$DCI

DONALDSON Co INC

CIK:0000029644|SEC Filings

CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Jul. 31, 2026	Jul. 31, 2025	Jul. 31, 2024
Income Statement [Abstract]
Net sales	$ 3,885.6	$ 3,690.9	$ 3,586.3
Cost of sales	2,539.7	2,404.7	2,311.9
Gross profit	1,345.9	1,286.2	1,274.4
Selling, general and administrative	679.2	642.2	636.7
Loss on impairment of intangible assets	0.0	62.0	0.0
Gain on sale of fixed assets	(9.3)	(1.2)	0.0
Research and development	76.1	87.8	93.6
Operating expenses	746.0	790.8	730.3
Operating income	599.9	495.4	544.1
Interest expense	36.0	24.2	21.4
Other income, net	(21.9)	(21.0)	(12.6)
Earnings before income taxes	585.8	492.2	535.3
Income taxes	132.0	125.2	121.3
Net earnings	$ 453.8	$ 367.0	$ 414.0
Weighted average shares – basic (in shares)	115.8	118.7	120.7
Weighted average shares – diluted (in shares)	117.9	120.4	122.6
Net earnings per share – basic (in usd per share)	$ 3.92	$ 3.09	$ 3.43
Net earnings per share – diluted (in usd per share)	$ 3.85	$ 3.05	$ 3.38

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Jul. 31, 2026	Jul. 31, 2025	Jul. 31, 2024
Operating Activities
Net earnings	$ 453.8	$ 367.0	$ 414.0
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	106.0	99.5	98.4
Equity in earnings of affiliates, net of distributions	(8.0)	(3.6)	(4.7)
Deferred income taxes	(0.3)	(24.0)	(24.3)
Stock-based compensation expense	24.7	24.0	22.0
Loss on impairment of intangible assets	0.0	62.0	0.0
Gain on sale of fixed assets	(9.3)	(1.2)	0.0
Other, net	9.8	(4.7)	3.7
Changes in operating assets and liabilities, excluding effect of acquired businesses:
Accounts receivable, net	(75.1)	(21.4)	(39.4)
Inventories, net	0.8	(32.2)	(65.6)
Prepaid expenses and other current assets	(12.5)	6.3	(28.3)
Accounts payable	(2.0)	(5.5)	80.3
Income taxes payable	(25.7)	(34.4)	4.4
Accrued employee compensation and related taxes and other current liabilities	31.5	(13.0)	32.0
Net cash provided by operating activities	493.7	418.8	492.5
Investing Activities
Purchases of property, plant and equipment	(67.4)	(78.9)	(85.6)
Proceeds from sale of property, plant and equipment	10.5	2.1	0.7
Equity investment	0.0	(71.2)	0.0
Acquisitions, net of cash acquired	(822.6)	(2.4)	(2.0)
Net cash used in investing activities	(879.5)	(150.4)	(86.9)
Financing Activities
Proceeds from long-term debt	858.9	388.1	119.7
Repayments of long-term debt	(216.2)	(265.0)	(228.8)
Change in short-term borrowings	13.7	1.2	(5.7)
Purchase of treasury stock	(111.2)	(331.5)	(162.7)
Payment of contingent consideration	(2.3)	(5.5)	(1.7)
Dividends paid	(141.2)	(131.9)	(122.8)
Tax withholding for stock compensation transactions	(6.0)	(5.7)	(8.0)
Exercise of stock options	55.9	28.6	54.1
Net cash provided by (used in) financing activities	451.6	(321.7)	(355.9)
Effect of exchange rate changes on cash	4.2	1.0	(4.1)
Increase (decrease) in cash and cash equivalents	70.0	(52.3)	45.6
Cash and cash equivalents, beginning of year	180.4	232.7	187.1
Cash and cash equivalents, end of year	250.4	180.4	232.7
Supplemental Cash Flow Information
Income taxes paid	160.9	176.2	147.8
Interest paid	33.1	22.2	23.4
Supplemental Disclosure of Non-Cash Operating and Investing Transactions
Accrued property, plant and equipment additions	10.0	10.7	14.2
Leased assets obtained in exchange for new operating lease liabilities	$ 22.2	$ 24.0	$ 22.7

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jul. 31, 2026	Jul. 31, 2025
Current assets:
Cash and cash equivalents	$ 250.4	$ 180.4
Accounts receivable, less allowances of $3.2 and $2.9, respectively	758.1	662.2
Inventories, net	538.7	513.6
Prepaid expenses and other current assets	122.5	105.5
Total current assets	1,669.7	1,461.7
Property, plant and equipment, net	633.3	644.5
Goodwill	1,086.8	493.6
Intangible assets, net	304.6	97.4
Other long-term assets	292.4	280.0
Total assets	3,986.8	2,977.2
Current liabilities:
Short-term borrowings	44.8	31.2
Current maturities of long-term debt	0.0	6.7
Accounts payable	378.6	368.6
Accrued employee compensation and related taxes	152.5	144.3
Income taxes payable	20.5	43.9
Other current liabilities	207.7	162.5
Total current liabilities	804.1	757.2
Long-term debt	1,280.0	630.4
Non-current income taxes payable	19.0	19.0
Deferred income taxes	28.3	10.5
Other long-term liabilities	91.0	106.6
Total liabilities	2,222.4	1,523.7
Commitments and contingencies (Note 18)
Stockholders’ equity:
Preferred stock, $1.00 par value, 1,000,000 shares authorized, none issued	0.0	0.0
Common stock, $5.00 par value, 240,000,000 shares authorized, 151,643,194 shares issued	758.2	758.2
Additional paid-in capital	44.6	35.8
Retained earnings	2,920.3	2,610.1
Accumulated other comprehensive loss	(146.2)	(180.7)
Treasury stock, 35,649,047 and 35,600,740 shares, respectively, at cost	(1,812.5)	(1,769.9)
Total stockholders’ equity	1,764.4	1,453.5
Total liabilities and stockholders’ equity	$ 3,986.8	$ 2,977.2