Donaldson Co

Latest Results (15.11.2025):

In Donaldson Co's third quarter fiscal 2025 report, the company delivered mixed results with record sales of $940.1 million alongside challenging GAAP net earnings of $57.8 million, impacted by non-recurring charges. Adjusted earnings, excluding significant intangible asset impairments totaling $62.0 million, were improved with net earnings of $118.9 million and an EPS up by 7.6% at $0.99 compared to last year. The quarter also saw accelerated share repurchase activity, an 11% increase in the quarterly dividend, and raised full-year adjusted EPS guidance.

Earnings Performance

Donaldson Co reported third quarter fiscal 2025 GAAP net earnings of $57.8 million versus $113.5 million a year ago, with an EPS reduction from $0.92 to $0.48. Excluding $62.0 million in non-recurring charges, adjusted net earnings reached $118.9 million and EPS increased to $0.99, demonstrating underlying operational strength despite short-term challenges.

Sales and Business Segments

Record third quarter sales of $940.1 million were primarily driven by the continued growth in replacement parts and pricing benefits. While the Mobile Solutions segment experienced declines in On-Road (down 24.5%) and Off-Road sales (down 8.3%), Aftermarket sales grew by 3.3%. Conversely, the Industrial Solutions segment showed strength with a 5.3% increase, notably in Aerospace and Defense with a 27.1% rise.

Shareholder Returns and Dividend Growth

The quarter saw significant capital return efforts with an accelerated share repurchase that reduced outstanding shares by 2.4% and $32.3 million paid in dividends. Year-to-date, Donaldson repurchased 3.3% of its shares and distributed $96.9 million in dividends, in conjunction with an 11% increase in the quarterly dividend.

Guidance and Future Outlook

Donaldson Co raised its fiscal 2025 adjusted EPS guidance with a midpoint increase of $0.03 compared to previous estimates. The full-year outlook remains optimistic with sales expected to rise 1% to 3% and improved operational margins supported by disciplined cost control and strategic investments.