Donaldson Company (DCI) DCI Q4 Financial Results Summary

# Donaldson Company, Inc. (DCI) Q4 2025 Financial Results Summary

On August 27, 2025, Donaldson Company, Inc. (NYSE: DCI) released its financial results for the fourth quarter and full year of fiscal 2025. Below is a summary of the key highlights and metrics from the report:

## Fourth Quarter Fiscal 2025 Highlights

– **Sales**: $981 million, an **increase of 4.8%** compared to Q4 of fiscal 2024.
– **Earnings Per Share (EPS)**:
– GAAP EPS: $0.97, **up 7.8%** year over year from $0.90.
– Adjusted EPS: $1.03, **up 9.6%** from $0.94 in the prior year.
– **Shareholder Returns**: Approximately **$95 million** returned via share repurchases and dividends.

## Full Year Fiscal 2025 Highlights

– **Sales**: $3.7 billion, reflecting a **2.9% increase** against fiscal 2024.
– **Gross Profit**:
– GAAP EPS: $3.05, **down 9.8%** from $3.38.
– Adjusted EPS: $3.68, **up 7.6%** compared to $3.42 in 2024.
– **Shareholder Returns**: Cumulatively **$465 million** returned to shareholders through share repurchases (4% of shares outstanding) and dividends.

## Segment Performance Analysis

– **Mobile Solutions Segment**:
– Sales increased **2.3%**, with Off-Road growing **5.1%**, but On-Road declined **20.1%**.

– **Industrial Solutions Segment**:
– Overall sales rose **7.7%**, buoyed by a **10.5% increase** in Industrial Filtration Solutions. Aerospace and Defense segment, on the other hand, faced a **5.9% decline**.

– **Life Sciences Segment**:
– Sales surged **14.1%** year over year, with considerable demand for new equipment in Food & Beverage.

## Gross Margin & Operating Income

– **Gross Margin**: 34.5%, which is down **130 basis points** from 35.8% in the previous year, attributed to tariff-related inflation.
– **Adjusted Gross Margin**: 34.8%, down from 36.2% year over year.
– **Operating Expenses**: 19.1% of sales, improved by **110 basis points** year over year, highlighting better expense management. Adjusted operating expenses were at 18.3%, down from 19.9%.

## Operating Margin

– **Operating Income**: As a percentage of sales, operating margin decreased slightly to 15.5%, down **10 basis points** year over year. Adjusted operating margin was recorded at 16.4%, an increase of **10 basis points** compared to the previous fiscal year.

## Fiscal 2026 Guidance

– **Sales Projection**: Expected to reach **$3.8 billion** in fiscal 2026 with EPS estimates between $3.92 and $4.08.
– **Revenue Growth**: Anticipated growth of **1% to 5%** year over year, factoring in a **1% pricing increase**.
– **Segment Expectations**:
– Mobile Solutions are expected to be flat to up **4%**.
– Industrial Solutions projected to grow **2% to 6%**.
– Life Sciences sales are expected to increase between **1% and 5%**.

## Interest and Tax Rates

– **Interest Expense**: Increased to **$7.1 million** from $5.3 million in the prior year, reflecting higher interest rates.
– **Effective Tax Rate**: 23.6%, an increase from 21.3% in the prior year due to lower net discrete tax benefits.

## Shareholder Returns

– Donaldson declared a **quarterly dividend of $0.30** per share, representing an **11.1% increase** from the previous quarter’s dividend of $0.27.

## Conclusion

In summary, Donaldson Company, Inc. showed respectable growth in sales and adjusted earnings, despite some declines in specific segments. The company remains committed to enhancing operational efficiency while returning capital to shareholders through dividends and share repurchases. The outlook for fiscal 2026 suggests continued growth as they aim to leverage efficiency improvements from fiscal 2025 initiatives.

—

For detailed financial information and to listen to the company’s investor calls, you can visit [Donaldson’s Investor Relations page](http://IR.Donaldson.com).

Note: Amounts may not foot due to rounding.
NM = Not meaningful