Donaldson 2025 Q4 Earnings Strong Performance as Net Income Rises 4.2%
Generated by AI AgentAinvest Earnings Report Digest
Thursday, Aug 28, 2025 9:06 am ET2min read
DCI--
Aime Summary
Aime SummaryDonaldson (DCI) reported its fiscal 2025 Q4 earnings on August 27, 2025, exceeding expectations with a 4.8% revenue increase and 7.7% higher EPS. The company maintained its long-standing profitability, achieving a net income of $114.30 million and forecasting strong fiscal 2026 results.
Revenue
Donaldson’s total revenue rose 4.8% year-over-year to $980.70 million in Q4 2025. The Mobile Solutions segment led the performance with $588.40 million in revenue, supported by robust aftermarket sales and strategic partnerships. The Industrial Solutions segment reported $309.80 million, driven by growth in Industrial Filtration Solutions and service offerings. Life Sciences861094-- contributed $82.40 million, reflecting momentum in the food and beverage sector. Aerospace and Defense added $47.40 million, while On-Road and Off-Road segments generated $26.30 million and $94.60 million, respectively. Collectively, these segments underscored the company’s broad-based strength across its business lines.
Earnings/Net Income
Donaldson’s earnings per share (EPS) increased by 7.7% to $0.98 in Q4 2025, from $0.91 in the prior year. The company’s net income rose 4.2% to $114.30 million, reflecting enhanced operational efficiency and profitability. This performance highlights the company's ability to sustain earnings growth over the long term.
Price Action
The stock price of DonaldsonDCI-- surged 8.01% during the latest trading day, 10.52% over the past week, and 14.04% month-to-date, signaling strong investor confidence.
Post Earnings Price Action Review
The post-earnings strategy of buying DCIDCI-- after a beat and selling after 30 days delivered moderate returns—39.87% strategy return and 7.12% CAGR—though it underperformed the benchmark by -48.53%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.62, the strategy was low-risk but offered conservative returns, suitable for stability-focused investors.
CEO Commentary
Tod E. Carpenter, CEO, highlighted the company’s record fiscal 2025 performance, including a 15.7% operating margin and $3.68 EPS. He emphasized growth across all segments and strategic initiatives such as footprint optimization and cost reductions. Carpenter expressed cautious optimism for fiscal 2026, noting the positive impact of strong backlog and customer relationships.
Guidance
Donaldson expects total fiscal 2026 sales of $3.8 billion, with EPS projected at $3.92–$4.08. Mobile Solutions are forecasted to show flat to 4% growth, driven by mid-single-digit Off-Road and high-single-digit On-Road gains. Industrial Solutions are expected to rise 2%–6%, led by IFS and service growth. Life Sciences is projected to grow 1%–5%, with improved margins. Operating margin is anticipated to improve by 70 bps to 16.1%–16.7%. Capital expenditures will range between $65 million and $85 million, and the company plans to repurchase 2%–3% of shares, along with dividend growth.
Additional News
On August 28, 2025, Donaldson announced ambitious sales projections for fiscal 2026, forecasting $3.8 billion in revenue and record EPS of $4. This guidance reflects the company’s strategic focus on expanding its market presence and enhancing profitability. While no major M&A activity or C-level executive changes were reported in the recent period, the company reaffirmed its commitment to robust capital return policies, including share buybacks and dividend growth. These actions underscore Donaldson’s dedication to delivering long-term value to shareholders while maintaining financial discipline and operational excellence.
Revenue
Donaldson’s total revenue rose 4.8% year-over-year to $980.70 million in Q4 2025. The Mobile Solutions segment led the performance with $588.40 million in revenue, supported by robust aftermarket sales and strategic partnerships. The Industrial Solutions segment reported $309.80 million, driven by growth in Industrial Filtration Solutions and service offerings. Life Sciences861094-- contributed $82.40 million, reflecting momentum in the food and beverage sector. Aerospace and Defense added $47.40 million, while On-Road and Off-Road segments generated $26.30 million and $94.60 million, respectively. Collectively, these segments underscored the company’s broad-based strength across its business lines.
Earnings/Net Income
Donaldson’s earnings per share (EPS) increased by 7.7% to $0.98 in Q4 2025, from $0.91 in the prior year. The company’s net income rose 4.2% to $114.30 million, reflecting enhanced operational efficiency and profitability. This performance highlights the company's ability to sustain earnings growth over the long term.
Price Action
The stock price of DonaldsonDCI-- surged 8.01% during the latest trading day, 10.52% over the past week, and 14.04% month-to-date, signaling strong investor confidence.
Post Earnings Price Action Review
The post-earnings strategy of buying DCIDCI-- after a beat and selling after 30 days delivered moderate returns—39.87% strategy return and 7.12% CAGR—though it underperformed the benchmark by -48.53%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.62, the strategy was low-risk but offered conservative returns, suitable for stability-focused investors.
CEO Commentary
Tod E. Carpenter, CEO, highlighted the company’s record fiscal 2025 performance, including a 15.7% operating margin and $3.68 EPS. He emphasized growth across all segments and strategic initiatives such as footprint optimization and cost reductions. Carpenter expressed cautious optimism for fiscal 2026, noting the positive impact of strong backlog and customer relationships.
Guidance
Donaldson expects total fiscal 2026 sales of $3.8 billion, with EPS projected at $3.92–$4.08. Mobile Solutions are forecasted to show flat to 4% growth, driven by mid-single-digit Off-Road and high-single-digit On-Road gains. Industrial Solutions are expected to rise 2%–6%, led by IFS and service growth. Life Sciences is projected to grow 1%–5%, with improved margins. Operating margin is anticipated to improve by 70 bps to 16.1%–16.7%. Capital expenditures will range between $65 million and $85 million, and the company plans to repurchase 2%–3% of shares, along with dividend growth.
Additional News
On August 28, 2025, Donaldson announced ambitious sales projections for fiscal 2026, forecasting $3.8 billion in revenue and record EPS of $4. This guidance reflects the company’s strategic focus on expanding its market presence and enhancing profitability. While no major M&A activity or C-level executive changes were reported in the recent period, the company reaffirmed its commitment to robust capital return policies, including share buybacks and dividend growth. These actions underscore Donaldson’s dedication to delivering long-term value to shareholders while maintaining financial discipline and operational excellence.
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