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Jan 31
Donaldson Q2 2026 Earnings Report
Donaldson Q2 2026 Earnings Report: Record sales achieved despite volume headwinds and margin pressure.
Key Takeaways
Donaldson reported record second-quarter sales of $896.3 million, a 3.0% increase driven by pricing and currency benefits. While GAAP net earnings and EPS saw slight year-over-year declines due to operating inefficiencies and higher interest expenses, the company maintained a strong outlook, forecasting all-time highs for full-year sales and adjusted EPS.
Achieved record second-quarter sales of $896.3 million, up 3.0% over the prior year.
Announced the acquisition of Facet for $820 million to strengthen the core filtration portfolio.
Life Sciences segment showed robust growth of 16.2% driven by Food and Beverage and Disk Drive sales.
Updated full-year adjusted EPS guidance to a range of $3.93 to $4.01, slightly lower than previous guidance.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Donaldson expects record full-year sales and earnings, though it slightly tightened its adjusted EPS range due to volume headwinds in Industrial and On-Road markets.
Positive Outlook
- Full-year sales projected to increase 1% to 5% over the prior year.
- Life Sciences sales guidance raised to 5% to 9% growth.
- Mobile sales growth expectations increased to a range of 2% to 6%.
- Adjusted operating margin expected to improve to between 16.0% and 16.4%.
- Anticipated closing of the margin-accretive Facet acquisition in late fiscal 2026.
Challenges Ahead
- Adjusted full-year EPS range lowered to $3.93 - $4.01 from $3.95 - $4.11.
- Industrial sales guidance lowered to -1% to 3% due to lower volumes.
- Aerospace and Defense sales expected to decrease mid-single digits.
- On-Road sales forecast to be flat due to muted global truck production.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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