Donaldson Company Net Income Rises 5.9% to $206.4M in H1 FY2026
Donaldson Company, a filtration systems manufacturer, posted net income of $206.4 million for the six months ending January 31, 2026, up from $194.9 million in the prior-year period. Operating income climbed 4.6% to $268.0 million.
Donaldson Company, Inc. (NYSE: DCI), a manufacturer of filtration systems and replacement parts, reported net income of $206.4 million for the six months ending January 31, 2026, an increase of 5.9% from $194.9 million in the same period a year earlier. Diluted earnings per share rose to $1.75 from $1.60. Read more earnings reports.
Operating income for the first half of fiscal 2026 reached $268.0 million, up 4.6% from $256.3 million in the prior-year period. Gross profit increased marginally to $628.6 million from $625.5 million, while cost of revenue climbed to $1.20 billion from $1.14 billion.
Operating expenses declined 2.3% to $360.6 million from $369.2 million. Research and development spending fell to $37.8 million from $43.9 million, while selling, general and administrative expenses rose to $332.1 million from $325.3 million.
Second Quarter Results
For the three months ending January 31, 2026, net income totaled $92.5 million, down 3.5% from $95.9 million in the year-earlier quarter. Diluted earnings per share slipped to $0.78 from $0.79. Operating income decreased 5.4% to $118.7 million from $125.5 million.
Second-quarter gross profit declined to $299.8 million from $305.9 million, while cost of revenue increased to $596.5 million from $564.1 million. Operating expenses edged up to $181.1 million from $180.4 million, with R&D expenses falling to $18.6 million from $21.2 million.
Balance Sheet and Cash Flow
Total assets stood at $3.06 billion as of January 31, 2026, up from $2.98 billion at the end of fiscal 2025. Stockholders' equity increased to $1.58 billion from $1.45 billion. Inventory rose to $555.8 million from $513.6 million, while accounts receivable declined to $647.9 million from $662.2 million.
Cash and cash equivalents totaled $194.4 million at the end of the period, up from $180.4 million six months earlier. The company generated $158.4 million in cash from operations during the first half, down from $163.3 million in the prior-year period. Cash used in investing activities totaled $18.4 million, compared to $115.1 million a year earlier. Financing activities consumed $131.5 million, up from $88.5 million.
Total liabilities decreased to $1.49 billion from $1.52 billion. Current liabilities fell to $665.9 million from $757.2 million, while accounts payable declined to $348.8 million from $368.6 million.
Financial Summary
| Metric | H1 FY2026 | H1 FY2025 | Change |
|---|---|---|---|
| Net Income | $206.4M | $194.9M | +5.9% |
| Operating Income | $268.0M | $256.3M | +4.6% |
| Gross Profit | $628.6M | $625.5M | +0.5% |
| Cost of Revenue | $1,203.1M | $1,144.6M | +5.1% |
| Operating Expenses | $360.6M | $369.2M | -2.3% |
| Diluted EPS | $1.75 | $1.60 | +9.4% |
The weighted average diluted share count decreased to 117.8 million from 121.7 million. The company's income tax expense for the six-month period totaled $57.7 million, down from $60.6 million in the prior-year period.