Donaldson Q2 EPS Misses by $0.07 as Revenues Rise 3% to $896M
Donaldson reported Q2 fiscal 2026 adjusted EPS of $0.83, missing forecasts by $0.07 and flat year-over-year on revenues of $896.3 million, a 3% increase. US/Canada sales fell 4.7% year-over-year, EMEA sales rose 16%, and segment sales varied with Mobile Solutions up 1.6%, Industrial Solutions up 2.4% and Life Sciences up 16.2%.
1. Q2 Financial Results
Donaldson reported adjusted EPS of $0.83 for Q2 fiscal 2026, missing the projected $0.90 estimate and matching prior year levels. Total revenues reached $896.3 million, a 3% year-over-year increase but slightly below the $898 million forecast.
2. Regional Sales Performance
Net sales in the US and Canada fell 4.7% year-over-year while EMEA sales climbed by 16%. Latin America sales declined 5.2% and Asia Pacific grew by 8.7%, reflecting mixed demand across markets.
3. Segment Sales Breakdown
The Mobile Solutions segment generated $556.6 million in sales, up 1.6% with Off-Road rising 7.8% and On-Road falling 9.2%. Industrial Solutions sales increased 2.4% to $259.7 million, hindered by a 19.4% drop in Aerospace and Defense, and Life Sciences sales jumped 16.2% to $80 million.
4. Profitability and Outlook
Gross margin dipped by 170 basis points to 33.5% as costs rose 5.7% and operating margin fell 120 basis points to 13.2%. For fiscal 2026, the company forecasts adjusted EPS of $3.93–$4.01 and sales growth of 1–5%, with positive pricing expected to add about 1%.