Overview

* Donaldson Q4 sales rise 4.8% to $981 mln, beating analyst expectations

* Adjusted EPS for Q4 increases 9.6% to $1.03, surpassing estimates

* Company returned $95 mln to shareholders via repurchases and dividends

Outlook

* Donaldson expects fiscal 2026 sales to reach $3.8 bln

* Company forecasts fiscal 2026 EPS between $3.92 and $4.08

* Donaldson anticipates operating margin expansion in fiscal 2026

* Company projects fiscal 2026 capital expenditures between $65 mln and $85 mln

Result Drivers

* SALES GROWTH - Sales increased 4.8% due to higher volume, favorable currency translation, and pricing benefits

* SEGMENT PERFORMANCE - Mobile Solutions saw growth in Off-Road and Aftermarket, while On-Road sales declined

* GROSS MARGIN CHALLENGES - Gross margin compressed due to tariff-related inflation, partially offset by improved operating expense management

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Sales Beat $980.70 $951.60

mln mln (5

Analysts

)

Q4 Net $114.30

earnings mln

Q4 Gross $338.80

Profit mln

Q4 $151.70

Operatin mln

g income

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the environmental services & equipment peer group is "buy."

* Wall Street's median 12-month price target for Donaldson Company Inc ( DCI ) is $72.11, about 4.9% below its August 26 closing price of $75.63

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)