d4713a04ca99f327efc7e393e595db0f20c5993b38b83327159666f5d39473fe

9f231db65f45aa1f0050bafdfd4c22612b5ffee7070f60849c775e8f4d4bf24f

66187be5922a25bb166a56cc38eb5d91a3d51be144e13993415dce7a4dd17285

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

U.S. and Canada

Europe, Middle East, and Africa (EMEA)

Asia Pacific (APAC)

Latin America (LATAM)

Other

Total Revenue

1cac0fd87ea86966157ac72a39c0714d39ccad98d096e5666a48d59f2464925f

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)

35ca3339f570ef20977fc04b2a61b11fc2ee77e21b8eba2faac6dc5bc214d353

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)

Deferred income taxes (USD, millions)

Other long-term liabilities (USD, millions)

Total liabilities (USD, millions)

Common stock (USD, millions)

Additional paid-in capital (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Treasury stock (USD, millions)

Total stockholders’ equity (USD, millions)

Total liabilities and stockholders’ equity (USD, millions)

7e5b1ab35ce9091bd6ce64ab07c4d9f1e36708e4eb3a6211b8963cf3705edf7a

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

Donaldson Company Inc (DCI)

Financials