dci-20240430

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________________________________

FORM 10-Q

_____________________________________________________________

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________________ TO _________________.

Commission File Number 1-7891

DONALDSON COMPANY, INC.

(Exact name of registrant as specified in its charter)


Delaware						41-0222640
(State or other jurisdiction of						(I.R.S. Employer
incorporation or organization)						Identification No.)

1400 West 94th Street

Minneapolis, Minnesota 55431

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (952) 887-3131

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $5.00 par value	DCI	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of May 28, 2024, 120,405,214 shares of the registrant’s common stock, par value $5.00 per share, were outstanding.

PART I. FINANCIAL INFORMATION


Item 1. Financial Statements

DONALDSON COMPANY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In millions, except per share amounts)

(Unaudited)


	Three Months Ended April 30,				Nine Months Ended April 30,
	2024		2023		2024		2023
Net sales	$	927.9	$	875.7	$	2,650.9	$	2,551.3
Cost of sales	597.8		586.9		1,711.3		1,690.8
Gross profit	330.1		288.8		939.6		860.5
Selling, general and administrative	161.7		145.8		473.5		444.7
Research and development	24.8		19.0		68.2		56.2
Operating expenses	186.5		164.8		541.7		500.9
Operating income	143.6		124.0		397.9		359.6
Interest expense	5.0		5.1		16.1		14.3
Other income, net	(5.4)		(2.6)		(14.1)		(6.1)
Earnings before income taxes	144.0		121.5		395.9		351.4
Income taxes	30.5		27.8		91.6		84.5
Net earnings	$	113.5	$	93.7	$	304.3	$	266.9

Weighted average shares – basic	120.8		121.6		120.8		122.0
Weighted average shares – diluted	122.9		123.5		122.6		123.7

Net earnings per share – basic	$	0.94	$	0.77	$	2.52	$	2.19
Net earnings per share – diluted	$	0.92	$	0.76	$	2.48	$	2.16

See Notes to Condensed Consolidated Financial Statements.

DONALDSON COMPANY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions)

(Unaudited)


	Three Months Ended April 30,				Nine Months Ended April 30,
	2024		2023		2024		2023
Net earnings	$	113.5	$	93.7	$	304.3	$	266.9
Other comprehensive income:
Foreign currency translation (loss) gain	(13.5)		1.2		(30.2)		26.4
Pension liability adjustment, net of deferred taxes of $(0.9), $0.1, $(1.1) and $0.0, respectively	2.7		(0.7)		3.5		(0.2)
Derivatives:
Gain (loss) on hedging derivatives, net of deferred taxes of $0.1, $0.1, $0.1 and $0.0, respectively	0.3		(0.4)		(0.4)		(0.1)
Reclassification of loss (gain) on hedging derivatives to net earnings, net of taxes of $0.1, $(0.2), $0.2 and $0.1, respectively	(0.4)		0.6		(0.5)		—
Total derivatives	(0.1)		0.2		(0.9)		(0.1)

Net other comprehensive (loss) income	(10.9)		0.7		(27.6)		26.1
Comprehensive income	$	102.6	$	94.4	$	276.7	$	293.0

See Notes to Condensed Consolidated Financial Statements.

DONALDSON COMPANY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except share and per share amounts)

(Unaudited)


	April 30, 2024		July 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	223.7	$	187.1

Accounts receivable, less allowances of $6.3 and $8.3, respectively	638.4		599.7
Inventories, net	444.7		418.1
Prepaid expenses and other current assets	93.9		81.1
Total current assets	1,400.7		1,286.0
Property, plant and equipment, net	642.8		652.9

Goodwill	475.3		481.1
Intangible assets, net	174.6		188.1

Other long-term assets	172.7		162.4
Total assets	$	2,866.1	$	2,770.5

SEC Form 10-Q filed by Donaldson Company Inc.