Donaldson Company, Inc. · NYSE:DCI
Donaldson — Q2 2025 Earnings Presentation
13 slides from Donaldson's earnings presentation, Feb 27, 2025
Slide 1: Donaldson Company Second Quarter Fiscal Year 2025
DONALDSON COMPANY S EC O N D Q U A RTER F IS C AL Y E AR 2 0 2 5 FEBRUARY 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: Second Quarter 2025 Update and Overview
Second Quarter 2025 Update and Overview Strong Operational Performance Diversified portfolio provides balance Key Continuing to manage expenses and drive operational efficiency Updates Ongoing reinvestment into Donaldson Company Returned $39M in second quarter to shareholders in dividends an
Slide 4: Second Quarter FY25 Overview & Highlights
Second Quarter FY25 Overview & Highlights Sales ($M) Adjusted Operating Margin(1) Adjusted Diluted EPS(1) Up 0.9% YoY Constant Currency Basis Up 40 bps YoY Up 2.5% YoY $0.81 $0.83 $877 $870 -0.8% 15.2% 14.8% Q2’24 Q2’25 Q2’24 Q2’25 Q2’24 Q2’25 Highlights Highlights Highlights • +1% YoY contribution
Slide 5: Mobile Solutions Segment Second Quarter FY25 Results
Mobile Solutions Segment Second Quarter FY25 Results Second Quarter Overview Sales • Total Sales YoY: -1% reported and +1% constant currency • Aftermarket sales driven by strong OEM demand and share gains in the independent channel • Off-road and on-road sales decreased due to declines in global equ
Slide 6: Industrial Solutions Segment Second Quarter FY25 Results
Industrial Solutions Segment Second Quarter FY25 Results Second Quarter Overview Sales • Total Sales YoY: -4% reported and -3% constant currency • Sales decreased due to volume declines • IFS sales declined from slower investments in capex-based businesses and Power Generation project timing Q2’25 Q
Slide 7: Life Sciences Segment Second Quarter FY25 Results
Life Sciences Segment Second Quarter FY25 Results Second Quarter Overview Sales • Total Sales YoY: +9% reported and +11% constant currency basis • Higher sales driven by strong volume growth in Disk Drive • Performance by region YoY: • US/CA +51% • EMEA -8% • APAC +14% Q2’25 Q2’24 YoY • LATAM +10% M
Slide 8: Balance Sheet and Cash Flow Overview
Balance Sheet and Cash Flow Overview Net Debt and Financial Leverage $600 1.2x $449 Net Debt(1) ($M) Net Debt to Adj. $420 $388 Highlights $400 0.9x EBITDA(1) 0.8x 0.7x 0.6x $200 0.6x • Adjusted free cash flow conversion(1,2) of 71% in Q2’25 $0 0.3x • Lower conversion driven by increased working cap
Slide 9: Updated Fiscal 2025 Financial Outlook
Updated Fiscal 2025 Financial Outlook Total Company Sales Growth Segment Outlook Current Prior (Q1’25) Current Prior (Q1’25) Flat to +4% +2% to 6% Total Sales -1% to +3% +0% to 4% Off-Road - Mid-single digits + Low-single digits Total Company Gross Margin On-Road - Low-double digits - Low-double dig
Slide 10: Invest with Donaldson
Invest with Donaldson Leader in filtration with long history of solving the most difficult filtration problems and 1 forming mission critical partnerships across global customer base Best-in-class technology and strategic organizational redesign strengthens ability to 2 drive long-term profitable gr
Slide 11: Appendix
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Slide 12: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ 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