Donaldson (DCI) Q3 2026 Earnings Transcript

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DATE

Tuesday, June 2, 2026 astatine 10 a.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer — Richard Lewis

• Chief Financial Officer — Bradley J. Pogalz

• Vice President, Investor Relations — Sarika Dhadwal

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Full Conference Call Transcript

Sarika Dhadwal: Good morning. Thank you for joining Donaldson's 3rd 4th fiscal 26 net league call. With maine contiguous are Richard Lewis, President and CEO and Bradley J. Pogalz, Chief Financial Officer. This morning, we volition supply a summary of our 3rd 4th show and our outlook for fiscal 26. During today's call, we volition sermon non-GAAP oregon adjusted results. For 3rd 4th 26, GAAP results, exclude pretax charges of $9.8 cardinal including $9 cardinal of restructuring and other, and 800 1000 of concern improvement charges.

This compares to anterior twelvemonth pretax charges of 65.8 million, including 4.2 cardinal of restructuring and different 800 1000 of concern improvement charges, 62 cardinal for the impairment of intangible assets and a $1.2 cardinal summation connected the merchantability of fixed assets. A reconciliation of GAAP to non-GAAP metrics is provided wrong the schedules attached to this morning's property release. Before I crook it implicit to Richard, a speedy enactment connected our precocious completed acquisition of Facet Filtration. Facet show volition beryllium included successful our consolidated 4th fourth net results reported successful the aerospace and defence concern portion wrong concern solutions.

With that, delight support successful caput that immoderate guardant looking statements made during this telephone are taxable to risks and uncertainties, which are described successful our property merchandise and SEC filings. Will present crook the telephone implicit to Richard.

Richard Lewis: Thanks, Sarika. Good morning, everyone. Third 4th was a beardown 4th for Donaldson Company and, arsenic expected, marked a important measurement up successful show from our 2nd 4th results. I americium arrogant of our team, whose hard enactment resulted successful the company's strongest 4th to day with respect to sales, adjusted operating margin, and adjusted EPS. We successfully navigated macro uncertainty including uneven cyclical dynamics and the ongoing struggle successful The Middle East. To that end, I specifically privation to convey our squad successful Abu Dhabi whose dedication and resoluteness person been connected show implicit the past respective months. Our leaders person ensured employees consciousness arsenic harmless arsenic imaginable and that our section operations continue.

Globally, this quarter, we proceed to service our customers done our expanded merchandise portfolio and precocious connected clip transportation rates, including successful the higher borderline mobile solutions aftermarket business, nutrient and beverage, and our disk thrust business. We made further advancement connected optimizing our outgo operation arsenic we adjacent the past 2 plants identified wrong our footprint optimization initiative. We are present focused connected ramping up accumulation successful the receiving sites, puts america connected the way to delivering incremental efficiencies successful the future. Lastly, consequent to 4th end, we closed our acquisition of Facet Filtration. Adding precocious show substance and fluid capabilities to our expanding concern solutions merchandise portfolio.