Donaldson (DCI)
Market Price (5/25/2026): $83.7 | Market Cap: $9.7 BilSector: Industrials | Industry: Industrial Machinery & Supplies & Components
Donaldson (DCI)
Market Price (5/25/2026): $83.7Market Cap: $9.7 BilSector: IndustrialsIndustry: Industrial Machinery & Supplies & Components
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.3% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 11% Low stock price volatilityVol 12M is 26% Megatrend and thematic driversMegatrends include Water Infrastructure, Hydrogen Economy, and Circular Economy & Recycling. Themes include Water Treatment & Delivery, Show more. | Weak multi-year price returns2Y Excs Rtn is -24%, 3Y Excs Rtn is -43% | Key risksDCI key risks include [1] a fundamental threat to its core engine filtration business from the long-term global shift to electric vehicles and [2] high sensitivity to the capital expenditure cycles of its industrial and transportation end markets. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.3% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 11% |
| Low stock price volatilityVol 12M is 26% |
| Megatrend and thematic driversMegatrends include Water Infrastructure, Hydrogen Economy, and Circular Economy & Recycling. Themes include Water Treatment & Delivery, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -24%, 3Y Excs Rtn is -43% |
| Key risksDCI key risks include [1] a fundamental threat to its core engine filtration business from the long-term global shift to electric vehicles and [2] high sensitivity to the capital expenditure cycles of its industrial and transportation end markets. |
Qualitative Assessment
AI Analysis | Feedback
Donaldson (DCI) stock has lost about 20% since 1/31/2026 because of the following key factors:
1. Donaldson's fiscal second-quarter 2026 earnings and revenue missed analyst expectations, leading to a downward revision of full-year profit guidance.
The company reported adjusted earnings per share (EPS) of $0.83 for the quarter ended January 31, 2026, which fell short of the consensus estimate of $0.90. Quarterly revenue of $896.3 million also slightly trailed analyst forecasts of approximately $907.7 million. Following these results, Donaldson lowered its fiscal 2026 adjusted EPS guidance to a range of $3.93 to $4.01, down from its previous forecast of $3.95 to $4.11. This updated outlook also included a revised adjusted operating margin expectation, which was lowered from the prior guidance. The market reacted negatively, with shares plunging significantly after the report.
2. The company experienced significant gross margin contraction and operational inefficiencies during the quarter.
Donaldson's gross margin declined to 33.5% in the second quarter of fiscal 2026, compared to 35.2% in the prior year. This contraction was primarily attributed to operational inefficiencies, including those related to production shifts to support higher demand in Power Generation within Industrial Solutions and costs associated with footprint optimization initiatives. Specifically, the Industrial Solutions segment saw its pre-tax profit margin drop by 420 basis points to 11.9%, leading to a 25% decrease in profits for the segment.
Show more
1. Donaldson's fiscal second-quarter 2026 earnings and revenue missed analyst expectations, leading to a downward revision of full-year profit guidance.
The company reported adjusted earnings per share (EPS) of $0.83 for the quarter ended January 31, 2026, which fell short of the consensus estimate of $0.90. Quarterly revenue of $896.3 million also slightly trailed analyst forecasts of approximately $907.7 million. Following these results, Donaldson lowered its fiscal 2026 adjusted EPS guidance to a range of $3.93 to $4.01, down from its previous forecast of $3.95 to $4.11. This updated outlook also included a revised adjusted operating margin expectation, which was lowered from the prior guidance. The market reacted negatively, with shares plunging significantly after the report.
2. The company experienced significant gross margin contraction and operational inefficiencies during the quarter.
Donaldson's gross margin declined to 33.5% in the second quarter of fiscal 2026, compared to 35.2% in the prior year. This contraction was primarily attributed to operational inefficiencies, including those related to production shifts to support higher demand in Power Generation within Industrial Solutions and costs associated with footprint optimization initiatives. Specifically, the Industrial Solutions segment saw its pre-tax profit margin drop by 420 basis points to 11.9%, leading to a 25% decrease in profits for the segment.
Show more
Holding a concentrated position? Know your true downside before the momentum shifts.
Protect Your Wealth →
Stock Movement Drivers
Fundamental Drivers
The -17.7% change in DCI stock from 1/31/2026 to 5/24/2026 was primarily driven by a -17.2% change in the company's P/E Multiple.| (LTM values as of) | 1312026 | 5242026 | Change |
|---|---|---|---|
| Stock Price ($) | 101.66 | 83.66 | -17.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,726 | 3,752 | 0.7% |
| Net Income Margin (%) | 10.2% | 10.1% | -1.6% |
| P/E Multiple | 30.9 | 25.6 | -17.2% |
| Shares Outstanding (Mil) | 116 | 116 | 0.3% |
| Cumulative Contribution | -17.7% |
Market Drivers
1/31/2026 to 5/24/2026| Return | Correlation | |
|---|---|---|
| DCI | -17.7% | |
| Market (SPY) | 8.1% | 45.3% |
| Sector (XLI) | 4.1% | 55.3% |
Fundamental Drivers
The -0.1% change in DCI stock from 10/31/2025 to 5/24/2026 was primarily driven by a -4.0% change in the company's P/E Multiple.| (LTM values as of) | 10312025 | 5242026 | Change |
|---|---|---|---|
| Stock Price ($) | 83.75 | 83.66 | -0.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,691 | 3,752 | 1.7% |
| Net Income Margin (%) | 9.9% | 10.1% | 1.4% |
| P/E Multiple | 26.6 | 25.6 | -4.0% |
| Shares Outstanding (Mil) | 117 | 116 | 0.9% |
| Cumulative Contribution | -0.1% |
Market Drivers
10/31/2025 to 5/24/2026| Return | Correlation | |
|---|---|---|
| DCI | -0.1% | |
| Market (SPY) | 9.9% | 43.8% |
| Sector (XLI) | 11.5% | 57.0% |
Fundamental Drivers
The 29.1% change in DCI stock from 4/30/2025 to 5/24/2026 was primarily driven by a 37.9% change in the company's P/E Multiple.| (LTM values as of) | 4302025 | 5242026 | Change |
|---|---|---|---|
| Stock Price ($) | 64.79 | 83.66 | 29.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,633 | 3,752 | 3.3% |
| Net Income Margin (%) | 11.5% | 10.1% | -12.3% |
| P/E Multiple | 18.5 | 25.6 | 37.9% |
| Shares Outstanding (Mil) | 120 | 116 | 3.5% |
| Cumulative Contribution | 29.1% |
Market Drivers
4/30/2025 to 5/24/2026| Return | Correlation | |
|---|---|---|
| DCI | 29.1% | |
| Market (SPY) | 36.0% | 47.9% |
| Sector (XLI) | 32.7% | 58.6% |
Fundamental Drivers
The 37.8% change in DCI stock from 4/30/2023 to 5/24/2026 was primarily driven by a 23.5% change in the company's P/E Multiple.| (LTM values as of) | 4302023 | 5242026 | Change |
|---|---|---|---|
| Stock Price ($) | 60.71 | 83.66 | 37.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,419 | 3,752 | 9.8% |
| Net Income Margin (%) | 10.4% | 10.1% | -3.5% |
| P/E Multiple | 20.7 | 25.6 | 23.5% |
| Shares Outstanding (Mil) | 122 | 116 | 5.3% |
| Cumulative Contribution | 37.8% |
Market Drivers
4/30/2023 to 5/24/2026| Return | Correlation | |
|---|---|---|
| DCI | 37.8% | |
| Market (SPY) | 86.3% | 56.7% |
| Sector (XLI) | 79.6% | 69.2% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| DCI Return | 8% | 1% | 13% | 5% | 34% | -7% | 60% |
| Peers Return | 23% | -10% | 23% | 35% | 23% | 3% | 133% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 9% | 98% |
Monthly Win Rates [3] | |||||||
| DCI Win Rate | 58% | 33% | 67% | 50% | 67% | 40% | |
| Peers Win Rate | 65% | 37% | 52% | 63% | 62% | 48% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | |
Max Drawdowns [4] | |||||||
| DCI Max Drawdown | -20% | -22% | -14% | -14% | -18% | -26% | |
| Peers Max Drawdown | -16% | -28% | -22% | -16% | -28% | -19% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: PH, CMI, ETN, MMM, DHR. See DCI Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 5/22/2026 (YTD)
How Low Can It Go
| Event | DCI | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -14.8% | -18.8% |
| % Gain to Breakeven | 17.3% | 23.1% |
| Time to Breakeven | 34 days | 79 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -20.4% | -24.5% |
| % Gain to Breakeven | 25.7% | 32.4% |
| Time to Breakeven | 137 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -36.2% | -33.7% |
| % Gain to Breakeven | 56.8% | 50.9% |
| Time to Breakeven | 141 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -29.9% | -19.2% |
| % Gain to Breakeven | 42.6% | 23.8% |
| Time to Breakeven | 353 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -23.1% | -12.2% |
| % Gain to Breakeven | 30.0% | 13.9% |
| Time to Breakeven | 134 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -36.0% | -6.8% |
| % Gain to Breakeven | 56.1% | 7.3% |
| Time to Breakeven | 299 days | 15 days |
In The Past
Donaldson's stock fell -14.8% during the 2025 US Tariff Shock. Such a loss loss requires a 17.3% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
| Event | DCI | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -20.4% | -24.5% |
| % Gain to Breakeven | 25.7% | 32.4% |
| Time to Breakeven | 137 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -36.2% | -33.7% |
| % Gain to Breakeven | 56.8% | 50.9% |
| Time to Breakeven | 141 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -29.9% | -19.2% |
| % Gain to Breakeven | 42.6% | 23.8% |
| Time to Breakeven | 353 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -23.1% | -12.2% |
| % Gain to Breakeven | 30.0% | 13.9% |
| Time to Breakeven | 134 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -36.0% | -6.8% |
| % Gain to Breakeven | 56.1% | 7.3% |
| Time to Breakeven | 299 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -22.4% | -17.9% |
| % Gain to Breakeven | 28.9% | 21.8% |
| Time to Breakeven | 67 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -52.0% | -53.4% |
| % Gain to Breakeven | 108.3% | 114.4% |
| Time to Breakeven | 374 days | 1085 days |
In The Past
Donaldson's stock fell -14.8% during the 2025 US Tariff Shock. Such a loss loss requires a 17.3% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Donaldson (DCI)
Donaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide. The company operates through two segments, Engine Products and Industrial Products. Its Engine Products segment provides replacement filters for air and liquid filtration applications; air filtration systems; liquid filtration systems for fuel, lube, and hydraulic applications; exhaust and emissions systems and sensors; indicators; and monitoring systems. This segment sells its products to original equipment manufacturers (OEMs) in the construction, mining, agriculture, aerospace, defense, and transportation markets; and to independent distributors, OEM dealer networks, private label accounts, and large fleets. The company's Industrial Products segment offers dust, fume, and mist collectors; compressed air purification systems; gas and liquid filtration for food, beverage, and industrial processes; air filtration systems for gas turbines; polytetrafluoroethylene membrane-based products; and specialized air and gas filtration systems for applications, including hard disk drives, semi-conductor manufacturing and sensors, indicators, and monitoring systems. This segment sells its products to various dealers, distributors, OEMs of gas-fired turbines, and OEMs and end-users requiring air filtration solutions and replacement filters. Donaldson Company, Inc. was founded in 1915 and is headquartered in Bloomington, Minnesota.
AI Analysis | Feedback
Here are 1-3 brief analogies for Donaldson (DCI):
- The 3M for industrial filtration.
- The Bosch of industrial purification systems.
- Intel Inside for engines and factory air quality.
AI Analysis | Feedback
- Engine Filtration Systems: Provide air and liquid filtration solutions, including replacement filters and complete systems for various engine applications (e.g., construction, mining, agriculture, transportation).
- Exhaust & Emissions Systems: Offer systems and sensors designed to manage exhaust and reduce emissions from engines.
- Industrial Air & Gas Filtration Systems: Supply collectors for dust, fume, and mist, along with compressed air purification and specialized air/gas filtration for industrial processes, including gas turbines and high-tech manufacturing.
- Industrial Process Liquid Filtration: Deliver gas and liquid filtration systems tailored for food, beverage, and other industrial processing applications.
- Advanced Filtration Media (PTFE Membranes): Manufacture polytetrafluoroethylene membrane-based products for high-performance and specialized filtration needs.
- Monitoring & Control Systems: Develop sensors, indicators, and monitoring systems to track the performance and status of filtration products across both engine and industrial segments.
AI Analysis | Feedback
Donaldson (symbol: DCI) sells its filtration systems and replacement parts primarily to other businesses (B2B) rather than directly to individuals. Based on the provided company description, specific names of Donaldson's major customer companies are not disclosed. Therefore, it is not possible to list individual customer companies or their public symbols.
However, the description clearly identifies their customer base by categories and types of organizations. Donaldson's major customer categories include:
- Original Equipment Manufacturers (OEMs): This segment includes OEMs in the construction, mining, agriculture, aerospace, defense, and transportation markets. For its Industrial Products segment, it also sells to OEMs of gas-fired turbines.
- Distributors and Dealers: Donaldson sells to independent distributors, OEM dealer networks, and various dealers and distributors for its industrial products.
- Other Business Entities: This includes private label accounts, large fleets, and end-users requiring air filtration solutions for industrial processes (e.g., dust, fume, mist collection; compressed air purification; gas and liquid filtration for food, beverage, and other industrial applications).
AI Analysis | Feedback
null
AI Analysis | Feedback
Richard Lewis, President and Chief Executive Officer
Richard Lewis was appointed President and Chief Executive Officer of Donaldson Company, Inc., effective March 2, 2026. Prior to this, he served as Chief Operating Officer, a position he assumed in August 2025. Mr. Lewis joined Donaldson in 2002 and has held a variety of senior leadership roles within the company, including Senior Vice President overseeing global operations and President of both the Mobile Solutions and Life Sciences businesses.
Bradley J. Pogalz, Chief Financial Officer
Bradley J. Pogalz became Chief Financial Officer of Donaldson Company, Inc. on November 1, 2024. A nine-year veteran of Donaldson, his previous roles within the company include Vice President, Global Financial Planning and Analysis; Head of Finance for EMEA; and Head of Investor Relations, Corporate Communications, Sustainability, and Enterprise Risk Management. Mr. Pogalz holds a Bachelor of Finance degree from the University of St. Thomas and an MBA from the University of Minnesota Carlson School of Management.
Tod E. Carpenter, Executive Chairman
Tod E. Carpenter will transition to Executive Chairman of Donaldson Company, Inc., effective March 2, 2026. He served as the company's President and Chief Executive Officer since April 2015 and as Chairman since 2017. Mr. Carpenter joined Donaldson in 1996 and has extensive global leadership experience across product, regional, and operations roles within the company.
Amy Becker, Chief Legal Officer and Corporate Secretary
Amy Becker serves as the Chief Legal Officer and Corporate Secretary for Donaldson Company, Inc.
Guillermo Briseño, President, Industrial Solutions
Guillermo Briseño holds the position of President, Industrial Solutions at Donaldson Company, Inc.
AI Analysis | Feedback
The key risks to Donaldson Company, Inc. (DCI) are primarily centered around its exposure to cyclical industrial markets, the long-term shift away from internal combustion engines, and the impact of global macroeconomic and geopolitical factors on its operations and profitability.
- Dependence on Cyclical End Markets and Long-Term Shift to Electric Vehicles: Donaldson's largest segment, Mobile Solutions (formerly Engine Products), which accounts for over 62% of net sales, is highly dependent on original equipment manufacturers (OEMs) in cyclical industries such as construction, mining, agriculture, and transportation. Economic downturns in these sectors directly reduce demand for new equipment and, consequently, Donaldson's first-fit filtration products. Furthermore, a significant long-term structural risk is the global transition from internal combustion engines (ICE) to electric vehicles (EVs). This shift poses a fundamental threat to a core part of Donaldson's traditional engine filtration business as demand for ICE-related filters will likely decline over time.
- Macroeconomic Headwinds and Geopolitical Risks: Donaldson's extensive global operations expose it to various macroeconomic and geopolitical uncertainties. These include the impact of tariffs, trade wars, and other trade measures, which can increase the cost of goods, disrupt supply chains, and reduce overall customer demand. For example, tariff-related costs have been cited as a factor impacting gross margins, and customers pre-purchasing parts to front-run tariffs have led to subsequent inventory destocking and weaker demand. Global economic slowdowns can also directly impact DCI's financial results.
- Competitive Pressures and Margin Compression: The filtration industry is highly competitive, characterized by continuous technological advancements and evolving market dynamics. This intense competition can exert pressure on pricing and market share. Compounding this, Donaldson has faced operational inefficiencies, particularly within its Industrial Solutions segment, and has experienced gross margin pressures due to factors like the post-COVID inflationary environment and unfavorable product mix shifts. These pressures have recently led to softer margins and trimmed earnings guidance, highlighting the ongoing challenge to maintain profitability.
AI Analysis | Feedback
nullAI Analysis | Feedback
Donaldson Company, Inc. operates within several global addressable markets for its diverse filtration systems and replacement parts.
Engine Products Segment
- Engine Air Filters: The global engine air filter market was valued at USD 6.85 billion in 2024 and is projected to reach USD 9.05 billion by 2030. Another estimate indicates the global engine air filter market was valued at USD 5,368.90 million in 2023 and is predicted to reach USD 6,416.30 million by the end of 2032. Broader "air filters market" estimates also exist, with one source valuing the global air filters market at USD 17.08 billion in 2025, projected to grow to USD 34.66 billion by 2034.
- Engine Oil Filters (Liquid Filtration for fuel, lube, and hydraulic applications): The global engine oil filters market is projected to grow from USD 9.2 billion in 2026 to USD 12.6 billion by 2036.
- Automotive Filters (broader category including air, fuel, oil, etc.): The global automotive filters market size is projected to grow from USD 12.9 billion in 2024 to USD 14.6 billion by 2030. Another source valued the global market at USD 24.04 billion in 2024, projected to reach USD 33.86 billion by 2033.
Industrial Products Segment
- Overall Industrial Filtration: The global industrial filtration market was valued at USD 39.86 billion in 2024 and is projected to reach USD 59.23 billion by 2033. Other estimates place the global market at USD 37.83 billion in 2025, projected to reach USD 57.69 billion by 2034, or USD 43.38 billion in 2025, predicted to increase to USD 68.46 billion by 2034.
- Dust, Fume, and Mist Collectors (Industrial Dust Collector Market): The global industrial dust collector market size was estimated at USD 9.58 billion in 2024 and is projected to reach USD 12.89 billion by 2030. Other estimates range from USD 8.27 billion in 2025, growing to USD 13.42 billion by 2034, to USD 16.7 billion in 2023, expected to reach USD 24.5 billion by 2032.
- Compressed Air Purification Systems (Compressed Air Filter and Dryer Market): The global compressed air filter and dryer market size was valued at USD 6.13 billion in 2024, growing to USD 11.1 billion by 2035.
- Gas and Liquid Filtration for Food, Beverage, and Industrial Processes (Liquid Filtration Market): The global liquid filtration market size was valued at USD 46.2 billion in 2024 and is expected to reach USD 90.1 billion by 2032. Other sources estimate the global liquid filtration market size at USD 3.2 billion in 2024, projected to expand to USD 27.05 billion by 2035.
- Air Filtration Systems for Gas Turbines (Gas Turbine Air Filter Market): The global gas turbine air filter market size was calculated at USD 2.01 billion in 2024 and is projected to surpass around USD 2.90 billion by 2034. Other estimates include a valuation of approximately USD 1.2 billion in 2023, projected to reach around USD 1.9 billion by 2032, or USD 1.95 billion in 2025, expected to reach USD 2.95 billion by 2032.
- Polytetrafluoroethylene (PTFE) Membrane-based Products (PTFE Membrane Market): The global PTFE membrane market is projected to grow from USD 3.02 billion in 2025 to USD 4.31 billion by 2031. Another source valued the global PTFE membrane market size at USD 3.17 billion in 2025, expected to reach around USD 5.50 billion by 2035.
- Specialized Air and Gas Filtration Systems for Semiconductor Manufacturing (Semiconductor Filter Market): The global semiconductor filter market size was valued at approximately USD 1.5 billion in 2023, and it is projected to reach around USD 3.5 billion by 2032. Other estimates include a valuation of USD 1.29 billion in 2024, projected to reach USD 3.06 billion by 2034, or USD 1.49 billion in 2024, projected to reach USD 3.07 billion by 2032. A subset, the global AMC (Airborne Molecular Contamination) Filters for Semiconductor Market, is estimated at USD 532.59 million in 2026 and is projected to reach USD 662.37 million by 2035. The global semiconductor liquid and gas filter market was valued at approximately USD 670 million in 2024, anticipated to grow to USD 1,001 million by 2031.
AI Analysis | Feedback
Here are the expected drivers of future revenue growth for Donaldson Company, Inc. (DCI) over the next 2-3 years:- Growth in Aftermarket Sales: Donaldson anticipates sustained revenue growth from its aftermarket segment, which consistently acts as a primary stability factor and growth engine. This is driven by strong demand for replacement filters and parts for its installed base of filtration systems across various markets.
- Strategic Expansion and Acquisitions in the Life Sciences Segment: The company is strategically expanding its presence in the Life Sciences sector. This includes strong growth in businesses such as Food and Beverage and Disk Drive. Recent acquisitions, like Facet, are expected to significantly contribute to sales with higher margins and recurring revenue.
- Increased Demand in Industrial Solutions, Particularly Power Generation and Aerospace & Defense: Donaldson is focusing on increasing capacity in its power generation business to meet growing demand from data center customers. The Aerospace & Defense sector within Industrial Solutions is also identified as a high-growth area, despite some short-term supply chain issues.
- New Product Introductions and Technology-led Filtration Solutions: Continuous investment in research and development is leading to new product pipelines for advanced air and fluid solutions. Innovations like smart, connected filtration systems and new technologies such as ArmorSeal air filtration are expected to create new service-based business models and drive sales.
- Effective Pricing Strategies and Global Market Penetration: Donaldson expects to achieve sales growth through enhanced pricing discipline and a favorable product mix. The company also projects future growth through expanding its footprint and market share in key regions, including Europe and Asia.
AI Analysis | Feedback
Share Repurchases
- Donaldson repurchased approximately 4% of its outstanding shares for $333.6 million in fiscal year 2025.
- In fiscal year 2023, the company bought back shares worth $141.8 million, following $171 million in fiscal year 2022.
- The board authorized a new share repurchase program in November 2023, allowing for the buyback of up to 12 million shares, or approximately 10% of outstanding common stock.
Share Issuance
- Donaldson's outstanding shares declined by 1.79% in fiscal year 2025 to 0.12 billion from 2024.
- The company's shares outstanding decreased by 0.81% in fiscal year 2024 to 0.123 billion from 2023.
- Shares outstanding for fiscal year 2023 were 0.124 billion, a 1.28% decline from 2022.
Outbound Investments
- In February 2026, Donaldson announced the acquisition of Facet Filtration for $820 million in cash, aiming to increase exposure to the aerospace and power generation markets.
- Donaldson invested $71 million for a 49% stake in Medica S.p.A., expanding its presence in the Life Sciences market, particularly in Europe.
Capital Expenditures
- Capital expenditures in fiscal year 2025 totaled $77 million, with a focus on projects in solvent recovery, new disk drive technologies in Life Sciences, and air and alternative fuels filtration in Mobile Solutions.
- For fiscal year 2026, capital expenditures are forecasted to be between $65 million and $85 million.
- The company's capital expenditure (Last 12 Months) was $122 million as of October 2025.
Latest Trefis Analyses
Trade Ideas
Select ideas related to DCI.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 04302026 | GEO | GEO | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
| 04302026 | RUN | Sunrun | Special | Short Squeeze PotentialShort Squeeze PotentialHas potential for a short squeeze. High short interest, rising short interest and high debt. | 0.0% | 0.0% | 0.0% |
| 04172026 | RSG | Republic Services | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.8% | 0.8% | -1.1% |
| 04102026 | VRSK | Verisk Analytics | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 12.3% | 12.3% | 0.0% |
| 04102026 | UHAL | U-Haul | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.3% | 0.3% | -1.0% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 281.68 |
| Mkt Cap | 98.9 |
| Rev LTM | 24,901 |
| Op Inc LTM | 4,574 |
| FCF LTM | 3,174 |
| FCF 3Y Avg | 2,732 |
| CFO LTM | 4,014 |
| CFO 3Y Avg | 3,513 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 3.6% |
| Rev Chg 3Y Avg | 3.7% |
| Rev Chg Q | 3.3% |
| QoQ Delta Rev Chg LTM | 0.8% |
| Op Inc Chg LTM | 4.9% |
| Op Inc Chg 3Y Avg | 10.9% |
| Op Mgn LTM | 18.7% |
| Op Mgn 3Y Avg | 16.5% |
| QoQ Delta Op Mgn LTM | -0.1% |
| CFO/Rev LTM | 14.2% |
| CFO/Rev 3Y Avg | 14.9% |
| FCF/Rev LTM | 11.3% |
| FCF/Rev 3Y Avg | 11.7% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 98.9 |
| P/S | 4.1 |
| P/Op Inc | 24.0 |
| P/EBIT | 22.4 |
| P/E | 32.2 |
| P/CFO | 25.0 |
| Total Yield | 4.1% |
| Dividend Yield | 1.0% |
| FCF Yield 3Y Avg | 3.6% |
| D/E | 0.1 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -4.5% |
| 3M Rtn | -11.6% |
| 6M Rtn | -0.2% |
| 12M Rtn | 23.9% |
| 3Y Rtn | 117.9% |
| 1M Excs Rtn | -9.4% |
| 3M Excs Rtn | -20.2% |
| 6M Excs Rtn | -10.1% |
| 12M Excs Rtn | -4.9% |
| 3Y Excs Rtn | 40.5% |
Comparison Analyses
Price Behavior
Price Behavior
| Market Price | $83.66 | |
| Market Cap ($ Bil) | 9.7 | |
| First Trading Date | 06/18/1987 | |
| Distance from 52W High | -24.1% | |
| 50 Days | 200 Days | |
| DMA Price | $86.01 | $87.84 |
| DMA Trend | up | down |
| Distance from DMA | -2.7% | -4.8% |
| 3M | 1YR | |
| Volatility | 33.6% | 25.6% |
| Downside Capture | 210.66 | 100.52 |
| Upside Capture | 55.23 | 95.06 |
| Correlation (SPY) | 51.8% | 44.5% |
DCI Betas & Captures as of 4/30/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.09 | 1.08 | 0.92 | 0.92 | 0.97 | 0.86 |
| Up Beta | 1.43 | 1.14 | 1.21 | 0.86 | 1.01 | 0.87 |
| Down Beta | -0.12 | 1.21 | 1.04 | 0.85 | 0.91 | 0.81 |
| Up Capture | 56% | 77% | 45% | 102% | 102% | 64% |
| Bmk +ve Days | 15 | 22 | 31 | 66 | 141 | 428 |
| Stock +ve Days | 11 | 18 | 27 | 62 | 131 | 398 |
| Down Capture | -35% | 125% | 111% | 95% | 94% | 97% |
| Bmk -ve Days | 4 | 18 | 30 | 56 | 108 | 321 |
| Stock -ve Days | 11 | 25 | 37 | 63 | 121 | 353 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with DCI | |
|---|---|---|---|---|
| DCI | 23.3% | 25.6% | 0.78 | - |
| Sector ETF (XLI) | 23.3% | 15.4% | 1.16 | 56.3% |
| Equity (SPY) | 29.5% | 12.0% | 1.86 | 44.5% |
| Gold (GLD) | 35.5% | 26.8% | 1.11 | 16.5% |
| Commodities (DBC) | 42.9% | 18.7% | 1.77 | -13.8% |
| Real Estate (VNQ) | 15.2% | 13.1% | 0.82 | 37.9% |
| Bitcoin (BTCUSD) | -31.3% | 41.8% | -0.78 | 17.7% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with DCI | |
|---|---|---|---|---|
| DCI | 7.5% | 23.4% | 0.27 | - |
| Sector ETF (XLI) | 12.2% | 17.4% | 0.54 | 74.0% |
| Equity (SPY) | 14.0% | 17.0% | 0.64 | 63.0% |
| Gold (GLD) | 18.8% | 18.0% | 0.85 | 10.1% |
| Commodities (DBC) | 10.4% | 19.4% | 0.42 | 11.5% |
| Real Estate (VNQ) | 3.8% | 18.8% | 0.10 | 53.7% |
| Bitcoin (BTCUSD) | 11.6% | 55.3% | 0.41 | 22.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with DCI | |
|---|---|---|---|---|
| DCI | 11.8% | 25.9% | 0.45 | - |
| Sector ETF (XLI) | 14.0% | 20.0% | 0.62 | 75.7% |
| Equity (SPY) | 15.7% | 17.9% | 0.75 | 67.6% |
| Gold (GLD) | 13.0% | 16.0% | 0.67 | 3.6% |
| Commodities (DBC) | 7.8% | 17.9% | 0.35 | 22.1% |
| Real Estate (VNQ) | 5.5% | 20.7% | 0.23 | 54.6% |
| Bitcoin (BTCUSD) | 66.7% | 66.9% | 1.06 | 15.4% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 2/26/2026 | 0.6% | -0.5% | -9.0% |
| 12/4/2025 | -1.5% | -0.8% | -2.9% |
| 8/27/2025 | -2.5% | -1.9% | -1.4% |
| 6/3/2025 | 0.3% | 1.9% | 1.7% |
| 2/27/2025 | 2.2% | 2.8% | -0.8% |
| 12/3/2024 | 0.9% | 0.2% | -5.7% |
| 8/28/2024 | -0.4% | -2.2% | 2.8% |
| 6/4/2024 | 2.1% | 0.8% | -3.8% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 17 | 13 | 8 |
| # Negative | 7 | 11 | 16 |
| Median Positive | 1.0% | 2.8% | 4.7% |
| Median Negative | -2.5% | -2.2% | -4.1% |
| Max Positive | 5.2% | 6.6% | 9.3% |
| Max Negative | -8.2% | -7.4% | -9.4% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 01/31/2026 | 02/26/2026 | 10-Q |
| 10/31/2025 | 12/04/2025 | 10-Q |
| 07/31/2025 | 09/26/2025 | 10-K |
| 04/30/2025 | 06/03/2025 | 10-Q |
| 01/31/2025 | 03/04/2025 | 10-Q |
| 10/31/2024 | 12/06/2024 | 10-Q |
| 07/31/2024 | 09/27/2024 | 10-K |
| 04/30/2024 | 06/04/2024 | 10-Q |
| 01/31/2024 | 03/04/2024 | 10-Q |
| 10/31/2023 | 12/06/2023 | 10-Q |
| 07/31/2023 | 09/22/2023 | 10-K |
| 04/30/2023 | 06/05/2023 | 10-Q |
| 01/31/2023 | 03/08/2023 | 10-Q |
| 10/31/2022 | 12/07/2022 | 10-Q |
| 07/31/2022 | 09/23/2022 | 10-K |
| 04/30/2022 | 06/06/2022 | 10-Q |
Recent Forward Guidance [BETA]
Latest: Q2 2026 Earnings Reported 2/26/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 EPS | 3.93 | 3.97 | 4.01 | -1.5% | Lowered | Guidance: 4.03 for 2026 | |
| 2026 Revenue Growth | 1.0% | 3.0% | 5.0% | 0 | Affirmed | Guidance: 3.0% for 2026 | |
| 2026 Operating Margin | 16.0% | 16.2% | 16.4% | -1.8% | -0.3% | Lowered | Guidance: 16.5% for 2026 |
| 2026 Capital Expenditures | 60.00 Mil | 67.50 Mil | 75.00 Mil | -10.0% | Lowered | Guidance: 75.00 Mil for 2026 | |
| 2026 Mobile Sales Growth | 2.0% | 4.0% | 6.0% | Higher New | |||
| 2026 Industrial Sales Growth | -1.0% | 1.0% | 3.0% | Higher New | |||
| 2026 Life Sciences Sales Growth | 5.0% | 7.0% | 9.0% | Higher New | |||
| 2026 Interest Expense | 26.00 Mil | Higher New | |||||
| 2026 Other Income | 17.00 Mil | 18.00 Mil | 19.00 Mil | Higher New | |||
| 2026 Adjusted Effective Income Tax Rate | 22.0% | 23.0% | 24.0% | Higher New | |||
| 2026 Adjusted Free Cash Flow Conversion | 0.85 | 0.9 | 0.95 | Higher New | |||
Prior: Q1 2026 Earnings Reported 12/4/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 EPS | 3.95 | 4.03 | 4.11 | 0.8% | Raised | Guidance: 4 for 2026 | |
| 2026 Revenue Growth | 1.0% | 3.0% | 5.0% | 0.0% | 0.0% | Affirmed | Guidance: 3.0% for 2026 |
| 2026 Operating Margin | 16.2% | 16.5% | 16.8% | 0.6% | 0.1% | Raised | Guidance: 16.4% for 2026 |
| 2026 Capital Expenditures | 65.00 Mil | 75.00 Mil | 85.00 Mil | 0.0% | Affirmed | Guidance: 75.00 Mil for 2026 | |
| 2026 Share Repurchases | 0.02 | 0.03 | 0.03 | 0.0% | 0.0% | Affirmed | Guidance: 0.03 for 2026 |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Owens, James | Direct | Sell | 4142026 | 89.21 | 13,753 | 1,226,905 | 2,013,024 | Form | |
| 2 | Owens, James | Direct | Sell | 4142026 | 89.02 | 5,921 | 527,087 | 2,008,736 | Form | |
| 3 | Owens, James | Direct | Sell | 4142026 | 88.82 | 126 | 11,191 | 2,004,223 | Form | |
| 4 | Briseno, Guillermo | President | Direct | Sell | 3272026 | 84.97 | 20,600 | 1,750,382 | 2,486,817 | Form |
| 5 | Pogalz, Bradley J | Chief Financial Officer | Direct | Sell | 12102025 | 91.57 | 566 | 51,829 | 39,741 | Form |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
Prefer one of these to Trefis? Tell us why.