NYSE$DCI

Donaldson Company · Q2 2025 earnings

Q2 2025 earnings · · Before market open · Investor relations

Briefing

Donaldson reported a slight revenue decline with steady margins and improved adjusted EPS.

Donaldson Company, Inc. reported Q2 FY25 revenue of $870 million, down 0.8% year-over-year, with adjusted EPS rising 2.5% to $0.83. Operating margin declined slightly due to restructuring charges, but adjusted operating margin improved. Aftermarket, Aerospace & Defense, and Life Sciences segments showed growth, while Off-Road and On-Road declined. The company reaffirmed its FY25 guidance with expectations of record EPS.

  • Revenue declined by 0.8% year-over-year to $870 million, impacted by currency headwinds.
  • Adjusted EPS increased by 2.5% to $0.83, while GAAP EPS declined to $0.79.
  • Operating margin declined to 14.4%, but adjusted operating margin improved to 15.2%.
  • Aftermarket, Aerospace & Defense, and Life Sciences segments showed strong growth.

Headline financials

Total Revenue

$870M

Previous: $877M-0.8%
EPS (adj)

$0.83

Previous: $0.81+2.5%
Gross Margin

35.2%

Previous: 35.2%+0.0%
Operating Margin

14.4%

Previous: 14.8%-2.7%
Adjusted Operating Margin

15.2%

No prior period
Effective Tax Rate

23.2%

Previous: 23.5%-1.3%
EBITDA

$156M

No prior period
Capital Expenditures

-$43.9M

Previous: -$44.5M+1.3%
Net Income

$95.9M

Previous: $98.7M-2.8%
Operating Income

$126M

Previous: $130M-3.2%
Gross Profit

$306M

Previous: $309M-0.9%

Revenue & EPS history

Donaldson · Revenue · Quarterly

$870M

Q2 2025-0.8%vs Q2 2024
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Donaldson expects record EPS for FY25, with adjusted EPS between $3.60 and $3.68. Revenue growth is projected between 0% and 4%, with margin expansion and disciplined cost management.

Tailwinds

  • Full-year adjusted EPS expected between $3.60 and $3.68.
  • Revenue expected to grow between 0% and 4%.
  • Aftermarket sales projected to increase due to OEM demand.
  • Aerospace & Defense sales expected to rise high-single digits.
  • Operating margin forecasted to improve to 15.6%-16.0%.

Headwinds

  • Currency translation expected to create a 1% revenue headwind.
  • Off-Road sales projected to decline mid-single digits.
  • On-Road sales forecasted to decrease in low-double digits.
  • Interest expense estimated to increase to $21 million.
  • Free cash flow conversion expected between 85% and 95%, lower than historical levels.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

-0.0%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-1.4%

Avg return

30 days after

54%

36 / 67 earnings

Positive

+10.1%

Q4 2018

Best reaction

-11.7%

Q2 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-11.7%-10.9%-19.7%
Q1 2026+7.6%+2.9%+2.7%
Q4 2025+8.5%+5.3%+7.1%
Q3 2025-0.1%+1.7%+3.0%
Q2 2025-2.4%-2.5%-3.1%
Q1 2025-6.0%-6.6%-13.8%
Q4 2024-3.9%-2.3%-0.8%
Q3 2024+3.7%+1.7%-1.2%
Q2 2024+6.7%+8.3%+11.2%
Q1 2024+3.5%+5.3%+11.2%
Q4 2023+4.0%+5.8%-2.5%
Q3 2023-7.7%-8.9%-2.5%
Q2 2023+4.9%+4.5%+3.3%
Q1 2023+3.1%+0.7%-0.5%
Q4 2022-2.3%-3.9%-7.4%
Q3 2022+2.6%+1.9%-7.1%
Q2 2022+0.2%-7.5%+0.2%
Q1 2022+0.9%+2.2%+5.0%
Q4 2021-7.5%-9.5%-12.8%
Q3 2021+2.4%+0.5%+2.8%
Q2 2021-4.9%-4.4%-4.9%
Q1 2021+3.0%+3.0%+5.2%
Q4 2020-7.8%-10.3%-7.0%
Q3 2020+3.5%+7.2%-3.6%
Q2 2020-4.9%-4.1%-25.9%
Q1 2020-2.8%+0.7%+5.1%
Q4 2019+7.4%+8.7%+8.2%
Q3 2019+0.7%+1.2%+4.0%
Q2 2019-5.9%-4.6%+1.9%
Q1 2019-9.3%-13.7%-26.1%
Q4 2018+10.1%+13.1%+13.6%
Q3 2018-2.9%-1.2%-5.2%
Q2 2018-5.7%-3.1%-4.7%
Q1 2018-0.2%-0.7%+0.9%
Q4 2017-6.7%-5.1%-0.5%
Q3 2017-2.6%-5.8%-5.0%
Q2 2017+5.1%+5.0%+6.0%
Q1 2017+6.8%+8.6%+3.7%
Q4 2016-1.9%-2.8%-2.1%
Q3 2016+8.6%+9.4%+3.5%
Q2 2016+7.5%
Q1 2016+3.1%
Q4 2015-1.6%
Q3 2015+2.2%
Q2 2015-2.0%
Q1 2015-7.6%
Q4 2014+3.6%
Q3 2014-7.0%
Q2 2014-2.7%
Q1 2014+0.0%
Q4 2013-3.5%
Q3 2013+1.8%
Q2 2013-2.8%
Q1 2013+5.7%
Q4 2012+1.4%
Q3 2012+6.0%
Q2 2012-3.5%
Q1 2012-2.8%
Q4 2011+2.4%
Q4 2009+2.4%
Q4 2010+2.4%
Q3 2010-2.9%
Q3 2011-2.9%
Q2 2011+1.2%
Q2 2010+1.2%
Q1 2011+0.0%
Q1 2010+0.0%

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