Q2 2026 Donaldson Company Inc Earnings Call Transcript
Key Points
- Donaldson Co Inc (DCI) achieved record sales in the second quarter, driven by strong customer demand across all segments.
- The acquisition of Facet, the largest in company history, is expected to enhance DCI's product portfolio and financial performance.
- Mobile Solutions sales increased by 2%, with significant growth in the independent aftermarket channel.
- Life Sciences segment saw a 16% increase in sales, particularly in Food and Beverage and Disk Drive sectors.
- DCI's strong backlog and order intake provide confidence in achieving record sales of approximately $3.8 billion for fiscal 2026.
- Operating margin declined to 14% from 15.2% a year ago due to gross margin pressure.
- Volume declines in Mobile and Industrial Solutions segments partially offset sales growth.
- Gross margin was impacted by operational inefficiencies and footprint optimization costs.
- Aerospace and Defense sales decreased by 19% due to project timing and supply chain challenges.
- Industrial Solutions sales growth was revised down due to declines in dust collection and industrial hydraulics systems.
Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome you to Donaldson Companyâs second-quarter fiscal year 2026 earnings webcast and conference call. (Operator Instructions) Thank you.
I would now like to turn the conference over to Sarika Dhadwal, Head of Investor Relations. Please go ahead.
Good morning. Thank you for joining Donaldsonâs second-quarter fiscal 2026 earnings conference call. With me today are Tod Carpenter, Chairman, President, and CEO; Rich Lewis, incoming President and CEO; and Brad Pogalz, Chief Financial Officer. This morning, we will provide a summary of our second-quarter performance and our outlook for fiscal 2026.
During todayâs call, we will discuss non-GAAP or adjusted results. For second-quarter 2026, non-GAAP results exclude pre-tax charges of $6.7 million, including $2.9 million of restructuring and other, and $3.8 million of business development charges.
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