Donaldson Posts Record $896.3M Q2 Sales, Flat $0.83 Adjusted EPS, Acquires Facet
Donaldson reported record second-quarter sales of $896.3 million, up 3.0%, and GAAP EPS of $0.78 with adjusted EPS of $0.83 flat year-over-year. The company agreed to acquire Facet to bolster fuel and fluid filtration offerings and expects fiscal 2026 sales, adjusted operating margin and EPS to reach all-time highs.
1. Q2 Financial Results
Donaldson delivered record second-quarter net sales of $896.3 million, up 3.0% year-over-year. GAAP net earnings were $92.5 million, or $0.78 per share, and adjusted EPS of $0.83 matched the prior-year quarter after excluding $6.7 million of non-recurring charges.
2. Segment Performance
Mobile Solutions sales rose 1.6%, driven by Off-Road growth of 7.8% despite a 9.2% decline in On-Road; Aftermarket advanced 1.1%. Industrial Filtration Solutions grew 7.2%, while Aerospace and Defense fell 19.4%, and Life Sciences surged 16.2% on strong new equipment orders.
3. Facet Acquisition
Donaldson announced the acquisition of Facet, a margin-accretive fuel and fluid filtration business serving Aerospace & Defense and Power Generation markets. The deal expands the core filtration portfolio and is expected to enhance long-term profitability through complementary technologies.
4. FY2026 Guidance
Supported by robust backlogs and planned footprint optimization, Donaldson forecasts record fiscal 2026 sales, adjusted operating margin and adjusted EPS. Management highlighted expected operating improvements in the second half and continued investments to drive sustainable growth.