2 Adjusted EPS is a non-GAAP financial measure that excludes the impact of certain items not related to ongoing operations. |
3 Second quarter fiscal 2025 adjusted results exclude |
4 Fiscal 2024 adjusted results exclude |
Miscellaneous
The Company will webcast its second quarter fiscal 2025 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, including natural disasters; effects of unavailable raw materials or material cost inflation; 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 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, 2024. 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-Q.
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 |
|
Six Months Ended |
||||||||||||||||||
|
January 31, |
|
January 31, |
||||||||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
Change |
|
|
2025 |
|
|
|
2024 |
|
|
Change |
||
Net sales |
$ |
870.0 |
|
|
$ |
876.7 |
|
|
(0.8 |
)% |
|
$ |
1,770.1 |
|
|
$ |
1,723.0 |
|
|
2.7 |
% |
Cost of sales |
|
564.1 |
|
|
|
568.1 |
|
|
(0.7 |
) |
|
|
1,144.6 |
|
|
|
1,113.5 |
|
|
2.8 |
|
Gross profit |
|
305.9 |
|
|
|
308.6 |
|
|
(0.9 |
) |
|
|
625.5 |
|
|
|
609.5 |
|
|
2.6 |
|
Selling, general and administrative |
|
159.2 |
|
|
|
156.8 |
|
|
1.5 |
|
|
|
325.3 |
|
|
|
311.8 |
|
|
4.3 |
|
Research and development |
|
21.2 |
|
|
|
22.1 |
|
|
(4.1 |
) |
|
|
43.9 |
|
|
|
43.4 |
|
|
1.1 |
|
Operating expenses |
|
180.4 |
|
|
|
178.9 |
|
|
0.8 |
|
|
|
369.2 |
|
|
|
355.2 |
|
|
3.9 |
|
Operating income |
|
125.5 |
|
|
|
129.7 |
|
|
(3.1 |
) |
|
|
256.3 |
|
|
|
254.3 |
|
|
0.8 |
|
Interest expense |
|
5.9 |
|
|
|
5.6 |
|
|
5.3 |
|
|
|
11.4 |
|
|
|
11.1 |
|
|
2.7 |
|
Other income, net |
|
(5.4 |
) |
|
|
(4.9 |
) |
|
9.7 |
|
|
|
(10.6 |
) |
|
|
(8.7 |
) |
|
22.4 |
|
Earnings before income taxes |
|
125.0 |
|
|
|
129.0 |
|
|
(3.0 |
) |
|
|
255.5 |
|
|
|
251.9 |
|
|
1.5 |
|
Income taxes |
|
29.1 |
|
|
|
30.3 |
|
|
(3.9 |
) |
|
|
60.6 |
|
|
|
61.1 |
|
|
(0.8 |
) |
Net earnings |
$ |
95.9 |
|
|
$ |
98.7 |
|
|
(2.7 |
)% |
|
$ |
194.9 |
|
|
$ |
190.8 |
|
|
2.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares – basic |
|
119.6 |
|
|
|
120.5 |
|
|
(0.8 |
)% |
|
|
119.8 |
|
|
|
120.7 |
|
|
(0.8 |
)% |
Weighted average shares – diluted |
|
121.4 |
|
|
|
122.1 |
|
|
(0.6 |
)% |
|
|
121.7 |
|
|
|
122.4 |
|
|
(0.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net EPS – basic |
$ |
0.80 |
|
|
$ |
0.82 |
|
|
(2.0 |
)% |
|
$ |
1.63 |
|
|
$ |
1.58 |
|
|
3.0 |
% |
Net EPS – diluted |
$ |
0.79 |
|
|
$ |
0.81 |
|
|
(2.2 |
)% |
|
$ |
1.60 |
|
|
$ |
1.56 |
|
|
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid per share |
$ |
0.27 |
|
|
$ |
0.25 |
|
|
8.0 |
% |
|
$ |
0.54 |
|
|
$ |
0.50 |
|
|
8.0 |
% |
Note: Amounts may not foot due to rounding. |
|||||||||||||||||||||
DONALDSON COMPANY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) |
|||||
|
January 31, |
|
July 31, |
||
|
|
2025 |
|
|
2024 |
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
189.1 |
|
$ |
232.7 |
Accounts receivable, net |
|
597.6 |
|
|
629.7 |
Inventories, net |
|
540.8 |
|
|
476.7 |
Prepaid expenses and other current assets |
|
95.0 |
|
|
99.0 |
Total current assets |
|
1,422.5 |
|
|
1,438.1 |
Property, plant and equipment, net |
|
637.8 |
|
|
645.5 |
Goodwill |
|
469.3 |
|
|
478.4 |
Intangible assets, net |
|
160.8 |
|
|
171.9 |
Other long-term assets |
|
270.9 |
|
|
180.4 |
Total assets |
$ |
2,961.3 |
|
$ |
2,914.3 |
|
|
|
|
||
Liabilities and Stockholders’ Equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Short-term borrowings |
$ |
37.7 |
|
$ |
28.3 |
Current maturities of long-term debt |
|
25.0 |
|
|
25.0 |
Accounts payable |
|
375.2 |
|
|
379.4 |
Accrued employee compensation and related taxes |
|
112.3 |
|
|
140.9 |
Deferred revenue |
|
27.1 |
|
|
19.7 |
Income taxes payable |
|
57.2 |
|
|
42.6 |
Dividends payable |
|
32.3 |
|
|
32.5 |
Other current liabilities |
|
99.0 |
|
|
114.1 |
Total current liabilities |
|
765.8 |
|
|
782.5 |
Long-term debt |
|
514.7 |
|
|
483.4 |
Non-current income taxes payable |
|
18.7 |
|
|
39.8 |
Deferred income taxes |
|
13.3 |
|
|
16.1 |
Other long-term liabilities |
|
104.4 |
|
|
103.4 |
Total liabilities |
|
1,416.9 |
|
|
1,425.2 |
|
|
|
|
||
Total stockholders’ equity |
|
1,544.4 |
|
|
1,489.1 |
Total liabilities and stockholders’ equity |
$ |
2,961.3 |
|
$ |
2,914.3 |
DONALDSON COMPANY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) |
|||||||
|
Six Months Ended |
||||||
|
January 31, |
||||||
|
|
2025 |
|
|
|
2024 |
|
Operating Activities |
|
|
|
||||
Net earnings |
$ |
194.9 |
|
|
$ |
190.8 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
50.5 |
|
|
|
48.9 |
|
Deferred income taxes |
|
(13.3 |
) |
|
|
(10.3 |
) |
Stock-based compensation expense |
|
16.4 |
|
|
|
14.5 |
|
Other, net |
|
0.6 |
|
|
|
1.4 |
|
Changes in operating assets and liabilities |
|
(85.8 |
) |
|
|
(20.3 |
) |
Net cash provided by operating activities |
|
163.3 |
|
|
|
225.0 |
|
|
|
|
|
||||
Investing Activities |
|
|
|
||||
Purchases of property, plant and equipment |
|
(43.9 |
) |
|
|
(44.5 |
) |
Equity investment |
|
(71.2 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(115.1 |
) |
|
|
(44.5 |
) |
|
|
|
|
||||
Financing Activities |
|
|
|
||||
Proceeds from long-term debt |
|
55.0 |
|
|
|
35.0 |
|
Repayments of long-term debt |
|
(20.0 |
) |
|
|
(88.7 |
) |
Change in short-term borrowings |
|
10.7 |
|
|
|
16.3 |
|
Purchase of treasury stock |
|
(81.6 |
) |
|
|
(86.6 |
) |
Payment of contingent consideration |
|
(1.8 |
) |
|
|
— |
|
Dividends paid |
|
(64.6 |
) |
|
|
(60.3 |
) |
Exercise of stock options and other |
|
13.8 |
|
|
|
12.6 |
|
Net cash used in financing activities |
|
(88.5 |
) |
|
|
(171.7 |
) |
Effect of exchange rate changes on cash |
|
(3.3 |
) |
|
|
(2.1 |
) |
(Decrease) increase in cash and cash equivalents |
|
(43.6 |
) |
|
|
6.7 |
|
Cash and cash equivalents, beginning of period |
|
232.7 |
|
|
|
187.1 |
|
Cash and cash equivalents, end of period |
$ |
189.1 |
|
|
$ |
193.8 |
|
CONSOLIDATED RATE ANALYSIS (Unaudited) |
|||||||||||
|
Three Months Ended |
Six Months Ended |
|||||||||
|
January 31, |
January 31, |
|||||||||
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
Gross margin |
35.2 |
% |
|
35.2 |
% |
|
35.3 |
% |
|
35.4 |
% |
Operating expenses |
20.7 |
% |
|
20.4 |
% |
|
20.9 |
% |
|
20.6 |
% |
Operating margin |
14.4 |
% |
|
14.8 |
% |
|
14.5 |
% |
|
14.8 |
% |
Other income, net |
(0.6 |
)% |
|
(0.5 |
)% |
|
(0.6 |
)% |
|
(0.5 |
)% |
Depreciation and amortization |
2.9 |
% |
|
2.8 |
% |
|
2.9 |
% |
|
2.8 |
% |
EBITDA |
17.9 |
% |
|
18.2 |
% |
|
17.9 |
% |
|
18.1 |
% |
Effective tax rate |
23.2 |
% |
|
23.5 |
% |
|
23.7 |
% |
|
24.2 |
% |
Earnings before income taxes - Mobile Solutions |
17.4 |
% |
|
18.0 |
% |
|
17.9 |
% |
|
17.6 |
% |
Earnings before income taxes - Industrial Solutions |
16.1 |
% |
|
18.0 |
% |
|
16.0 |
% |
|
17.8 |
% |
Loss before income taxes - Life Sciences |
(0.7 |
)% |
|
(9.2 |
)% |
|
(4.2 |
)% |
|
(8.1 |
)% |
Cash conversion ratio |
74.4 |
% |
|
66.7 |
% |
|
61.2 |
% |
|
94.6 |
% |
|
|
|
|
|
|
|
|
||||
|
Three Months Ended |
Six Months Ended |
|||||||||
|
January 31, |
January 31, |
|||||||||
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
Adjusted Rates |
|
|
|
|
|
|
|
||||
Gross margin |
35.2 |
% |
|
35.2 |
% |
|
35.4 |
% |
|
35.4 |
% |
Operating expenses |
20.0 |
% |
|
20.4 |
% |
|
20.4 |
% |
|
20.6 |
% |
Operating margin |
15.2 |
% |
|
14.8 |
% |
|
15.0 |
% |
|
14.8 |
% |
Other income, net |
(0.6 |
)% |
|
(0.5 |
)% |
|
(0.6 |
)% |
|
(0.5 |
)% |
Depreciation and amortization |
2.9 |
% |
|
2.8 |
% |
|
2.9 |
% |
|
2.8 |
% |
EBITDA |
18.7 |
% |
|
18.2 |
% |
|
18.5 |
% |
|
18.1 |
% |
Effective tax rate |
23.2 |
% |
|
23.5 |
% |
|
23.7 |
% |
|
24.2 |
% |
Earnings before income taxes - Mobile Solutions |
17.4 |
% |
|
18.0 |
% |
|
17.9 |
% |
|
17.6 |
% |
Earnings before income taxes - Industrial Solutions |
16.1 |
% |
|
18.0 |
% |
|
16.0 |
% |
|
17.8 |
% |
Loss before income taxes - Life Sciences |
(0.7 |
)% |
|
(9.2 |
)% |
|
(4.2 |
)% |
|
(8.1 |
)% |
Cash conversion ratio |
70.7 |
% |
|
66.7 |
% |
|
58.9 |
% |
|
94.6 |
% |
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 the impact of certain items not related to ongoing operations. 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 January 31, |
|
Six Months Ended January 31, |
||||||||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
Change |
|
|
2025 |
|
|
|
2024 |
|
|
Change |
||
Net sales |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mobile Solutions segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Off-Road |
$ |
80.2 |
|
|
$ |
91.9 |
|
|
(12.8 |
)% |
|
$ |
169.3 |
|
|
$ |
186.6 |
|
|
(9.3 |
)% |
On-Road |
|
25.3 |
|
|
|
33.5 |
|
|
(24.4 |
) |
|
|
57.4 |
|
|
|
71.3 |
|
|
(19.5 |
) |
Aftermarket |
|
442.0 |
|
|
|
424.9 |
|
|
4.0 |
|
|
|
893.2 |
|
|
|
832.4 |
|
|
7.3 |
|
Total Mobile Solutions segment |
|
547.5 |
|
|
|
550.3 |
|
|
(0.5 |
) |
|
|
1,119.9 |
|
|
|
1,090.3 |
|
|
2.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Industrial Solutions segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Industrial Filtration Solutions |
|
207.5 |
|
|
|
224.5 |
|
|
(7.5 |
) |
|
|
419.9 |
|
|
|
435.1 |
|
|
(3.5 |
) |
Aerospace and Defense |
|
46.2 |
|
|
|
38.9 |
|
|
18.7 |
|
|
|
91.4 |
|
|
|
74.5 |
|
|
22.6 |
|
Total Industrial Solutions segment |
|
253.7 |
|
|
|
263.4 |
|
|
(3.7 |
) |
|
|
511.3 |
|
|
|
509.6 |
|
|
0.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Life Sciences segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Life Sciences segment |
|
68.8 |
|
|
|
63.0 |
|
|
9.2 |
|
|
|
138.9 |
|
|
|
123.1 |
|
|
12.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Company |
$ |
870.0 |
|
|
$ |
876.7 |
|
|
(0.8 |
)% |
|
$ |
1,770.1 |
|
|
$ |
1,723.0 |
|
|
2.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) before income taxes |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mobile Solutions segment |
$ |
95.5 |
|
|
$ |
99.2 |
|
|
(3.7 |
)% |
|
$ |
200.2 |
|
|
$ |
191.4 |
|
|
4.6 |
% |
Industrial Solutions segment |
|
40.9 |
|
|
|
47.4 |
|
|
(13.7 |
) |
|
|
81.9 |
|
|
|
90.7 |
|
|
(9.7 |
) |
Life Sciences segment |
|
(0.5 |
) |
|
|
(5.8 |
) |
|
91.4 |
|
|
|
(5.8 |
) |
|
|
(10.0 |
) |
|
42.0 |
|
Corporate and unallocated |
|
(10.9 |
) |
|
|
(11.8 |
) |
|
7.6 |
|
|
|
(20.8 |
) |
|
|
(20.2 |
) |
|
(3.0 |
) |
Total Company |
$ |
125.0 |
|
|
$ |
129.0 |
|
|
(3.0 |
)% |
|
$ |
255.5 |
|
|
$ |
251.9 |
|
|
1.5 |
% |
Earnings (loss) before income taxes percentage |
|
|
|
|
|
|
|||||||||||
Mobile Solutions segment |
17.4 |
% |
18.0 |
% |
(0.6 |
)% |
17.9 |
% |
17.6 |
% |
0.3 |
% |
|||||
Industrial Solutions segment |
16.1 |
% |
18.0 |
% |
(1.9 |
)% |
16.0 |
% |
17.8 |
% |
(1.8 |
)% |
|||||
Life Sciences segment |
(0.7 |
)% |
(9.2 |
)% |
8.5 |
% |
(4.2 |
)% |
(8.1 |
)% |
3.9 |
% |
|||||
Note: Earnings before income taxes percentage is calculated by dividing earnings before income taxes by net sales. Amounts may not foot due to rounding. |
|||||||||||||||||
SEGMENT SALES PERCENT CHANGE FROM PRIOR PERIODS BY GEOGRAPHY, AS REPORTED (Unaudited) |
||||||||||||||
|
Three Months Ended January 31, 2025 |
|||||||||||||
|
TOTAL |
|
|
|
EMEA(3) |
|
APAC(4) |
|
LATAM(5) |
|||||
Mobile Solutions segment |
|
|
|
|
|
|
|
|
|
|||||
Off-Road |
(12.8 |
)% |
|
0.1 |
% |
|
(33.6 |
)% |
|
7.2 |
% |
|
(5.1 |
)% |
On-Road |
(24.4 |
) |
|
(31.4 |
) |
|
(16.2 |
) |
|
(14.1 |
) |
|
(17.9 |
) |
Aftermarket |
4.0 |
|
|
8.6 |
|
|
0.1 |
|
|
(1.5 |
) |
|
3.7 |
|
Total Mobile Solutions segment |
(0.5 |
) |
|
4.0 |
|
|
(9.6 |
) |
|
(1.1 |
) |
|
2.9 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Industrial Solutions segment |
|
|
|
|
|
|
|
|
|
|||||
Industrial Filtration Solutions |
(7.5 |
) |
|
(6.8 |
) |
|
(8.6 |
) |
|
(6.8 |
) |
|
(10.5 |
) |
Aerospace and Defense |
18.7 |
|
|
30.6 |
|
|
(13.7 |
) |
|
14.6 |
|
|
N/A |
|
Total Industrial Solutions segment |
(3.7 |
) |
|
0.7 |
|
|
(9.2 |
) |
|
(6.3 |
) |
|
(10.5 |
) |
|
|
|
|
|
|
|
|
|
|
|||||
Life Sciences segment |
|
|
|
|
|
|
|
|
|
|||||
Total Life Sciences segment |
9.2 |
|
|
50.9 |
|
|
(7.5 |
) |
|
14.4 |
|
|
10.0 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Company |
(0.8 |
)% |
|
3.8 |
% |
|
(9.2 |
)% |
|
0.5 |
% |
|
1.7 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
|
Six Months Ended January 31, 2025 |
|||||||||||||
|
TOTAL |
|
|
|
EMEA |
|
APAC |
|
LATAM |
|||||
Mobile Solutions segment |
|
|
|
|
|
|
|
|
|
|||||
Off-Road |
(9.3 |
)% |
|
1.2 |
% |
|
(26.8 |
)% |
|
6.5 |
% |
|
1.5 |
% |
On-Road |
(19.5 |
) |
|
(22.3 |
) |
|
(6.5 |
) |
|
(21.8 |
) |
|
(4.4 |
) |
Aftermarket |
7.3 |
|
|
9.3 |
|
|
7.3 |
|
|
5.0 |
|
|
4.8 |
|
Total Mobile Solutions segment |
2.7 |
|
|
5.3 |
|
|
(2.5 |
) |
|
2.6 |
|
|
4.5 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Industrial Solutions segment |
|
|
|
|
|
|
|
|
|
|||||
Industrial Filtration Solutions |
(3.5 |
) |
|
(2.6 |
) |
|
(4.5 |
) |
|
(1.6 |
) |
|
(11.3 |
) |
Aerospace and Defense |
22.6 |
|
|
35.6 |
|
|
(12.8 |
) |
|
11.9 |
|
|
N/A |
|
Total Industrial Solutions segment |
0.3 |
|
|
4.8 |
|
|
(5.5 |
) |
|
(1.2 |
) |
|
(11.3 |
) |
|
|
|
|
|
|
|
|
|
|
|||||
Life Sciences segment |
|
|
|
|
|
|
|
|
|
|||||
Total Life Sciences segment |
12.8 |
|
|
24.2 |
|
|
(1.8 |
) |
|
24.5 |
|
|
11.0 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Company |
2.7 |
% |
|
5.6 |
% |
|
(3.4 |
)% |
|
5.5 |
% |
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Note: Amounts may not foot due to rounding. |
||||||||||||||
| (1) |
||||||||||||||
(2) |
||||||||||||||
(3) |
||||||||||||||
(4) |
||||||||||||||
(5) |
||||||||||||||
SEGMENT SALES PERCENT CHANGE FROM PRIOR PERIODS BY GEOGRAPHY, CONSTANT CURRENCY (Unaudited) |
||||||||||||||
|
Three Months Ended January 31, 2025 |
|||||||||||||
|
TOTAL |
|
|
|
EMEA |
|
APAC |
|
LATAM |
|||||
Mobile Solutions segment |
|
|
|
|
|
|
|
|
|
|||||
Off-Road |
(10.9 |
)% |
|
0.1 |
% |
|
(31.2 |
)% |
|
11.0 |
% |
|
(0.5 |
)% |
On-Road |
(22.7 |
) |
|
(31.4 |
) |
|
(12.4 |
) |
|
(11.0 |
) |
|
(7.1 |
) |
Aftermarket |
6.0 |
|
|
8.6 |
|
|
3.1 |
|
|
1.5 |
|
|
7.9 |
|
Total Mobile Solutions segment |
1.4 |
|
|
4.0 |
|
|
(6.8 |
) |
|
2.0 |
|
|
7.3 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Industrial Solutions segment |
|
|
|
|
|
|
|
|
|
|||||
Industrial Filtration Solutions |
(6.5 |
) |
|
(6.8 |
) |
|
(6.8 |
) |
|
(4.4 |
) |
|
(6.4 |
) |
Aerospace and Defense |
19.6 |
|
|
30.6 |
|
|
(10.8 |
) |
|
19.4 |
|
|
N/A |
|
Total Industrial Solutions segment |
(2.6 |
) |
|
0.7 |
|
|
(7.3 |
) |
|
(3.8 |
) |
|
(6.4 |
) |
|
|
|
|
|
|
|
|
|
|
|||||
Life Sciences segment |
|
|
|
|
|
|
|
|
|
|||||
Total Life Sciences segment |
10.9 |
|
|
50.9 |
|
|
(4.4 |
) |
|
14.7 |
|
|
18.6 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Company |
0.9 |
% |
|
3.8 |
% |
|
(6.7 |
)% |
|
3.0 |
% |
|
6.0 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
|
Six Months Ended January 31, 2025 |
|||||||||||||
|
TOTAL |
|
|
|
EMEA |
|
APAC |
|
LATAM |
|||||
Mobile Solutions segment |
|
|
|
|
|
|
|
|
|
|||||
Off-Road |
(8.8 |
)% |
|
1.2 |
% |
|
(26.8 |
)% |
|
8.2 |
% |
|
6.1 |
% |
On-Road |
(18.7 |
) |
|
(22.3 |
) |
|
(5.4 |
) |
|
(21.0 |
) |
|
5.9 |
|
Aftermarket |
8.0 |
|
|
9.3 |
|
|
7.0 |
|
|
5.7 |
|
|
8.4 |
|
Total Mobile Solutions segment |
3.4 |
|
|
5.3 |
|
|
(2.7 |
) |
|
3.5 |
|
|
8.3 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Industrial Solutions segment |
|
|
|
|
|
|
|
|
|
|||||
Industrial Filtration Solutions |
(3.4 |
) |
|
(2.6 |
) |
|
(4.8 |
) |
|
(0.9 |
) |
|
(8.3 |
) |
Aerospace and Defense |
22.7 |
|
|
35.6 |
|
|
(12.7 |
) |
|
14.4 |
|
|
N/A |
|
Total Industrial Solutions segment |
0.4 |
|
|
4.8 |
|
|
(5.8 |
) |
|
(0.5 |
) |
|
(8.3 |
) |
|
|
|
|
|
|
|
|
|
|
|||||
Life Sciences segment |
|
|
|
|
|
|
|
|
|
|||||
Total Life Sciences segment |
12.4 |
|
|
24.2 |
|
|
(1.8 |
) |
|
22.9 |
|
|
17.5 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Company |
3.2 |
% |
|
5.6 |
% |
|
(3.6 |
)% |
|
5.9 |
% |
|
6.6 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
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) (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
January 31, |
|
January 31, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Net cash provided by operating activities |
$ |
90.4 |
|
|
$ |
87.0 |
|
|
$ |
163.3 |
|
|
$ |
225.0 |
|
Net capital expenditures |
|
(18.9 |
) |
|
|
(21.2 |
) |
|
|
(43.9 |
) |
|
|
(44.5 |
) |
Free cash flow |
$ |
71.5 |
|
|
$ |
65.8 |
|
|
$ |
119.4 |
|
|
$ |
180.5 |
|
|
|
|
|
|
|
|
|
||||||||
Net earnings |
$ |
95.9 |
|
|
$ |
98.7 |
|
|
$ |
194.9 |
|
|
$ |
190.8 |
|
Income taxes |
|
29.1 |
|
|
|
30.3 |
|
|
|
60.6 |
|
|
|
61.1 |
|
Interest expense |
|
5.9 |
|
|
|
5.6 |
|
|
|
11.4 |
|
|
|
11.1 |
|
Depreciation and amortization |
|
25.0 |
|
|
|
24.6 |
|
|
|
50.5 |
|
|
|
48.9 |
|
EBITDA |
$ |
155.9 |
|
|
$ |
159.2 |
|
|
$ |
317.4 |
|
|
$ |
311.9 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net earnings |
$ |
101.0 |
|
|
$ |
98.7 |
|
|
$ |
202.5 |
|
|
$ |
190.8 |
|
Adjusted income taxes |
|
30.6 |
|
|
|
30.3 |
|
|
|
62.9 |
|
|
|
61.1 |
|
Interest expense |
|
5.9 |
|
|
|
5.6 |
|
|
|
11.4 |
|
|
|
11.1 |
|
Depreciation and amortization |
|
25.0 |
|
|
|
24.6 |
|
|
|
50.5 |
|
|
|
48.9 |
|
Adjusted EBITDA |
$ |
162.5 |
|
|
$ |
159.2 |
|
|
$ |
327.3 |
|
|
$ |
311.9 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
$ |
305.9 |
|
|
$ |
308.6 |
|
|
$ |
625.5 |
|
|
$ |
609.5 |
|
Restructuring charges |
|
0.6 |
|
|
|
— |
|
|
|
1.7 |
|
|
|
— |
|
Business development charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted gross profit |
$ |
306.5 |
|
|
$ |
308.6 |
|
|
$ |
627.2 |
|
|
$ |
609.5 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expense |
$ |
180.4 |
|
|
$ |
178.9 |
|
|
$ |
369.2 |
|
|
$ |
355.2 |
|
Restructuring charges |
|
(1.6 |
) |
|
|
— |
|
|
|
(3.8 |
) |
|
|
— |
|
Business development charges |
|
(4.4 |
) |
|
|
— |
|
|
|
(4.4 |
) |
|
|
— |
|
Adjusted operating expense |
$ |
174.4 |
|
|
$ |
178.9 |
|
|
$ |
361.0 |
|
|
$ |
355.2 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
$ |
125.5 |
|
|
$ |
129.7 |
|
|
$ |
256.3 |
|
|
$ |
254.3 |
|
Restructuring charges |
|
2.2 |
|
|
|
— |
|
|
|
5.5 |
|
|
|
— |
|
Business development charges |
|
4.4 |
|
|
|
— |
|
|
|
4.4 |
|
|
|
— |
|
Adjusted operating income |
$ |
132.1 |
|
|
$ |
129.7 |
|
|
$ |
266.2 |
|
|
$ |
254.3 |
|
|
|
|
|
|
|
|
|
||||||||
Net earnings |
$ |
95.9 |
|
|
$ |
98.7 |
|
|
$ |
194.9 |
|
|
$ |
190.8 |
|
Restructuring charges, net tax |
|
1.7 |
|
|
|
— |
|
|
|
4.2 |
|
|
|
— |
|
Business development charges, net tax |
|
3.4 |
|
|
|
— |
|
|
|
3.4 |
|
|
|
— |
|
Adjusted net earnings |
$ |
101.0 |
|
|
$ |
98.7 |
|
|
$ |
202.5 |
|
|
$ |
190.8 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted EPS |
$ |
0.79 |
|
|
$ |
0.81 |
|
|
$ |
1.60 |
|
|
$ |
1.56 |
|
Restructuring charges |
|
0.01 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
Business development charges |
|
0.03 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
Adjusted diluted EPS |
$ |
0.83 |
|
|
$ |
0.81 |
|
|
$ |
1.66 |
|
|
$ |
1.56 |
|
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 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/20250227994167/en/
For more information, contact:
Sarika Dhadwal (952) 887-3753
Sarika.Dhadwal@Donaldson.com
Source: Donaldson Company, Inc.
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