Donaldson Q2 sales slightly miss estimates on volume declines

Reuters02-26
Donaldson <a href="https://laohu8.com/S/QTWO">Q2</a> sales slightly miss estimates on volume declines

Overview

  • Filtration products maker's fiscal Q2 sales slightly missed analyst expectations

  • Adjusted EPS for fiscal Q2 remained flat year-over-year

  • Company announced margin-accretive Facet acquisition to enhance filtration portfolio

Outlook

  • Donaldson projects fiscal 2026 adjusted EPS between $3.93 and $4.01

  • Company expects fiscal 2026 sales to grow 1% to 5% year over year

  • Donaldson forecasts Aerospace and Defense sales to decrease mid-single digits in 2026

Result Drivers

  • SALES GROWTH DRIVERS - Sales increased 3% due to favorable currency translation and pricing benefits, partially offset by volume declines

  • FACET ACQUISITION - Acquisition of Facet to enhance core filtration portfolio in Aerospace, Defense, and Power Generation

  • LIFE SCIENCES GROWTH - Life Sciences segment sales rose 16.2% driven by strong new equipment sales in Food and Beverage and Disk Drive, aided by currency translation

Company press release: ID:nBw8QrHKwa

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

Slight Miss*

$896.30 mln

$898.74 mln (5 Analysts)

Q2 Net earnings

$92.50 mln

Q2 Gross Profit

$299.80 mln

Q2 Operating income

$118.70 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "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 $96.00, about 8.1% below its February 25 closing price of $104.42

  • The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 21 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)

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