Mission Statement, Vision, & Core Values of Donaldson Company, Inc. (DCI)

When a company like Donaldson Company, Inc. posts all-time high sales of $3.7 billion in fiscal year 2025, you have to ask: what principles are driving that performance? The core of any successful long-term strategy isn't just a product-it's the foundational belief system, the Mission, Vision, and Core Values, which for Donaldson is all about 'Advancing Filtration for a Cleaner World' while delivering an adjusted operating margin of 15.7%. Are those values just corporate boilerplate, or do they defintely map to the strategic decisions that deliver a record adjusted EPS of $3.68?

We're going to look past the jargon and map Donaldson Company's stated purpose to their actual market actions. How does a focus on Integrity and Innovation translate into navigating a complex market with Mobile Solutions sales forecasted to be flat to up 4%, and what does that mean for your investment thesis?

Donaldson Company, Inc. (DCI) Overview

If you're looking for a company that quietly underpins global industry, you need to understand Donaldson Company, Inc. (DCI). This is a filtration powerhouse, not a flashy tech stock, but one that has delivered consistent performance by solving complex, essential problems for over a century.

The company started in 1915 when Frank Donaldson Sr., a tractor salesman, invented the world's first effective air cleaner for a farm tractor that kept breaking down in a dusty field. That simple, practical innovation in Minnesota launched a global leader in technology-led filtration products and solutions.

Today, Donaldson operates in three core segments: Mobile Solutions, Industrial Solutions, and Life Sciences. They don't just make filters; they engineer air and liquid filtration systems that protect everything from massive off-road engines to sensitive disk drives. One clean one-liner: They make the world's machines and air run cleaner.

• Mobile Solutions: Engine filters and parts for construction, mining, agriculture, and trucking.
• Industrial Solutions: Dust, fume, and mist collectors, and filtration for gas turbines and defense.
• Life Sciences: Specialized filtration for food, beverage, and bioprocessing markets.

Fiscal Year 2025: Record Revenue and Strategic Growth

The latest numbers confirm Donaldson's ability to execute, even in mixed economic conditions. For the full fiscal year 2025, which ended in August, the company achieved record sales of $3.7 billion, marking a 2.9% increase over the previous year. This growth wasn't driven by a single lucky break, but by strategic execution and pricing power.

The fourth quarter was defintely strong, with sales hitting $981 million, up 4.8% from the same period in fiscal 2024. This performance shows the durability of their business model, where replacement parts (aftermarket sales) provide a steady, high-margin revenue stream. Here's the quick math on profitability: adjusted earnings per share (EPS) for the full year rose 7.6% to $3.68.

Looking at the segments, the Industrial Solutions business saw a significant 7.7% sales jump in Q4, bolstered by demand in industrial filtration and the aerospace and defense sectors. Mobile Solutions, the largest segment, grew 2.3%, primarily driven by strong off-road and aftermarket sales. What this estimate hides is the company's commitment to shareholders, having returned approximately $465 million through share repurchases and dividends in fiscal 2025.

A Global Leader in Filtration Technology

Donaldson is not just a manufacturer; they are a global leader in advanced filtration technologies. They hold more than 1,600 active US and international patents, a testament to their continuous investment in research and development. This technological edge is what allows them to partner with the world's biggest Original Equipment Manufacturer (OEM) brands across various industries.

Their global footprint is massive, with over 140 locations across six continents, ensuring they can serve customers from small business owners to multinational corporations. This network and their deep technical expertise in air, liquid, and hydraulic filtration systems are why they remain a dominant force. To be fair, maintaining this position requires constant innovation, which is why they've also been streamlining their operations to focus resources on high-growth areas like Life Sciences. If you want to dive deeper into the ownership structure and market sentiment, you should check out Exploring Donaldson Company, Inc. (DCI) Investor Profile: Who's Buying and Why?

Donaldson Company, Inc. (DCI) Mission Statement

You're looking for the foundational principles that drive a multi-billion dollar company like Donaldson Company, Inc. (DCI), and honestly, it all comes down to their mission statement. It's not just a plaque on the wall; it's the long-term strategic compass. For Donaldson, a global leader in filtration, their purpose is clearly articulated as: Advancing Filtration for a Cleaner World.

This statement guides every major decision, from where they allocate capital to how they approach product development. In fiscal year 2025, this focus helped drive total sales to an all-time high of $3.7 billion, up nearly 3% from the prior year. That kind of growth doesn't happen without a clear, unifying purpose. You can see how this mission is woven into the company's history and operations by looking at Donaldson Company, Inc. (DCI): History, Ownership, Mission, How It Works & Makes Money.

Pillar 1: Advancing Filtration Technology (Innovation)

The first core component, 'Advancing Filtration,' speaks directly to the company's identity as a technology-led solutions provider. This isn't about selling simple filters; it's about solving complex contamination control challenges. Here's the quick math: Donaldson invested $88 million in research and development (R&D) in fiscal year 2025 alone, which is a key indicator of their commitment to innovation.

This investment is what keeps their products best-in-class, whether it's for mobile engines or industrial processes. They are defintely focused on staying ahead of the curve. These R&D dollars fuel advancements like new disk drive technologies in the Life Sciences segment and alternative fuels filtration in Mobile Solutions.

• Invest in new materials and media.
• Develop next-generation product platforms.
• Secure intellectual property with patents.

Pillar 2: Delivering Trusted Quality and Reliability

The implied component of the mission, and the core of their 'most trusted' vision, is the relentless pursuit of quality and reliability. Customers-especially in critical sectors like aerospace, defense, and heavy equipment-don't choose Donaldson just on price; they choose them because their filtration solutions meet stringent technical requirements.

For example, the Mobile Solutions segment, which accounted for 62.1% of net sales in fiscal 2025, relies entirely on the trust that an engine filter will perform under the harshest conditions, protecting a customer's multi-million dollar asset. This commitment is formalized through global quality certifications like ISO 9001, IATF 16949, and AS 9100. If the filter fails, the machine stops, so reliability is the entire value proposition.

Pillar 3: Commitment to a Cleaner World (Sustainability)

The 'for a Cleaner World' part of the mission is the company's environmental and social commitment, and it's backed by concrete, near-term targets. This isn't just corporate social responsibility (CSR); it's a strategic driver for new business in an era of increasing environmental regulation.

Donaldson has set clear 2030 Sustainability Ambitions, showing they are serious about their impact. For instance, they are targeting an absolute reduction of their Scope 1 and 2 greenhouse gas (GHG) emissions by 42% over a fiscal year 2021 baseline. Also, their capital expenditures of $77 million in fiscal 2025 included projects specifically supporting sustainability goals, such as solvent recovery systems. This is how a mission translates into a capital-allocation decision.

Donaldson Company, Inc. (DCI) Vision Statement

You're looking for a clear map of where Donaldson Company, Inc. is headed, and honestly, their vision statement cuts right to the chase: to be the world's leading and most trusted filtration solutions provider. This isn't just a corporate aspiration; it's the strategic framework that drove their fiscal year 2025 results, which saw an all-time high in adjusted operating margin. It's a two-part mandate-leadership in technology and the bedrock of customer trust-that maps directly to their operational focus and capital allocation decisions.

Their underlying purpose, 'Advancing Filtration for a Cleaner World,' is the filter (pun intended) for all their growth initiatives, from Mobile Solutions to the Life Sciences segment. The immediate risk is always execution, especially maintaining margin while investing heavily, but the 2025 numbers show they're managing that balance defintely well.

Leading the World in Filtration Solutions

This part of the vision is all about technology and market share gains, which are the engine of revenue growth. For fiscal year 2025, Donaldson Company reported total sales of $3.7 billion, a solid increase of 2.9% year-over-year. That growth doesn't happen by accident; it's a direct result of disciplined investment in innovation, which is the core of their 'leading' ambition. They solved complex filtration challenges by investing $88 million in Research and Development (R&D) in fiscal 2025.

Here's the quick math: that R&D spend is what fuels their three primary segments, which saw growth across the board, even in mixed end-market conditions. The Life Sciences segment, for instance, is a high-growth area that posted double-digit sales growth in Q1 FY2025, driven by Disk Drive and Food & Beverage. This is what leading looks like-finding new, high-margin markets for core technology.

• Drive technology-led solutions.
• Expand market share globally.
• Target high-growth Life Sciences segment.

Being the Most Trusted Filtration Solutions Provider

Trust in the industrial world translates directly to recurring revenue, which is why aftermarket sales-replacement filters-are a significant and steady stream of income for the company. This ambition is grounded in their core principles, which include a commitment to high ethical standards and sustainability. A key action here is their commitment to returning cash to shareholders, which helps build trust with the capital markets.

In fiscal year 2025, the company returned approximately $465 million to shareholders through dividends and the repurchase of 4% of outstanding shares. That's a clear signal of financial health and management confidence. Plus, their focus on sustainability-like aiming to reduce landfill waste by 40% of the fiscal 2024 level-isn't just good PR; it's a way to build long-term trust with customers and regulators. If you want a deeper dive into the numbers underpinning this trust, you should check out Breaking Down Donaldson Company, Inc. (DCI) Financial Health: Key Insights for Investors.

The financial results reflect this trust. Full-year 2025 adjusted earnings per share (EPS) came in at $3.68, up 7.6% from the prior year, showing that their operational efficiency and customer loyalty are translating into bottom-line performance. They are focused on doing the right thing in business and community.

Donaldson Company, Inc. (DCI) Core Values

You want to know if Donaldson Company, Inc. (DCI) lives up to its mission, and the short answer is yes, the numbers show a clear commitment to their core principles, especially in innovation and financial discipline. Their fiscal year 2025 results, with $3.7 billion in sales and a record adjusted EPS of $3.68, defintely demonstrate that their values drive tangible performance. You can see the full financial picture in Breaking Down Donaldson Company, Inc. (DCI) Financial Health: Key Insights for Investors.

The company's purpose is straightforward: Advancing Filtration for a Cleaner World. That's the lens through which we should view their values. Their vision is to be the world's leading and most trusted filtration solutions provider, and they use a set of core values-what they call company principles-to achieve it. Let's look at how they put those principles into action, with real-world 2025 data.

Commitment to Innovation and Excellence

Innovation is the engine of a technology-led company like Donaldson Company, Inc., and it's a non-negotiable value. It's what allows them to solve complex filtration challenges for customers in Mobile Solutions, Industrial Solutions, and Life Sciences. If you stop innovating, you stop leading.

Here's the quick math on their commitment: in fiscal year 2025, the company invested a substantial $88 million into Research and Development (R&D) to support new technologies. This investment is strategic, supporting projects like solvent recovery technologies in the Life Sciences segment and new air and alternative fuels filtration for Mobile Solutions.

• Invested $88 million in R&D in FY2025.
• Achieved a record adjusted operating margin of 15.7% in FY2025.
• Launched new bioprocessing solutions to support genetic medicine production.

Environmental Stewardship and Sustainability

This value is directly tied to their mission of a cleaner world, focusing on reducing their own operational footprint while helping customers meet their sustainability goals. The company's 'Filtration for a Thriving Future' strategy guides these efforts, aiming for measurable, long-term impact.

In fiscal year 2025, Donaldson Company, Inc. introduced a new 2030 Sustainability Ambition: to reduce landfill waste from operations by 40% of the fiscal year 2024 baseline. They also signed a Virtual Power Purchase Agreement (VPPA) with partners, a major step expected to offset a majority of their U.S. electrical energy demand once the solar project is completed. This shows they are putting capital expenditure-which totaled $77 million in FY2025-toward their environmental goals.

Operational Resiliency and Employee Safety

A global manufacturer with over 140 locations needs a core value centered on keeping its people safe and its operations running smoothly. Donaldson Company, Inc. is committed to providing safe and healthy workplaces, which is part of their Operational Resiliency ambition.

To be fair, this is a tough area where the company saw a near-term risk: in fiscal year 2024, they reported seven life-changing events (serious injuries or illnesses), an increase of three over the prior year. This highlights an area needing a clear action plan, even as they continue to focus on year-over-year reductions in these incidents. They empower every employee to take an active role in identifying and managing health and safety hazards.

Community Engagement and Integrity

The company's commitment extends beyond the factory floor to the communities where their approximately 14,000 employees live and work. This is primarily managed through the Donaldson Foundation, which focuses on charitable giving, especially for educational needs.

The Foundation's ambition is to increase charitable giving by 25% every four years, with a cumulative goal of at least $13.5 million from fiscal year 2022 to fiscal year 2030. While the last reported annual donation was $1.2 million in FY2024, this cumulative target shows a long-term, structural commitment to giving back. Plus, the foundational value of Integrity ensures they hold themselves to the highest ethical standards in all business practices, from compliance with global data privacy laws to anti-bribery regulations.