The Investor
02 Jun 2026, 17:46
Donaldson Rises 3% as Record Sales, Margin Expansion and Strong Outlook Impress Investors
Shares of Donaldson Company (NYSE: DCI) rose about 3% after the filtration products manufacturer reported record third-quarter fiscal 2026 results and reaffirmed confidence in delivering record full-year sales and earnings.
The company reported all-time high quarterly sales of $995.1 million, up 5.8% year-over-year, while adjusted earnings per share increased 7.1% to $1.06. Donaldson also delivered a record adjusted operating margin of 16.6%, reflecting strong execution and expense discipline.
Growth was driven by strong performance in the Mobile Solutions and Life Sciences segments. Mobile Solutions sales increased 8.1%, supported by improving construction markets, higher truck production, and strong aftermarket demand, while Life Sciences revenue jumped 12.7% on robust demand in food and beverage and disk drive applications.
Management highlighted record order levels and elevated backlogs, giving the company confidence to narrow its fiscal 2026 guidance. Donaldson now expects organic sales growth of 3% to 5% and adjusted EPS growth of 7% to 9% for the full year.
Investors also welcomed the recent $829 million acquisition of Facet Filtration, which expands Donaldson's Industrial Solutions portfolio and is expected to contribute to growth beginning in the fourth quarter.
CEO Rich Lewis said the company's diversified business model helped offset weakness in certain industrial markets, while strong demand, disciplined cost management, and growing backlogs position Donaldson to deliver record sales, margins, and earnings for fiscal 2026.
Despite ongoing softness in parts of the industrial sector, investors appear encouraged by Donaldson's improving profitability, resilient demand trends, and confidence in continued growth through the remainder of the year.
Shares of Donaldson Company (NYSE: DCI) rose about 3% after the filtration products manufacturer reported record third-quarter fiscal 2026 results and reaffirmed confidence in delivering record full-year sales and earnings.
The company reported all-time high quarterly sales of $995.1 million, up 5.8% year-over-year, while adjusted earnings per share increased 7.1% to $1.06. Donaldson also delivered a record adjusted operating margin of 16.6%, reflecting strong execution and expense discipline.
Growth was driven by strong performance in the Mobile Solutions and Life Sciences segments. Mobile Solutions sales increased 8.1%, supported by improving construction markets, higher truck production, and strong aftermarket demand, while Life Sciences revenue jumped 12.7% on robust demand in food and beverage and disk drive applications.
Management highlighted record order levels and elevated backlogs, giving the company confidence to narrow its fiscal 2026 guidance. Donaldson now expects organic sales growth of 3% to 5% and adjusted EPS growth of 7% to 9% for the full year.
Investors also welcomed the recent $829 million acquisition of Facet Filtration, which expands Donaldson's Industrial Solutions portfolio and is expected to contribute to growth beginning in the fourth quarter.
CEO Rich Lewis said the company's diversified business model helped offset weakness in certain industrial markets, while strong demand, disciplined cost management, and growing backlogs position Donaldson to deliver record sales, margins, and earnings for fiscal 2026.
Despite ongoing softness in parts of the industrial sector, investors appear encouraged by Donaldson's improving profitability, resilient demand trends, and confidence in continued growth through the remainder of the year.