DCI — what changed in the latest 10-K

Text added vs the prior filing · source: 10-K · 2026-09-25

• •Expand Technologies and Solutions - Leverage foundational filtration capabilities to expand best-in-class technology and service offerings

• •Pursue Strategic Acquisitions - Accelerate long-term growth through strategic acquisitions in high-margin areas

• Donaldson is expanding its presence in aerospace and defense products. During fiscal 2026, the Company acquired Filtration Group’s Facet Filtration business (Facet), consisting of Facet (Oklahoma) LLC and Facet Netherlands B.V. Facet is a pioneer in the jet fuel filtration market where its products …

• Donaldson’s Upstream and Downstream Bioprocessing provides bioprocessing equipment, purification technologies and consumables to support the development and manufacture of biologics and advanced therapies, including monoclonal antibodies (mAbs), mRNA-based therapeutics, viral vectors and cell and ge…

• Donaldson’s Upstream Bioprocessing business provides bioreactors, fermenters, filtration, and single-use technologies used in the cultivation and production stages of biologic manufacturing. The portfolio supports critical operations such as media and buffer preparation, cell culture, microbial ferm…

Text removed vs the prior filing · source: 10-K · 2025-09-26

• •Significantly grow presence in bioprocessing markets organically and inorganically within Life Sciences segment

• •Strengthen position across alternative power solutions through innovated and differentiated products

• Expand Technologies and Solutions - Leverage Foundational Filtration Capabilities to Expand Best-in-class Technology and Service Offerings

• •Expand Industrial Solutions connected service offerings to gain additional aftermarket share

• •Enhance digital experience through stronger data integration and navigation capabilities

Text added vs the prior filing · source: 10-K · 2026-09-25

• Facet Filtration Acquisition - we could be subject to new risks, known and unknown, relating to the Facet acquisition.

• We may experience risks, losses and damages associated with the Facet acquisition. The Facet acquisition integration activities may involve complex operational, financial and cultural alignment efforts. If management is unable to effectively balance integration activities with ongoing business needs…

• The Facet acquisition involves the inherent risk of liabilities, and these liabilities may prove more costly or produce more adverse effects than we anticipate, such as actual or potential litigation and regulatory matters. In addition, in the course of the due diligence review of Facet, we may not …

• We acquired $587.4 million of goodwill and $225.6 million in intangible assets as part of the Facet acquisition. If Facet fails to meet performance expectations, we could face future impairment charges that may have a material adverse effect on our reported results of operations and financial positi…

• Artificial Intelligence (AI) - the development, deployment, and use of AI technologies may not achieve the intended outcomes.

Text removed vs the prior filing · source: 10-K · 2025-09-26

• Cybersecurity Risks - vulnerability of our information technology systems and security.

• We have many information technology systems that are important to the operation of our business, some of which are managed by third parties. These systems are used to process, transmit and store electronic information and to manage or support a variety of business processes and activities, which are…

• Our data is subject to a variety of U.S. and international laws and regulations that pertain to the collection and handling of personal information. The laws require us to notify governmental authorities and affected individuals of data breaches involving certain personal information. These laws inc…

Text added vs the prior filing · source: 10-K · 2026-09-25

• The U.S. imposed 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…

• The situation continues to evolve, and further legislative, regulatory, or judicial developments may affect the ultimate outcome and the availability or timing of any refunds. We are closely monitoring the evolving trade landscape, as well as our ability to mitigate the impact of tariffs and our ana…

• On February 28, 2026, the U.S. and Israel began a military operation targeting Iranian nuclear sites, military infrastructure, and top leadership. Iran has retaliated with attacks on infrastructure assets and U.S. and Israeli military bases in the Middle East, as well as a blockade of the Strait of …

• Gain on sale of fixed assets for the year ended July 31, 2026 was $9.3 million, or 0.2% of net sales, compared to $1.2 million, or less than 0.1% of net sales, for the year ended July 31, 2025. The increase in gain on sale of fixed assets was driven by the sale of land and a building associated with…

• Research and development expenses for the year ended July 31, 2026 were $76.1 million, or 2.0% of net sales, compared with $87.8 million, or 2.4% of net sales, for the year ended July 31, 2025, a decrease of $11.7 million, or 13.3%. The decrease in research and development expenses as a percentage o…

Text removed vs the prior filing · source: 10-K · 2025-09-26

• The U.S. imposed 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…

• 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 EU, should they be implemented and sustained for an extended period of time, could have a signif…

• Research and development expenses for the year ended July 31, 2025 were $87.8 million, or 2.4% of net sales, compared with $93.6 million, or 2.6% of net sales, for the year ended July 31, 2024, a decrease of $5.8 million, or 6.2%. The decrease in research and development expenses as a percentage of …

• Interest expense for the year ended July 31, 2025 was $24.2 million, compared with $21.4 million for the year ended July 31, 2024, an increase of $2.8 million, or 13.5%. The increase primarily reflects a higher average level of indebtedness during fiscal 2025 compared to the prior year.

• Other income, net for the year ended July 31, 2025 was $21.0 million, compared with $12.6 million for the year ended July 31, 2024, an increase of $8.4 million, or 66.8%, driven primarily by lower pension related expenses in the current year.

Text added vs the prior filing · source: 10-K · 2026-09-25

• The Company enters into derivative instrument agreements, including foreign currency forward contracts and fixed-to-fixed cross currency swap agreements, to manage risk in connection with changes in foreign currency. The Company only enters into derivative instrument agreements with counterparties w…

• Contract provisions may require the posting of collateral or settlement of the contracts for various reasons, including if the Company’s credit ratings are downgraded below its investment grade credit rating by any of the major credit agencies or for cross default contractual provisions if there is …

• See Notes 12, 15 and 16 in the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report.

• Amounts related to foreign currency forward contracts designated as hedges are expected to be reclassified into earnings during the next 15 months based upon the timing of inventory purchases and sales.

• Fixed-to-Fixed Cross-Currency Swap Agreements - Net Investment Hedges

Text removed vs the prior filing · source: 10-K · 2025-09-26

• The Company enters into derivative instrument agreements, including foreign currency forward contracts and net investment hedges, to manage risk in connection with changes in foreign currency. The Company only enters into derivative instrument agreements with counterparties who have highly rated cre…

• The Company uses fixed-to-fixed cross-currency swap agreements to hedge its exposure to adverse foreign currency exchange rate movements for its operations in Europe. The Company has elected the spot method for designating these contracts as net investment hedges.

• The total notional amount of net investment hedges as of July 31, 2025 and 2024 was €80 million, or $88.8 million. The maturity dates range from 2027 to 2029.

• Based on the net investment hedges outstanding as of July 31, 2025, a 10% appreciation of the U.S. dollar compared to the Euro, would result in a net gain of $8.6 million in the fair value of these contracts.

• The Company’s exposure to market risk for changes in interest rates primarily relates to debt obligations that are at variable rates, as well as the potential increase in the fair value of long-term debt resulting from a potential decrease in interest rates. As of July 31, 2025, the Company’s financ…