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Apr 30, 2024
Donaldson Q3 2024 Earnings Report
Donaldson reported record sales and earnings, driven by strong margins and strategic investments.
Key Takeaways
Donaldson reported record third quarter fiscal year 2024 sales and earnings. Sales increased 6.0% year over year to $927.9 million, and EPS was $0.92, up 21.7% versus 2023. The company is raising its fiscal 2024 EPS guidance.
Generated record sales and earnings with robust margins.
Maintained focus on customers and delivered technology-led filtration products and services across a diversified portfolio.
Increased earnings outlook for the full year.
Committed to returning value to shareholders through strategic initiatives.
Donaldson
Donaldson
Donaldson Revenue by Segment
Donaldson Revenue by Geographic Location
Revenue by Segment
Mobile Solutions Revenue
CapyFin.comIndustrial Solutions Revenue
CapyFin.comLife Sciences Revenue
CapyFin.comRevenue by Geographic Location
U.S. / Canada Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comLatin America Revenue
CapyFin.com Forward Guidance
Full-year EPS is forecast to be between $3.33 and $3.39. Sales are expected to increase between 4% and 6% year over year, with a pricing benefit of approximately 2% and a negligible impact from currency translation.
Positive Outlook
- Mobile sales are forecast to increase between 2% and 4% versus 2023.
- Aftermarket sales are forecast to grow mid-single digits, benefitting from market share gains and destocking in the prior year period.
- Industrial sales are expected to increase between 6% and 8% compared with prior year.
- IFS sales are expected to increase mid-single digits as a result of sales momentum in dust collection and Power Generation.
- Life Sciences sales are forecast to grow mid-teens year over year supported by growth across all businesses including Food & Beverage, Bioprocessing Equipment and Consumables, and Disk Drive.
Challenges Ahead
- Off-Road sales are expected to decrease low double-digits due to softening end-market demand and related reductions in global equipment production.
- On-Road sales are expected to decrease low single-digits due to softening end-market demand and related reductions in global equipment production.
- Operating margin is expected to be between 15.0% and 15.4% versus 14.0%, or 14.6% on an adjusted basis, in 2023.
- Interest expense is forecast to be approximately $22 million.
- Donaldson projects a fiscal 2024 effective income tax rate of between 23% and 24%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income