How did DCI's Q3 2025 forecast compare to past performance?

**Donaldson's Q3 2025 forecast reflects a company that is navigating challenges while showing resilience in certain segments.** Here's a detailed analysis: 1. **Comparison with Estimates**: - The estimated EPS for Q3 2025 is $0.96, which is slightly higher than the actual EPS of $0.92 reported in Q3 2024. - The estimated revenue for Q3 2025 is $961.09 million, which is also higher than the actual revenue of $927.9 million reported in Q3 2024. 2. **Segmental Performance**: - The Life Sciences segment saw a robust 20.7% increase in sales, driven by volume growth in Disk Drive and Food and Beverage. - However, the Industrial Filtration Solutions (IFS) segment experienced a decline of 1.5% due to weaker dust collection demand in Europe and Power Generation project timing. 3. **Market Challenges**: - Donaldson faced macroeconomic challenges, as evidenced by the slight decline in revenue and EPS when compared to the previous year. - The company's adjusted operating expenses as a percentage of sales decreased to 20.0%, down 40 basis points from the previous year, due to disciplined expense management. 4. **Outlook for Fiscal 2025**: - Despite missing Q3 estimates, Donaldson continues to project record fiscal 2025 EPS. - The updated fiscal 2025 outlook includes an adjusted full-year EPS guidance of between $3.60 and $3.68, which narrows the consensus of $3.63. In conclusion, while Donaldson's Q3 2025 forecast indicates a company facing challenges, particularly in the Industrial Filtration Solutions segment, the overall performance shows resilience, especially in the Life Sciences segment. The company's strategic expense management and optimistic outlook for the fiscal year suggest a positive trajectory despite the short-term setbacks.