Donaldson Company, Inc. · NYSE:DCI
Donaldson — Q1 2025 Earnings Presentation
14 slides from Donaldson's earnings presentation, Dec 3, 2024
Slide 1: First Quarter Fiscal Year 2025
DONALDSON COMPANY FIRST QUARTER FISCAL YEAR 2025 December 2024
Slide 2: Forward-Looking Statement Safe Harbor
Forward-Looking Statement Safe Harbor Statements in this presentation regarding future events and expectations, such as forecasts, plans, trends, and projections relating to the Company’s business and financial performance, are forward-looking statements within the meaning of the Private Securities
Slide 3: First Quarter 2025 Update and Overview
First Quarter 2025 Update and Overview Record First Quarter Earnings Through Strong Sales and Margins ✓ Robust sales growth across all three segments Key ✓ Continuing to optimize operating expenses in response to macro conditions Updates ✓ Ongoing reinvestment into Donaldson Company ✓ Returned $107M
Slide 4: First Quarter FY25 Overview & Highlights
First Quarter FY25 Overview & Highlights Sales ($M) Adjusted Operating Margin(1) Adjusted Diluted EPS(1) Up 5.5% YoY Constant Currency Basis Up 20 bps YoY Up 10.7% YoY $900 $0.83 +6% $0.75 $846 14.9% 14.7% Q1’24 Q1’25 Q1’24 Q1’25 Q1’24 Q1’25 Highlights Highlights Highlights • 1% YoY contribution fro
Slide 5: Mobile Solutions Segment First Quarter FY25 Results
Mobile Solutions Segment First Quarter FY25 Results First Quarter Overview Sales • Total Sales YoY: +6% reported and +5% on a constant currency basis • Sales increase mainly driven by strength in Aftermarket from market share gains and customer destocking in the prior year period • Performance by re
Slide 6: Industrial Solutions Segment First Quarter FY25 Results
Industrial Solutions Segment First Quarter FY25 Results First Quarter Overview Sales • Total Sales YoY: +5% reported and +4% constant currency basis • Sales growth driven by strong Aerospace and Defense results from robust end-market conditions • Performance by region YoY: • US/CA +9% • EMEA -1% Q1’
Slide 7: Life Sciences Segment First Quarter FY25 Results
Life Sciences Segment First Quarter FY25 Results First Quarter Overview Sales • Total Sales YoY: +17% reported and +14% constant currency basis • Higher sales driven by strong growth in Disk Drive and Food and Beverage • Performance by region YoY: • US/CA +5% Q1’25 Q1’24 YoY • EMEA +4% • APAC +36% •
Slide 8: Planting Seeds for Growth in Life Sciences
Planting Seeds for Growth in Life Sciences A Leap Forward in Purification for Gene Therapies Launched ✓ Marks significant advancement from prototype grade research-grade ✓ Maintains purification capabilities with enhanced quality and reliability IsoTag AAV reagent ✓ Manufacturing-grade reagent slate
Slide 9: Balance Sheet and Cash Flow Overview
Balance Sheet and Cash Flow Overview Net Debt and Financial Leverage $600 1.2x Net Debt(1) ($M) $440 Net Debt to Adj. $434 $421 Highlights EBITDA(1) $400 0.8x 0.9x 0.7x 0.6x $200 0.6x • Adjusted free cash flow conversion(1,2) of 47%, as expected, in Q1’25 $0 0.3x Q1'23 Q1'24 Q1'25 • Returned $106 mi
Slide 10: Fiscal 2025 Financial Outlook Reaffirmed
Fiscal 2025 Financial Outlook Reaffirmed Segment Outlook Total Company Total Sales +0% to 4% +2% to 6% Sales Growth Off-Road + Low-single digits On-Road - Low-double digits Aftermarket + Low-single digits Total Company Mobile Solutions YoY Expansion Gross Margin Total Sales +4% to 8% Industrial Filt
Slide 11: Invest with Donaldson
Invest with Donaldson Leader in filtration with long history of solving the most difficult filtration problems and 1 forming mission critical partnerships across global customer base Best-in-class technology and strategic organizational redesign strengthens ability to 2 drive long-term profitable gr
Slide 12: Appendix
Ol y naldson. 12 Appendix
Slide 13: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) (Unaudited) 13
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) (Unaudited) October 31, 2024 2023 2022 Total debt $ 641.8 $ 651.4 $ 600.9 Less: Cash and cash equivalents (221.2) (217.8) (161.0) Net debt $ 420.6 $ 433.6 $ 439.9 Twelve months ended October 31, 2024 2023 2022 Ad