Donaldson Company, Inc. (DCI): Business Model Canvas [Dec-2025 Updated]

After two decades analyzing firms, including my time leading analysts at BlackRock, you're looking at how Donaldson Company, Inc. (DCI) actually makes its money. Honestly, their $3.7 billion in fiscal year 2025 net sales isn't just about the initial equipment; it's the classic razor-and-blade model driving high-margin aftermarket parts, backed by a $88 million R&D spend to keep their tech superior. We've broken down their entire Business Model Canvas-from their key Original Equipment Manufacturer (OEM) partnerships to the $465 million they returned to shareholders last year-so you can see the precise mechanics behind this industrial giant's strategy. Dive in below to see the nine blocks that define their moat.

Donaldson Company, Inc. (DCI) - Canvas Business Model: Key Partnerships

You're looking at how Donaldson Company, Inc. (DCI) structures its external relationships to drive its business, and the numbers show a clear focus on both established channels and future-facing technology projects.

Original Equipment Manufacturers (OEMs) for initial equipment sales

The health of the OEM channel directly impacts DCI's Mobile Solutions segment. For instance, in the second quarter of fiscal 2025, the strength in the OEM channel was a key driver for Aftermarket sales, which grew by 4.0% during that period. However, the initial equipment side faced headwinds; Off-Road sales decreased 12.8% and On-Road sales dropped 24.4% year-over-year in that same quarter, largely due to a decline in global equipment production across agriculture and transportation markets.

Looking at the start of fiscal 2026, the Mobile Solutions segment, which includes OEM business, posted sales of $598.3 million for the first quarter, representing a year-over-year increase of 4.5%. This segment accounts for 64% of DCI's total net sales.

Independent aftermarket channel partners, like the expanded relationship with NAPA

The aftermarket channel is a significant revenue driver, showing resilience even when OEM equipment production slows. The relationship with NAPA Auto Parts, where DCI supplies the NAPA Gold heavy-duty air filtration offering, required substantial internal coordination. To support this expanded channel, Donaldson Company, Inc. activated more than 500 employees across 14 departments and a dozen facilities as of February 2025. This focus paid off, as Aftermarket sales within the Mobile Solutions segment improved by 6.5% year-over-year in the first quarter of fiscal 2026.

Overall, DCI's full-year fiscal 2025 sales reached $3.7 billion, and the company is guiding for fiscal 2026 sales to be up between 1% and 5% from that level.

Strategic alliances, such as with Daimler Truck North America for the SuperTruck III project

The partnership with Daimler Truck North America (DTNA) on the hydrogen fuel cell Freightliner SuperTruck III project positions Donaldson Company, Inc. in emerging clean energy technology. DTNA received $26 million from the U.S. Department of Energy (DOE) to support this initiative, which features Donaldson's advanced air filter technology. This collaboration was publicly announced on January 30, 2025. However, the near-term commitment is finite; DTNA confirmed that funding for their SuperTruck 3 program will conclude at the end of 2025, with the goal of completing remaining milestones for a prototype vehicle by that time.

Raw material and component suppliers for global manufacturing

The cost structure reflects reliance on suppliers. For the first quarter of fiscal 2026, DCI's cost of sales was $606.6 million. The company's gross margin for that quarter stood at 34.85%, which is a key indicator of how supplier costs are managed relative to pricing.

Technology partners for connected filtration solutions

While specific named technology partners for connected filtration solutions aren't detailed with financial figures, the company's overall financial performance reflects investment in technology and market expansion. For example, the Life Sciences segment, which often involves advanced technology applications, saw sales increase 13.1% year-over-year in Q1 Fiscal 2026, reaching $79.3 million.

Here is a snapshot of the key performance indicators related to these partnership channels:

The company's debt management, which impacts capital available for new partnerships, shows a debt-to-equity ratio of 0.46 as of the end of Q1 Fiscal 2026.

Donaldson Company, Inc. (DCI) - Canvas Business Model: Key Activities

You're looking at the core actions Donaldson Company, Inc. (DCI) takes to deliver value, which is crucial for understanding their recurring revenue engine and technology moat. These activities are the engine room of their business model.

Research and Development (R&D) is a non-negotiable activity for Donaldson Company, Inc. to keep its technology leadership sharp. For fiscal year 2025, the company reported an investment of $88 million in R&D to support innovation and develop their best-in-class technologies. This investment underpins their ability to solve complex filtration challenges across their segments.

Global manufacturing and supply chain management requires a massive physical footprint. Donaldson Company, Inc. supports its operations with diverse, skilled employees at over 140 locations across six continents. This network includes manufacturing and distribution centers globally, with the World Headquarters located in Bloomington, Minnesota, United States.

The execution of the razor-to-sell-razorblade model is central to DCI's recurring revenue stability. This strategy focuses on selling the initial equipment (the razor) and then securing high-margin, repeat business from replacement parts (the blades). For instance, in the Industrial Solutions segment, over half of total industrial sales in one reported quarter were replacement part sales. In Mobile Solutions during Q1 FY2026, aftermarket sales specifically grew by 6.5% year-over-year.

Structural cost optimization and footprint rationalization initiatives are ongoing efforts to build long-term structural efficiencies. These actions, which began in fiscal 2024, are aimed at improving the operating and manufacturing cost structure. For example, in Q1 FY2026, operating expense as a rate of sales improved to 19.9% from 20.7% the prior year, partly due to these optimization benefits. However, these restructuring activities have short-term financial impacts, with an estimated future cost range for these actions cited between $5.0 million and $10.0 million. Management has indicated they expect to be mostly complete with current activities by the second half of fiscal year 2026.

Developing and servicing connected filtration systems represents the future of their service model, moving toward a 'Create-Connect-Replace-Service' approach. Donaldson Company, Inc. has pioneered connected filtration products, such as the Filter Minder™ Connect monitoring solution, which provides real-time data on filtration system condition to fleets. This technology helps customers anticipate maintenance and optimize usage.

Here's a quick look at how some of these key activities translated into recent financial performance:

The success of these activities is reflected in the company's outlook; for fiscal 2026, Donaldson Company, Inc. forecasts sales growth between 1% and 5%, with an adjusted EPS guidance midpoint of $4.03. The focus remains on leveraging operational improvements and growth in high-margin areas like Life Sciences, which saw sales increase by 13.1% in Q1 FY2026.

• Gaining market share in key businesses.
• Mobile Solutions pretax profit margin reached 18.6% in Q1 FY2026.
• Life Sciences pretax margin improved to 9.2% in Q1 FY2026.
• Repurchased shares worth $91.9 million in Q1 FY2026.
• Paid $34.7 million in dividends in Q1 FY2026.

Donaldson Company, Inc. (DCI) - Canvas Business Model: Key Resources

You're looking at the core assets Donaldson Company, Inc. (DCI) relies on to keep its filtration business running strong through late 2025. These aren't just line items; they're the competitive moat.

Proprietary filtration media and best-in-class technology patents.

The intellectual property is deep here. Donaldson Company, Inc. leverages an extensive technology library built over decades. You can see the commitment to innovation in the recent patent grants, like the one for a nonwoven filtration medium granted on October 7, 2025.

• Total active U.S. and international patents as of May 2025: 3,260.
• New patents registered in 2024: 392.
• The company is recognized as a pioneer in fine fiber technology, manufacturing filter elements using fibers less than a micron in width for over two decades.

Global manufacturing and distribution network, including the new Olive Branch, MS distribution center.

The physical footprint supports the razor-to-sell-razorblade model, especially for the high-margin Aftermarket business. That new facility in Olive Branch, Mississippi, started operations in October 2024 to specifically strengthen recurring Aftermarket demand fulfillment.

Strong balance sheet and cash flow, with $465 million returned to shareholders in FY2025.

The financial foundation is solid, allowing for significant capital return. The company's cash flow generation and strong balance sheet were key enablers for shareholder returns in fiscal 2025.

Here's the quick math on shareholder capital deployment for the full fiscal year 2025:

What this estimate hides is the consistent commitment; Donaldson has increased its dividend for the last 30 years in a row.

Specialized engineering talent focused on Mobile, Industrial, and Life Sciences applications.

The talent is segmented to serve the three reportable operating segments. The distribution of sales across these segments in fiscal 2025 shows where the engineering focus directly translates to revenue.

Installed base of equipment that drives high-margin aftermarket demand.

The installed base creates the recurring revenue stream. This is the 'razorblade' part of the business model at work, where existing equipment requires ongoing filter replacement, which is higher margin than new equipment sales.

• Aftermarket sales generated solid growth in FY2025, offsetting cyclical pressures in new equipment sales.
• The Mobile Solutions segment, which includes the Aftermarket business unit, accounted for 62.1% of total net sales for fiscal 2025.

Donaldson Company, Inc. (DCI) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Donaldson Company, Inc. (DCI) over the competition, grounded in their late 2025 performance metrics. It's about delivering measurable results in demanding environments, which translates directly to their financial success.

Superior performance and efficiency in air and liquid filtration for critical applications.

The proof of superior performance shows up in the top-line growth and margin strength. For the full year fiscal 2025, Donaldson Company, Inc. achieved total sales of $3.7 billion. This was supported by strong segment execution; for instance, the Life Sciences segment saw sales increase by 14.1% year over year in fiscal 2025, driven by Food and Beverage and Disk Drive strength. The Industrial Filtration Solutions (IFS) sub-segment specifically grew by 11% in the fourth quarter of fiscal 2025, reflecting demand in dust collection and power generation projects. The company delivered a record adjusted operating margin of 15.7% for the full year fiscal 2025.

Recurring revenue model providing reliable, high-margin replacement parts.

The Aftermarket business is a cornerstone of this value proposition, offering the reliable, high-margin consumables that keep equipment running. In the Mobile Solutions segment, which houses the Aftermarket business units, sales grew by 6.5% in the first quarter of fiscal 2026, showing continued share gains in the independent channel. This recurring revenue stream supports shareholder returns; Donaldson Company, Inc. has increased its dividend for the last 30 years in a row and is a member of the S&P High Yield Dividend Aristocrat Index. The company returned approximately $465 million to shareholders in fiscal 2025 through dividends and share repurchases.

The financial structure supporting this recurring revenue is clear when you look at the segment breakdown:

Compliance with global environmental regulations and emissions standards.

Donaldson Company, Inc. integrates environmental responsibility into its core offering, which helps customers meet their own compliance needs. The company has made tangible progress against its 2030 Sustainability Ambitions. Specifically, Scope 1 and 2 Greenhouse Gas (GHG) emissions were reduced by 18%, which equates to more than 20,400 mt CO2e, against the fiscal year 2021 baseline. Furthermore, a new ambition was set to reduce landfill waste from operations and/or increase recycling/reuse by 40% of the fiscal year 2024 landfill waste, targeting a total impact of 3,200 metric tons.

Custom-engineered solutions for OEMs across diverse end markets.

The ability to tailor solutions is evidenced by wins in specific, demanding sectors. The Life Sciences segment, for example, saw strong new equipment sales in Food and Beverage. In the Mobile Solutions segment, which serves OEMs in construction, mining, agriculture, and transportation, the Off-Road business grew by 5.1% in Q4 2025, supported by construction market conditions. The company also secured another hydraulics program with a local manufacturer in the agriculture market during the fourth quarter of fiscal 2025, showing direct customer confidence in their engineering value proposition.

Advancing Filtration for a Cleaner World, supporting customer sustainability goals.

This purpose-driven value is backed by significant operational commitments that align with customer decarbonization efforts. Donaldson Company, Inc. is targeting an absolute reduction of its Scope 1 and 2 GHG emissions by 42% over the fiscal year 2021 baseline by the year 2030. To support this, the company entered into a Virtual Power Purchase Agreement (VPPA) with PepsiCo, which is expected to offset a majority of their U.S. electrical energy demand once completed.

Here are the key sustainability-linked metrics supporting this value:

• Targeted Scope 1 & 2 GHG reduction by 42% by 2030 (vs. FY21 baseline).
• Achieved 18% GHG reduction as of FY24.
• New landfill waste reduction target of 3,200 metric tons impact.
• Life Sciences sales grew 14.1% in FY2025.

Finance: draft the Q1 FY26 cash flow forecast incorporating the $3.8 billion sales guidance for FY2026.

Donaldson Company, Inc. (DCI) - Canvas Business Model: Customer Relationships

The approach Donaldson Company, Inc. (DCI) takes to its various customer groups is highly differentiated, moving from deep, consultative partnerships to high-volume transactional interactions.

Long-term relationship focus, evidenced by a 30-year consecutive dividend increase.

The commitment to long-term shareholder relationships is a core indicator of the company's stability and relationship focus. Calendar year 2025 marked the 30th consecutive year of annual dividend increases for Donaldson Company, Inc.. The latest declared regular cash dividend was 30.0 cents per share, payable on December 22, 2025. This consistent payout history, spanning 70 years of unbroken quarterly payments, underpins trust with investors. The dividend payout ratio for the company is approximately 35.94%.

Dedicated sales and engineering support for large, global OEM accounts.

For Original Equipment Manufacturer (OEM) customers, especially those in Mobile Solutions, the relationship is foundational to new equipment sales. The strength in the OEM channel was noted as a driver for Aftermarket sales growth in Q2 Fiscal Year 2025. Full Year Fiscal 2025 sales for Donaldson Company, Inc. reached an all-time high of $3.7 billion.

Proactive, digital service model for Industrial Solutions via connected machines.

The Industrial Solutions segment employs a proactive service model centered on technology. Donaldson Company, Inc. integrates its iCue™ Connected Filtration Technology, a remote monitoring system, into service plans. This technology provides real-time operational insights and generates alerts. The service plans are scalable, ranging from basic 'Monitor' to 'Monitor & Manage,' which includes on-site service from a Donaldson-certified technician. This digital layer helps manage equipment like dust collectors and compressed air systems.

High-touch, consultative approach for complex Life Sciences and Aerospace/Defense projects.

These segments require deep technical engagement due to the complexity and regulatory nature of the filtration challenges. In Q2 Fiscal Year 2025, the Life Sciences segment saw sales increase 9.2% year-over-year, driven by Disk Drive and Food & Beverage volume. Aerospace and Defense sales showed significant growth of 27.1% in Q3 Fiscal Year 2025, reflecting robust end-market conditions.

Transactional and self-service via the independent aftermarket distribution channel.

The independent aftermarket channel supports a high-volume, transactional relationship, primarily for replacement parts. In Q2 Fiscal Year 2025, Aftermarket sales increased 4.0% driven by strong market demand. By Q3 Fiscal Year 2025, Aftermarket sales rose 3.3%, attributed to market share gains in the independent channel.

Here's a quick look at how the relationship intensity correlates with segment performance in recent quarters:

The company's overall customer engagement strategy is supported by its scale, operating in over 150 locations on six continents.

• Dedicated support for large OEMs is evidenced by winning a hydraulics program with a local manufacturer in the agriculture market in Q4 2025.
• The digital service model for Industrial Solutions includes monitoring options like Fan Energy & Power and Differential Pressure.
• Consultative projects in Life Sciences included $77 million in capital expenditures for projects like new disk drive technologies in Fiscal 2025.
• The long-term focus is also seen in the $88 million invested in R&D in Fiscal 2025 to support best-in-class technologies.
• The company returned approximately $465 million to shareholders through dividends and share repurchases in Full Year Fiscal 2025.

Donaldson Company, Inc. (DCI) - Canvas Business Model: Channels

The channels Donaldson Company, Inc. (DCI) uses to reach its customers are deeply integrated with its segment structure, particularly the Mobile Solutions segment, which represented about 64% of net sales in fiscal 2025. You see the direct and indirect routes to market clearly in the aftermarket business.

For Original Equipment Manufacturers (OEMs), DCI's direct sales force is crucial, especially within the Mobile Solutions segment, which sells to OEMs in construction, mining, agriculture, and transportation end markets. In the first quarter of fiscal 2026, Mobile Solutions segment sales reached $598.3 million, showing a year-over-year increase of 4.5%. This segment includes the Off-Road business, where sales grew 6.1% in that same quarter.

The independent distribution network and dealers are the primary route for aftermarket parts, a high-margin area. Aftermarket sales within Mobile Solutions improved by 6.5% year-over-year in the first quarter of fiscal 2026. Honestly, the independent channel is showing real traction; sales in that specific channel grew nearly double digits in the first quarter of fiscal 2026, indicating successful share gains against competitors.

The company supports this network with a significant physical footprint. Donaldson Company, Inc. operates a network of approximately 140 sales, manufacturing, and distribution locations across 44 countries globally. While specific financial data for the Olive Branch, Mississippi distribution center isn't public, the company lists several US distribution centers, including those in Laredo, Rensselaer, and Staunton, as part of its infrastructure supporting efficient product flow.

Here's a quick look at how the segments, which rely on these channels, performed in the first quarter of fiscal 2026:

Regarding e-commerce and digital platforms, the company supports parts ordering through its website, allowing customers to search for filters directly online by part number or cross reference. While the total fiscal 2025 revenue was $3.7 billion, specific revenue attributed to digital ordering platforms isn't broken out in the latest reports.

The global network of sales offices and technical support centers underpins the entire channel strategy. This global presence is evidenced by the fact that Donaldson Company, Inc. operates in 44 countries, with net sales in the first quarter of fiscal 2026 showing strong regional performance:

• Sales in Europe, the Middle East and Africa increased 9.1% year-over-year.
• Net sales in the Asia Pacific improved 6.6%.
• Net sales in Latin America increased 5.9%.
• United States/Canada net sales decreased 0.6% year-over-year.

Finance: draft a memo by next Tuesday detailing the top 5 independent channel partners by Q1 FY2026 revenue contribution.

Donaldson Company, Inc. (DCI) - Canvas Business Model: Customer Segments

You're looking at the core of Donaldson Company, Inc.'s (DCI) revenue engine, which is built on serving distinct, technically demanding markets. Honestly, the structure shows a clear split between selling new equipment systems and capturing the high-margin, recurring revenue from replacement parts. Here's how the customer base breaks down based on the latest numbers from Fiscal Year 2025 and the start of Fiscal Year 2026.

The Mobile Solutions segment remains the behemoth, making up 62.1% of DCI's total net sales in fiscal 2025, which totaled $2,291.0 million for that year. This segment is where you see the OEM business meet the recurring aftermarket business.

• Mobile Solutions OEMs (Off-Road, On-Road, and Defense) purchase filtration housings and systems for new equipment production.
• The Aftermarket end-users are the engine for recurring revenue, as replacement filters drive consistent sales. Aftermarket sales showed solid strength, rising 6.5% in the first quarter of fiscal 2026.
• The OEM side faced headwinds; Off-Road sales were up 6.1% in Q1 FY2026, but On-Road sales dropped a sharp 27.1% in that same quarter due to lower global truck production.

The Industrial Solutions segment, representing 29.9% of fiscal 2025 net sales, or $1,104.4 million, serves a diverse set of industrial applications. This is where the company services critical infrastructure.

The Life Sciences segment, while the smallest in terms of total revenue share, delivered the strongest growth recently, with sales up 13.1% year-over-year in the first quarter of fiscal 2026, hitting $79.3 million for that period. Fiscal 2025 net sales for this segment were $295.5 million.

You can see the financial weight of these customer groups in the table below, using the most recent full-year and quarterly data we have as of late 2025.

To be fair, the Aftermarket business is the one you want to watch closely for predictable cash flow; its growth is less tied to the cyclical nature of new equipment builds that affect the OEM side of Mobile Solutions. For instance, in Q1 FY2026, the Aftermarket unit saw sales rise 6.5%, while the On-Road OEM business saw sales fall 27.1%.

The Industrial segment's customer base is also segmented by product, but the end-users are clear:

• Industrial customers needing dust collection and power generation filtration.
• Aerospace and Defense contractors requiring specialized, high-reliability filtration.
• Customers in compressed air and industrial hydraulics.

The Life Sciences segment clients are highly specialized, with strong demand noted in the Disk Drive and Food & Beverage markets. If onboarding takes 14+ days, churn risk rises in bioprocessing, though that sub-segment saw timing issues in Q1 FY2025.

Finance: draft 13-week cash view by Friday.

Donaldson Company, Inc. (DCI) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving Donaldson Company, Inc.'s (DCI) operations as of late 2025. Honestly, cost management is a tightrope walk here, balancing necessary investment with pressures from the global supply chain.

Manufacturing and Material Costs, Including Managing Tariff-Related Inflation

Material costs hit the bottom line hard in fiscal 2025. The gross margin saw a noticeable squeeze, dropping to 34.5% for the full year, which was down 130 basis points from 35.8% in fiscal 2024. The primary culprit cited was tariff-related inflation and the resulting inventory valuation headwinds. To be fair, DCI did manage to increase its Cost of Sales by 4.0%, reaching $2,404.7 million for the full year, against a backdrop of total net sales of $3.7 billion.

Here's a quick look at the key cost components from the full fiscal year 2025:

The company also noted that pricing actions were taken to offset these input costs, but the margin compression was still evident.

Significant Fixed Costs from the Global Manufacturing and Distribution Footprint

DCI runs a global operation, and that scale brings significant fixed overhead. While exact fixed cost breakdowns aren't always isolated, the costs associated with maintaining and optimizing this footprint are clear through restructuring charges and distribution costs factored into the gross margin decline. The company has been actively working on footprint optimization initiatives aimed at increasing efficiency throughout this period.

The ongoing nature of these fixed and semi-fixed costs is reflected in the operating expenses:

• Operating expenses as a percentage of sales for FY2025 were 19.1%.
• Adjusted operating expenses as a percentage of sales for FY2025 were 18.3%.
• This compares favorably to FY2024 adjusted operating expenses of 19.9%, showing some leverage on higher sales volume.

High Investment in R&D and Capital Expenditures

You need to invest to stay ahead in filtration technology. DCI's commitment to innovation is a major cost driver. For fiscal 2025, the planned investment levels were substantial, though the actual spent figures are crucial for a precise view.

Based on the required inputs for this analysis, the investment figures are:

• Investment in Research & Development (R&D) for FY2025: $88 million.
• Capital Expenditures (CapEx) for FY2025: $77 million.

For context on CapEx planning, forecasts for fiscal 2025 generally ranged between $85 million and $100 million across various quarterly reports.

Selling, General, and Administrative (SG&A) Expenses, Which Are Being Leveraged Lower Versus Sales

The operational discipline shows up clearly in the SG&A line, which is what we look at when we talk about operating expense leverage. DCI managed to bring its operating expenses down as a percentage of sales, meaning revenue grew faster than the underlying administrative and selling costs. The 110 basis point improvement in operating expenses as a percentage of sales year-over-year for the full year 2025 is a direct result of this leverage on higher sales and disciplined management.

The leverage story is clear when comparing GAAP and Adjusted Operating Expenses:

Costs Associated with Footprint Optimization and Restructuring Initiatives

These are the non-recurring, but significant, costs tied to making the manufacturing footprint more efficient. These charges hit the GAAP results directly. Restructuring expenses were a notable factor in the fiscal 2025 results, negatively impacting GAAP EPS by 63 cents for the full year. You see these charges pop up in quarterly results as specific initiatives are booked.

Specific restructuring charges noted around the fiscal 2025 period include:

• Pre-tax restructuring charges in Q2 FY2025 related to footprint optimization were $2.2 million.
• Pre-tax restructuring and other charges in Q1 FY2026 related to optimization were $5 million.
• FY2024 restructuring and other charges related to these initiatives totaled $6.4 million pre-tax.

Finance: draft 13-week cash view by Friday.

Donaldson Company, Inc. (DCI) - Canvas Business Model: Revenue Streams

You're looking at how Donaldson Company, Inc. (DCI) brings in the money, which is really about where their filtration expertise translates into sales dollars. For the full fiscal year 2025, the total net sales hit $3.7 billion. That gives you a baseline for the scale of the business before we dive into the latest quarterly snapshot.

The revenue streams are clearly segmented across their business units, and the first quarter of fiscal year 2026 (Q1 FY2026) shows a clear hierarchy in contribution, with total net sales reaching $935.4 million. Here's how those segments stacked up in that first quarter:

The Mobile Solutions segment is the largest piece of the revenue pie, accounting for about 64% of Q1 FY2026 net sales. This group is heavily reliant on the recurring Aftermarket parts sales, which are the core of the high-margin business, showing a 6.5% rise in Q1 FY2026. Within this segment, Off-Road sales were up 6.1%, but On-Road sales saw a significant drop of 27.1% due to lower global truck production. Honestly, that Aftermarket strength is what keeps the margins healthy.

The Industrial Solutions segment sales were flat year-over-year in Q1 FY2026, representing about 27.6% of the total revenue for the quarter. This segment is a mix; Industrial Filtration Solutions sales actually grew 1.6%, but that was offset by a 7.1% decline in Aerospace and Defense sales.

You can't miss the Life Sciences segment, which was the fastest-growing area, posting a 13.1% sales increase in Q1 FY2026. This growth came from strong new equipment sales in Food and Beverage and Disk Drive. What's more, this segment actually turned profitable, moving from a pre-tax loss margin to a 9.2% pre-tax profit margin in the quarter.

The key revenue drivers you need to watch are:

• Mobile Solutions total sales: $598 million in Q1 FY2026.
• Recurring Aftermarket sales growth: 6.5% in Q1 FY2026.
• Life Sciences sales growth: 13.1% in Q1 FY2026.
• Total Net Sales for FY2025: $3.7 billion.

Finance: draft 13-week cash view by Friday.