Overview

• Filtration products maker's fiscal Q3 sales rose 5.8%, beating analyst expectations

• Adjusted EPS for fiscal Q3 increased 7.1% to $1.06

• Company closed Facet Filtration acquisition, enhancing Industrial Solutions portfolio

Outlook

• Donaldson expects fiscal 2026 adjusted EPS of $3.94 to $4.01, up 7%-9% vs 2025

• Company forecasts fiscal 2026 organic sales growth of 3%-5%, up from 1%-5% previously

• Donaldson projects fiscal 2026 adjusted operating margin of 15.8%-16.2%, below prior guidance

Result Drivers

• MOBILE AND LIFE SCIENCES GROWTH - Co said strong results in Mobile and Life Sciences segments offset weaker Industrial Solutions performance

• VOLUME AND PRICING - Mobile Solutions sales rose 8.1% due to higher volumes, favorable currency translation, and net pricing benefits; Life Sciences sales increased 12.7% from new equipment volume growth

• INDUSTRIAL HEADWINDS - Industrial Solutions sales declined 0.6% as lower volumes offset net pricing benefits and favorable currency translation; Aerospace and Defense sales fell 13.5% due to supply chain constraints and project timing

Company press release: ID:nBw4SnXnVa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Sales	Beat	$995.1 mln	$973.65 mln (5 Analysts)
Q3 Net earnings		$118.1 mln
Q3 Gross Profit		$333.4 mln
Q3 Operating income		$155.3 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and no "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 is $95.00, about 16.2% above its June 1 closing price of $81.79

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 22 three months ago

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