Filtration systems maker Donaldson's Q1 sales beat on replacement parts demand

Donaldson

04/12/2025 11:09

Overview

Donaldson Q1 sales up 3.9%, beating analyst expectations

Adjusted EPS for Q1 rises 13.3%, reflecting operational leverage and cost optimization

Company raises full-year adjusted operating margin and EPS guidance

Outlook

Donaldson raises fiscal 2026 adjusted EPS guidance to $3.95-$4.11

Sales projected to grow 1% to 5% year-over-year

Adjusted 2026 operating margin expected between 16.2% and 16.8%

Result Drivers

SALES GROWTH - Driven by growth in replacement parts and new equipment

COST OPTIMIZATION - Expanded operating margin through leverage on higher sales and cost optimization benefits

MARKET SHARE GAINS - Company gained market share in key businesses and grew replacement part sales

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$935.40 mln
$922.70 mln (5 Analysts)
Q1 Net earnings
$113.90 mln
Q1 Gross Profit
$328.80 mln
Q1 Operating income
$149.30 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "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 $86.00, about 1.8% below its December 3 closing price of $87.60

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw6tslNra

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(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.)