d4713a04ca99f327efc7e393e595db0f20c5993b38b83327159666f5d39473fe

9f231db65f45aa1f0050bafdfd4c22612b5ffee7070f60849c775e8f4d4bf24f

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from Debt (USD, millions)

Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

5c9b1786d5477284a444752ecc6f2ecd9705fd0fa1e11e3b821116751a806360

The "Other income, net" turned positive in Q4 2024 because it improved from **$(1.7) million** in Q4 2023 to **$1.5 million** in Q4 2024, marking an increase of **$3.2 million**. Although the documents don’t specify the precise reasons for this shift, such changes are typically influenced by factors such as **gains or losses on foreign currency transactions**, **changes in investment income**, or **other non-operating items**.  **[0000029644-24-000093_a991pr20240731.htm:4]** 

Why did Other income, net turn positive in Q4 2024?

The spike in Q3 2024 net earnings was driven by **strong sales growth (6.0% increase)**, a **gross margin expansion of 260 basis points to 35.6%**, and a **15.8% rise in operating income**. In addition, the **Mobile Solutions segment** recorded a **record pretax profit margin of 18.4%** due to favorable mix, volume growth, and pricing benefits, while the **Life Sciences segment** experienced a **24% increase in sales**. These factors together significantly enhanced the company’s profitability in the quarter.  **[0000029644-24-000064_a991pr20240430.htm:0]** **[0000029644-24-000064_a991pr20240430.htm:3]** **[DCI_3391504_4]** **[DCI_3391504_1]** **[DCI_3391504_3]** 

What factors drove the spike in net earnings in Q3 2024?

The higher EPS in Q3 2024 was driven by **multiple factors**. The company saw **net earnings** rise from **$93.7 million** in Q3 2023 to **$113.5 million** in Q3 2024, which set the foundation for improved EPS.  **[0000029644-24-000064_a991pr20240430.htm:0]** **[0000029644-24-000067_dci-20240430.htm:10]**  In addition, **total sales grew by 6.0% year-over-year reaching $927.9 million**, aided by volume growth and favorable pricing.  **[0000029644-24-000064_a991pr20240430.htm:0]** **[DCI_3391504_2]**  Another contributor was the **gross margin expansion by 260 basis points to 35.6%**, driven by higher sales and select input cost deflation, and the **operating margin also increased by 130 basis points to 15.5%**.  **[DCI_3391504_4]**  Furthermore, strong performance in key segments such as **Mobile Solutions**, which achieved a record pretax profit margin of **18.4% (up 340 basis points)**, and **Life Sciences**, which experienced a significant 24% sales growth, also played important roles in the EPS improvement.  **[DCI_3391504_1]** **[DCI_3391504_4]** **[DCI_3391504_3]** 

What contributed to the higher EPS in Q3 2024?

The significant increase in annual EPS in FY 2024 was driven by a combination of factors, including **sales growth**—with total sales rising by **4.5%** to **$3.6 billion**—along with **gross margin expansion** (a **9.8%** increase) and **operating margin improvements** (from **14.0%** to **15.4%**). A **lower tax rate** further enhanced net earnings, while **share repurchases** reduced the number of weighted average shares outstanding. Improved performance across key segments—particularly in Mobile Solutions, Industrial Solutions, and Life Sciences—also contributed significantly to the EPS increase.  **[0000029644-24-000093_a991pr20240731.htm:0]** **[0000029644-24-000093_a991pr20240731.htm:4]** **[0000029644-24-000093_a991pr20240731.htm:7]** 

What drove the significant increase in annual EPS in FY 2024?

8f54934a9120ad6e6d2019af350cb09d388ef6f41f54b9dd21b0936e32664674

Net sales (USD, millions)

Cost of sales (USD, millions)

Gross profit (USD, millions)

Selling, general and administrative expenses (USD, millions)

Research and development expenses (USD, millions)

Operating expenses (USD, millions)

Operating income (USD, millions)

Interest expense (USD, millions)

Other income, net (USD, millions)

Earnings before income taxes (USD, millions)

Income taxes (USD, millions)

Net earnings (USD, millions)

Weighted average shares – basic (Millions)

Weighted average shares – diluted (Millions)

Net earnings per share – basic (USD)

Net earnings per share – diluted (USD)

c6b9e095a099f4b590183f909e15add168765e0381a35cbf2aeab22dbc5ef86a

The decline in **cash and cash equivalents** in Q2 2024—dropping from **$217.8 million** in Q1 2024 to **$193.8 million**—resulted from the net impact of several factors. Strong cash generation from **operating activities** was partly offset by higher cash outflows from **financing activities** (notably lower treasury stock repurchases) and a minor negative impact from **exchange rate changes** (a reduction of **$2.1 million**) along with changes in **investing activities**. These combined factors led to the lower cash balance in Q2 2024.  **[0000029644-24-000024_a991pr20240131.htm:4]** **[0000029644-24-000027_dci-20240131.htm:28]** 

Why did cash and cash equivalents drop in Q2 2024?

The jump in long-term debt in Q1 2025 was primarily driven by **proceeds from long-term debt** received during the quarter, which increased the debt from **$508.4 million** to **$563.6 million**, resulting in a **$55.2 million** increase.  **[0000029644-24-000181_dci-20241031.htm:25]** 

What drove the jump in long-term debt in Q1 2025?

In Q1 2025, the sharp increase in short-term borrowings was primarily due to the company's financing activities during the quarter, which included a **$50.1 million change in short-term borrowings** that increased the balance from **$28.3 million** to **$78.2 million**.  **[0000029644-24-000181_dci-20241031.htm:2]** **[0000029644-24-000177_a991pr20241031.htm:4]** 

What caused the sharp increase in short-term borrowings in Q1 2025?

The dramatic fall in current maturities in Q3 2024 was primarily due to the repayment of a portion of the long-term debt. Specifically, the company repaid its **unsecured senior notes** with a maturity date of **March 27, 2024**, which had an outstanding balance of **$125.0 million**. This repayment significantly reduced the current maturities of long-term debt from **$125.0 million** as of July 31, 2023, to **$25.0 million** as of April 30, 2024.  **[0000029644-24-000067_dci-20240430.htm:2]** **[0000029644-24-000027_dci-20240131.htm:2]** **[0000029644-24-000111_dci-20240731.htm:68]** 

Why did current maturities dramatically fall in Q3 2024?

The surge in other long-term assets in Q1 2025—from **$180.4 million as of July 31, 2024** to **$268.6 million as of October 31, 2024**—is possibly related to a **$71.0 million equity investment made during the quarter**. However, the documents do not provide specific details beyond this indicator, noting that such increases are typically driven by factors like new investments, acquisitions, or adjustments in deferred tax assets or non-current receivables.  **[0000029644-24-000181_dci-20241031.htm:2]** 

What explains the surge in other long-term assets in Q1 2025?

64f5b39b304bc4e7151c3fc565e18c7f8948e338547ac6023a2d2e4c3fd66f8f

Depreciation and amortization (USD, millions)

Stock-based compensation expense (USD, millions)

Other, net (USD, millions)

Changes in operating assets and liabilities (USD, millions)

Net cash provided by operating activities (USD, millions)

Purchases of property, plant and equipment (USD, millions)

Equity investment (USD, millions)

Net cash used in investing activities (USD, millions)

Proceeds from long-term debt (USD, millions)

Repayments of long-term debt (USD, millions)

Change in short-term borrowings (USD, millions)

Purchase of treasury stock (USD, millions)

Dividends paid (USD, millions)

Exercise of stock options and other (USD, millions)

Net cash provided by (used in) financing activities (USD, millions)

Effect of exchange rate changes on cash (USD, millions)

(Decrease) increase in cash and cash equivalents (USD, millions)

Acquisitions, net of cash acquired (USD, millions)

Payment of contingent consideration (USD, millions)

Deferred income taxes (USD, millions)

Cash and cash equivalents, beginning of period (USD, millions)

Cash and cash equivalents, end of period (USD, millions)

e349533c3b26a2c2b559a322b520c5f19961f4cd50e27a14920013933b0c59cb

c70352039f68e16200950a819af3d6afa8e2a5b63fb28b98712c876cfd1ea2a8

U.S. and Canada

Europe, Middle East, and Africa (EMEA)

Asia Pacific (APAC)

Latin America (LATAM)

Other

Total Revenue

9fb8d570d9d046d9daf625b66da8d84eb41e9f63a2b4f71f73e18e4766b42c49

Cash and cash equivalents (USD, millions)

Accounts receivable, less allowances (USD, millions)

Inventories, net (USD, millions)

Prepaid expenses and other current assets (USD, millions)

Total current assets (USD, millions)

Property, plant and equipment, net (USD, millions)

Goodwill (USD, millions)

Intangible assets, net (USD, millions)

Other long-term assets (USD, millions)

Total assets (USD, millions)

Short-term borrowings (USD, millions)

Current maturities of long-term debt (USD, millions)

Accounts payable (USD, millions)

Accrued employee compensation and related taxes (USD, millions)

Deferred revenue (USD, millions)

Income taxes payable (USD, millions)

Dividends payable (USD, millions)

Other current liabilities (USD, millions)

Total current liabilities (USD, millions)

Long-term debt (USD, millions)

Non-current income taxes payable (USD, millions)

Other long-term liabilities (USD, millions)

Total liabilities (USD, millions)

Total stockholders’ equity (USD, millions)

Total liabilities and stockholders’ equity (USD, millions)

5bcc1012f42241eceb4e9560872c6ba499d0b8ca7acd548242bca6aa86449d72

DONALDSON Co (DCI)

Financials