Donaldson Company Hits Record Highs in Q4 2026 with Strong Sales Growth and Margin Expansion
Donaldson Company recently reported its fourth quarter fiscal 2026 earnings, highlighting a year of record highs for the company. Led by their collective mission to advance filtration for a cleaner world, Donaldson achieved sales of $3.9 billion, an all-time high and a 5% increase compared to the previous year.
According to Rich Lewis, President and CEO, the company's execution on its clear and balanced growth strategy has yielded higher levels of performance across its segments, including Mobile Solutions, Industrial Solutions, and Life Sciences. The company's strong first fit and aftermarket leadership positions in Mobile have been leveraged to gain share with OEM partners and win new customers.
In Industrial Solutions, Donaldson has scaled its platform, increased aftermarket penetration, and expanded into high-growth end markets such as power generation. In Life Sciences, the company has applied its industry-leading technologies to grow and gain share in attractive markets focused on high-purity filtration.
A significant milestone was achieved with the completion of the largest acquisition in company history - Facet Filtration. This acquisition expanded Donaldson's strategic position in durable end markets, including aerospace and defense and power generation, while also strengthening its financial profile with Facet's high growth, high margins, and high percentage of aftermarket sales.
The integration of Facet has made good progress, with technical collaboration to expedite product development and testing supporting growth into newer Facet target markets. Donaldson teams have also been working towards achieving targeted synergies, driving the company forward in 2026.
In the fourth quarter, sales surpassed $1 billion for the first time in company history, growing 8% above prior year, driven by higher volume, including the Facet acquisition and pricing benefits. Operating margin was 17.5%, up 110 basis points over prior year and 90 basis points sequential step-up from third quarter due to gross margin expansion, including from improved operational efficiency.
Adjusted earnings per share were $1.15, 12% above 2025. Mobile Solutions reported sales of $635 million, up 8%, driven by strong volume growth and pricing benefits. The company's execution on its growth strategy is clearly paying off, with record highs achieved across various performance metrics.
