Donaldson Company reported record fourth-quarter and full-year fiscal 2026 results. The filtration products manufacturer posted net earnings of $129.3 million in Q4 and $453.8 million for the full year, up from $114.3 million and $367.0 million respectively in fiscal 2025. Fourth-quarter sales rose 8% to $1,058.8 million, driven by higher volumes including approximately $30 million from the Facet Filtration acquisition, and pricing benefits. Full-year EPS reached $3.85, compared to $3.05 in the prior year. The company's Mobile Solutions segment grew 7.9%, whilst Industrial Solutions increased 7.7%, with Facet contributing 980 basis points of growth. Life Sciences sales rose 9.7% year-over-year. For fiscal 2027, Donaldson forecasts EPS between $4.22 and $4.38, with sales projected to increase 5.5% to 9.5%.

Donaldson Q4 earnings call highlights. August 26, 2026 Key points. * Donaldson delivered record fiscal 2026 results: Annual sales rose 5% to $3.9 billion, adjusted EPS increased 8% to $3.98, and operating margin reached 16%. Fourth-quarter sales topped $1 billion, with EPS up 12% to $1.15 and margin expanding to a record 17.5%. * The Facet Filtration acquisition added about three percentage points to fourth-quarter sales growth and strengthened Donaldson's aerospace, defense and power-generation businesses, but reduced quarterly EPS by $0.06. Management expects roughly $0.12 of dilution in fiscal 2027 while continuing to reduce acquisition-related debt. * Fiscal 2027 guidance calls for continued growth: Sales are expected to increase 5.5% to 9.5%, EPS is projected at $4.22 to $4.38, and operating margin is forecast at 16.6% to 17.2%. Growth is expected across aftermarket, aerospace and defense, Life Sciences and industrial operations as production issues are resolved. * Five stocks we like better than Donaldson. Donaldson NYSE: DCI reported record fiscal 2026 results, including annual sales of $3.9 billion and adjusted earnings per share of $3.98, as the filtration company cited growth across its Mobile Solutions, Industrial Solutions and Life Sciences segments. Sales rose 5% from fiscal 2025, while EPS increased 8% and operating margin reached a record 16%. For the fourth quarter, sales surpassed $1 billion for the first time, increasing 8% from the prior-year period. Adjusted EPS rose 12% to $1.15, while operating margin expanded 110 basis points to a record 17.5%. "Fiscal 2026 was another record year for Donaldson Company," President and CEO Rich Lewis said, pointing to the company's growth strategy, operational efficiency efforts and the acquisition of Facet Filtration. Facet acquisition adds sales, creates near-term earnings dilution. Donaldson acquired Facet on May 4, 2026, making the fourth quarter the first period in which the company reported combined results. The acquisition, the largest in Donaldson's history, expanded its positions in aerospace and defense and power generation, according to management. Chief Financial Officer Brad Pogalz said Facet added roughly three percentage points to fourth-quarter sales growth but reduced EPS by $0.06. Facet's sales, gross margin and operating profit were in line with the company's forecast, although amortization and interest expense were somewhat higher than expected. For fiscal 2027, management expects Facet to dilute EPS by about $0.12, reflecting incremental amortization and interest expense. Pogalz said the acquisition is accretive on a cash basis after accounting for business performance and interest expense. Donaldson has already repaid more than $100 million of Facet-related debt and reported net debt-to-EBITDA leverage of approximately 1.4 times. Mobile aftermarket growth offsets uneven first-fit demand. Mobile Solutions revenue rose 8% to $635 million in the fourth quarter, supported by volume growth and pricing. Aftermarket sales increased 9% to $512 million, with growth in all regions and both channels. Lewis said the company posted double-digit growth in its independent channel and has begun realizing revenue from a major North American fleet win discussed in the previous quarter. First-fit off-road sales were flat at $95 million, as construction strength offset muted agricultural demand. On-road sales increased 9% to $29 million as truck production began to rise, particularly in the U.S. and Europe. Donaldson's China business grew 27%, driven by a nearly 40% increase in original-equipment replacement-part sales. The company said it has been winning new off-road platforms and seeing demand from export markets. For fiscal 2027, Mobile Solutions sales are expected to rise 2% to 6%. Management forecast mid-single-digit off-road growth, supported by construction while agriculture remains subdued, and high-single-digit on-road growth as global truck production increases. Aftermarket sales are projected to rise mid-single digits through share gains and higher vehicle utilization. Industrial operations improve, though power generation remains a focus. Industrial Solutions sales rose 8% to $334 million, including $30 million in Facet sales. Aerospace and defense revenue increased 61% to $76 million, though organic aerospace and defense sales declined 3% because of continuing supply-chain constraints. Industrial Filtration Solutions, or IFS, sales declined 2% to $257 million. Lower dust-collection new-equipment volumes were partly offset by strong power-generation new-equipment demand. IFS replacement-part sales grew in the low single digits and represented 51% of total IFS sales. Industrial Solutions pre-tax margin was 16.4%, down 450 basis points from the prior year. Pogalz attributed the decline to Facet-related expenses and amortization, organic expense deleveraging, and production-shift headwinds in power generation. Still, the segment's margin improved 300 basis points sequentially from the third quarter. The company continues to stabilize operations at a Mexico power-generation plant following a production shift. Pogalz said the issue created approximately 40 basis points of consolidated gross-margin pressure in the fourth quarter, though throughput and delivery performance have improved. Donaldson expects to fully recover by the middle of fiscal 2027. Lewis also said the company expects to spend the first half of fiscal 2027 improving production at an Illinois facility following the closure of a California aerospace and defense site. Donaldson expects organic aerospace and defense sales to increase in the mid-teens during fiscal 2027 as it addresses supply constraints and works through elevated backlogs. Life Sciences growth and fiscal 2027 outlook. Life Sciences sales increased 10% to $90 million, led by double-digit disk-drive growth and solid food-and-beverage demand. The segment's pre-tax margin rose 660 basis points to 11.9%, aided by volume leverage in higher-margin food-and-beverage and disk-drive businesses, as well as expense discipline. Beginning in the first quarter, Donaldson will combine its food-and-beverage and microelectronics operations under the name Process Filtration. Lewis said the businesses share filtration technologies, engineering, manufacturing and regulatory capabilities. Management cited demand related to disk-drive HAMR technology, microelectronics, data-center artificial intelligence buildouts and liquid cooling. For fiscal 2027, Donaldson forecast: * Total sales growth of 5.5% to 9.5%, with approximately two percentage points each from Facet and pricing, one point from currency, and the balance from organic volume. * Operating margin of 16.6% to 17.2%, with the midpoint implying 90 basis points of expansion. * EPS of $4.22 to $4.38, including approximately $0.12 of Facet-related dilution. * Free cash flow conversion of 95% to 105% and capital expenditures of $70 million to $90 million. Management expects the second half of fiscal 2027 to account for about 52% of annual sales and 57% of operating profit, reflecting typical seasonality and anticipated industrial margin recovery. Donaldson also said it expects to repurchase roughly 1% of shares outstanding during the year, following the resumption of buybacks after the Facet acquisition. About Donaldson (NYSE:DCI). Donaldson Company, Inc NYSE: DCI is a global provider of filtration systems and replacement parts for a wide range of industries. The company develops and manufactures air, liquid and gas filtration solutions for engine and industrial applications, helping customers improve performance, lower emissions and extend equipment life. Donaldson's product portfolio includes engine air intake filters, fuel filters, hydraulic filters, compressor filters, dust collection systems and gas turbine air intake systems. Serving markets such as agriculture, construction, mining, power generation, aerospace and original equipment manufacturing, Donaldson operates through two primary business segments: Engine Products and Industrial Products. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Continue following MarketBeat Before you consider Donaldson, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Donaldson wasn't on the list. While Donaldson currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys. Discover the next wave of investment opportunities with our report, 7 Stocks That Will Be Magnificent in 2026. Explore companies poised to replicate the growth, innovation, and value creation of the tech giants dominating today's markets.

BI Asset Management Fondsmaeglerselskab A S has $6.63 million stock position in Donaldson Company, Inc. $DCI. June 22, 2026 Key points. * BI Asset Management Fondsmaeglerselskab A S nearly doubled its stake in Donaldson, increasing holdings by 92.8% in the first quarter to 78,124 shares valued at about $6.63 million. * Donaldson reported better-than-expected quarterly results, with EPS of $1.06 and revenue of $995.1 million, while also issuing FY2026 EPS guidance of 3.94 to 4.01. * The company raised its quarterly dividend to $0.32 per share from $0.30, and analysts currently view the stock as a Moderate Buy with an average price target of $97.83. * Five stocks to consider instead of Donaldson. BI Asset Management Fondsmaeglerselskab A S boosted its stake in Donaldson Company, Inc. (NYSE:DCI - Free Report) by 92.8% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 78,124 shares of the industrial products company's stock after acquiring an additional 37,603 shares during the period. BI Asset Management Fondsmaeglerselskab A S owned 0.07% of Donaldson worth $6,630,000 at the end of the most recent quarter. Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Leonteq Securities AG bought a new stake in shares of Donaldson in the 4th quarter valued at $40,000. Eagle Bay Advisors LLC bought a new position in Donaldson during the fourth quarter worth $45,000. Clearstead Advisors LLC raised its stake in Donaldson by 92.6% during the fourth quarter. Clearstead Advisors LLC now owns 599 shares of the industrial products company's stock worth $53,000 after buying an additional 288 shares during the last quarter. Strive Financial Group LLC acquired a new position in Donaldson in the fourth quarter valued at $57,000. Finally, Steph & Co. boosted its position in Donaldson by 76.4% during the fourth quarter. Steph & Co. now owns 944 shares of the industrial products company's stock valued at $84,000 after acquiring an additional 409 shares during the last quarter. Institutional investors and hedge funds own 82.81% of the company's stock. Insider activity at Donaldson. In other news, Director James Owens sold 13,753 shares of the stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $89.21, for a total value of $1,226,905.13. Following the completion of the sale, the director owned 22,565 shares in the company, valued at $2,013,023.65. This represents a 37.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders have sold a total of 19,800 shares of company stock valued at $1,765,184 in the last three months. Corporate insiders own 2.20% of the company's stock. Donaldson stock performance. DCI opened at $85.59 on Monday. The company has a current ratio of 2.35, a quick ratio of 1.55 and a debt-to-equity ratio of 0.35. The company's fifty day moving average price is $85.76 and its two-hundred day moving average price is $91.58. Donaldson Company, Inc. has a 1-year low of $67.71 and a 1-year high of $112.84. The company has a market cap of $9.92 billion, a price-to-earnings ratio of 23.01, a PEG ratio of 2.16 and a beta of 0.95. Discover more Stock Ratings Screener Market Cap Calculator Stock Market News Donaldson (NYSE:DCI - Get Free Report) last announced its quarterly earnings results on Tuesday, June 2nd. The industrial products company reported $1.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.05 by $0.01. The business had revenue of $995.10 million during the quarter, compared to the consensus estimate of $973.65 million. Donaldson had a return on equity of 29.17% and a net margin of 11.52%.Donaldson's revenue was up 5.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.99 earnings per share. Donaldson has set its FY 2026 guidance at 3.940-4.010 EPS. On average, analysts expect that Donaldson Company, Inc. will post 3.96 EPS for the current fiscal year. Donaldson increases dividend. The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be paid a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Monday, June 15th. This is a positive change from Donaldson's previous quarterly dividend of $0.30. Donaldson's dividend payout ratio (DPR) is currently 34.41%. Analyst upgrades and downgrades. A number of analysts have weighed in on DCI shares. Wall Street Zen upgraded Donaldson from a "hold" rating to a "buy" rating in a report on Monday. Stifel Nicolaus dropped their price objective on Donaldson from $96.00 to $91.00 and set a "hold" rating on the stock in a research note on Thursday, June 4th. Wells Fargo & Company set a $91.00 target price on Donaldson in a research report on Thursday, June 4th. Robert W. Baird cut their target price on Donaldson from $104.00 to $95.00 and set an "outperform" rating on the stock in a research report on Monday, March 30th. Finally, Weiss Ratings raised Donaldson from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, June 3rd. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $97.83. About Donaldson. Donaldson Company, Inc NYSE: DCI is a global provider of filtration systems and replacement parts for a wide range of industries. The company develops and manufactures air, liquid and gas filtration solutions for engine and industrial applications, helping customers improve performance, lower emissions and extend equipment life. Donaldson's product portfolio includes engine air intake filters, fuel filters, hydraulic filters, compressor filters, dust collection systems and gas turbine air intake systems. Serving markets such as agriculture, construction, mining, power generation, aerospace and original equipment manufacturing, Donaldson operates through two primary business segments: Engine Products and Industrial Products. Want to see what other hedge funds are holding DCI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Donaldson Company, Inc. (NYSE:DCI - Free Report). This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider Donaldson, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Donaldson wasn't on the list. While Donaldson currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.