DONALDSON Co Business Summary

Donaldson Company, Inc. (DCI) operates a high-margin "razor-and-blade" business model, generating approximately 60% of its revenue from recurring aftermarket replacement parts, supplemented by initial equipment sales to Original Equipment Manufacturers (OEMs). The company’s operations are organized into three primary segments: Mobile Solutions, which serves the construction, mining, and agriculture sectors and accounts for roughly 64% of net sales; Industrial Solutions, providing air and liquid filtration for manufacturing and power generation; and Life Sciences, its fastest-growing division focused on bioprocessing and food and beverage applications. As a global leader in technology-led filtration with over 3,000 active patents, Donaldson maintains a dominant market position, commanding a 10.24% share in the industrial machinery sector. It competes directly with diversified industrial giants such as Parker-Hannifin, Cummins Inc., and Pall Corporation, distinguishing itself through its extensive global distribution network and deep engineering integration with heavy-duty equipment manufacturers. Founded in 1915 by Frank Donaldson Sr., the company is currently executing a planned leadership transition. Tod Carpenter, who has served as President and CEO for 11 years and spent three decades with the firm, will transition to Executive Chairman on March 2, 2026. He is being succeeded as President and CEO by Richard Lewis, the current Chief Operating Officer and a 24-year company veteran with an industrial engineering background and extensive experience leading the Mobile Solutions and Life Sciences divisions. The executive team includes CFO Bradley J. Pogalz and Chief Legal Officer Amy Becker, while the board of directors features prominent leaders such as Lead Independent Director Christopher Hilger (CEO of Securian Financial) and Dan Shine (SVP at Thermo Fisher Scientific). Publicly traded on the NYSE, Donaldson maintains a robust capital structure with institutional investors holding approximately 83% of outstanding shares.