olivLaw · US equity research
Donaldson Company, Inc. DCI
Industrial & Commercial Fans & Blowers & Air Purifing Equip · SIC 3564 · Vertical: Industrial machinery and computer equipment (SIC 356x)
Donaldson is a global leader in technology-led filtration products and solutions, with more than 150 locations on six continents. The company closed fiscal 2026 with net sales of 3885.6 million USD, up 5.3%, and its fiscal 2027 guidance projects another record year as it integrates the Facet acquisition.
At the close of 04 Nov 2026, Donaldson Company, Inc. (DCI) stock was 85.52 USD (−0.44% on the day), with market capitalisation 9.9 bn USD, P/E 22.2 on diluted EPS of 3.85 USD over the last 12 months, dividend yield 1.45%, beta 0.87, 52-week range 81.55–110.57 USD. Latest reported quarter (Q4 2026): revenue of 1.1 bn USD (+8.0% YoY), net income of 129.3 m USD (+13.1% YoY), diluted EPS 1.10 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 45.3
- neutral
- Bollinger (20, 2)
- 83.66 – 88.96
- in the lower half of the band · %B 0.35 · band width 6.1%
- SMA 50 / 200
- 87.75 / 90.42
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.84 / -0.83
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −4.1% | −1.1% | −3.0 pp | — |
| 3 months | −12.1% | −0.5% | −11.6 pp | — |
| 6 months | −2.4% | +4.4% | −6.8 pp | — |
| Year to date | −3.5% | +12.3% | −15.9 pp | — |
| 1 year | +1.1% | +13.5% | −12.4 pp | +8.3% |
| 3 years | +43.5% | +76.4% | −32.9 pp | +42.6% |
| 5 years | +39.2% | +63.7% | −24.4 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q4 2026 · 31 Jul 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 900.1 m | 870.0 m | 940.1 m | 980.7 m | 935.4 m | 896.3 m | 995.1 m | 1.1 bn |
| Cost of revenue | 580.5 m | 564.1 m | 618.2 m | 641.9 m | 606.6 m | 596.5 m | 661.7 m | 674.9 m |
| Gross profit | 319.6 m | 305.9 m | 321.9 m | 338.8 m | 328.8 m | 299.8 m | 333.4 m | 383.9 m |
| Research & development | 22.7 m | 21.2 m | 21.4 m | 22.5 m | 19.2 m | 18.6 m | 19.2 m | 19.1 m |
| SG&A | 166.1 m | 159.2 m | 152.3 m | 164.6 m | 169.6 m | 162.5 m | 158.9 m | 188.2 m |
| Operating income | 130.8 m | 125.5 m | 87.4 m | 151.7 m | 149.3 m | 118.7 m | 155.3 m | 176.6 m |
| Depreciation & amortisation | 25.5 m | 25.0 m ≈ | 24.6 m ≈ | 24.4 m | 24.3 m | 24.6 m ≈ | 24.1 m ≈ | 33.0 m |
| Interest expense | 5.5 m | 5.9 m | 5.7 m | 7.1 m | 7.1 m | 7.7 m | 6.5 m | 14.7 m |
| Pre-tax income | 130.5 m | 125.0 m | 87.0 m | 149.7 m | 147.5 m | 116.6 m | 154.8 m | 166.9 m |
| Income tax | 31.5 m | 29.1 m | 29.2 m | 35.4 m | 33.6 m | 24.1 m | 36.7 m | 37.6 m |
| Net income | 99.0 m | 95.9 m | 57.8 m | 114.3 m | 113.9 m | 92.5 m | 118.1 m | 129.3 m |
| Diluted EPS | 0.81 | 0.79 | 0.48 | 0.97 ≈ | 0.97 | 0.78 | 1.00 | 1.10 ≈ |
| Operating cash flow | 72.9 m | 90.4 m ≈ | 87.7 m ≈ | 167.8 m | 125.4 m | 33.0 m ≈ | 135.4 m ≈ | 199.9 m |
| Capex | 25.1 m | 18.9 m ≈ | 16.3 m ≈ | 18.6 m | 14.2 m | 15.0 m ≈ | 23.3 m ≈ | 14.9 m |
| Dividends paid | 32.4 m | 32.2 m ≈ | 32.3 m ≈ | 35.0 m | 34.7 m | 34.6 m ≈ | 34.7 m ≈ | 37.2 m |
| Share repurchases | 74.4 m | 7.2 m ≈ | 190.6 m ≈ | 59.3 m | 91.5 m | 19.7 m ≈ | 0 ≈ | 0 |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 35 percentile of its own 40-quarter history (min 19.5, median 23.9, max 49.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.8 bn | 2.6 bn | 2.9 bn | 3.3 bn | 3.4 bn | 3.6 bn | 3.7 bn | 3.9 bn |
| Revenue YoY | +4.0% | −9.2% | +10.5% | +15.9% | +3.8% | +4.5% | +2.9% | +5.3% |
| Net income | 267.2 m | 257.0 m | 286.9 m | 332.8 m | 358.8 m | 414.0 m | 367.0 m | 453.8 m |
| Net income YoY | +48.2% | −3.8% | +11.6% | +16.0% | +7.8% | +15.4% | −11.4% | +23.7% |
| Diluted EPS | 2.05 | 2.00 | 2.24 | 2.66 | 2.90 | 3.38 | 3.05 | 3.85 |
| Diluted EPS YoY | +50.7% | −2.4% | +12.0% | +18.8% | +9.0% | +16.6% | −9.8% | +26.2% |
| net % | 9.4% | 10.0% | 10.1% | 10.1% | 10.5% | 11.5% | 9.9% | 11.7% |
| Free cash flow | 195.1 m | 262.6 m | 342.9 m | 167.3 m | 426.0 m | 406.9 m | 339.9 m | 426.3 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Jul 2026
- Cash
- 250.4 m USD
- Financial debt
- 1.3 bn USD
- Net debt
- 1.1 bn USD
- Equity
- 1.8 bn USD
- Total assets
- 4.0 bn USD
- Debt / equity
- 0.75x
- Current ratio
- 2.08x
- ROE
- 28.2%
- ROA
- 13.0%
- FCF margin
- 11.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 2.9 bn | 3.3 bn | 3.4 bn | 3.6 bn | 3.7 bn | 3.9 bn | SEC (XBRL)· 25 Sept 2026verified |
| Cost of revenue | 1.9 bn | 2.2 bn | 2.3 bn | 2.3 bn | 2.4 bn | 2.5 bn | SEC (XBRL)· 25 Sept 2026verified |
| Gross profit | 971.7 m | 1.1 bn | 1.2 bn | 1.3 bn | 1.3 bn | 1.3 bn | SEC (XBRL)· 25 Sept 2026verified |
| Research & development | 67.8 m | 69.1 m | 78.1 m | 93.6 m | 87.8 m | 76.1 m | SEC (XBRL)· 25 Sept 2026verified |
| SG&A | 519.2 m | 554.8 m | 602.3 m | 636.7 m | 642.2 m | 679.2 m | SEC (XBRL)· 25 Sept 2026verified |
| Operating income | 384.7 m | 443.5 m | 480.2 m | 544.1 m | 495.4 m | 599.9 m | SEC (XBRL)· 25 Sept 2026verified |
| Depreciation & amortisation | 95.3 m | 93.8 m | 92.3 m | 98.4 m | 99.5 m | 106.0 m | SEC (XBRL)· 25 Sept 2026verified |
| EBITDA | 480.0 m ≈ | 537.3 m ≈ | 572.5 m ≈ | 642.5 m ≈ | 594.9 m ≈ | 705.9 m ≈ | SEC (XBRL)· 25 Sept 2026derived |
| Interest expense | 13.0 m | 14.9 m | 19.2 m | 21.4 m | 24.2 m | 36.0 m | SEC (XBRL)· 25 Sept 2026verified |
| Pre-tax income | 381.0 m | 438.4 m | 468.7 m | 535.3 m | 492.2 m | 585.8 m | SEC (XBRL)· 25 Sept 2026verified |
| Income tax | 94.1 m | 105.6 m | 109.9 m | 121.3 m | 125.2 m | 132.0 m | SEC (XBRL)· 25 Sept 2026verified |
| Net income | 286.9 m | 332.8 m | 358.8 m | 414.0 m | 367.0 m | 453.8 m | SEC (XBRL)· 25 Sept 2026verified |
| Diluted EPS | 2.24 | 2.66 | 2.90 | 3.38 | 3.05 | 3.85 | SEC (XBRL)· 25 Sept 2026verified |
| Weighted average diluted shares | 128.2 m | 125.2 m | 123.6 m | 122.6 m | 120.4 m | 117.9 m | SEC (XBRL)· 25 Sept 2026verified |
| Dividend per share | 0.86 | 0.90 | 0.96 | 1.04 | 1.14 | 1.24 | SEC (XBRL)· 25 Sept 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 222.8 m | 193.3 m | 187.1 m | 232.7 m | 180.4 m | 250.4 m | SEC (XBRL)· 25 Sept 2026verified |
| Receivables | 552.7 m | 616.6 m | 599.7 m | 629.7 m | 662.2 m | 758.1 m | SEC (XBRL)· 25 Sept 2026verified |
| Inventories | 384.5 m | 502.4 m | 418.1 m | 476.7 m | 513.6 m | 538.7 m | SEC (XBRL)· 25 Sept 2026verified |
| Current assets | 1.2 bn | 1.4 bn | 1.3 bn | 1.4 bn | 1.5 bn | 1.7 bn | SEC (XBRL)· 25 Sept 2026verified |
| Property, plant & equipment, net | 617.8 m | 594.4 m | 652.9 m | 645.5 m | 644.5 m | 633.3 m | SEC (XBRL)· 25 Sept 2026verified |
| Goodwill | 322.5 m | 345.8 m | 481.1 m | 478.4 m | 493.6 m | 1.1 bn | SEC (XBRL)· 25 Sept 2026verified |
| Intangibles (excl. goodwill) | 61.6 m | 99.8 m | 188.1 m | 171.9 m | 97.4 m | 304.6 m | SEC (XBRL)· 25 Sept 2026verified |
| Total assets | 2.4 bn | 2.6 bn | 2.8 bn | 2.9 bn | 3.0 bn | 4.0 bn | SEC (XBRL)· 25 Sept 2026verified |
| Accounts payable | 293.9 m | 338.5 m | 304.9 m | 379.4 m | 368.6 m | 378.6 m | SEC (XBRL)· 25 Sept 2026verified |
| Short-term debt | 48.5 m | 3.7 m | 34.1 m | 28.3 m | 31.2 m | 44.8 m | SEC (XBRL)· 25 Sept 2026verified |
| Long-term debt | 463.3 m | 646.7 m | 623.4 m | 510.0 m | 640.0 m | 1.3 bn | SEC (XBRL)· 25 Sept 2026verified |
| Current liabilities | 606.6 m | 629.6 m | 756.4 m | 782.5 m | 757.2 m | 804.1 m | SEC (XBRL)· 25 Sept 2026verified |
| Total liabilities | 1.3 bn | 1.5 bn | 1.4 bn | 1.4 bn | 1.5 bn | 2.2 bn | SEC (XBRL)· 25 Sept 2026verified |
| Equity | 1.1 bn | 1.1 bn | 1.3 bn | 1.5 bn † | 1.5 bn † | 1.8 bn † | SEC (XBRL)· 25 Sept 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 401.9 m | 252.8 m | 544.5 m | 492.5 m | 418.8 m | 493.7 m | SEC (XBRL)· 25 Sept 2026verified |
| Capex | 59.0 m | 85.5 m | 118.5 m | 85.6 m | 78.9 m | 67.4 m | SEC (XBRL)· 25 Sept 2026verified |
| Free cash flow | 342.9 m ≈ | 167.3 m ≈ | 426.0 m ≈ | 406.9 m ≈ | 339.9 m ≈ | 426.3 m ≈ | SEC (XBRL)· 25 Sept 2026derived |
| Investing cash flow | -58.3 m | -154.0 m | -327.3 m | -86.9 m | -150.4 m | -879.5 m | SEC (XBRL)· 25 Sept 2026verified |
| Financing cash flow | -363.3 m | -114.2 m | -222.2 m | -355.9 m | -321.7 m | 451.6 m | SEC (XBRL)· 25 Sept 2026verified |
| Dividends paid | 107.2 m | 110.1 m | 114.4 m | 122.8 m | 131.9 m | 141.2 m | SEC (XBRL)· 25 Sept 2026verified |
| Share repurchases | 142.2 m | 170.6 m | 141.8 m | 162.7 m | 331.5 m | 111.2 m | SEC (XBRL)· 25 Sept 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 69 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 9.9 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation67
- Balance sheet72
- Quality84
- Growth51
- Returns62
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 16.29 – 128.77 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)45.49 – 77.21 (Mid 57.57)WACC 8.8% · starting FCFF 454.2 m USD · terminal value share of EV 75%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 20.4%
- Peers: EV/EBITDA70.84 – 124.68 (Mid 85.01)14 companies used · median multiple 15.5x · quartiles 13.2x – 22.0xESAB, FLS, GGG, GHM, GRC, GTES, IR, ITT, NDSN, PPIH, RBC, TKR, XYL, ZBRA
- Peers: P/E91.22 – 128.77 (Mid 103.35)21 companies used · median multiple 26.8x · quartiles 23.7x – 33.4xEFXT, ESAB, FLS, GGG, GRC, GTES, HSAI, IEX, IR, ITT, ITW, NDSN, PPIH, RBC, RRX, TAYD, TKR, TWIN, XYL, ZBRA, ZWS
- Dividend discount (DDM)16.29 – 21.91 (Mid 18.69)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 69/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 19.4% | 90 (vs peers) | 10% |
| Net margin · Quality | 11.7% | 69 (vs peers) | 6% |
| FCF conversion · Quality | 93.9% | 91 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 4.2% | 35 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | 9.9% | 66 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | 1.5x | 44 (vs peers) | 10% |
| Interest coverage · Balance sheet | 16.7x | 100 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 2.1x | 100 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 22.2x | 84 (vs peers) | 10% |
| EV/EBITDA · Valuation | 15.6x | 61 (vs peers) | 10% |
| FCF yield · Valuation | 4.3% | 54 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 2.5% | 36 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 33.1% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet72/100 · 3/3 factors with a value
- Growth51/100 · 2/2 factors with a value
- Quality84/100 · 3/3 factors with a value
- Returns62/100 · 2/2 factors with a value
- Valuation67/100 · 3/3 factors with a value
Memo
Donaldson Company, Inc. (DCI). Latest full fiscal year: 2026; data up to 2026-07-31.
Figures computed from the financial statements: revenue 3.9 bn USD in 2026; YoY growth 5.3%; net margin 11.7%; ROE 28.2%; net debt/EBITDA 1.5x.
The estimated value range is 58.16–100.95 USD per share (median of 4 methods, agreement: medium); assumptions are illustrative. Against the central value of 71.29 USD, the price of 85.52 USD leaves a potential of -16.6% (value / price − 1) and a margin of safety of -20.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 69/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 19.4%
- FCF conversion: 93.9%
- Interest coverage: 16.7x
- Current ratio: 2.1x
- P/E (TTM): 22.2x
- Payout ratio (FCF): 33.1%
What contradicts it
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
Versus the vertical median
Industrial machinery and computer equipment (SIC 356x) · same industry group (3-digit SIC) · compared with 36 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ITWIllinois Tool Works Inc | 83.4 bn | 26.1 | 101.7% | 19.4% | +0.9% | +18% / +21% |
| IRIngersoll Rand Inc. | 32.3 bn | 23.7 | 13.4% | 17.2% | +5.7% | +5% / +18% |
| XYLXylem Inc. | 23.2 bn | 22.3 | 10.1% | 11.9% | +5.5% | −28% / −4% |
| SYMSymbotic Inc. | 22.7 bn | 780.5 | 1.8% | 0.3% | +25.7% | −55% / −29% |
| NDSNNordson Corporation | 18.4 bn | 33.4 | 17.8% | 18.6% | +3.8% | +39% / +41% |
| ITTItt Inc. | 18.0 bn | 39.4 | 11.5% | 8.9% | +8.5% | +9% / +86% |
| IEXIdex Corp | 17.2 bn | 32.4 | 13.3% | 14.6% | +5.8% | +34% / +16% |
| ZBRAZebra Technologies Corporation | 15.7 bn | 26.8 | 16.5% | 9.8% | +8.3% | +32% / +40% |
| RBCRbc Bearings Incorporated | 15.1 bn | 42.7 | 10.5% | 17.5% | +14.3% | +7% / +85% |
| RRXRegal Rexnord Corp | 11.5 bn | 50.1 | 3.4% | 3.8% | −1.6% | +19% / +45% |
| GGGGraco Inc. | 11.2 bn | 22.5 | 20.4% | 22.4% | +5.8% | −15% / −14% |
| FLSFlowserve Corp | 10.3 bn | 40.7 | 11.1% | — | unavailable | +14% / +112% |
| DCIDonaldson Company, Inc. | 9.9 bn | 22.2 | 28.2% | 11.7% | +5.3% | +1% / +43% |
| ZWSZurn Elkay Water Solutions Corporation | 7.5 bn | 26.3 | 17.7% | 15.9% | +8.3% | −5% / +53% |
| TKRTimken Co | 7.3 bn | 26.4 | 8.9% | 5.9% | +0.2% | +31% / +47% |
| GTESGates Industrial Corporation Ltd. | 6.1 bn | 17.0 | 10.6% | 10.4% | +1.0% | +7% / +100% |
| ESABESAB Corporation | 4.9 bn | 31.7 | 6.7% | 5.1% | +3.7% | −30% / +2% |
| CECOCeco Environmental Corp. | 2.7 bn | — | -2.6% | -3.4% | +38.8% | −13% / +136% |
| EFXTEnerflex Ltd | 2.5 bn | 39.3 | 6.0% | 2.5% | +6.5% | +46% / +377% |
| OUSTOuster, Inc. | 2.4 bn | — | -11.3% | -20.4% | +52.5% | +46% / +555% |
| HSAIHesai Group | 2.0 bn | 30.4 | 6.9% | 14.4% | +52.1% | −32% / +23% |
| GRCThe Gorman-Rupp Company | 2.0 bn | 26.3 | 17.0% | 10.2% | +3.4% | +59% / +134% |
| CHRNChronoscale Holdings Corporation | 1.8 bn | — | -42.0% | -70.3% | +459.4% | +155% / −54% |
| GHMGraham Corporation | 816.0 m | 67.1 | 7.5% | 4.5% | +16.9% | +21% / +275% |
| TWINTwin Disc, Incorporated | 370.7 m | 11.9 | 16.3% | 8.0% | +11.9% | +64% / +86% |
1- and 3-year price returns: for DCI from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 51.27 Total return -39% · Per year -39% | 90.65 Total return 8% · Per year 8% | 136.56 Total return 62% · Per year 62% |
| 3 years | 49.49 Total return -39% · Per year -15% | 98.49 Total return 20% · Per year 6% | 162.95 Total return 97% · Per year 25% |
| 5 years | 47.78 Total return -39% · Per year -9% | 107.02 Total return 34% · Per year 6% | 194.45 Total return 139% · Per year 19% |
- Exit P/E± 24.62
- Net margin± 17.24
- Annual revenue growth± 14.18
- Annual dilution± 1.45
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Donaldson is a global leader in technology-led filtration products and solutions, with more than 150 locations on six continents. The company closed fiscal 2026 with net sales of 3885.6 million USD, up 5.3%, and its fiscal 2027 guidance projects another record year as it integrates the Facet acquisition.
SWOT
Strengths
- The company holds a recognized leading position in several product lines and has a broad geographic footprint with plants and distribution centers on six continents 1.
- Diversification across regions, end markets and customer types has limited the impact of weakness in any single area on consolidated results 1.
- Higher operating margin and profitability in the fourth quarter show the teams' ability to execute 2.
Weaknesses
Opportunities
Threats
- Tariffs and retaliatory trade measures could raise costs and reduce the competitiveness of products in export markets 1.
- If geopolitical tensions worsen, customer activity and the company's costs could be significantly affected 1.
- Alternative technologies to diesel engines could reduce demand for some products 1.
Risks
- Global operating riskshigh
International operations expose the company to different regulations, tariffs, political risks and difficulties in protecting intellectual property 1.
- Tariff pressurehigh
New tariffs or increases could disrupt supply chains and reduce product competitiveness 1.
- Supply chainmedium
Supplier delays and raw material cost volatility could affect deliveries and margins 1.
- Acquisition integrationmedium
Integrating Facet and other acquisitions could generate unexpected costs and divert management attention 1.
- Concentration in cyclical industrieslow
Many customers operate in cyclical industries such as construction, agriculture and mining, which makes sales sensitive to the economic cycle 1.
Investment thesis
What would need to be true (bull case)
- If the fiscal 2027 guidance is delivered, the company could report another record in sales and earnings, supported by organic growth and the Facet integration 2.
- Improving performance in Industrial Solutions and a higher operating margin could support profitability over the medium term 2.
- A leading position in niche markets and replacement parts could generate stable recurring revenue 1.
What would break the thesis
What to watch
- Delivery of the fiscal 2027 sales and EPS guidance2027
- Operating margin against the guided range of 16.6% to 17.2%2027
- Effect of tariffs and tariff refunds on costsnext 10-K
- Facet contribution and integration in aerospace and defenseQ1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Founded in 1915, Donaldson Company, Inc. develops filtration products for customers ranging from small business owners to the largest original equipment manufacturers. The company operates in four regions; the U.S. and Canada accounted for 42.5% of fiscal 2026 revenue and EMEA for 29.2% 1. Its strategy rests on extending market access, expanding technologies and solutions, and pursuing strategic acquisitions in high-margin areas 1.
The reportable segments are Mobile Solutions, Industrial Solutions and Life Sciences. Mobile Solutions is the largest, while Life Sciences covers food and beverage filtration, disk drive, membranes, microelectronics and bioprocessing. The Facet Filtration acquisition strengthened the company's position in aerospace and defense and in power generation 1.
In the fourth quarter of fiscal 2026 Donaldson reported record sales, and its fiscal 2027 outlook points to continued growth, with Facet-related costs and interest expense weighing on the cost base 2.
Segments
Mobile Solutions
The segment represents 62.3% of fiscal 2026 net sales and serves construction, mining, agriculture and transportation end markets, as well as the replacement parts market. It includes the Off-Road, On-Road and Aftermarket business units 1.
Industrial Solutions
The segment represents 29.1% of fiscal 2026 net sales and covers dust collection, industrial gases, hydraulics, power generation and aerospace and defense. The Facet acquisition added significant aerospace and defense sales to this segment 12.
Life Sciences
The segment represents 8.6% of fiscal 2026 net sales and includes food and beverage filtration, disk drive, advanced membranes, microelectronics and upstream and downstream bioprocessing 1.
Market context
Donaldson operates in highly competitive filtration markets where it considers itself a leader in several product lines, particularly for OEM off-road and on-road products and replacement filters. End markets are partly cyclical, and diversification across regions and customers has limited the impact of weakness in any single market 1.
Demand in Life Sciences has grown with data storage needs and cell and gene therapy development, and the fiscal 2027 outlook anticipates growth of 7% to 11% in this segment 12.
Trends
- Trade tariffsmixed
Tariffs imposed by the U.S. and retaliatory measures could raise costs and disrupt supply chains. The February 2026 Supreme Court decision and the expected recoveries leave the eventual effect still uncertain 1.
- Electrification of equipmentheadwind
A shift to alternatives to diesel engines could reduce demand for some products, though it could also open new markets for filtration technologies 1.
- Demand for data centers and advanced therapiestailwind
Growing data storage capacity and cell and gene therapies support demand in the Life Sciences segment 1.
- Geopolitical tensions in the Middle Eastheadwind
The conflict involving Iran has caused significant volatility in energy and commodity prices, which could affect costs and customer activity if tensions persist 1.
Competitive position
The main methods of competition are technology, innovation, product performance, service, price and geographic coverage. Mobile Solutions faces several large global competitors and many regional competitors, especially in the aftermarket 1.
In Industrial Solutions competitors vary from country to country, from large global groups to many smaller firms, while Life Sciences faces both large global competitors and niche players 1.
- Large global competitors in Mobile Solutions
The source mentions several large global competitors without naming them.
- Regional competitors in the replacement parts market
Numerous regional competitors are active, especially in the aftermarket, according to the source.
- Local competitors in Industrial Solutions
Competitors vary by country and include smaller firms focused on regions or limited applications.
- Niche players in Life Sciences
The source mentions niche players in individual end markets of the segment, without names.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Ex-DUP chief faces new allegation of raping woman inside WestminsterPolitico EU · 21 Oct 2026 · EN
- Jeffrey Donaldson investigated over alleged rape in UK parliamentThe Guardian World · 21 Oct 2026 · EN
- Midnight Dreamers is a sci - fi look at a corporate - ruled societySurge — GDELT DOC · 18 Oct 2026 · RO
- Northern Ireland ex-DUP leader Donaldson sentenced to 15 years for child sex crimesAl Jazeera English · 15 Oct 2026 · EN
- Ex-DUP chief in Northern Ireland given 15-year prison term for sexually abusing girlsPolitico EU · 15 Oct 2026 · EN
- Former DUP leader Jeffrey Donaldson sentenced to 15 years for child sexual offencesThe Guardian World · 15 Oct 2026 · EN
- Former DUP leader Jeffrey Donaldson to be sentenced for child sexual abuse – latest updatesThe Guardian World · 15 Oct 2026 · EN
- Donaldson injury a late blow for Wallabies ahead of All Blacks clashCNA (Channel NewsAsia) · 15 Oct 2026 · EN
- Donaldson Futuro House in Idyllwild, California, USAHacker News · 13 Oct 2026 · EN
- Jeffrey Donaldson could face more than 10 years in jail for child sexual abuse, court toldThe Guardian World · 25 Sept 2026 · EN
- Donaldson’s (DCI) Billion-Dollar Quarter Hides A Costlier Bet AheadYahoo Finance — News · 28 Aug 2026 · EN
- Donaldson (DCI) Q4 2026 Earnings Call TranscriptYahoo Finance — News · 27 Aug 2026 · EN
- Donaldson Company, Inc. Q4 2026 Earnings Call SummaryYahoo Finance — News · 26 Aug 2026 · EN
- Donaldson Q4 Earnings Call HighlightsYahoo Finance — News · 26 Aug 2026 · EN
- Jeffrey Donaldson to appeal against conviction for child sexual offencesThe Guardian World · 17 Jul 2026 · RO
- Current and ex-DUP members knew of allegations about Jeffrey Donaldson, party saysThe Guardian World · 29 Jun 2026 · RO
- DUP seeks to distance party from ‘wicked deceiver’ Jeffrey DonaldsonThe Guardian World · 23 Jun 2026 · RO
- ‘Incomprehensible’: disbelief after Jeffrey Donaldson found guilty of historical sex chargesThe Guardian World · 22 Jun 2026 · RO
- Jeffrey Donaldson found guilty of child sexual offences including rapeThe Guardian World · 22 Jun 2026 · RO
- Alleged rape of girl ‘simply not true’, Jeffrey Donaldson tells trialThe Guardian World · 11 Jun 2026 · RO
The latest news item in our archive is from 21 Oct 2026; the newest SEC filing is from 29 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report29 Oct 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Proxy statement06 Oct 2026
- Annual report25 Sept 2026
- Current report26 Aug 2026Results of operations · Financial statements and exhibits
- Current report24 Jul 2026Departure or appointment of officers
- Quarterly report02 Jun 2026
- Current report02 Jun 2026Results of operations · Financial statements and exhibits
- Current report10 Apr 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Quarterly report26 Feb 2026
- Current report26 Feb 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-07-31 · SEC / Donaldson Company, Inc. · 25 Sept 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Donaldson Company, Inc. · 26 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.