Question · Q1 2026
Brian Paul Drab sought more detail on the forecast for accelerated growth in the industrial outlook, given its 1.5% growth in Q1. He also inquired about the drivers and long-term secular outlook for the disk drive business, including its revenue significance. Finally, he asked about the data center opportunity's material impact on Donaldson's business, particularly for industrial products like Torit dust collectors.
Answer
CFO Brad Pogalz attributed the industrial acceleration to timing issues in defense (supplier issues, project timing) and PowerGen projects in queue, expecting sales volume and profitability to build up. COO Richard Lewis explained that disk drive growth is driven by evolving technology (HAMR), share gains, and market upturn from AI/cloud storage, expecting continued strength this year and moderate growth thereafter. CFO Brad Pogalz added that disk drive is a couple percent of total Donaldson sales. COO Richard Lewis further clarified that data centers impact both Life Science and Industrial segments through power generation, microelectronics, disk drive, and new liquid cooling opportunities using food & beverage products, with less impact on dust collection.
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