Donaldson (DCI) Jefferies Global Industrials Conference 2026 summary

Strategic positioning and technology focus

• Operates as a technology-led filtration company, leveraging over 100 years of innovation and more than 3,000 active patents.

• Focuses on mission-critical, high-value B2B applications across three verticals, emphasizing recurring, high-margin replacement parts.

• Maintains a balanced growth strategy by reinvesting in core markets and expanding into higher-purity, higher-margin segments.

• 75% of sales are built in-region, providing resilience against global economic volatility.

• Delivers record sales, operating profit margin, and EPS in FY2026, with continued margin expansion targeted for FY2027.

Financial outlook and growth algorithm

• FY2027 guidance targets 7.5% top-line growth, 16.9% operating profit margin, and 8% EPS growth.

• Growth algorithm for FY2027: 2% price, 2% Facet sales, 1% FX, and remaining from market share gains.

• Share gains expected to contribute 1–2% overall, with some markets accelerating and others stable.

• EPS growth is temporarily diluted by the Facet acquisition, with organic growth closer to 9%.

• Debt from the Facet acquisition will be reduced over the next few years.

Segment performance and market trends

• Mobile Solutions: Profit margins expanded despite end-market downturns; optimistic outlook for FY2027.

• Industrial Solutions: Strong secular tailwinds in aerospace, defense, and power generation; increased CapEx activity.

• Life Sciences: Anchored by process filtration and disk drive businesses; investing in high-purity and bioprocessing products.

• Mining and construction markets remain strong, with mining expected to continue its positive cycle.

• U.S. trucking market inflecting upward, driving both first-fit and aftermarket revenue opportunities.