Donaldson Sets Q4 Sales and EPS Records

Donaldson(NYSE:DCI) reported fourth-quarter fiscal 2025 earnings on August 27, 2025, posting record topline performance, with sales up 5% year over year to $981 million and adjusted EPS up 10% year over year to $1.03. Full-year results for the fiscal year ended July 31, 2025, included all-time highs in both revenue ($3.7 billion) and operating margin (15.7%), with $465 million returned to shareholders, while guidance for fiscal 2026 targets further operating margin expansion and record earnings of $4.00 per share. Below, we examine management’s execution on operational efficiency, aftermarket penetration, and growth investments, and clarify near- and long-term catalysts and risks.Gross margin (GAAP) was pressured by higher LIFO (last-in, first-out) inventory costs linked to U.S.-China tariff inflation, but operating margin still set a new high at 16.4%, with operating expense as a percent of sales improving 160 basis points compared to the previous year. The company continued major restructuring and plant consolidation efforts, targeting completion in fiscal 2026, to drive fixed cost leverage and maintain high on-time delivery rates despite macro headwinds.The company's structural cost reductions and demonstrated pricing power offset supply chain and input cost volatility, sustaining incremental margins that outpace muted sales growth.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool