Filtration maker Donaldson Company Q4 sales beat on volume growth, Facet contribution

Donaldson

26/08/2026 11:13

Overview
U.S. filtration products maker's fiscal Q4 sales rose 8%, beating analyst expectations
Adjusted EPS for fiscal Q4 increased 11.7%
Company sees record sales and EPS for fiscal 2027, with margin expansion

Outlook
Donaldson projects fiscal 2027 sales growth of 5.5% to 9.5%, including 2% from Facet
Company forecasts fiscal 2027 EPS between $4.22 and $4.38, including $0.12 Facet dilution
Operating margin for fiscal 2027 expected between 16.6% and 17.2%, up from 16.0% adjusted in 2026

Result Drivers
VOLUME AND PRICING - Co said Q4 sales growth was driven by higher volume and pricing benefits
SEGMENT PERFORMANCE - Mobile Solutions Aftermarket and On-Road sales grew, Industrial Solutions benefited from Facet in Aerospace and Defense, Life Sciences saw double-digit Disk Drive growth
GROSS MARGIN EXPANSION - Co attributed higher Q4 gross margin to increased volume, pricing and mix, partially offset by higher input costs and Power Generation production inefficiencies

Company press release: ID:nBw5LVgjfa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$1.06 bln
$1.04 bln (5 Analysts)
Q4 Net earnings
 
$129.30 mln
 
Q4 Gross Profit
 
$383.90 mln
 
Q4 Operating income
 
$176.60 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 $91.00, about 2.4% below its August 25 closing price of $93.26
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago

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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.)