DONALDSON Co INC (DCI)

Price$88.65Cached quoteAs of 2026-10-03 08:30 UTC

AI: Fair-priced

Price checkDonaldson looks fairly priced, but today’s valuation leaves little room for weaker growth.

At the observed quote, Donaldson is valued at about 24 times fiscal 2026 adjusted earnings per share and about 22 times the midpoint of fiscal 2027 guidance. Adjusted earnings remove specified restructuring and deal costs. Fiscal 2026 free cash flow, meaning cash left after operating the business and buying needed equipment, was about $426 million, roughly a 3.9% yield on an approximately $11 billion equity value. The annual dividend adds about 1.3%. That price is defensible if earnings keep growing around high single digits, but it offers limited protection if growth stalls or investors demand a lower multiple.

Big pictureSales, earnings, and cash have grown steadily despite uneven demand across industrial end markets.

Revenue increased from $2.58 billion in fiscal 2020 to $3.89 billion in fiscal 2026, while diluted earnings per share rose from $2.00 to $3.85. Operating cash flow stayed positive throughout the supplied history, ranging from $253 million in fiscal 2022 to $494 million in fiscal 2026. Cyclicality is visible: fiscal 2026 on-road sales fell 6.6%, but replacement-filter aftermarket sales rose 6.4%. That recurring replacement demand helps smooth equipment cycles, although agriculture, trucking, dust collection, and aerospace supply constraints can still move results meaningfully.

Business strengthRecurring replacement sales and a manageable balance sheet support durable cash generation and shareholder returns.

Facet increased leverage: fiscal 2026 ended with $1.28 billion of long-term debt and $45 million of short-term borrowings, against $250 million of cash. The near-term financial cushion still looks adequate because assets expected to turn into cash within a year were $1.67 billion versus $804 million of obligations due within a year. Donaldson also repaid $102 million of Facet-related debt, paid $141 million of dividends, and spent $111 million on buybacks. The supplied history shows shares outstanding down about 8% from fiscal 2020 to April 2026, so stock compensation has not caused net dilution.

What could change the storyFacet integration and margin expansion can lift value, while weaker cycles could expose the rich multiple.

Donaldson paid about $829 million for Facet, a business with roughly 70% of sales from consumables that customers replace on regulated schedules. The announced price was about 20 times Facet’s 2025 earnings before interest, taxes, depreciation and amortization, or 16.6 times after expected tax benefits and cost savings. The bull case needs fiscal 2027 sales growth of 5.5% to 9.5% and operating profit margins of 16.6% to 17.2%. The bear case is slower industrial demand or integration problems while annual interest expense rises toward $55 million to $60 million. At roughly 22 times forward earnings, misses would matter.

AI: News

Record year and outlookRecord results and a stronger outlook reinforced expectations for continued earnings growth and margin improvement.

On August 26, Donaldson reported fiscal 2026 sales of $3.89 billion, up 5.3%, and adjusted earnings per share of $3.98, up 8.2%. Fourth-quarter sales exceeded $1 billion for the first time, and adjusted operating margin reached 17.5%. Management guided fiscal 2027 sales growth to 5.5% to 9.5% and earnings per share to $4.22 to $4.38. The shares closed 2.1% higher that session; the timing supports a positive reaction, but it does not prove earnings caused the entire move.

Third-quarter reboundA strong third quarter showed operating problems were easing and restored confidence in full-year targets.

On June 2, third-quarter sales rose 5.8% to $995.1 million and adjusted earnings per share increased 7.1% to $1.06. Adjusted operating margin reached a record 16.6%, showing a sharp sequential improvement after second-quarter manufacturing and supply-chain pressure. Mobile Solutions and Life Sciences strength offset Industrial weakness. The shares gained about 4.7% that day. The timing is consistent with investors rewarding better execution and slightly better-than-expected results, although market moves can have multiple causes.

Facet acquisition closesThe Facet deal expanded recurring filtration revenue but materially increased debt and integration stakes.

Donaldson completed the Facet acquisition on May 4 for about $829 million in cash. Facet adds fuel and fluid filtration for aerospace, defense, power generation and other critical uses, with about 70% of sales tied to recurring consumables with regulated replacement cycles. The strategic benefit is higher-margin, repeat business in durable markets. The financial trade-off is significant new debt and integration risk; by fiscal year-end, long-term debt had roughly doubled from the prior year, making cash generation and repayment progress more important.

Second-quarter stumbleA second-quarter miss and reduced guidance showed how harshly investors punish weaker execution.

On February 26, Donaldson reported adjusted earnings per share of $0.83 versus an analyst estimate of $0.89 and reduced its fiscal 2026 adjusted earnings range to $3.93-$4.01 from $3.95-$4.11. Management cited near-term operating challenges while still expecting record full-year results. The shares fell 11.7% that day. The timing and magnitude strongly support an earnings-related reaction, but they do not prove the report explained every part of the decline. Later quarters showed substantial operating recovery.

Loading local price history

Revenue

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$3.69B	$3.59B	$3.43B	$3.31B	$2.85B	$2.58B	$2.84B	$2.73B	$2.37B	$2.22B	$2.37B	$2.47B	$2.44B	$2.49B	$2.29B	$1.88B	$1.87B
Gross profit	$1.29B	$1.27B	$1.16B	$1.07B	$971.7M	$871.6M	$948.3M	$935.8M	$820.9M	$754.8M	$808.6M	$877.8M	$847.1M	$873.8M	$813.8M	$658.7M	$589.7M
Gross margin	34.85%	35.54%	33.83%	32.28%	34.05%	33.76%	33.33%	34.23%	34.61%	34.00%	34.10%	35.49%	34.76%	35.05%	35.47%	35.09%	31.56%
Research & development	$87.8M	$93.6M	$78.1M	$69.1M	$67.8M	$61.2M	$62.3M	$59.9M	$54.7M	$55.5M	$60.2M	$61.8M	$62.6M	$59.6M	$55.3M	$44.5M	$40.6M
Operating expenses	$790.8M	$730.3M	$680.4M	$623.9M	$587.0M	$531.5M	$560.1M	$558.8M	$497.3M	$480.6M	$520.3M	$522.1M	$503.8M	$510.7M	$498.5M	$420.5M	$419.8M
Operating income	$495.4M	$544.1M	$480.2M	$443.5M	$384.7M	$340.1M	$388.2M	$377.0M	$323.6M	$274.2M	$288.3M	$355.7M	$343.3M	$363.0M	$315.3M	$238.2M	$170.0M
Operating margin	13.42%	15.17%	14.00%	13.41%	13.48%	13.17%	13.65%	13.79%	13.64%	12.35%	12.16%	14.38%	14.09%	14.56%	13.74%	12.69%	9.10%
EBITDA	$594.9M	$642.5M	$572.5M	$537.3M	$480.0M	$427.7M	$469.3M	$453.7M	$398.8M	$349.1M	$362.6M	$422.9M	$407.6M	$424.2M	$375.8M	$297.5M	$228.6M
EBITDA margin	16.12%	17.92%	16.69%	16.25%	16.82%	16.57%	16.50%	16.59%	16.81%	15.72%	15.29%	17.10%	16.73%	17.01%	16.38%	15.85%	12.23%
Net income	$367.0M	$414.0M	$358.8M	$332.8M	$286.9M	$257.0M	$267.2M	$180.3M	$232.8M	$190.8M	$208.1M	$260.2M	$247.4M	$264.3M	$225.3M	$166.2M	$131.9M
Net profit margin	9.94%	11.54%	10.46%	10.06%	10.05%	9.95%	9.39%	6.59%	9.81%	8.59%	8.78%	10.52%	10.15%	10.60%	9.82%	8.85%	7.06%
Basic EPSper basic share	$3.09	$3.43	$2.95	$2.69	$2.27	$2.03	$2.08	$1.38	$1.76	$1.43	$1.51	$1.79	$1.67	$1.76	$1.46	$1.07	$0.42
Diluted EPSper diluted share	$3.05	$3.38	$2.90	$2.66	$2.24	$2.00	$2.05	$1.36	$1.74	$1.42	$1.49	$1.76	$1.64	$1.73	$1.43	$1.05	$0.42

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈10.30%of listed shares

BlackRock, Inc.11.94M shares · Jun 30, 2026

View holders

Top 20 reported holders of DCI
Holder	% owned
BlackRock, Inc.	≈10.30%11.94M shares
STATE FARM MUTUAL AUTOMOBILE INSURANCE CO	≈7.89%9.14M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈5.63%6.52M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈4.53%5.25M shares
STATE STREET CORP	≈4.34%5.03M shares
FMR LLC	≈3.39%3.93M shares
GEODE CAPITAL MANAGEMENT, LLC	≈2.69%3.12M shares
KAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT LLC	≈2.40%2.78M shares
MORGAN STANLEY	≈2.16%2.51M shares
Pictet Asset Management Holding SA	≈1.99%2.31M shares
FULLER & THALER ASSET MANAGEMENT, INC.	≈1.98%2.3M shares
DIMENSIONAL FUND ADVISORS LP	≈1.76%2.04M shares
Invesco Ltd.	≈1.65%1.91M shares
Boston Trust Walden Corp	≈1.59%1.85M shares
MASSACHUSETTS FINANCIAL SERVICES CO /MA/	≈1.41%1.64M shares
FIDUCIARY MANAGEMENT INC /WI/	≈1.10%1.28M shares
AMERICAN CENTURY COMPANIES INC	≈1.09%1.27M shares
NORTHERN TRUST CORP	≈1.00%1.16M shares
FIRST TRUST ADVISORS LP	≈0.94%1.08M shares
Bank of New York Mellon Corp	≈0.92%1.06M shares

Percentages use 115.91M shares of this listed class outstanding on May 21, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)36$45.99M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Apr 14, 2026Form 4	Owens JamesDirector	SellCommon Stock	6.6K	$89.21	$588.8K	22.6K
Apr 14, 2026Form 4	Owens JamesDirector	SellCommon Stock	7.2K	$89.21	$638.1K	22.6K
Apr 13, 2026Form 4	Owens JamesDirector	SellCommon Stock	5.9K	$89.02	$527.1K	22.6K
Apr 10, 2026Form 4	Owens JamesDirector	SellCommon Stock	126	$88.82	$11.2K	22.6K
Mar 26, 2026Form 4	Briseno GuillermoPresident	SellCommon Stock	8.6K	$84.97	$730.7K	29.3K

Review ownership filings at SEC.gov ↗

Community posts

View community

It’s quiet here.

No posts about DCI yet. Start the conversation.

Write the first post

DONALDSON Co INC (DCI)

Financial charts

Financial statements

Owners

Insider buys & sells

Community posts

It’s quiet here.