Filtration systems maker Donaldson's Q1 sales beat on replacement parts demand

Overview

• Donaldson Q1 sales up 3.9%, beating analyst expectations

• Adjusted EPS for Q1 rises 13.3%, reflecting operational leverage and cost optimization

• Company raises full-year adjusted operating margin and EPS guidance

Outlook

• Donaldson raises fiscal 2026 adjusted EPS guidance to $3.95-$4.11

• Sales projected to grow 1% to 5% year-over-year

• Adjusted 2026 operating margin expected between 16.2% and 16.8%

Result Drivers

• SALES GROWTH - Driven by growth in replacement parts and new equipment

• COST OPTIMIZATION - Expanded operating margin through leverage on higher sales and cost optimization benefits

• MARKET SHARE GAINS - Company gained market share in key businesses and grew replacement part sales

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the environmental services & equipment peer group is "buy."

• Wall Street's median 12-month price target for Donaldson Company Inc is $86.00, about 1.8% below its December 3 closing price of $87.60

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw6tslNra

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)