Donaldson Company reported a solid second quarter of fiscal 2024 (QQ2 2024), with a diversified mix across Mobile Solutions, Industrial Solutions, and Life Sciences contributing to a 6% year-over-year revenue increase to $876.7 million. The quarter featured meaningful gross margin expansion (up 70 bps year over year to 35.2%), a robust operating cadence, and continued investment in growth initiatives, including Life Sciences acquisitions and R&D. Management highlighted strong backlog, ongoing pricing discipline, and a view toward record full-year results, supported by pricing tailwinds, mix benefits, and cost deflation in freight and select materials. EPS of $0.81 rose 8% year over year, while Life Sciences posted an approximate breakeven pretax result amid continued investment to scale acquired platforms.
The company reaffirmed and modestly raised its 2024 outlook, guiding to revenue growth of 3%–7% and operating margins of 15.0%–15.4% (midpoint up ~60 bps YoY). Full-year EPS was raised to $3.24–$3.32, with cash conversion and capital allocation remains focused on growth investments, dividends, and buybacks. In sum, the quarter reflects the benefits of Donaldson's diversified portfolio, continued market share gains in Aftermarket and Dust Collection, and the execution of a multi-year Life Sciences expansion that could underpin higher-margin growth in the medium term. Key near-term risks include agricultural market softness, China macro headwinds, and persistent input cost inflation in pockets of the supply chain; the company appears to be navigating these with pricing discipline, backlog execution, and portfolio diversification.