DONALDSON Co INC SEC 10-Q Report

Donaldson Co Inc, a global leader in filtration solutions, has released its Form 10-Q report for the second quarter of fiscal year 2025. The report highlights the company's financial performance and operational activities, providing insights into its revenue streams, profitability, and future outlook amidst a challenging economic environment.

Financial Highlights

• Net sales: $940.1 million, increased by 1.3% from the same period last year, driven by higher sales in the Industrial Solutions and Life Sciences segments.
• Gross profit: $321.9 million, representing 34.2% of net sales, a decrease from 35.6% in the prior year due to higher manufacturing costs associated with footprint optimization initiatives.
• Operating income: $87.4 million, or 9.3% of net sales, down from 15.5% in the previous year, impacted by a $62.0 million loss on impairment of intangible assets.
• Net earnings: $57.8 million, a decrease of 49.1% from the previous year, primarily due to the impairment of intangible assets and higher effective tax rate.
• Net earnings per share (EPS) - diluted: $0.48, down from $0.92 in the prior year, reflecting the decrease in net earnings.

Business Highlights

• Revenue Segments:
  • The Mobile Solutions segment experienced a slight decline in net sales for the three months ended April 30, 2025, with a decrease of $2.6 million, or 0.4%, compared to the same period in 2024. This was primarily due to declines in the On-Road and Off-Road units, offset by an increase in Aftermarket sales.
  • The Industrial Solutions segment saw an increase in net sales by $14.2 million, or 5.3%, for the three months ended April 30, 2025, driven by strong performance in the Aerospace and Defense unit.
  • The Life Sciences segment reported a modest increase in net sales by $0.6 million, or 0.7%, for the three months ended April 30, 2025, with favorable impacts from foreign currency translation.
• Geographical Performance:
  • Net sales in the U.S. and Canada remained stable, while the EMEA region experienced a slight decline. The APAC region showed growth, with net sales increasing by $7.7 million, or 1.7%, for the nine months ended April 30, 2025.
  • The LATAM region maintained its net sales percentage of total company sales, indicating stable performance in this market.
• Sales Units:
  • The Aftermarket unit within the Mobile Solutions segment saw a significant increase in sales due to strong market demand and market share gains.
  • The Aerospace and Defense unit within the Industrial Solutions segment experienced robust growth, contributing to the overall increase in the segment's net sales.
• Future Outlook:
  • The company is closely monitoring the impact of tariffs and trade measures on its supply chain and expects to mitigate these impacts through pricing strategies.
  • Management anticipates continued challenges in the global economic environment but remains focused on leveraging its diversified product portfolio to navigate these conditions.

SEC Filing: DONALDSON Co INC [ DCI ] - 10-Q - Jun. 03, 2025