Donaldson ( (DCI) ) has released its Q2 earnings. Here is a breakdown of the information Donaldson presented to its investors.
Donaldson Company, Inc., a global leader in technology-led filtration products and solutions, serves a broad range of industries through its Mobile Solutions, Industrial Solutions, and Life Sciences segments. In its fiscal second quarter of 2025, Donaldson reported sales of $870 million, a slight decline of 0.8% from the previous year, but a 0.9% increase in constant currency terms. The company’s GAAP earnings per share (EPS) stood at $0.79, down from $0.81 in 2024, while adjusted EPS rose to $0.83, marking a 2.5% increase.
Key financial highlights for the quarter include robust performance in the Aftermarket, Aerospace and Defense, and Life Sciences segments, which saw sales growth of 4.0%, 18.7%, and 9.2% respectively. However, the Mobile Solutions segment experienced a 0.5% decline in sales, driven by significant drops in Off-Road and On-Road sales, attributed to global equipment production declines. Despite these challenges, Donaldson maintained a stable gross margin of 35.2%, with operating expenses slightly increasing due to restructuring and business development charges.
The company’s operating income margin decreased slightly to 14.4% from 14.8% in the previous year, primarily due to restructuring and business development charges. However, the adjusted operating margin improved to 15.2%, reflecting effective expense management. Donaldson’s effective tax rate was slightly lower at 23.2%, and the company continued its shareholder returns with $64.6 million in dividends and $81.4 million in share repurchases.
Looking ahead, Donaldson remains optimistic about achieving record earnings for fiscal 2025, with adjusted EPS guidance narrowed to between $3.60 and $3.68. The company anticipates flat to 4% sales growth, with particular strength expected in the Aerospace and Defense and Life Sciences segments. Despite ongoing macroeconomic challenges, Donaldson is committed to long-term value creation through strategic initiatives focused on innovation and investment across its business segments.