Donaldson Q2 sales slightly miss estimates on volume declines

Donaldson

26/02/2026 11:17

Overview

Filtration products maker's fiscal Q2 sales slightly missed analyst expectations

Adjusted EPS for fiscal Q2 remained flat year-over-year

Company announced margin-accretive Facet acquisition to enhance filtration portfolio

Outlook

Donaldson projects fiscal 2026 adjusted EPS between $3.93 and $4.01

Company expects fiscal 2026 sales to grow 1% to 5% year over year

Donaldson forecasts Aerospace and Defense sales to decrease mid-single digits in 2026

Result Drivers

SALES GROWTH DRIVERS - Sales increased 3% due to favorable currency translation and pricing benefits, partially offset by volume declines

FACET ACQUISITION - Acquisition of Facet to enhance core filtration portfolio in Aerospace, Defense, and Power Generation

LIFE SCIENCES GROWTH - Life Sciences segment sales rose 16.2% driven by strong new equipment sales in Food and Beverage and Disk Drive, aided by currency translation

Company press release: ID:nBw8QrHKwa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Slight Miss*
$896.30 mln
$898.74 mln (5 Analysts)
Q2 Net earnings
$92.50 mln
Q2 Gross Profit
$299.80 mln
Q2 Operating income
$118.70 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $96.00, about 8.1% below its February 25 closing price of $104.42

The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 21 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)