DONALDSON Co INC
For the period ended Apr 30, 2025. Filed Jun 3, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Apr 30, 2025 · Filed Jun 3, 2025
DCI$84.33+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-01-31; filed 2025-03-04.
0000029644-25-000029
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-04-30; filed 2025-06-03.
0000029644-25-000058
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 111 previous paragraphs and 120 current paragraphs.
66 unchanged; 33 reworded; 21 added; 12 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
Operating Environment
Current report
Tariffs
Current report
In March 2025, the U.S. imposed additional tariffs on a wide range of imports, with the potential for further tariff actions, which resulted in retaliatory tariffs. These trade measures, along with updates to export controls and sanctions regimes, pose ongoing risks to global supply chains, potentially increasing the cost of goods, straining procurement cycles and impacting customer demand. The Company is closely monitoring the evolving trade landscape, as well as its ability to mitigate the impact of tariffs and its analysis of the potential impact. While the ultimate impact of tariffs remains uncertain, the Company expects annual costs related to recently implemented or increased tariffs of approximately $35 million, which represents less than 1% of the Company’s total sales and is expected to be largely offset by pricing increases.
Current report
Any additional tariffs in the U.S. or retaliatory tariffs imposed by other governments could exacerbate the impact. Any new, substantial tariff increases on imports to the U.S. from Mexico, China and the European Union (EU) should they be implemented and sustained for an extended period of time, could have a significant adverse effect on the Company and its supply chain.
Current report
For additional information regarding the impact and potential impact of trade policy and tariffs on the Company, refer to the “Risk Factors” section in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2024 which outlines the risks and uncertainties the Company believes are the most material to its business.
Current report
(1) The impact of foreign currency translation was calculated by translating the third quarter of fiscal 2025 foreign currency net sales into U.S. dollars using the average foreign currency exchange rates for the third quarter of the prior fiscal year. The impact of currency translation does not change the underlying drivers of revenue shown in this chart.
Current report
Loss on Impairment of Intangible Assets
Current report
Loss on impairment of intangible assets for the three months ended April 30, 2025 was $62.0 million, or 6.6% of net sales, compared with no expense for the three months ended April 30, 2024. The fiscal 2025 impairment expense included $46.6 million related to Univercells Technologies, reflecting lower-than-anticipated bioprocessing capital spending, particularly for early-stage assets, while drug development timelines are longer than previously anticipated. The remaining $15.4 million of impairment expense was related to Solaris as market demand for industrial bioreactors had significantly declined.
Current report
Research and development expenses for the three months ended April 30, 2025 were $21.4 million, or 2.3% of net sales, compared with $24.8 million, or 2.7% of net sales, for the three months ended April 30, 2024, a decrease of $3.4 million, or 14.0%, driven by focused project prioritization.
Current report
Loss on Impairment of Intangible Assets
Current report
Loss on impairment of intangible assets for the nine months ended April 30, 2025 was $62.0 million, or 2.3% of net sales, compared with no expense for the nine months ended April 30, 2024. The fiscal 2025 impairment expense included $46.6 million related to Univercells Technologies, reflecting lower-than-anticipated bioprocessing capital spending, particularly for early-stage assets, while drug development timelines are longer than previously anticipated. The remaining $15.4 million of impairment expense was related to Solaris as market demand for industrial bioreactors had significantly declined.
Current report
The effective tax rate was 26.2% and 23.1% for the nine months ended April 30, 2025 and 2024, respectively. The higher effective tax rate was primarily due to the current quarter's loss on impairment of intangible assets, as the discrete tax benefit on the loss on impairment of intangible assets was reduced by an increase in valuation allowance. Excluding the impact of the loss on impairment of intangible assets, the effective tax rates are comparable.
Current report
Net earnings for the nine months ended April 30, 2025 were $252.7 million, compared with $304.3 million for the nine months ended April 30, 2024, a decrease of $51.6 million, or 16.9%. Diluted EPS were $2.09 for the nine months ended April 30, 2025, compared with $2.48 for the nine months ended April 30, 2024, a decrease of $0.39, or 16.0%.
Current report
(1) The impact of foreign currency translation was calculated by translating the third quarter of fiscal 2025 foreign currency net sales into U.S. dollars using the average foreign currency exchange rates for the third quarter of the prior fiscal year. The impact of currency translation does not change the underlying drivers of revenue shown in this chart.
Current report
Net sales for the Mobile Solutions segment for the three months ended April 30, 2025 were $582.6 million, compared with $585.2 million for the three months ended April 30, 2024, a decrease of $2.6 million, or 0.4%. Foreign currency translation negatively impacted net sales for the Mobile Solutions segment by 0.6%. All business units were negatively impacted by foreign currency translation.
Current report
Earnings before income taxes for the Mobile Solutions segment for the three months ended April 30, 2025 were $105.3 million, or 18.1% of net sales, a decrease from 18.4% of net sales for the three months ended April 30, 2024. The decrease was driven by higher manufacturing costs associated with footprint optimization initiatives.
Current report
(1) The impact of foreign currency translation was calculated by translating the third quarter of fiscal 2025 foreign currency net sales into U.S. dollars using the average foreign currency exchange rates for the third quarter of the prior fiscal year. The impact of currency translation does not change the underlying drivers of revenue shown in this chart.
Current report
Net sales for the Industrial Solutions segment for the three months ended April 30, 2025 were $283.3 million, compared with $269.1 million for the three months ended April 30, 2024, an increase of $14.2 million, or 5.3%. Foreign currency translation had no impact on net sales for the Industrial Solutions segment.
Current report
Earnings before income taxes for the Industrial Solutions segment for the three months ended April 30, 2025 were $51.2 million, or 18.1% of net sales, a decrease from 18.7% of net sales for the three months ended April 30, 2024. The decrease was driven primarily by unfavorable mix.
Current report
Net sales and earnings (losses) before income taxes were as follows (in millions):
Current report
(1) The impact of foreign currency translation was calculated by translating the third quarter of fiscal 2025 foreign currency net sales into U.S. dollars using the average foreign currency exchange rates for the third quarter of the prior fiscal year. The impact of currency translation does not change the underlying drivers of revenue shown in this chart.
Removed paragraphs (12)
Previous report
(1) The impact of foreign currency translation was calculated by translating the second quarter of fiscal 2025 foreign currency net sales into U.S. dollars using the average foreign currency exchange rates for the second quarter of the prior fiscal year. The impact of currency translation does not change the underlying drivers of revenue shown in this chart.
Previous report
The effective tax rate was 23.2% and 23.5% for the three months ended January 31, 2025 and 2024, respectively. The lower effective tax rate was primarily due to a favorable shift in the mix of global earnings.
Previous report
Research and development expenses for the six months ended January 31, 2025 were $43.9 million, or 2.5% of net sales, and were approximately flat compared with $43.4 million, or 2.5% of net sales, for the six months ended January 31, 2024.
Previous report
Net earnings for the six months ended January 31, 2025 were $194.9 million, compared with $190.8 million for the six months ended January 31, 2024, an increase of $4.1 million, or 2.2%. Diluted EPS were $1.60 for the six months ended January 31, 2025, compared with $1.56 for the six months ended January 31, 2024, an increase of $0.04, or 2.8%.
Previous report
(1) The impact of foreign currency translation was calculated by translating the second quarter of fiscal 2025 foreign currency net sales into U.S. dollars using the average foreign currency exchange rates for the second quarter of the prior fiscal year. The impact of currency translation does not change the underlying drivers of revenue shown in this chart.
Previous report
Net sales for the Mobile Solutions segment for the three months ended January 31, 2025 were $547.5 million, compared with $550.3 million for the three months ended January 31, 2024, a decrease of $2.8 million, or 0.5%. Foreign currency translation negatively impacted net sales for the Mobile Solutions segment by 1.9%. All business units were negatively impacted by foreign currency translation.
Previous report
Earnings before income taxes for the Mobile Solutions segment for the three months ended January 31, 2025 were $95.5 million, or 17.4% of net sales, a decrease from 18.0% of net sales for the three months ended January 31, 2024. The decrease was driven by deleveraging of operating expenses.
Previous report
(1) The impact of foreign currency translation was calculated by translating the second quarter of fiscal 2025 foreign currency net sales into U.S. dollars using the average foreign currency exchange rates for the second quarter of the prior fiscal year. The impact of currency translation does not change the underlying drivers of revenue shown in this chart.
Previous report
Net sales for the Industrial Solutions segment for the three months ended January 31, 2025 were $253.7 million, compared with $263.4 million for the three months ended January 31, 2024, a decrease of $9.7 million, or 3.7%. Foreign currency translation negatively impacted net sales for the Industrial Solutions segment by 1.1%. Both business units were negatively impacted by foreign currency translation.
Previous report
Earnings before income taxes for the Industrial Solutions segment for the three months ended January 31, 2025 were $40.9 million, or 16.1% of net sales, a decrease from 18.0% of net sales for the three months ended January 31, 2024. The decrease was driven primarily by deleveraging of operating expenses.
Previous report
Net sales and losses before income taxes were as follows (in millions):
Previous report
(1) The impact of foreign currency translation was calculated by translating the second quarter of fiscal 2025 foreign currency net sales into U.S. dollars using the average foreign currency exchange rates for the second quarter of the prior fiscal year. The impact of currency translation does not change the underlying drivers of revenue shown in this chart.
Reworded paragraphs (33)
Previous wording
Net sales for the three months ended January 31, 2025 decreased $6.7 million, or 0.8%, from the three months ended January 31, 2024, reflecting lower sales in the Mobile Solutions segment of $2.8 million, or a 0.5% decline, and the Industrial Solutions segment of $9.7 million, or a 3.7% decline, partially offset by higher sales in the Life Sciences segment of $5.8 million, or 9.2% growth. Foreign currency translation decreased net sales by $14.7 million compared to the three months ended January 31, 2024, reflecting decreases in the Mobile Solutions, Industrial Solutions and Life Sciences segments of $10.7 million, $2.9 million and $1.1 million, respectively. During the three months ended January 31, 2025, the Company’s net sales decrease was driven by unfavorable foreign currency impacts, partially offset by pricing benefits.
Current wording
Net sales for the three months ended April 30, 2025 increased $12.2 million, or 1.3%, from the three months ended April 30, 2024, reflecting higher sales in the Industrial Solutions segment of $14.2 million, or 5.3% growth, and the Life Sciences segment of $0.6 million, or 0.7% growth, partially offset by lower sales in the Mobile Solutions segment of $2.6 million, or a 0.4% decline. Foreign currency translation decreased net sales by $2.8 million compared to the three months ended April 30, 2024, reflecting a decrease in the Mobile Solutions segment of $3.5 million and an increase in the Life Sciences segment of $0.7 million. Foreign currency translation had no impact on the Industrial Solutions segment. During the three months ended April 30, 2025, the Company’s net sales increase was driven by pricing benefits and volume growth, partially offset by unfavorable foreign currency impacts.
Previous wording
Gross margin as a percentage of net sales for the three months ended January 31, 2025 was 35.2% compared with 35.2% for the three months ended January 31, 2024, and was consistent with the prior year.
Current wording
Gross margin as a percentage of net sales for the three months ended April 30, 2025 was 34.2% compared with 35.6% for the three months ended April 30, 2024. The decrease in gross margin as a percentage of net sales was driven primarily by higher manufacturing costs associated with footprint optimization initiatives.
Previous wording
Selling, general and administrative expenses for the six months ended January 31, 2025 were $325.3 million, or 18.4% of net sales, compared with $311.8 million, or 18.1% of net sales, for the six months ended January 31, 2024, an increase of $13.5 million, or 4.3%. The increase in selling, general and administrative expenses as a percentage of net sales was primarily due to restructuring and other non-recurring expenses of $8.2 million, partially offset by disciplined expense management.
Current wording
Selling, general and administrative expenses for the three months ended April 30, 2025 were $151.1 million, or 16.1% of net sales, compared with $161.7 million, or 17.4% of net sales, for the three months ended April 30, 2024, a decrease of $10.6 million, or 6.5%. The decrease in selling, general and administrative expenses as a percentage of net sales was primarily due to a $6.2 million benefit from the reduction of the Purilogics’ contingent consideration liability, which represents the fair value based on the probability of achieving certain milestones, a $4.4 million benefit due to lower warranty expense for the three months ended April 30, 2025, and ongoing disciplined expense management, partially offset by restructuring, business development and other non-recurring expenses.
Previous wording
Interest expense for the three months ended January 31, 2025 was $5.9 million, compared with $5.6 million for the three months ended January 31, 2024, an increase of $0.3 million, or 5.3%. The increase reflected a higher proportion of variable interest rate debt.
Current wording
Interest expense for the three months ended April 30, 2025 was $5.7 million, compared with $5.0 million for the three months ended April 30, 2024, an increase of $0.7 million, or 14.7%. The increase reflected a higher proportion of variable interest rate debt.
Previous wording
Other income, net for the three months ended January 31, 2025 was $5.4 million, compared with other income, net of $4.9 million for the three months ended January 31, 2024, an increase of $0.5 million, which was driven primarily by lower foreign currency losses in the current year.
Current wording
Other income, net for the three months ended April 30, 2025 was $5.3 million, compared with other income, net of $5.4 million for the three months ended April 30, 2024, a decrease of $0.1 million, which was relatively consistent with the prior year.
Previous wording
The effective tax rate was 23.7% and 24.2% for the six months ended January 31, 2025 and 2024, respectively. The lower effective tax rate was primarily due to an increase in discrete tax benefits.
Current wording
The effective tax rate was 33.6% and 21.2% for the three months ended April 30, 2025 and 2024, respectively. The higher effective tax rate was primarily due to the loss on impairment of intangible assets in the three months ended April 30, 2025, as the discrete tax benefit on the loss on impairment of intangible assets was reduced by an increase in valuation allowance. Excluding the impact of the loss on impairment of intangible assets, the effective tax rate is higher due to a decrease in discrete tax benefits.
Previous wording
Net earnings for the three months ended January 31, 2025 were $95.9 million, compared with $98.7 million for the three months ended January 31, 2024, a decrease of $2.8 million, or 2.7%. Diluted EPS were $0.79 for the three months ended January 31, 2025, compared with $0.81 for the three months ended January 31, 2024, a decrease of $0.02, or 2.2%.
Current wording
Net earnings for the three months ended April 30, 2025 were $57.8 million, compared with $113.5 million for the three months ended April 30, 2024, a decrease of $55.7 million, or 49.1%. Diluted EPS were $0.48 for the three months ended April 30, 2025, compared with $0.92 for the three months ended April 30, 2024, a decrease of $0.44, or 48.0%.
Previous wording
Net sales for the six months ended January 31, 2025 increased $47.1 million, or 2.7%, from the six months ended January 31, 2024, reflecting higher sales in the Mobile Solutions segment of $29.6 million, or 2.7% growth, the Industrial Solutions segment of $1.7 million, or 0.3% growth, and the Life Sciences segment of $15.8 million, or 12.8% growth. Foreign currency translation decreased net sales by $7.3 million compared to the six months ended January 31, 2024, reflecting decreases in the Mobile Solutions and Industrial Solutions segments of $7.3 million and $0.5 million, respectively, partially offset by an increase in the Life Sciences segment of $0.5 million. During the six months ended January 31, 2025, the Company’s net sales increased due to volume growth and higher pricing, partially offset by unfavorable foreign currency impacts.
Current wording
Net sales for the nine months ended April 30, 2025 increased $59.3 million, or 2.2%, from the nine months ended April 30, 2024, reflecting higher sales in the Mobile Solutions segment of $27.1 million, or 1.6% growth, the Industrial Solutions segment of $15.9 million, or 2.0% growth, and the Life Sciences segment of $16.3 million, or 8.3% growth. Foreign currency translation decreased net sales by $10.1 million compared to the nine months ended April 30, 2024, reflecting decreases in the Mobile Solutions and Industrial Solutions segments of $10.8 million and $0.5 million, respectively, partially offset by an increase in the Life Sciences segment of $1.2 million. During the nine months ended April 30, 2025, the Company’s net sales increased due to volume growth and higher pricing, partially offset by unfavorable foreign currency impacts.
Previous wording
Gross margin as a percentage of net sales for the six months ended January 31, 2025 was 35.3% compared with 35.4% for the six months ended January 31, 2024, and was consistent with the prior year.
Current wording
Gross margin as a percentage of net sales for the nine months ended April 30, 2025 was 35.0% compared with 35.4% for the nine months ended April 30, 2024. The decrease in gross margin as a percentage of net sales was driven primarily by higher manufacturing costs associated with footprint optimization initiatives.
Previous wording
Selling, general and administrative expenses for the three months ended January 31, 2025 were $159.2 million, or 18.3% of net sales, compared with $156.8 million, or 17.9% of net sales, for the three months ended January 31, 2024, an increase of $2.4 million, or 1.5%. The increase in selling, general and administrative expenses as a percentage of net sales was primarily due to restructuring and other non-recurring expenses of $6.0 million, partially offset by disciplined expense management.
Current wording
Selling, general and administrative expenses for the nine months ended April 30, 2025 were $476.4 million, or 17.6% of net sales, compared with $473.5 million, or 17.9% of net sales, for the nine months ended April 30, 2024, an increase of $2.9 million, or 0.6%. The decrease in selling, general and administrative expenses as a percentage of net sales was primarily due to a $6.2 million benefit from the reduction of the Purilogics’ contingent consideration liability, which represents the fair value based on the probability of achieving certain milestones, and ongoing disciplined expense management, partially offset by restructuring, business development and other non-recurring expenses.
Previous wording
Research and development expenses for the three months ended January 31, 2025 were $21.2 million, or 2.4% of net sales, and were approximately flat compared with $22.1 million, or 2.5% of net sales, for the three months ended January 31, 2024.
Current wording
Research and development expenses for the nine months ended April 30, 2025 were $65.3 million, or 2.4% of net sales, compared with $68.2 million, or 2.6% of net sales, for the nine months ended April 30, 2024, a decrease of $2.9 million, or 4.4%, driven by focused project prioritization.
Previous wording
Interest expense for the six months ended January 31, 2025 was $11.4 million, compared with $11.1 million for the six months ended January 31, 2024, an increase of $0.3 million, or 2.7%. The increase reflected a higher proportion of variable interest rate debt.
Current wording
Interest expense for the nine months ended April 30, 2025 was $17.1 million, compared with $16.1 million for the nine months ended April 30, 2024, an increase of $1.0 million, or 6.4%. The increase reflected a higher proportion of variable interest rate debt.
Previous wording
Other income, net for the six months ended January 31, 2025 was $10.6 million, compared with other income, net of $8.7 million for the six months ended January 31, 2024, an increase of $1.9 million, which was driven primarily by higher income from joint ventures.
Current wording
Other income, net for the nine months ended April 30, 2025 was $15.9 million, compared with other income, net of $14.1 million for the nine months ended April 30, 2024, an increase of $1.8 million, which was driven primarily by the timing of pension related expenses.
Previous wording
Net sales of Aftermarket increased $17.1 million, primarily due to strong market demand. Net sales of On-Road and Off-Road decreased $8.2 million and $11.7 million, respectively, primarily due to a decline in global equipment production driven by weak end market conditions, including agriculture and transportation.
Current wording
Net sales of Aftermarket increased $14.8 million, primarily due to solid market demand. Net sales of On-Road and Off-Road decreased $8.8 million and $8.6 million, respectively, primarily due to a decline in global equipment production driven by weak end market conditions, including transportation and agriculture.
Previous wording
Net sales for the Mobile Solutions segment for the six months ended January 31, 2025 were $1,119.9 million, compared with $1,090.3 million for the six months ended January 31, 2024, an increase of $29.6 million, or 2.7%. Foreign currency translation negatively impacted net sales for the Mobile Solutions segment by 0.7%. All business units were negatively impacted by foreign currency translation.
Current wording
Net sales for the Mobile Solutions segment for the nine months ended April 30, 2025 were $1,702.6 million, compared with $1,675.5 million for the nine months ended April 30, 2024, an increase of $27.1 million, or 1.6%. Foreign currency translation negatively impacted net sales for the Mobile Solutions segment by 0.7%. All business units were negatively impacted by foreign currency translation.
Previous wording
Net sales of Aftermarket increased $60.8 million due to volume increases driven by strong market demand and market share gains. Net sales of On-Road and Off-Road decreased $13.9 million and $17.3 million, respectively, primarily due to a decline in global equipment production driven by weak end market conditions, including agriculture and transportation.
Current wording
Net sales of Aftermarket increased $75.7 million due to volume increases driven by solid market demand and market share gains. Net sales of On-Road and Off-Road decreased $22.6 million and $26.0 million, respectively, primarily due to a decline in global equipment production driven by weak end market conditions, including transportation and agriculture.
Previous wording
Earnings before income taxes for the Mobile Solutions segment for the six months ended January 31, 2025 were $200.2 million, or 17.9% of net sales, an increase from 17.6% of net sales for the six months ended January 31, 2024. The increase was driven by higher volume and favorable product mix related to the sale of replacement parts.
Current wording
Earnings before income taxes for the Mobile Solutions segment for the nine months ended April 30, 2025 were $305.5 million, or 17.9% of net sales, consistent with 17.9% of net sales for the nine months ended April 30, 2024.
Previous wording
Net sales of IFS decreased $17.0 million, reflecting lower sales volume in power generation driven by the timing of projects and lower sales volume in industrial gases driven by weak market conditions. Net sales of Aerospace and Defense increased by $7.3 million due to ongoing strength in the Defense end markets.
Current wording
Net sales of Aerospace and Defense increased by $11.0 million due to ongoing strength in the Aerospace and Defense end markets. Net sales of IFS increased $3.2 million, driven by replacement part sales strength in several key businesses, partially offset by weakness in new equipment sales.
Previous wording
Net sales for the Industrial Solutions segment for the six months ended January 31, 2025 were $511.3 million, compared with $509.6 million for the six months ended January 31, 2024, an increase of $1.7 million, or 0.3%. Foreign currency translation negatively impacted net sales for the Industrial Solutions segment by 0.1%. Both business units were negatively impacted by foreign currency translation.
Current wording
Net sales for the Industrial Solutions segment for the nine months ended April 30, 2025 were $794.6 million, compared with $778.7 million for the nine months ended April 30, 2024, an increase of $15.9 million, or 2.0%. Foreign currency translation negatively impacted net sales for the Industrial Solutions segment by 0.1%. Both business units were negatively impacted by foreign currency translation.
Previous wording
Net sales of IFS decreased $15.2 million, reflecting lower sales volume in industrial gases and industrial air filtration driven by weak market conditions and lower sales volume in power generation driven by the timing of projects. Net sales of Aerospace and Defense increased by $16.9 million due to ongoing strength in the Defense end markets.
Current wording
Net sales of Aerospace and Defense increased by $27.8 million due to ongoing strength in the Aerospace and Defense end markets. Net sales of IFS decreased $11.9 million, reflecting lower sales volume in Industrial Air Filtration and Industrial Gases driven by weak market conditions and lower sales volume in Power Generation driven by the timing of projects, partially offset by strength in Industrial Services.
Previous wording
Earnings before income taxes for the Industrial Solutions segment for the six months ended January 31, 2025 were $81.9 million, or 16.0% of net sales, a decrease from 17.8% of net sales for the six months ended January 31, 2024 primarily driven by deleveraging operating expenses and the impact of negative product mix.
Current wording
Earnings before income taxes for the Industrial Solutions segment for the nine months ended April 30, 2025 were $133.1 million, or 16.8% of net sales, a decrease from 18.1% of net sales for the nine months ended April 30, 2024 primarily driven by unfavorable product mix and the impact of deleveraging operating expenses.
Previous wording
Net sales for the Life Sciences segment for the three months ended January 31, 2025 were $68.8 million, compared with $63.0 million for the three months ended January 31, 2024, an increase of $5.8 million, or 9.2%. Foreign currency translation negatively impacted net sales for the Life Sciences segment by 1.7%. The increase was driven by strong market demand in disk drive.
Current wording
Net sales for the Life Sciences segment for the three months ended April 30, 2025 were $74.2 million, compared with $73.6 million for the three months ended April 30, 2024, an increase of $0.6 million, or 0.7%. Foreign currency translation favorably impacted net sales for the Life Sciences segment by 0.9%. The increase in net sales was driven by strong market demand in Disk Drive and Food and Beverage, partially offset by unfavorable timing of bioprocessing sales.
Previous wording
Losses before income taxes for the Life Sciences segment for the three months ended January 31, 2025 were $0.5 million, or 0.7% of net sales, a decrease from losses before income taxes of 9.2% of net sales for the three months ended January 31, 2024. The improvement was driven by leverage from higher sales and benefits from recent restructuring activities.
Current wording
Earnings before income taxes for the Life Sciences segment for the three months ended April 30, 2025 were $5.8 million, or 7.8% of net sales, an increase from earnings before income taxes of 0.7% of net sales for the three months ended April 30, 2024. The improvement was driven by a $6.2 million benefit from the reduction of the Purilogics’ contingent consideration liability, which represents the fair value based on the probability of achieving certain milestones, and benefits from recent restructuring activities.
Previous wording
Net sales for the Life Sciences segment for the six months ended January 31, 2025 were $138.9 million, compared with $123.1 million for the six months ended January 31, 2024, an increase of $15.8 million, or 12.8%. Foreign currency translation favorably impacted net sales for the Life Sciences segment by 0.4%. The increase was driven by strong market demand in disk drive.
Current wording
Net sales for the Life Sciences segment for the nine months ended April 30, 2025 were $213.0 million, compared with $196.7 million for the nine months ended April 30, 2024, an increase of $16.3 million, or 8.3%. Foreign currency translation favorably impacted net sales for the Life Sciences segment by 0.6%. The increase in net sales was driven by strong market demand in Disk Drive.
Previous wording
Losses before income taxes for the Life Sciences segment for the six months ended January 31, 2025 were $5.8 million, or 4.2% of net sales, a decrease from losses before income taxes of 8.1% of net sales for the six months ended January 31, 2024. The improvement was driven by leverage from higher sales and benefits from recent restructuring activities.
Current wording
There were no earnings or losses before income taxes for the Life Sciences segment for the nine months ended April 30, 2025, an improvement from losses before income taxes of 4.8% of net sales for the nine months ended April 30, 2024. The improvement was driven by a $6.2 million benefit from the reduction of the Purilogics’ contingent consideration liability, which represents the fair value based on the probability of achieving certain milestones, and benefits from recent restructuring activities.
Previous wording
Cash provided by operating activities for the six months ended January 31, 2025 was $163.3 million, compared with $225.0 million for the six months ended January 31, 2024, a decrease of $61.7 million. The decrease in cash provided by operating activities was primarily driven by an increase in working capital requirements during the current quarter, including purchasing additional inventory to increase on-time deliveries.
Current wording
Cash provided by operating activities for the nine months ended April 30, 2025 was $251.0 million, compared with $366.5 million for the nine months ended April 30, 2024, a decrease of $115.5 million. The decrease in cash provided by operating activities was primarily driven by an increase in working capital.
Previous wording
Cash used in investing activities for the six months ended January 31, 2025 was $115.1 million, compared with $44.5 million for the six months ended January 31, 2024, an increase of $70.6 million. The increase in cash used was primarily due to the equity method investment in Medica.
Current wording
Cash used in investing activities for the nine months ended April 30, 2025 was $129.8 million, compared with $67.8 million for the nine months ended April 30, 2024, an increase of $62.0 million. The increase in cash used was primarily due to the equity method investment in Medica.
Previous wording
Cash used in financing activities generally relates to the use of cash for payment of dividends and repurchases of the Company’s common stock, net of borrowing activity and proceeds from the exercise of stock options. Cash used in financing activities for the six months ended January 31, 2025 was $88.5 million, compared with cash used in financing activities of $171.7 million for the six months ended January 31, 2024, a decrease of $83.2 million. The decrease was primarily driven by a debt repayment of $20.0 million in the current year compared to $88.7 million in the prior year.
Current wording
Cash used in financing activities generally relates to the use of cash for payment of dividends and repurchases of the Company’s common stock, net of borrowing activity and proceeds from the exercise of stock options. Cash used in financing activities for the nine months ended April 30, 2025 was $175.4 million, compared with cash used in financing activities of $257.5 million for the nine months ended April 30, 2024, a decrease of $82.1 million. The decrease was primarily driven by net proceeds from long-term debt of $125.0 million in the current year compared to a net repayment of long-term debt of $109.1 million in the prior year, partially offset by an increase in the repurchases of the Company’s common stock of $158.4 million.
Previous wording
To determine the level of dividend and share repurchases, the Company considers recent and projected performance across key financial metrics, including earnings, cash flow from operations and total debt. Dividends paid for the six months ended January 31, 2025 and 2024 were $64.6 million and $60.3 million, respectively. Share repurchases for the six months ended January 31, 2025 and 2024 were $81.6 million and $86.6 million, respectively.
Current wording
To determine the level of dividend and share repurchases, the Company considers recent and projected performance across key financial metrics, including earnings, cash flow from operations and total debt. Dividends paid for the nine months ended April 30, 2025 and 2024 were $96.9 million and $90.3 million, respectively. Share repurchases for the nine months ended April 30, 2025 and 2024 were $272.2 million and $113.8 million, respectively.
Previous wording
Additional sources of liquidity are existing cash and available credit facilities. Cash and cash equivalents as of January 31, 2025 was $189.1 million, compared with $232.7 million as of July 31, 2024. The Company has capacity of $543.9 million available for further borrowing under existing credit facilities as of January 31, 2025, which includes $347.0 million available on the Company’s $500.0 million unsecured revolving credit facility that expires on May 21, 2026.
Current wording
Additional sources of liquidity are existing cash and available credit facilities. Cash and cash equivalents as of April 30, 2025 was $178.5 million, compared with $232.7 million as of July 31, 2024. The Company has capacity of $407.4 million available for further borrowing under existing credit facilities as of April 30, 2025, which includes $232.0 million available on the Company’s $500.0 million unsecured revolving credit facility that expires on May 21, 2026.
Previous wording
As of January 31, 2025, total debt, including short-term borrowings and long-term debt, represented 27.2% of total capitalization, defined as total debt plus total stockholders’ equity, compared with 26.5% as of July 31, 2024. As of January 31, 2025, the Company was in compliance with its financial covenants.
Current wording
As of April 30, 2025, total debt, including short-term borrowings and long-term debt, represented 33.0% of total capitalization, defined as total debt plus total stockholders’ equity, compared with 26.5% as of July 31, 2024. As of April 30, 2025, the Company was in compliance with its financial covenants.
Previous wording
Long-term debt outstanding was $539.7 million as of January 31, 2025, compared with $508.4 million as of July 31, 2024, an increase of $31.3 million, primarily due to proceeds from long-term debt received to finance our equity method investment in Medica during the six months ended January 31, 2025. As of January 31, 2025, there was $347.0 million available and $145.0 million outstanding on the Company’s $500.0 million unsecured revolving credit facility that expires on May 21, 2026.
Current wording
Long-term debt outstanding was $638.8 million as of April 30, 2025, compared with $508.4 million as of July 31, 2024, an increase of $130.4 million, primarily due to share repurchases during the nine months ended April 30, 2025. As of April 30, 2025, there was $232.0 million available and $260.0 million outstanding on the Company’s $500.0 million unsecured revolving credit facility that expires on May 21, 2026. The Company intends to complete a renewal of the revolving credit facility during the three months ended July 31, 2025.
Previous wording
These forward-looking statements speak only as of the date such statements are made and are subject to risks and uncertainties that could affect the Company’s performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed. These factors include, but are not limited to, challenges in global operations; impacts of global economic, industrial and political conditions on product demand, impacts from unexpected events, effects of unavailable raw materials, significant demand fluctuations or material cost inflation; inability to attract and retain qualified personnel; inability to meet customer demand; inability to maintain competitive advantages; threats from disruptive technologies; effects of highly competitive markets with pricing pressure; exposure to customer concentration in certain cyclical industries; inability to manage productivity improvements; inability to achieve commitments related to ESG; results of execution of any acquisition, divestiture and other strategic transactions; vulnerabilities associated with information technology systems and security; inability to protect and enforce intellectual property rights; costs associated with governmental laws and regulations; impacts of foreign currency fluctuations; and effects of changes in capital and credit markets. These and other factors are described in Part I, Item 1A, “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2024. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law.
Current wording
These forward-looking statements speak only as of the date such statements are made and are subject to risks and uncertainties that could affect the Company’s performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed. These factors include, but are not limited to, challenges in global operations; impacts of global economic, industrial and political conditions on product demand, impacts from unexpected events, effects of unavailable raw materials, significant demand fluctuations or material cost changes; inability to attract and retain qualified personnel; inability to meet customer demand; inability to maintain competitive advantages; threats from disruptive technologies; effects of highly competitive markets with pricing pressure; exposure to customer concentration in certain cyclical industries; inability to manage productivity improvements; inability to achieve commitments related to ESG; results of execution of any acquisition, divestiture and other strategic transactions; vulnerabilities associated with information technology systems and security; inability to protect and enforce intellectual property rights; costs associated with governmental laws and regulations; impacts of foreign currency fluctuations; and effects of changes in capital and credit markets. These and other factors are described in Part I, Item 1A, “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2024. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law.