Page 1

Donaldson FILTRATION SOLUTIONS For more information , contact : Sarika Dhadwal ( 952 ) 887-3753 Sarika.Dhadwal@Donaldson.com Donaldson Company Reports Record Fiscal First Quarter 2022 Sales and EPS First quarter 2022 sales increased 19.5 % from 2021 to a quarterly record of $ 760.9 million First quarter 2022 operating margin increased to 14.1 % from 13.7 % in 2021 First quarter 2022 EPS increased 26.1 % to $ 0.61 versus $ 0.48 in 2021 Donaldson increases fiscal 2022 sales and EPS guidance MINNEAPOLIS ( December 1 , 2021 ) . Donaldson Company , Inc. ( NYSE : DCI ) ( Donaldson or the Company ) today reported first quarter 2022 net earnings of $ 77.1 million , an increase of 24.4 % from $ 61.9 million in 2021. Earnings per share ( EPS ) ¹ for the first quarter 2022 increased 26.1 % to $ 0.61 compared with $ 0.48 in 2021 . " We achieved record first quarter sales and earnings , as strong demand combined with expense leverage provided an offset to anticipated gross margin pressure , " said Tod Carpenter , chairman , president and chief executive officer . " I am proud of the dedication of our employees as they navigated through supply chain constraints and inflationary headwinds , while also executing on our strategic priorities . " Based on our strong first quarter results and sales momentum in both segments , we are raising our fiscal 2022 sales and earnings outlook ; however , the macro - economic headwinds are creating a different path to achieving our results than we previously anticipated . Gross margin is under additional pressure as raw material , freight , and labor costs have climbed beyond our original expectations . We are able to partially mitigate this pressure by raising prices in most markets and are in ongoing discussions with a small number of remaining large original equipment manufacturer ( OEM ) customers . Stronger than expected sales growth should provide us with necessary operating leverage to preserve our overall operating margin . We also remain focused on our long - term growth initiatives and are investing for the future . The recently announced acquisition of Solaris Biotech marked an important step in our journey to further expand into the life sciences market . We are broadening our portfolio of advanced technology products and I am excited about our growth opportunities in this strategically important area . ” " " ' All earnings per share figures refer to diluted earnings per share .