Donaldson Company, Inc. (NYSE: DCI) specializes in innovative filtration products and solutions across various industries. For the third quarter of fiscal 2025, the company reported sales of $940.1 million, reflecting a year-over-year increase of 1.3%. Growth drivers included pricing benefits and modest volume increases, mitigated slightly by currency translation pressures.

The company has shown stable performance, with adjusted earnings per share (EPS) reaching $0.99, an 8% increase from the previous year. Reported GAAP net earnings amounted to $57.8 million, reduced from $113.5 million a year prior. This decline is attributed to $65.8 million in non-recurring charges, including $62.0 million related to the impairment of certain intangible assets related to two upstream bioprocessing businesses.

Operating margin for the quarter was 9.3%, a decline from the 15.5% in the same quarter last year. However, adjusted operating margin improved by 80 basis points to 16.3%, driven by expense discipline. Gross margin decreased to 34.2%, down from 35.6% a year ago, impacted by higher manufacturing costs.

The company has revised its fiscal 2025 outlook, projecting total sales to increase between 1% and 3% year over year. This guidance aligns with prior forecasts and considers both anticipated pricing contributions and immaterial impacts from currency translation and tariffs. Donaldson expects adjusted EPS in the range of $3.64 to $3.70 for the year, slightly above previous guidance.

In the Mobile Solutions segment, sales of $582.6 million were nearly flat year-over-year, affected by a decline in On-Road sales due to ongoing weaknesses in the transportation sector, which dropped 24.5%. In contrast, the Industrial Solutions segment reported sales growth of 5.3% to $283.3 million, primarily driven by strong Aerospace and Defense sales, which surged by 27.1%.

The Life Sciences segment’s sales increased 0.7% to $74.2 million, with growth in established markets like Disk Drive and Food and Beverage somewhat countered by delays in bioprocessing project shipments.

In terms of shareholder returns, Donaldson repurchased 2.4% of its outstanding shares for approximately $192 million. The company’s quarterly dividend rose by 11%, reflecting a commitment to returning value to shareholders. Total dividends paid during the third quarter were $32.3 million.

Overall, Donaldson remains in a stable financial condition, reporting solid results despite the challenging macroeconomic landscape and focusing on strategic investments for long-term growth.