Donaldson Company’s second quarter of fiscal year 2025 (calendar Q2, ended Jan 31, 2025) delivered resilient gross margins and solid free cash flow despite modest revenue headwinds driven by currency and softer end markets. Reported revenue of $870 million declined 1% year over year, with currency a 170 basis point drag and a modest 1% pricing benefit, while gross margins remained strong at 35.2% and operating margins expanded 40 basis points to 15.2% on disciplined cost management. Management signaled continued leverage through a diversified, technology-led filtration portfolio, balance-sheet strength, and a disciplined investment posture aimed at sustaining long-term growth and margin expansion.
Looking ahead, Donaldson maintained a constructive full-year outlook, guiding sales flat to up 4% and adjusted EPS of $3.60–$3.68, with operating margins targeting 15.6%–16.0% for the year. The company emphasized macro headwinds in agriculture and other end markets, along with potential tariff-related uncertainty, but highlighted strategic wins (e.g., hydrogen fuel-cell filtration technology with Daimler Truck North America) and accelerating connected-services growth as sources of upside. The outlook reflects a cautious-but-constructive stance: margin expansion is expected to ride operating leverage and ongoing cost discipline, while growth is anchored in aftermarket propelling share gains and select high-margin legacy and acquired businesses within Life Sciences and Industrial Solutions.