Donaldson Company Inc. (NYSE: DCI)

Global Leader in Technology-Led Filtration Solutions

Donaldson Company Inc., founded in 1915 and headquartered in Bloomington, Minnesota, is a global leader in technology-led filtration products and solutions. The company serves a broad range of industries and advanced markets. With over 140 locations on six continents, Donaldson partners with customers ranging from small business owners to R&D organizations and the world's biggest OEM brands.

Donaldson Company Inc. has a market capitalization of $9.47 billion as of September 9, 2025, and trades on the New York Stock Exchange under the ticker symbol DCI.

Business Segments and Operations

The company operates through three distinct segments: Mobile Solutions, Industrial Solutions, and Life Sciences.

Mobile Solutions

The Mobile Solutions segment provides replacement filters for air and liquid filtration applications. This includes systems for air filtration, fuel, lube, and hydraulics, as well as emissions systems, sensors, indicators, and monitoring systems. This segment serves original equipment manufacturers (OEMs) in the construction, mining, agriculture, and transportation markets, as well as independent distributors and OEM dealer networks.

Industrial Solutions

The Industrial Solutions segment offers solutions for dust, fume, and mist collection, along with compressed air and industrial gas purification systems. It also caters to hydraulic and lubricated rotating equipment applications, and provides gas and liquid filtration for various industrial processes. This segment sells its products through various distributors, OEMs, and directly to end-users.

Life Sciences

The Life Sciences segment focuses on micro-environment gas and liquid filtration for food, beverage, and industrial processes. It supplies bioprocessing equipment, including bioreactors and fermenters, and bioprocessing consumables like chromatography devices, reagents, and filters. The segment also offers polytetrafluoroethylene membrane-based products and specialized air and gas filtration systems for applications in hard disk drives, semiconductor manufacturing, sensors, battery systems, and powertrain components, serving OEMs and end-users.

Financial Performance and Key Metrics

Fiscal Year 2024 Results

For fiscal year 2024, Donaldson reported revenue of $3.59 billion, representing a 4.53% increase from the previous year. GAAP net earnings were $414.0 million for the full year, compared to $358.8 million in fiscal 2023. Fiscal 2024 GAAP earnings per share (EPS) stood at $3.38, an increase from $2.90 in fiscal 2023.

Key Financial Highlights for FY 2024:

- Gross Profit: $823.5 million

- Net Income: $223.4 million

- Operating Margin: 15.6% (compared to 13.7% in FY2023). Adjusted operating margin was 16.3% (compared to 14.3% in FY2023).

- Shareholder Returns: The company paid $122.8 million in dividends and repurchased 2.0% of its outstanding shares for $163.3 million.

Fiscal Year 2025 Second Quarter Results

Donaldson Company reported second quarter fiscal 2025 results with sales of $870.0 million, a slight decrease of 0.8% year over year (up 0.9% in constant currency). GAAP EPS decreased by 2.2% to $0.79, while adjusted EPS grew by 2.5% to $0.83.

Business Strength and Innovation

Donaldson Company generates a healthy stream of recurring revenue, with aftermarket parts and consumables accounting for over 60% of sales. This robust aftermarket business helps mitigate the firm's exposure to cyclical end markets.

The company maintains a strong focus on research and development, employing 1,000 scientists and engineers among its global workforce of over 13,000 employees. Donaldson actively fosters innovation, as evidenced by its recognition of over 100 employees as patent recipients and Inventor Award winners in 2024 for their contributions to advanced filtration technologies across its business segments.

Sustainability Initiatives

Donaldson Company published its Fiscal Year 2024 Sustainability Report, detailing significant progress in its environmental and social initiatives. The company achieved an 18% reduction in Scope 1 and 2 Greenhouse Gas (GHG) emissions (over 20,400 mt CO2e) compared to its FY21 baseline, moving closer to its 2030 target of a 42% reduction.

Market Position and Outlook

Donaldson Company demonstrates strong financial health with a return on equity of 25.2% and net margins of 9.9%. The company has been growing earnings at an average annual rate of 9.5%, with revenues growing at an average rate of 7.3% per year.

For fiscal year 2026, total Company sales are forecast to increase between 3% and 7%. Total operating margin in fiscal 2026 is expected to be between 15.8% and 16.6%.

The company maintains a consistent dividend policy, with its Board of Directors declaring a regular cash dividend of $0.30 per share. Donaldson Company's market capitalization has increased by 5.90% over the past year.