Donaldson reports record quarterly performance, supported by filtration demand, operating margin strength, and expense discipline.
Stock Earnings Results
June 2, 2026
Table of Contents
June 3, 2026
Donaldson Company, Inc. (NYSE: DCI) reported record third-quarter fiscal 2026 sales and adjusted earnings, supported by growth in Mobile Solutions and Life Sciences, strong operating margin, and disciplined expense control.
Donaldson is a global filtration company that provides engine, industrial, aerospace, defense, life sciences, and specialty filtration products and systems.
The company reported adjusted EPS of $1.06, above estimates of $1.05, representing a 1.0% earnings surprise. Revenue came in at $995.10 million, above estimates of $979.07 million, with revenue growth of 5.9%.
Donaldson reported third-quarter sales of $995.1 million, up 5.8% from the prior-year quarter. Mobile Solutions sales increased 8.1%, helped by higher volumes, pricing benefits, and favorable currency translation. Off-Road sales rose 8.8%, On-Road sales increased 5.2%, and Aftermarket sales grew 8.1%. Life Sciences sales increased 12.7%, driven by Food and Beverage and Disk Drive demand.
Industrial Solutions sales declined 0.6%, as lower volumes offset pricing and currency benefits. Industrial Filtration Solutions rose 2.3%, but Aerospace and Defense sales fell 13.5% due to weaker new equipment sales, supply chain constraints, and project timing.
Operating margin improved to 15.6% from 9.3% a year earlier. Adjusted operating margin reached an all-time high of 16.6%, up 30 basis points, helped by operating expense leverage and expense discipline. Adjusted EPS rose to $1.06 from $0.99.
Donaldson also completed its $829 million all-cash acquisition of Facet Filtration, a provider of fuel and fluid filtration solutions for mission-critical applications. The company expects Facet to add $25 million to $30 million in fiscal 2026 sales, with about $0.03 of EPS dilution.
Donaldson narrowed its fiscal 2026 guidance and still expects record sales, adjusted operating margin, and adjusted EPS.
Organic sales are now expected to increase 3% to 5%, compared with the prior range of 1% to 5%. Organic adjusted EPS is expected to be $3.94 to $4.01, representing 7% to 9% growth from fiscal 2025 adjusted EPS. Life Sciences sales guidance was raised to growth of 9% to 11%, while Mobile sales are expected to grow 3.5% to 5.5%.
Investors are likely to watch whether Donaldson can sustain record margins while integrating Facet and managing weaker Industrial and Aerospace and Defense demand.
The key areas are Mobile Solutions growth, Life Sciences demand, Industrial Solutions recovery, Facet integration, adjusted operating margin, organic sales growth, free cash flow conversion, and fiscal 2026 EPS guidance.
Donaldson’s quarter showed solid execution across a mixed industrial environment.
The company delivered record sales, record adjusted operating margin, higher adjusted EPS, and stronger guidance for organic sales. Weakness in Industrial and Aerospace and Defense remains a watch point, but Mobile and Life Sciences growth helped offset those pressures.
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