Donaldson Company, Inc. (DCI): History, Ownership, Mission, How It Works & Makes Money

When you look at a company like Donaldson Company, Inc. (DCI), which quietly underpins global industry, do you really grasp the scale of its impact? This filtration giant, with its mission to advance filtration for a cleaner world, reported full-year fiscal 2025 sales of $3.7 billion and net earnings of $367.0 million, proving that clean air and fluid management is defintely a high-value business. With a November 2025 market capitalization sitting near $9.91 billion, Donaldson's century-long history and robust aftermarket sales model-selling replacement filters-are what keep everything from construction equipment to bioprocessing running smoothly; you need to understand how this critical, diversified revenue stream works.

Donaldson Company, Inc. (DCI) History

You're looking for the foundational story of Donaldson Company, Inc. (DCI), and honestly, it starts with a simple, dusty problem on a farm tractor. The company's evolution from a single patented air cleaner to a global filtration leader with $3.7 billion in fiscal year 2025 sales is a masterclass in sticking to a core competency while constantly innovating.

This isn't a story of overnight success, but one of relentless, century-long technical precision and strategic pivots, especially the recent focus on the high-growth Life Sciences segment, which is a key part of their future.

Given Company's Founding Timeline

Year established

The company was established in 1915 as Donaldson Engineering Company, built around the founder's air filter invention for farm tractors.

Original location

The original location was in Minneapolis, Minnesota.

Founding team members

• Frank Donaldson, Sr. (Inventor and Founder)
• W.H.L. Donaldson (Father, provided early support)
• John G. Pitz (Brother-in-law, early collaborator)

Initial capital/funding

Frank Donaldson, Sr. started the company with $500 and the patent for his air cleaner design.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's long-term strength comes from two key areas: weathering cyclical downturns and making strategic, non-obvious bets on new technology. The 1983 net loss was a real wake-up call, prompting a pivot that ensured they weren't solely reliant on heavy equipment Original Equipment Manufacturers (OEMs).

The most recent transformative period centers on operational excellence and the Life Sciences segment, which is a major growth driver. You can see this in their fiscal year 2025 performance:

• Operational Focus: In August 2025, the appointment of Richard Lewis as Chief Operating Officer (COO) centralized oversight across all three core segments-Mobile Solutions, Industrial Solutions, and Life Sciences-to drive efficiency and execution.
• Financial Discipline: Full year fiscal 2025 sales hit an all-time high of $3.7 billion, with a record adjusted operating margin of 15.7%. That's defintely a sign of disciplined expense management.
• Shareholder Value: The company returned approximately $465 million to shareholders in fiscal 2025 through dividends and share repurchases, including an 11% dividend raise in May 2025.
• Segment Mix: The Mobile Solutions segment still makes up the bulk of the business at 62.1% of net sales in fiscal 2025, but the focus on the Industrial Solutions segment (29.9% of net sales) and Life Sciences is a clear move to diversify revenue streams and capture higher-margin growth.

If you want to dig deeper into how these segments are impacting the stock, you should check out Exploring Donaldson Company, Inc. (DCI) Investor Profile: Who's Buying and Why?

Donaldson Company, Inc. (DCI) Ownership Structure

Donaldson Company, Inc. (DCI) is overwhelmingly controlled by institutional investors, a common structure for a mature, publicly-traded industrial company, which means large funds dictate the majority of shareholder votes.

This high concentration, with over four-fifths of the stock held by institutions, gives firms like Vanguard Group and BlackRock, Inc. significant influence over major corporate decisions and strategy. The remaining ownership is split between company insiders and the broader retail investor base.

Donaldson Company, Inc.'s Current Status

Donaldson Company, Inc. is a publicly traded entity listed on the New York Stock Exchange (NYSE) under the ticker symbol DCI.

As of November 2025, the company commands a market capitalization of approximately $9.91 Billion USD, reflecting its position as a global leader in filtration products. The company's fiscal year 2025 revenue was approximately $3.7 billion, underscoring its scale and market presence.

To understand the strategic direction and core principles that guide this structure, you should review the Mission Statement, Vision, & Core Values of Donaldson Company, Inc. (DCI).

Donaldson Company, Inc.'s Ownership Breakdown

The company's stock ownership is heavily weighted toward institutional holders, a factor that stabilizes the share price but also means management is highly accountable to major fund managers.

Here's the quick math on who holds the shares, based on the most recent filings near November 2025:

Donaldson Company, Inc.'s Leadership

The organization is steered by a seasoned executive team, with the CEO having over a decade of tenure in his role, providing strategic continuity.

The key leaders as of November 2025 are:

• Tod E. Carpenter: Chairman, President, and Chief Executive Officer (CEO). He has served as CEO since April 2015. His total yearly compensation for the 2025 fiscal period was approximately $8.30M.
• Bradley J. Pogalz: Chief Financial Officer (CFO).
• Richard B. Lewis: Chief Operating Officer (COO).
• Guillermo Briseño: President, Industrial Solutions.
• Bart Driesen: President, Mobile Solutions.

This leadership structure balances long-term company veterans with specialized segment presidents, ensuring both strategic vision from the top and granular focus on the Mobile and Industrial Solutions segments.

Donaldson Company, Inc. (DCI) Mission and Values

Donaldson Company, Inc.'s identity goes beyond selling filters; its mission centers on a tangible commitment to global well-being, translating its engineering expertise into a cleaner, safer operating environment for its customers and the world.

Donaldson Company, Inc.'s Core Purpose

As a seasoned analyst, I look at the mission statement as the company's true north, and for Donaldson Company, Inc., it clearly maps their filtration technology to a broader environmental and operational impact. This isn't just about revenue-it's about the essential role they play in industrial and engine performance, plus air and liquid quality.

Here's the quick math: when a company achieves record fiscal 2025 sales of $3.7 billion while simultaneously investing $88 million in research and development (R&D), it shows their core purpose is deeply tied to continuous innovation and market leadership.

Official Mission Statement

The company's mission is a clear, active declaration of their fundamental business purpose, which is to solve complex problems through technology.

• We advance filtration for a cleaner world.

Vision Statement

The vision statement sets the long-term strategic goal, positioning Donaldson Company, Inc. not just as a participant, but as the definitive leader in their space. It's a high bar, but with a fiscal 2025 operating margin of 15.7%, they're defintely executing on the path to being a trusted provider.

• Strive to be the world's leading and most trusted filtration solutions provider.

Donaldson Company, Inc. Core Values and Culture

A company's cultural DNA is what sustains its competitive edge, especially in a technical field like filtration. Donaldson Company, Inc. anchors its operations in a few key pillars that guide everything from product development to community engagement.

• Innovation: This is the engine. Their R&D focus is evidenced by the $88 million investment in 2025, driving new products across their Mobile, Industrial, and Life Sciences segments.
• Sustainability: This is a growing risk and opportunity. They have a 2030 Sustainability Ambition to reduce Scope 1 and 2 greenhouse gas (GHG) emissions by 42% over a fiscal year 2021 baseline, showing a clear, measurable commitment.
• Ethics & Compliance: Holding themselves to the highest ethical standards is crucial for maintaining the 'trusted' part of their vision, especially when dealing with critical industrial and health applications.

Donaldson Company, Inc. Slogan/Tagline

The company has a simple, powerful phrase that captures their ongoing commitment and is often used in their corporate communications and annual reports, uniting their product lines under one banner.

• Advancing Filtration for a Cleaner World.

You can see how this purpose translates into market performance by Exploring Donaldson Company, Inc. (DCI) Investor Profile: Who's Buying and Why?

Donaldson Company, Inc. (DCI) How It Works

Donaldson Company, Inc. operates as a technology-led filtration specialist, designing and manufacturing products that clean air and liquids across three primary business segments, generating a high-margin, recurring revenue stream from replacement parts.

The company's value creation is essentially a 'razor-and-blade' model: it sells Original Equipment Manufacturer (OEM) filtration systems (the 'razor') for engines and industrial machinery, which then locks in a long-term, profitable demand for its proprietary replacement filters (the 'blade'). This aftermarket business is the core driver of profitability, contributing approximately 65% of sales as of fiscal year 2022, a trend expected to continue through 2025. You can learn more about the investors driving this model at Exploring Donaldson Company, Inc. (DCI) Investor Profile: Who's Buying and Why?

Donaldson Company's Product/Service Portfolio

Donaldson Company's Operational Framework

Donaldson's operational success hinges on a deeply integrated, global system that moves from advanced material science to rapid aftermarket delivery. It's a tight loop: R&D creates the proprietary media, which is then sold into the OEM channel, guaranteeing future aftermarket sales.

• Proprietary Media Development: The company invests in R&D to engineer unique filter media, like Ultra-Web® nanofiber technology, which provides a significant performance edge over standard cellulose filters. This is the foundation of their competitive edge.
• OEM Integration: Donaldson works with major OEMs (Original Equipment Manufacturers) in the mobile and industrial sectors to design filtration systems as first-fit components. This secures the initial sale and establishes the need for its own replacement parts.
• Global Manufacturing and Distribution: The company operates from over 150 locations on six continents, allowing for localized production and distribution. This global footprint, including a new 200,000 square-foot distribution center in Olive Branch, Mississippi, ensures high fill rates and minimal downtime for customers. That's how they keep the heavy machinery running.
• Digital Monitoring Services: They offer connected solutions and filtration services that monitor equipment performance, which anticipates replacement needs and drives recurring sales volume.

Donaldson Company's Strategic Advantages

The company maintains its market leadership not just through product quality, but through structural advantages that are hard for competitors to replicate. In fiscal year 2025, the company achieved total sales of approximately $3.7 billion, underscoring the strength of these advantages.

• Dominant Aftermarket Position: The 'razor-and-blade' model is the biggest advantage. Once an OEM system is installed, the customer is effectively locked into buying Donaldson's high-margin replacement filters to maintain warranty and performance.
• Intellectual Property & Innovation: Donaldson holds over 1,400 active patents globally, protecting its proprietary media and system designs. This patent portfolio acts as a strong barrier to entry for competitors trying to match performance.
• Diversified End Markets: The three-segment structure (Mobile, Industrial, Life Sciences) provides a crucial buffer against cyclical downturns. For example, if Off-Road sales in Mobile Solutions decline due to weak agricultural markets, growth in Life Sciences (which saw high-single-digit sales growth projected for FY 2025) can help stabilize overall performance.
• Global Scale and Service: Operating on six continents allows Donaldson to serve multinational OEMs and offer consistent, reliable service and parts availability worldwide, a logistical feat smaller competitors defintely can't match.

Donaldson Company, Inc. (DCI) How It Makes Money

Donaldson Company, Inc. primarily generates revenue by selling its proprietary filtration products and replacement parts, creating a powerful razor-and-blade business model where the initial sale of equipment (the razor) locks in a long-term, high-margin stream of replacement filters (the blades).

Simply put, they are the global leader in keeping things clean-air, oil, fuel, and critical processes-for everything from a massive mining truck to a pharmaceutical bioreactor, and the recurring need for filter changes is the core of their financial engine.

Donaldson Company's Revenue Breakdown

Donaldson's fiscal year 2025 saw total sales reach a record $3.7 billion, an increase of 2.9% over the prior year. The business is strategically diversified across three segments, but the Mobile Solutions segment is still the clear heavyweight.

The Mobile Solutions segment, which covers air and liquid filtration for vehicles and equipment in sectors like construction, mining, and agriculture, is huge. The trend here is mixed: while Original Equipment Manufacturer (OEM) sales can be cyclical, the high-margin aftermarket replacement filter business provides a defintely stable, recurring revenue base.

Industrial Solutions, which includes dust collection and aerospace/defense, and the smaller but high-growth Life Sciences segment, which focuses on food, beverage, and bioprocessing filtration, are both showing strong momentum, with Life Sciences sales up 14% in the fourth quarter of fiscal 2025.

Business Economics

Donaldson's economic moat (a sustainable competitive advantage) is built on two things: technology and mandatory replacement cycles. They hold over 2,700 active patents, which creates high switching costs for their OEM customers, especially in regulated industries.

• Recurring Revenue: The vast majority of profits come from replacement parts, not the initial equipment sale. This is a powerful, non-cyclical driver that smooths out the volatility from new equipment sales in the Mobile segment.
• Pricing Power: The company successfully contributed approximately 1% to its full-year sales increase through pricing actions in fiscal 2025, demonstrating an ability to pass on costs.
• Strategic Focus: Management is actively investing in the Life Sciences segment, which, despite a one-time impairment charge of $62.0 million in bioprocessing technology, is targeted for high-single-digit growth and offers higher margins.
• Cost Optimization: The company is executing on global footprint optimization initiatives, which helped deliver an adjusted operating margin of 15.7% for the full year 2025.

The core business is a defensive one; when an engine or a factory process needs a filter, it needs that filter, and the cost of the filter is tiny compared to the cost of equipment downtime. That's a great position to be in. Mission Statement, Vision, & Core Values of Donaldson Company, Inc. (DCI).

Donaldson Company's Financial Performance

Looking at the full fiscal year 2025, the company delivered a strong performance that highlights its operational discipline and the resilience of its business model.

• Total Sales: Achieved a record $3.7 billion for the full year.
• Adjusted EPS: Adjusted diluted earnings per share (EPS) hit a record $3.68, an increase of 7.6% over fiscal 2024.
• Adjusted Operating Margin: The adjusted operating margin expanded to 15.7% for the year, up from 15.4% in the prior year, driven by disciplined expense management and sales leverage.
• Cash Flow and Returns: The company generated strong cash flow, returning approximately $465 million to shareholders in fiscal 2025 through dividends and the repurchase of 4% of its outstanding shares.
• Profitability Metric: The EBITDA margin for the quarter ending July 2025 was a solid 18.48%, indicating healthy operating profitability.

Here's the quick math: Sales are growing, margins are expanding, and they are aggressively returning cash to you, the shareholder. Finance: Keep an eye on the Mobile Solutions OEM sales for any cyclical dips, but the Aftermarket and Life Sciences growth should provide a strong offset.

Donaldson Company, Inc. (DCI) Market Position & Future Outlook

Donaldson Company, Inc. (DCI) is a foundational player in the global filtration market, maintaining its leadership through a dominant aftermarket business that generated 62.1% of its net sales in fiscal year 2025. The company is strategically positioned to capture growth in high-purity markets, particularly Life Sciences, even as it navigates near-term softness in key Mobile Solutions sectors like global truck production.

You can get a deeper dive into the company's financial stability and performance by checking out Breaking Down Donaldson Company, Inc. (DCI) Financial Health: Key Insights for Investors.

Competitive Landscape

The global filters market is massive, valued at approximately $105.03 billion in 2024, so even a small percentage represents a substantial business. Donaldson is a Tier 1 competitor, but it faces formidable, highly diversified industrial conglomerates and specialized pure-play filtration leaders. The top five industrial filtration manufacturers, including Donaldson, collectively hold over 45% of that segment's market share.

Opportunities & Challenges

As a seasoned analyst, I see Donaldson's future trajectory hinging on two main factors: its ability to execute on its Life Sciences growth strategy and its success in mitigating cyclical downturns in its core Mobile segment.

Industry Position

Donaldson's industry standing is defined by its technological expertise and its high-margin aftermarket moat (economic barrier to entry). The company's fiscal 2025 revenue reached an all-time high of $3.7 billion, underscoring its resilience despite a mixed economic environment. The focus is shifting, though.

• Aftermarket Strength: The Mobile Solutions segment, which includes aftermarket sales, accounted for 62.1% of fiscal 2025 net sales, providing a stable, high-margin revenue base that smooths out cyclical volatility.
• Strategic Pivot: Investments and rationalized expense structures are concentrated in the Life Sciences segment, a move designed to diversify the business away from heavy industrial reliance and into high-growth, high-purity markets.
• Operational Efficiency: The company is actively pursuing global footprint optimization initiatives and delivered a record adjusted operating margin of 15.7% in fiscal 2025, showing defintely strong cost control.
• Capital Deployment: Donaldson returned approximately $465 million to shareholders in fiscal 2025 through dividends and the repurchase of 4% of its shares outstanding, a sign of confidence in future cash flow generation.

The core challenge remains translating its filtration technology leadership into outsized growth in the Life Sciences segment to meaningfully offset the inherent cyclicality of the Mobile and Industrial Solutions businesses.