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Donaldson’s Facet Filtration Deal: Can Recurring Aerospace Revenue Reshape Growth?

Donaldson Company delivered a solid third quarter of fiscal 2026, with record sales of $995 million, up 6% year-over-year, supported by pricing, currency benefits, and volume growth in Mobile Solutions and Life Sciences. Adjusted operating margin reached a company record of 16.6%, up 30 basis points year-over-year and 260 basis points sequentially, while adjusted EPS rose 7% to $1.06. Mobile Solutions was the strongest performer, with sales up 8% to $630 million, helped by aftermarket strength, particularly double-digit growth in the independent channel. Construction and Off-Road first-fit sales also contributed, while China grew 6% on Off-Road demand and exports. Life Sciences sales rose 13% to $84 million, driven by Food and Beverage and Disk Drive demand. Industrial Solutions declined 1% to $282 million due to weaker volumes, while Aerospace and Defense fell 14% to $45 million because of supply chain constraints and project timing, though backlogs remained near record levels.