Donaldson Company, Inc. · NYSE:DCI
Donaldson — Q3 2025 Earnings Presentation
13 slides from Donaldson's earnings presentation, Jun 3, 2025
Slide 1: Third Quarter Fiscal Year 2025
DONALDSON COMPANY T H I RD Q U AR TER FI S CA L Y EA R 2 0 2 5 JUNE 2025
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: Third Quarter 2025 Update and Overview
Third Quarter 2025 Update and Overview Resilient Business Model Constant currency sales increases in all segments driven by growth in replacement parts Key Progress on cost and footprint optimization initiatives Updates Consistent expense management Accelerated share repurchases and recently
Slide 4: Third Quarter FY25 Overview & Highlights
Third Quarter FY25 Overview & Highlights Sales ($M) Adjusted Operating Margin(1) Adjusted Diluted EPS(1) Up 1.6% YoY Constant Currency Basis Up 80 bps YoY Up 7.6% YoY $928 +1.3% $940 16.3% $0.99 15.5% $0.92 Q3’24 Q3’25 Q3’24 Q3’25 Q3’24 Q3’25 Highlights Highlights Highlights • +1% YoY contribution f
Slide 5: Mobile Solutions Segment Third Quarter FY25 Results
Mobile Solutions Segment Third Quarter FY25 Results Third Quarter Overview Sales • Total Sales YoY: approximately flat • Pricing offset by volume declines and a headwind from currency translation • Aftermarket sales increase driven by strong OE channel demand and independent channel market share gai
Slide 6: Industrial Solutions Segment Third Quarter FY25 Results
Industrial Solutions Segment Third Quarter FY25 Results Third Quarter Overview Sales • Total Sales YoY: +5% • Sales increased due to solid volume growth and pricing • IFS sales increased as a result of strength in replacement part sales in several key businesses offset by weaker new equipment sales
Slide 7: Life Sciences Segment Third Quarter FY25 Results
Life Sciences Segment Third Quarter FY25 Results Third Quarter Overview Sales • Total Sales YoY: +1% reported and flat in constant currency • Higher sales driven by continuing Disk Drive market strength and Food and Beverage replacement parts sales • Performance by region YoY: • US/CA -14% • EMEA -7
Slide 8: Balance Sheet and Cash Flow Overview
Balance Sheet and Cash Flow Overview Net Debt and Financial Leverage $600 $544 1.2x Net Debt(1) ($M) $436 Net Debt to Adj. Highlights $400 $333 0.9x EBITDA(1) 0.8x 0.7x $200 0.5x 0.6x • Adjusted free cash flow conversion(1,2) of 61% in Q3’25 $0 0.3x • Lower conversion driven by increased working cap
Slide 9: Updated Fiscal 2025 Financial Outlook
Updated Fiscal 2025 Financial Outlook Total Company Sales Growth Segment Outlook Current Prior (Q2’25) Current Prior (Q2’25) +1 to +3% Flat to +4% Total Sales Flat to +2% -1% to +3% Off-Road - Mid-single digits - Mid-single digits Total Company Gross Margin On-Road - High-teens - Low-double digits C
Slide 10: Invest with Donaldson
Invest with Donaldson Leader in filtration with long history of solving the most difficult filtration problems and 1 forming mission critical partnerships across global customer base Best-in-class technology and strategic organizational redesign strengthens ability to 2 drive long-term profitable gr
Slide 11: Appendix
~. fa I \S Donaldson Appendix
Slide 12: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) (Unaudited) 12
Slide 13: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) (Unaudited) 13