Donaldson Company (DCI) Morgan Stanley’s 13th Annual Laguna Conference summary

Company performance and resilience

• Achieved record sales and earnings despite a challenging macro environment, with guidance for another record year in fiscal 2026.

• Consistent growth over nine of the last ten years, with profits typically outpacing top-line growth.

• High percentage of revenue from replacement parts supports resilience through economic cycles.

Aftermarket and market share dynamics

• Aftermarket growth driven by proprietary filtration solutions and expanded independent channel partnerships, including large deals like NAPA.

• Market share gains attributed to technology leadership, strong OEM relationships, and global inventory management.

• Investments in integrated information systems and inventory have improved reliability and customer service.

End market trends and outlook

• On-road and off-road markets expected to rebound in fiscal 2026, with high single-digit growth in on-road and mid-single digits in off-road.

• Recovery timing is uncertain, but company impact is limited due to diversified revenue streams.

• Aftermarket demand benefits from inventory strategies and increased equipment utilization.