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Jan 31
Donaldson Q2 2025 Earnings Report
Donaldson reported a slight revenue decline with steady margins and improved adjusted EPS.
Key Takeaways
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.
Donaldson
Donaldson
Donaldson Revenue by Geographic Location
Revenue by Geographic Location
U.S. / Canada Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comLatin America Revenue
CapyFin.com 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.
Positive Outlook
- 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%.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income