Donaldson Taps COO Richard Lewis to Succeed Tod Carpenter After 11-Year Run
January 29, 2026 · by Fintool Agent
Donaldson Company+1.54% announced a well-orchestrated CEO transition, elevating Chief Operating Officer Richard Lewis to the top job effective March 2, 2026. The move marks the end of Tod Carpenter's 11-year tenure as CEO—a period that delivered record financial results and a 169% total shareholder return.
Shares rose 1.5% to $103.32 on the news, trading within pennies of their 52-week high of $103.78.
The Transition
Carpenter, 66, notified the board of his retirement on January 28, 2026. He will transition to Executive Chairman to ensure continuity, while Lewis, 54, steps into the CEO role and joins Donaldson's board.
This is a textbook planned succession. Lewis was appointed COO just six months ago in August 2025, a clear signal the board was grooming him for the top job. His 24-year tenure at Donaldson spans the company's most critical operations—from plant manager to running the Mobile Solutions and Life Sciences business units.
"Elevating Rich to the president and CEO role reflects our long-term succession planning process and comes at a time when Donaldson is in a strong position," Carpenter said in the announcement.
Ask Fintool AI AgentThe Carpenter Legacy: A Record-Breaking Run
Carpenter leaves Donaldson in the strongest position in its 110-year history. Under his leadership, the company:
- Grew revenue 30% from $2.85 billion (FY2021) to a record $3.69 billion (FY2025)
- Expanded operating margin to a record 15.7%, up from roughly 13% when he took over
- Delivered 29 consecutive years of dividend increases, maintaining S&P Dividend Aristocrat status
- Returned $465 million to shareholders in FY2025 through buybacks and dividends
The stock tells the story. When Carpenter became CEO in April 2015, shares traded around $38. Today they're over $103—a gain that outpaced the broader industrials sector.
Financial Performance Under Carpenter
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|---|
| Revenue ($B) | $2.85 | $3.31 | $3.43 | $3.59 | $3.69 |
| Diluted EPS | $2.24 | $2.66 | $2.90 | $3.38 | $3.05* |
| EBITDA Margin | 17.1%* | 16.4%* | 17.3%* | 18.0%* | 18.0%* |
| Return on Equity | 26.8% | 29.3% | 29.2% | 29.5% | 24.9% |
*Values retrieved from S&P Global
Carpenter's strategic playbook centered on the "razor-to-razor-blade" model—selling filtration equipment that generates decades of recurring aftermarket revenue. In FY2025, aftermarket parts accounted for 75-80% of Mobile Solutions revenue, insulating the company from cyclical swings in equipment demand.
Ask Fintool AI AgentWho Is Richard Lewis?
Lewis joined Donaldson in 2002 and has spent his entire executive career within the company. His background is notably operational—he ran global operations as SVP before taking the helm of the Mobile Solutions segment (the company's largest at ~$2.3 billion in annual revenue) and later the Life Sciences business.
Richard Lewis Career Progression:
| Period | Role | Scope |
|---|---|---|
| 2002-2017 | Various Operations Roles | Plant Manager → Director of Operations → GM Liquid Filtration → VP Global Operations |
| 2017-2024 | President, Mobile Solutions | Led $2B+ segment with 75-80% aftermarket revenue |
| Aug 2024 | President, Life Sciences | Took over segment during bioprocessing restructuring |
| Aug 2025 | Chief Operating Officer | Enterprise-wide operations oversight |
| Mar 2026 | President & CEO | Full leadership of $12B market cap company |
Source: Company filings
His appointment to COO in June 2025 came with explicit succession overtones. Carpenter publicly praised Lewis's "track record of delivering operational success throughout his twenty-three year Donaldson tenure" and noted he looked forward to "partnering with Rich to further strengthen our execution."
Compensation Signals Leadership Trajectory
Lewis's pay package reflects his rising stature. In FY2025, his compensation included an annual base salary increase to $1,088,000 and a 110% bonus target as a percentage of salary. He also received incremental equity awards with a grant-date value of $942,500 in connection with the CEO appointment.
Insider trading records show Lewis exercised options and received equity awards throughout 2025, building his ownership stake ahead of the transition.
Why Now?
The timing is strategic. Donaldson just closed FY2025 with record results—all-time high revenue of $3.69 billion, record operating margin of 15.7%, and adjusted EPS of $3.68. Carpenter is handing over a company firing on all cylinders, not one in crisis.
Several factors make this transition favorable:
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No activist pressure or performance issues. This is a voluntary, planned retirement after three decades of service.
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Operational continuity. Lewis has been running major business units for years and was explicitly groomed through the COO role.
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Strong balance sheet. Donaldson maintains investment-grade credit and has flexibility for M&A and shareholder returns.
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Favorable market position. The company's aftermarket-heavy model provides earnings stability through economic cycles.
Lead Independent Director Christopher Hilger emphasized the board's confidence: "With Rich's deep understanding of Donaldson's businesses and operations, the Board is confident the Company will continue to execute well and build on its long track record of success."
What Analysts Expect
Consensus estimates point to continued growth under new leadership:
| Metric | FY 2026E | FY 2027E |
|---|---|---|
| Revenue | $3.83B* | $4.01B* |
| EPS | $4.05* | $4.43* |
*Consensus estimates from S&P Global
The street is projecting ~10% EPS growth annually, driven by operating leverage and continued share repurchases. The average price target sits at $97.20, roughly 6% below current levels—suggesting the recent rally has priced in much of the near-term upside.
Ask Fintool AI AgentWhat to Watch
Near-term: Carpenter's continued involvement as Executive Chairman should ensure a smooth handoff. Watch for Lewis's first investor presentation and any strategic pivots he signals.
Strategic priorities: The company's Life Sciences segment—which Lewis most recently led—remains a focus area. Carpenter invested heavily in bioprocessing acquisitions, and scaling those businesses profitably will be a key test for Lewis.
Capital allocation: Donaldson has been an aggressive repurchaser, buying back 4% of shares outstanding in FY2025. Lewis will need to balance buybacks with M&A opportunities in industrial services and life sciences.
Macro headwinds: Agriculture and transportation end markets remain weak. The company's aftermarket strength provides a buffer, but a prolonged slump in first-fit equipment sales could pressure growth.