Q4 2023 Donaldson Company Inc Earnings Call

August 29, 2023

Speaker 1: Hello and thank you for standing by. My name is Regina and I will be your conference operator today. At this time, I would like to welcome everyone to the Donaldson Company Incorporated's fourth quarter 2023 earnings conference call.

Hello, and thank you for standing by my name is Regina and I will be your conference operator today at this time I would like to welcome everyone to the Donaldson Company incorporated fourth quarter 2023 earnings Conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question.

Speaker 1: All lines have been placed on mute to prevent any background noise.

Speaker 1: After the speaker's remarks, there will be a question and answer session.

<unk> and answer session. If he would like to ask a question. During this time simply press Star then the number one on your telephone keypad to withdraw your question Press Star one again.

Speaker 1: If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. To withdraw your question, press star one again. I would now like to turn the conference over to Sarika Dodwall, Director of Investor Relations. Please go ahead.

I'd now like to turn the conference over to <unk> director of Investor Relations. Please go ahead.

Speaker 2: Good morning. Thank you for joining Donaldson's fourth quarter and full year fiscal 2023 earnings conference call. With me today are Todd Carpenter, Chairman, CEO and President and Scott Robinson, Chief Financial Officer.

Good morning, Thank you for joining donaldson's fourth quarter and full year fiscal 2023 earnings conference call with me today are Tod Carpenter, Chairman, CEO, and President and Scott Robinson, Chief Financial Officer. This morning, Tod and Scott will provide a summary of our fourth quarter and full year.

Speaker 2: This morning, Todd and Scott will provide a summary of our fourth quarter and full year performance and detail on our outlook for fiscal 2024. During today's call, we will discuss non-gap or adjusted results. For fourth quarter and full year, fiscal 2023, non-gap results exclude restructuring and other charges of 4.9 million and 21.8 million. Respect.

Formats and details on our outlook for fiscal 2024.

During today's call, we will discuss non-GAAP or adjusted results.

Our fourth quarter and full year fiscal 2023, non-GAAP results exclude restructuring and other charges of $4 9 million and 21 8 million, respectively fourth quarter and full year fiscal 2022, non-GAAP results exclude $3 4 million of charges related to the conflict in the east.

Speaker 2: Fourth quarter and full year fiscal 2022 non-GAAP results exclude 3.4 million of charges related to the conflict in Eastern Europe . A reconciliation of GAAP to non-GAAP metrics is provided within the schedules attached to this morning's presentation.

In Europe our.

A reconciliation of GAAP to non-GAAP metrics provided within the schedules attached to this morning's pretzel.

Speaker 2: Additionally, please keep in mind that any forward-looking statements made during this call are subject to risks and uncertainties which are described in our press release and FCC filings. With that, I will now turn the call over to Todd Carpenter. Please go ahead.

Additionally, please keep in mind that any forward looking statements made during this call are subject to risks and uncertainties, which are described in our press release and SEC filings with that I will now turn the call over to Tod Carpenter. Please go ahead.

Speaker 3: Thanks, Saraka. Good morning. Physical year 2023 was a milestone year for town.

Thanks, Erika good morning physical.

Fiscal year 2023 was a milestone year for Donaldson company from a financial perspective, we made great progress on the objectives laid out during our Investor day in April.

Speaker 3: From a financial perspective, we made great progress on the objectives laid out during our investor day in April .

Speaker 3: We delivered record top and bottom line results ending the year with $3.4 billion in revenue and $3.04 in adjusted earnings per share increases of 4% and 13% respectively.

We delivered record top and bottom line results ending the year with $3 $4 billion in revenue and $3 <unk> and adjusted earnings per share increases of 4% and 13% respectively.

Speaker 3: improved our operating margin by 110 basis points by expanding gross margin while continuing to invest in our strategically important higher margin growth area.

Improved our operating margin by 110 basis points by expanding gross margin, while continuing to invest in our strategically important higher margin growth areas.

Speaker 3: delivered cash conversion of 114% primarily by reducing our inventory levels by over $84 million.

Delivered cash conversion of 114%.

Primarily by reducing our inventory levels by over $84 million.

Speaker 3: and return $256 million to our shareholders in the form of dividends and share buybacks.

And returned $256 million to our shareholders in the form of dividends and share buybacks.

Speaker 3: We also make significant strategic changes to our operating structure, laying the foundation to drive Donaldson to the next stage of its evolution and position ourselves for future profitable growth.

We also made significant strategic changes to our operating structure laying the foundation to drive Donaldson to the next stage of its evolution and position ourselves for future profitable growth.

Speaker 3: First, we completed our organizational redesign aimed at better serving our end market customers.

First we completed our organizational redesign aimed at better serving our end market customers.

Speaker 3: Second, we introduced life sciences as a separate operating segment allowing for increased transparency as we build out our presence in this important growth area.

Second we introduced life Sciences as a separate operating segment, allowing for increased transparency as we build out our presence in this important growth area.

Speaker 3: And third, we completed two new life sciences acquisitions.

And third we completed two new life Sciences acquisition.

Speaker 3: Isolair Bio and Universel Technologies, companies with game-changing disruptive technologies that complement our existing capabilities and offerings in the space.

Eissler bio and Universal technology companies with game changing disruptive technologies that complement our existing capabilities and offerings in this space.

Regina: Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Donaldson Company Incorporated's fourth quarter 2023 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star at the number one on your telephone keypad to withdraw your question, press star one again.

Operator: Hello, and thank you for standing by.

Regina: My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Donaldson Company Incorporated's fourth quarter 2023 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star at the number one on your telephone keypad to withdraw your question, press star one again.

Speaker 3: Importantly, and in conjunction with Investor Day, we also announced our filtration for a thriving future sustainability strategy and 2030 environmental and social ambitions.

Importantly, and in conjunction with Investor Day, We also announced our filtration for a thriving future sustainability strategy.

And 2030, environmental and social ambitions.

Speaker 3: I am continually impressed by the resilience and dedication of the Donaldson employees, particularly with the backdrop of such a dynamic and pivotal year, and I am proud of their accomplishments.

I'm continually impressed by the resilience and dedication of the Donaldson employees, particularly with the backdrop of such a dynamic and pivotal year and I am proud of their accomplishment.

Sarika Dhadwal: I would now like to turn the conference over to Sarika Dhadwal, Director of Investory Relations. Please go ahead.

Sarika Dhadwal: I would now like to turn the conference over to Sarika Dhadwal, Director of Investory Relations. Please go ahead. Good morning.

Sarika Dhadwal: Good morning. Thank you for joining Donaldson's fourth quarter and full year fiscal 2023 earnings conference call.

Sarika Dhadwal: Thank you for joining Donaldson's fourth quarter and full year fiscal 2023 earnings conference call.

Now I'll cover some highlights from the fourth quarter.

Speaker 3: Sales of $880 million were down 1% year over year, driven by a decline in volume, partially offset by pricing.

Sales of $880 million were down 1% year over year, driven by a decline in volume, partially offset by pricing benefits.

Sarika Dhadwal: With me today, our Todd Carpenter chairman CEO and president and Scott Robinson Chief Financial Officer. This morning, Todd and Scott will provide a summary of our fourth quarter and full year performance and details on our outlook. For fiscal 2024, during today's call, we will discuss non-gap or adjusted results. For fourth quarter and full year fiscal 2023, non-gap results exclude restructuring and other charges of 4.9 million and 21.8 million respectively. Fourth quarter and full year fiscal 2022 non-gap results exclude 3.4 million of charges related to the conflict in Eastern Europe.

Speaker 3: The impact from currency translation in the quarter was minimal. Volumes continue to be impacted by aftermarket softness largely driven by OE customer inventory normalization and weakness in disk drive due to market related conditions and these stocks.

The impact from currency translation in the quarter was minimal.

Volumes continued to be impacted by aftermarket softness largely driven by OE customer inventory normalization and weakness in disk drive due to market related conditions and destocking.

Speaker 3: On the pricing side, as has been the case all year, strategic and value pricing to offset inflationary pressures remain critical for Donald.

On the pricing side.

As has been the case, all year strategic and value pricing to offset inflationary pressures remain critical for Donaldson.

Speaker 3: While most input costs of stabilize, our work is ongoing as we continue to see increases in some areas such as labor and energy.

While most input costs have stabilized our work is ongoing as we continue to see increases in some areas such as labor and energy.

Sarika Dhadwal: A reconciliation of gaps to non-gap metrics is provided within the schedules attached to this morning's press release. Additionally, please keep in mind that any forward looking statements made during this call are subject to risks and uncertainties which are described in our press release and FEC filing.

Speaker 3: EPS in the quarter was 78 cents down 7% from prior year.

EPS in the quarter was 78.

Down 7% from prior year.

Speaker 3: We remain committed to investing in our strategically important growth areas. And during the fourth quarter, we continue those investments, which in conjunction with the sale decline resulted in a quarterly year over year decrease in earning.

We remain committed to investing in our strategically important growth areas and during the fourth quarter. We continued those investments.

Todd Carpenter: With that, I will now turn the call over to Todd Carpenter. Please go ahead. Thanks, Sarika.

In conjunction with the sales decline resulted in a quarterly year over year decrease in earnings.

Todd Carpenter: Good morning. Fiscal year 2023 was a milestone year for Donaldson Company. From a financial perspective, we made great progress on the objectives laid out during our investor day in April. We delivered record top and bottom line results ending the year with $3.4 billion in revenue and $3.04 in adjusted earnings per share increases of 4% and 13% respectively. It proved our operating margin by 110 basis points by expanding gross margin while continuing to invest in our strategically important higher margin growth areas.

Speaker 3: With respect to operations, fill rates, on-time deliveries, and late backlog levels across the organization improved versus prior year as our operations teams continued to deliver for our customers.

With respect to operations Bill rates on time deliveries in late backlog levels across the organization improved versus prior year as our operations teams continue to deliver for our customers.

Todd Carpenter: Fiscal year 2023 was a milestone year for Donaldson Company. From a financial perspective, we made great progress on the objectives laid out during our investor day in April. We delivered record top and bottom line results ending the year with $3.4 billion in revenue and $3.04 in adjusted earnings per share increases of 4% and 13% respectively. It proved our operating margin by 110 basis points by expanding gross margin while continuing to invest in our strategically important higher margin growth areas. Delivered cash conversion of 114%. Primarily by reducing our inventory levels by over $84 million and returned $256 million to our shareholders in the form of dividends and share buybacks.

Speaker 3: Throughout the company, while we execute today, we are also ensuring through our strategic investments that we are well positioned to drive future growth.

Throughout the company, while we execute today, we are also ensuring through our strategic investments that we are well positioned to drive future growth.

Speaker 3: To that end, first, on August 16th, we opened our new manufacturing plant in Leon, Mexico.

To that end.

First.

On August 16, we opened our new manufacturing plant in Leone, Mexico.

Speaker 3: The 265,000 square foot facility will help meet future demand and importantly was built to include leading sustainability technologies such as higher efficiency lighting, air conditioning and compressing.

265000 square foot facility will help meet future demand and importantly was built to include leading sustainability technologies, such as higher efficiency lighting air conditioning and compressor system.

Todd Carpenter: Delivered cash conversion of 114%. Primarily by reducing our inventory levels by over $84 million and returned $256 million to our shareholders in the form of dividends and share buybacks. We also made significant strategic changes to our operating structure, laying the foundations to drive Donaldson to the next stage of its evolution and position ourselves for future profitable growth. First, we completed our organizational redesign aimed at better serving our end market customers. Second, we introduced life sciences as a separate operating segment allowing for increased transparency as we build out our presence in this important growth area, and third, we completed two new life sciences acquisitions, isolary bio and universal technologies, companies with game-changing disruptive technologies that complement our existing capabilities and offerings in the space. Importantly, an in conjunction with investor day, we also announced our filtration for a thriving future sustainability strategy and 2030 environmental and social ambitions.

Speaker 3: This new plant will produce hydraulic, lube and fuel prop.

This new plant will produce hydraulic lube and fuel products.

Speaker 3: Also in August , Donaldson opened a 25,000 square foot bioprocessing technical center in Durham, North Carolina. This state of the art facility includes 20,000 square feet of laboratory and clean room capabilities that will be used to bring Isolaire's revolutionary ISOTAG technology to market.

Also in August Donaldson opened a 25000 square foot bio processing Technical center in Durham, North Carolina. This state of the Art facility includes 20000 square feet of laboratory and clean room capabilities that will be used to bring ISIL theres revolutionary isolate tag.

Todd Carpenter: We also made significant strategic changes to our operating structure, laying the foundations to drive Donaldson to the next stage of its evolution and position ourselves for future profitable growth. First, we completed our organizational redesign aimed at better serving our end market customers. Second, we introduced life sciences as a separate operating segment allowing for increased transparency as we build out our presence in this important growth area, and third, we completed two new life sciences acquisitions, isolary bio and universal technologies, companies with game-changing disruptive technologies that complement our existing capabilities and offerings in the space.

Technology to market.

Speaker 3: Isolaires' first research-use product is expected to launch in the first quarter of fiscal 2024.

Isolated first research use product is expected to launch in the first quarter of fiscal 2024.

Speaker 3: Second, we're working to meet customer needs through significant investments in our D&M and A.

Second we are working to meet customer needs through significant investments in R&D and M&A.

Speaker 3: specific to M&A, during the fourth quarter, we acquired our fourth life sciences company, universal starting place.

Specific to M&A during the fourth quarter, we acquired our fourth life Sciences Company Universe sells technologies.

Speaker 3: Universel Technologies delivers the next generation of upstream to midstream bioprocessing technologies for cell and gene therapies by leveraging the strengths of process intensification and chaining.

Universal's technologies delivers the next generation of upstream to midstream bio processing technologies for cell and gene therapies by leveraging the strengths of process and pacification and changing.

Speaker 3: The company produces unique bio reactor systems that employ proprietary single use fixed bed bio reactors combined with midstream processing capabilities, including depth and tangential flow filtration.

The company produces unique bio reactor systems that employ proprietary single use fixed bed bioreactors combined with midstream processing capabilities, including depth and tangential flow filtration.

Todd Carpenter: Importantly, an in conjunction with investor day, we also announced our filtration for a thriving future sustainability strategy and 2030 environmental and social ambitions. I am continually impressed by the resilience and dedication of the Donaldson employees particularly with the backdrop of such a dynamic and pivotal year and I am proud of their accomplishment.

Speaker 3: These systems provide measurable advantages over the competition in productivity, concentration, cost reduction and footprint. This acquisition is part of our String of Pearls approach to become a differentiated solutions provider in the bioprocessing space with a specific focus on filtration and other separation and filtration tools.

Todd Carpenter: I am continually impressed by the resilience and dedication of the Donaldson employees particularly with the backdrop of such a dynamic and pivotal year and I am proud of their accomplishment.

These systems provide measurable advantages over the competition in productivity concentration cost reduction and footprint. This acquisition is part of our string of pearls approach to become a differentiated solutions provider in the bio processing space with specific focus on filtration.

Todd Carpenter: Now I'll cover some highlights from the fourth quarter. Sales of $880 million were down 1% year over year driven by decline in volume, partially offset by pricing benefits. The impact from currency translation in the quarter was minimal. Volumes continue to be impacted by after-market softness largely driven by OE customer inventory normalization and weakness in described due to market-related conditions and destockings. On the pricing side, as has been the case all year, strategic and value pricing to offset inflationary pressures remain critical for Donaldson.

And other separation infiltration tools.

Speaker 3: Our current capabilities give us excellent coverage and growth potential across the bioprocessing production chain with a focus on plasma DNA. mRNA vaccines and therapeutics as well as cell and gene therapy.

Our current capabilities give us excellent coverage and growth potential across the bio processing production chain with a focus on plasma DNA and RNA vaccines and therapeutics as well as cell and gene therapies.

Speaker 3: We expect to add products and technologies through internal develop and M&A that will fill gaps in our current product portfolio and enable us to provide customers with complete solutions.

We expect to add products and technologies through internal develop and M&A that will fill gaps in our current product portfolio and enable us to provide customers with complete solutions.

Speaker 3: We're excited about these investments and continue to focus on meeting the needs of our current customer base and growing addressable market.

We're excited about these investments and continue to focus on meeting the needs of our current customer base and growing addressable market.

Todd Carpenter: While most input costs have stabilized, our work is ongoing as we continue to see increases in some areas such as labor and energy. EPS in the quarter was 78 cents down 7% from prior year. We remain committed to investing in our strategically important growth areas and during the fourth quarter we continued those investments which in conjunction with the sale decline resulted in a quarterly year over year decrease in earnings. With respect to operations, fill rates, on-time deliveries and late backlog levels across the organization improved versus prior year as our operations teams continue to deliver for our customers. Throughout the company, while we execute today, we are also ensuring through our strategic investments that we are well positioned to drive future growth.

Speaker 3: Now I'll provide some detail on fourth quarter sale.

Now I'll provide some detail on fourth quarter sales.

Speaker 3: Total company sales were $880 million, down 1% from prior year. The pricing result was spot on its14. audiences.com

Total company sales were $880 million down 1% from prior year.

Pricing was a 5% benefit.

Speaker 3: In mobile solutions, total sales were $543 million, a 5% decline versus 2022. Pricing added 6%.

In mobile solutions total sales were $543 million, a 5% decline versus 2022.

Pricing added 6%.

Speaker 3: Performance in mobile businesses were mixed this quarter with off-road sales of $103 million down slightly, mainly due to weaker market demand in the Americas and China.

Performance in mobile businesses were mixed this quarter with off road sales of $103 million down slightly mainly due to weaker market demand in the Americas and China.

Speaker 3: Aftermarket sales of $402 million, we're down 7% year over year. As we continue to see OEM customers draw down inventories to better reflect normalizing global supply chain conditions.

Aftermarket sales of $402 million were down 7% year over year as we continued to see OEM customers draw down inventories to better reflect the normalizing global supply chain conditions.

Todd Carpenter: To that end, first on August 16, we opened our new manufacturing plant in Leon, Mexico. The 265,000 square foot facility will help meet future demand and importantly was built to include leading sustainability technologies such as higher efficiency lighting, air conditioning and compressor systems. This new plant will produce hydraulic, lube and fuel products.

Speaker 3: Sales in on-road of $37 million were up 6%, resulting from solid equipment production rates. Also with his – Okay, let's see.

Sales in on road of $37 million were up 6%, resulting from solid equipment production rates.

Also within mobile solutions and update on China.

Speaker 3: Sales declined 15% versus 2022 and 10% in constant current.

Sales declined 15% versus 2022 and 10% in constant currency.

Speaker 3: Overall, China continues to be challenging given the weak end market conditions, particularly with respect to off.

Overall, China continues to be challenging given the weak end market conditions, particularly with respect to off road.

Speaker 3: That said, our long-term view has not changed, and the sheer market size combined with our world-class technology and high-quality offerings give us confidence in our ability to gain share in the China market. Now I will turn to the next slide.

Todd Carpenter: Also in August, Donaldson opened a 25,000 square foot vial processing technical center in Durham, North Carolina. The state-of-the-art facility includes 20,000 square feet of laboratory and clean room capabilities that will be used to bring Isolaires Revolutionary Isotag technology to market. Isolaires' first research-use product is expected to launch in the first quarter of fiscal 2024.

That said, our long term view has not changed and the sheer market size combined with our world class technology and high quality offerings give us confidence in our ability to gain share in the China market.

Now I will turn to the industrial solutions segment.

Speaker 3: Industrial had another strong quarter as sales grew 10% to $277 million ahead of our internal expectations.

Industrial had another strong quarter as sales grew 10% to $277 million ahead of our internal expectations.

Todd Carpenter: Isolaires' first research-use product is expected to launch in the first quarter of fiscal 2024. 2nd, we're working to meet customer needs through significant investments in R&D and M&A.

Pricing added 4%.

Todd Carpenter: 2nd, we're working to meet customer needs through significant investments in R&D and M&A.

Speaker 3: Industrial filtration solutions are ISF sales grew 11%.

Industrial filtration solutions or ISS sales grew 11% to $241 million driven by continued strength in dust collection sales and power generation project timing.

Todd Carpenter: Specific to M&A, during the fourth quarter, we acquired our fourth life sciences company, Universe Cell Technologies. Universe Cell Technologies delivers the next generation of upstream to midstream bioprocessing technologies for cell and gene therapies by leveraging the strengths of process intensification and chaining. The company produces unique bioreactor systems that employ proprietary, single use, fixed bed bioreactors combined with midstream processing capabilities, including depth and tangential flow filtration. These systems provide measurable advantages over the competition in productivity, concentration, cost reduction and footprint.

Speaker 3: $241 million driven by continued strength in dust collection sales and power generation projects...

Speaker 3: Aerospace and defense sales were up 4% as a result of defense sale strength.

Aerospace and defense sales were up 4% as a result of defense sales strength.

On the life Sciences segment.

Speaker 3: Life Sciences sales were $60 million, down 12% year over year, below our expectations, driven primarily by disk drive as market softness and de-stocking continued.

Life Sciences sales were $60 million down 12% year over year below our expectations, driven primarily by disk drive as market softness and Destocking continued.

Speaker 3: importantly, we believe we are now seeing early signs of a slow demand recovery and expect its sequential improvement in disk drive through fiscal 2024 as data center and cloud computing demand recover.

Importantly, we believe we are now seeing early signs of a slow demand recovery and expect a sequential improvement in disk drive through fiscal 2024 as data center and cloud computing demand recovers.

Speaker 3: Our long-term life sciences story is partially a function of realizing the full potential of our recently acquired capabilities, and it is worth noting that our acquisitions are generating growth, adding 340 basis points to sales growth in the segment this quarter.

Our long term life Sciences story is partially a function of realizing the full potential of our recently acquired capabilities and it is worth noting that our acquisitions are generating growth, adding 340 basis points to sales growth in this segment this quarter.

Todd Carpenter: This acquisition is part of our string of pearl approach to become a differentiated solutions provider in the bioprocessing space, with specific focus on filtration and other separation and filtration tools. Our current capabilities give us actual and coverage and growth potential across the bioprocessing production chain with a focus on plasma DNA, mRNA vaccines and therapeutics as well as cell and gene therapies. We expect to add products and technologies through internal develop and M&A that will fill gaps in our current product portfolio and enable us to provide customers with complete solutions. We're excited about these investments and continue to focus on meeting the needs of our current customer base and growing addressable market.

Speaker 3: I'm proud of our fiscal 2023 accomplishments, both financial and strategic. And because of the hard work of our Donaldson employees around the globe, we are better positioned than ever to deliver to all of our stakeholders in fiscal 2024.

I am proud of our fiscal 2023 accomplishments, both financial and strategic and because of the hard work of our Donaldson employees around the globe, we are better positioned than ever to deliver to all of our stakeholders in fiscal 2024.

Speaker 3: To that end, for the full year, we are forecasting sales, operating margin, and earning at all time high levels.

To that end for the full year, we are forecasting sales operating margin.

And earnings at all time high levels.

Todd Carpenter: We're excited about these investments and continue to focus on meeting the needs of our current customer base and growing addressable market.

Speaker 3: More specifically, we are projecting sales growth up between 3% and 7%

More specifically, we are projecting sales growth up between 3% and 7%.

Speaker 3: or to $3.6 billion at the midpoint.

Or to three $6 billion at the midpoint.

Todd Carpenter: Now, I'll provide some detail on fourth quarter sales. Total company sales were $880 million down 1% from prior year. Pricing was a 5% benefit. In mobile solutions, total sales were $543 million, a 5% decline versus 2022. Pricing added 6%. Performance in mobile businesses were mixed this quarter with off-road sales of $103 million down slightly, mainly due to weaker market demand in the Americas and China. After market sales of $402 million, we're down 7% year over year as we continue to see OEM customers draw down inventories to better reflect normalizing global supply chain conditions.

Speaker 3: Operating margin in the range of 14.7% and 15.3% and EPS between $3.14 and $3.30. All records.

Operating margin in the range of 14, 7% and 15, 3% and EPS between $3 14.

And $3 30.

All records for Donaldson company.

Speaker 3: Now I'll turn it over to Scott who will provide more details on the financial and our outlook for fiscal 24. Scott?

Now I'll turn it over to Scott, who will provide more details on our financials and our outlook for fiscal 'twenty for Scott.

Speaker 3: Thanks, Dodd. The morning everyone, this goal 2023 was a record year for Donald.

Thanks, Todd good morning, everyone.

Fiscal 2023 was a record year for Donaldson I would like to thank our global teams who came together.

Speaker 3: I would like to thank our global teams who came together, managed through our company-wide organizational redesign, and delivered results consistent with the expectations we laid out at the beginning of the year.

Manage through our company wide organizational redesign and delivered results consistent with the expectations, we laid out at the beginning of the year.

Speaker 3: fiscal 2023 serves as a strong foundational year as we work towards a 2026 financial and strategic targets we laid out at investor day. And I am excited about continuing to report on our progress.

Fiscal 2023 serves as a strong foundational year as we work towards a 2026 financial and strategic targets, we laid out at Investor Day, and I am excited about continuing to report on our progress.

Todd Carpenter: Sales in on-road of $37 million were up 6% resulting from solid equipment production rates. Also within mobile solutions, an update on China. Sales declined 15% versus 2022 and 10% in constant currency. Overall, China continues to be challenging given the weak end market conditions, particularly with respect to off-road. That said, our long-term view has not changed and the sheer market size combined with our world-class technology and high-quality offerings give us confidence in our ability to gain share in the China market, of it.

Todd Carpenter: Also within mobile solutions, an update on China. Sales declined 15% versus 2022 and 10% in constant currency. Overall, China continues to be challenging given the weak end market conditions, particularly with respect to off-road. That said, our long-term view has not changed and the sheer market size combined with our world-class technology and high-quality offerings give us confidence in our ability to gain share in the China market, of it.

Speaker 3: I will provide a call on our outlook for fiscal 2024 in a few minutes. The first will give additional details on the results for the fourth quarter. To summarize, sales decline.

I will provide color on our outlook for fiscal 2020, Florida in a few minutes, but first we will give additional details on the results for the fourth quarter.

To summarize.

Sales declined 1% versus 2022.

Speaker 3: operating income decrease 7% proven by investments primarily in life science.

Operating income decreased 7% driven by investments primarily in life Sciences.

Speaker 3: EPS of 78 cents decreased 7% and cash conversion was 173% versus 78% a year ago.

EPS of <unk> 78 decreased 7%.

And cash conversion was 173% versus 78% a year ago.

Todd Carpenter: Industrial had another strong quarter as sales grew 10% to $277 million ahead of our internal expectations. Pricing added 4%, industrial filtration solutions or IFFs sales grew 11% to $241 million driven by continued strength in dust collection sales and power generation project timing. Aerospace and defense sales were up 4% as a result of defense sales strength.

Todd Carpenter: Now I will turn to the Industrial Solutions segment. Industrial had another strong quarter as sales grew 10% to $277 million ahead of our internal expectations. Pricing added 4%, industrial filtration solutions or IFFs sales grew 11% to $241 million driven by continued strength in dust collection sales and power generation project timing. Aerospace and defense sales were up 4% as a result of defense sales strength.

Speaker 3: Gross margin was 34.3%, a 140 basis point improvement versus prior year. Pricing was the largest driver of the gross margin improvement followed by benefits from the stabilization of input costs, including lower freight costs.

Gross margin was 34, 3%, a 140 basis point improvement versus prior year pricing was the largest driver of the gross margin improvement.

Followed by benefits from the stabilization of input costs, including lower freight costs.

Speaker 3: Operating expenses as a percentage of sales were 20.0% compared to 18.0% a year ago. The de-leveraging of operating expenses in the corridor was due to increased post-pandemic hiring expenses and importantly nearly half of the de-leveraging was from incremental expenses related to our life sciences acquisition.

Operating expenses as a percentage of sales were 20.0% compared with 18.0% a year ago. The deleveraging of operating expenses in the quarter was due to increased post pandemic hiring expenses and importantly, nearly half of the deleveraging was from incremental expenses related to our life.

Todd Carpenter: On the life sciences segment, life sciences sales were $60 million down 12% year-to-year below our expectations driven primarily by disk drive as market softness and destocking continued. Importantly, we believe we are now seeing early signs of a slow demand recovery and expect a sequential improvement in disk drive through fiscal 2024 as data center and cloud computing demand recovers. Our long-term life sciences story is partially a function of realizing the full potential of our recently acquired capabilities and it is worth noting that our acquisitions are generating growth adding 340 basis points to sales growth in the segment this quarter.

Sciences acquisitions.

Speaker 3: Operating margin was 14.3% down 60 basis points versus prior year, as operating expense, the leveraging more than offset the year over year improvement in gross margin.

Operating margin was 14, 3% down 60 basis points versus prior year as operating expense deleveraging more than offset the year over year improvement in gross margin.

Now I'll discuss segment profitability.

Speaker 3: Mobile Solutions pre-tax profit margin was 16.2% of 40 basis points year over year. An industrial solutions pre-tax profit margin was 19.2% of 60 basis points.

Mobile solutions pre tax profit margin was 16, 2% up 40 basis points year over year and industrial solutions pre tax profit margin was 19, 2% up 60 basis points.

Speaker 3: Gross margin expansion, driven in large part by pricing, was a key driver in both of these segments.

Gross margin expansion driven in large part by pricing was a key driver in both of these segments.

Speaker 3: With respect to life sciences, the pre-tax loss of approximately $7 million included a headwind from acquisitions of roughly $8 million.

With respect to life Sciences, the pre tax loss of approximately $7 million included a headwind from acquisitions of roughly $8 million.

Todd Carpenter: I'm proud of our fiscal 2023 accomplishments both financial and strategic and because of the hard work of our Donaldson employees around the globe, we are better positioned than ever to deliver to all of our stakeholders in fiscal 2024. To that end, for the full year, we are forecasting sales, operating margins and earnings at all time high levels. More specifically, we are projecting sales growth up between 3% and 7% or to $3.6 billion at the midpoint, operating margin in the range of 14.7% and 15.3% and EPS between $3.14 and $3.30 all records for Donaldson company.

Speaker 3: Pretax profit margin was minus 12.4% versus 20.3% a year ago. While incremental investments in our acquisitions, including the purchase of universal technologies are negatively impacting results in the short term, we remain committed to investing for the future and look forward to scaling these businesses.

Pre tax profit margin was minus 12, 4% versus 23% a year ago.

Incremental investments and our acquisitions, including the purchase of universe sales technologies are negatively impacting results in the short term, we remain committed to investing for the future and look forward to scaling these businesses.

Speaker 3: The decline in disk drive sales was also margin ahead when this quarter. Starting to a few balance sheet and cash.

The decline in disk drive sales was also margin headwind this quarter.

Turning to a few balance sheet and cash flow statement highlights.

Speaker 3: Fourth quarter capital expenditures, mainly inclusive of continued capacity expansion investments in North America, were approximately $25 million.

Fourth quarter capital expenditures, mainly inclusive of continued capacity expansion investments in North America, where approximately $25 million.

Speaker 3: As I mentioned earlier, cash conversion the quarter was 173%, particularly strong versus 78% in 2022. We continue to experience high levels of conversion as a result of our actions to reduce inventory to more normalized levels.

As I mentioned earlier cash conversion in the quarter was 173%, particularly strong versus 78% in 2022.

Scott Robinson: Now, I'll turn it over to Scott who will provide more details on the financial and our outlook for fiscal 2024. Scott?

Scott Robinson: Now, I'll turn it over to Scott who will provide more details on the financial and our outlook for fiscal 2024. Scott? Thanks, God.

We continue to experience high levels of conversion as a result of our actions to reduce inventory to more normalized levels.

Scott Robinson: Thanks, God.

Scott Robinson: Good morning, everyone, fiscal 2023 was a record year for Donaldson. I would like to thank our global teams who came together managed through our company-wide organizational redesign and delivered results consistent with the expectations we laid out at the beginning of the year. Fiscal 2023 serves as a strong foundational year as we worked towards a 2026 financial and strategic targets we laid out at investor day and I am excited about continuing to report on our progress.

Speaker 3: In terms of other capital employment, we acquired universalist technologies for 147 million and returned 53 million to shareholders, inclusive of 30 million the firm's dividends, and 23 million and share reports.

In terms of other capital deployment, we acquired Universal's technologies for $147 million and returned $53 million to shareholders inclusive of $30 million in the form of dividends and $23 million in share repurchases.

Speaker 3: Our balance sheet continues to be in great shape. This quarter, our strong cash flow generation enabled significant capital deployment with a minimal change in leverage.

Our balance sheet continues to be in great shape. This quarter, our strong cash flow generation enabled significant capital deployment with a minimal change in leverage we ended the quarter with a net debt to EBITDA ratio of <unk> eight times.

Speaker 3: We ended the quarter with a net debt EBITDA ratio of 0.8 times. Now, moving to our fiscal...

Scott Robinson: I will provide a call to our outlook for fiscal 2024 in a few minutes, but first we'll give additional details on the results for the fourth quarter. To summarize, sales declined 1% versus 2022, operating income decreased 7%, proven by investments primarily in life sciences. EPS of 78% decreased 7%, and cash conversion was 173%, versus 78% a year ago. Grossmargin was 34.3%, a 140 basis point improvement versus prior year. Pricing was the largest driver of the grossmargin improvement, followed by benefits from the stabilization of input costs, including lower freight costs.

Now moving to our fiscal 'twenty four outlook first on sales.

Speaker 3: We are forecasting fiscal 2024 sales to increase between 3 and 7 percent.

We are forecasting fiscal 2020 for sales to increase between 3% and 7%.

Speaker 3: This includes pricing of approximately 2% and a currency translation benefit of about 1%.

This includes pricing of approximately 2% and a currency translation benefit of about 1%.

Speaker 3: For mobile solutions, we are anticipating a sales increase of between one and five percent with our first fifth businesses up low single digits and aftermarket sales up mid-singled.

For mobile solutions, we are anticipating a sales increase of between 1% and 5% with our first fit businesses up low single digits and aftermarket sales up mid single digits.

Speaker 3: Support of N-marketing conditions, along with market share gains in aftermarket, are expected to be the drive.

Supportive and market conditions, along with market share gains in aftermarket are expected to be the drivers.

Speaker 3: For industrial solutions, sales are expected to increase between 3 and 7%. IFS sales are forecast to rise mid-single digits from strength and virtually every business, including dust collection and industrial service.

For industrial solutions.

<unk> are expected to increase between 3% and 7%.

<unk> sales are forecast to rise mid single digits from strength in virtually every business, including dust collection and industrial services.

Scott Robinson: Operating expenses as a percentage of sales were 20.0%, compared with 18.0% a year ago. The de-leveraging of operating expenses in the quarter was due to increased post-pandemic hiring expenses, and importantly, nearly half of the de-leveraging was from incremental expenses related to our life sciences acquisitions. Operating margin was 14.3% down 60 basis points versus prior year, as operating expense de-leveraging more than offset the year over year improvement in grossmargin.

Speaker 3: Aerospace and defense sales are projected to decline low single digits after cycling two years of strong post-pandemic growth in both fiscal 2022 and fiscal 2023.

Aerospace and defense sales are projected to decline low single digits.

After cycling two years of strong post pandemic growth in both fiscal 2022 and fiscal 2023.

Speaker 3: In life sciences, we are forecasting sales to increase approximately 20% as we drive geographic expansion.

In life Sciences, we are forecasting sales to increase approximately 20% as.

As we drive geographic expansion in food and beverage.

Speaker 3: as our bioprosying equipment and consumables business mature and commercialize and as a described business returns to growth.

As our bioprocess equipment, and consumables business mature and commercialized.

Scott Robinson: Not all discussed segment profitability. Mobile Solutions pre-tax profit margin was 16.2% up 40 basis points year over year, and industrial solutions pre-tax profit margin was 19.2% up 60 basis points. Grossmargin expansion, driven in large part by pricing, was a key driver in both of these segments.

And as a disk drive business returns to growth.

Scott Robinson: Mobile Solutions pre-tax profit margin was 16.2% up 40 basis points year over year, and industrial solutions pre-tax profit margin was 19.2% up 60 basis points. Grossmargin expansion, driven in large part by pricing, was a key driver in both of these segments.

Speaker 3: In addition, we expect full year fiscal 2024 Life Sciences pre-tax profit margin to be positive and remain competent in our Life Sciences Investor Day target.

In addition, we expect full year fiscal 2020 for life Sciences pretax profit margins to be positive and remain confident in our life Sciences Investor day targets.

Speaker 3: Moving on to operating margin, we expect full-your operating margin within a range of between 14.7 and 15.3%. An increased versus 14.6% in fiscal 2023, driven by gross margin expansion, and partially offset by higher expenses as a rate of sale.

Moving on to operating margin, we expect full year operating margin within a range of between $14 seven and 15, 3%.

Scott Robinson: With respect to life sciences, the pre-tax loss of approximately $7 million included a headwind from acquisitions of roughly 8 million. Pre-tax profit margin was minus 12.4% versus 20.3% a year ago. While incremental investments in our acquisitions, including the purchase of universe sales technologies are negatively impacting results in the short term, we remain committed to investing for the future and look forward to scaling these businesses. The decline in disk drive sales was also margin ahead when this quarter, starting to a few balance sheet and cash flow statement highlights.

An increase versus 14, 6% in fiscal 2023, driven by gross margin expansion and partially offset by higher expenses as a rate of sales.

Speaker 3: Our guidance implies an operating margin at an all time high for dollars, and which is important to note.

Our guidance implies an operating margin at an all time high for Donaldson, which is important to note.

Speaker 3: Particularly given our ongoing investments as we work to scale our life sciences bit

Particularly given our ongoing investments as we work to scale, our life Sciences businesses.

Speaker 3: As I always say, we remain committed to higher levels of profitability on higher levels of sales, and we plan to deliver this again in fiscal 2024.

As I always say, we remain committed to higher levels of profitability on higher levels of sales and we plan to deliver this again in fiscal 2024.

Scott Robinson: The decline in disk drive sales was also margin ahead when this quarter, starting to a few balance sheet and cash flow statement highlights. Fourth quarter capital expenditures mainly inclusive of continued capacity expansion, investments in North America were approximately 25 million. As I mentioned earlier, cash conversion the quarter was 173%, particularly strong versus 78% in 2022. We continue to experience high levels of conversion as a result of our actions to reduce inventory to more normalized levels.

Speaker 3: In terms of EPS, we are forecasting a range between $3.14 and $3.30.

In terms of EPS, we are forecasting a range between $3 14.

Scott Robinson: Fourth quarter capital expenditures mainly inclusive of continued capacity expansion, investments in North America were approximately 25 million. As I mentioned earlier, cash conversion the quarter was 173%, particularly strong versus 78% in 2022. We continue to experience high levels of conversion as a result of our actions to reduce inventory to more normalized levels. In terms of other capital employment, we acquired universe sales technologies for 147 million and returned 53 million to shareholders, inclusive of 30 million the firm dividends and 23 million and share repurchases.

And $3 30.

Speaker 3: from $3.04 in fiscal 2023. Now I'm going to have to our balance.

From $3 <unk> in fiscal 2023.

Now onto our balance sheet and cash flow outlook.

Speaker 3: Cash conversion is expected to be in the range of 95 to 105%, slightly down from 114% in fiscal 2023, but still above our historical averages.

Cash conversion is expected to be in the range of 95% to 105% slightly down from 114% in fiscal 2023, but still above our historical averages.

Speaker 3: Our Capital Expandentious Forkass is 95 million to 115 million, and while heavily weighted towards growth initiatives, includes maintenance investments such as workplace of the future, our initiative to update and modernize our building facilities in our continued commitment to attract and retain talent.

Our capital expenditures forecast is $95 million to $115 million and while heavily weighted towards growth initiatives.

Scott Robinson: In terms of other capital employment, we acquired universe sales technologies for 147 million and returned 53 million to shareholders, inclusive of 30 million the firm dividends and 23 million and share repurchases. Our balance sheet continues to be in great shape. This quarter, our strong cash flow generation enabled significant capital employment with a minimal change in leverage. We ended the quarter with a net debt EBITDA ratio of 0.8 times.

<unk> maintenance investments such as a workplace of the future our initiative to update and modernize our building facilities and our continued commitment to attract and retain talent in terms of other capital deployment priorities. We continue to focus on reinvesting back into the company strategic acquisitions and.

Scott Robinson: Our balance sheet continues to be in great shape. This quarter, our strong cash flow generation enabled significant capital employment with a minimal change in leverage. We ended the quarter with a net debt EBITDA ratio of 0.8 times.

Speaker 3: In terms of other capital employment priorities, we continue to focus on reinvesting back into the company, strategic acquisitions, and our commitment to returning value to shareholders through dividends and share with other? in this run.

Our commitment to returning value to shareholders through dividends and share repurchases.

Now I'll turn the call back to Todd.

Scott Robinson: Now, moving to our fiscal 24 outlook, first on sales. We are forecasting fiscal 2024 sales to increase between 3 and 7%. This includes pricing of approximately 2% and a currency translation benefit of about 1%. For mobile solutions, we are anticipating a sales increase of between 1 and 5% with our first 5th businesses up low single digits and aftermarket sales up mid-single digits. Support of end-market conditions along with market share gains in aftermarket are expected to be the drivers.

Speaker 4: Thanks, Scott. As we begin fiscal 2024 through each of our segments, we are steadfast in fulfilling our purpose of advancing filtration for our cleaner world.

Thanks, Scott as we begin fiscal 2024 through each of our segments. We are steadfast in fulfilling our purpose of advancing filtration for a cleaner world.

Scott Robinson: For industrial solutions, sales are expected to increase between 3 and 7%. IFS sales are forecast to rise mid-single digits from strength in virtually every business, including dust collection and industrial services. Aerospace and offend sales are projected to decline low single digits after cycling two years of strong post-pandemic growth in both fiscal 2022 and fiscal 2023. In life sciences, we are forecasting sales to increase approximately 20% as we drive geographic expansion and food and beverage, as our bioprosting equipment and consumables business mature and commercialize, and as a described business returns to growth.

Speaker 4: In mobile, we are addressing a growing need, helping our customer's self-sustainability challenges by delivering higher performance solutions and utilizing our technology to improve efficiencies and fuel

In mobile we are addressing a growing need helping our customers solve sustainability challenges by delivering higher performance solutions and utilizing our technology to improve efficiencies and fuel economy.

Speaker 4: We continue to build out our alternative power solutions portfolio to ensure we remain well-positioned to address all future engine adoption scenarios.

We continue to build out our alternative power solutions portfolio to ensure we remain well positioned to address all future engine adoption scenario.

Speaker 4: In industrial, we are growing our technologies and solutions to form strategic customer partners.

In industrial we are growing our technologies and solutions to form strategic customer partnerships.

Speaker 4: Our expanded connectivity applications enable monitoring and alerting and drive energy efficient.

Our expanded connectivity applications enabled monitoring and alerting and drive energy efficiency.

Speaker 4: Our Dustin Fume Control Product portfolio designed for optimized energy consumption and carbon footprint reduction Provide solutions for customer environmental filtration challenge

Our Dustin fume control product portfolio designed for optimized energy consumption and carbon footprint reduction provides solutions for customer environmental filtration challenges.

Speaker 4: In life sciences, we are building out capabilities to address process, integrity, and food and beverage and improve the sustainability of the global food supply through entry into alternative proteins. We are also leveraging our...

In life Sciences, we are building our capabilities to address process integrity, and food and beverage and improve the sustainability of the global food supply through entry into alternative proteins.

We are also leveraging our existing technology R&D capabilities and acquisitions to support the development of new therapeutics through differentiated and disruptive technologies.

Speaker 4: R&D capabilities and acquisitions to support the development of new therapeutics through differentiated and disruptive technology.

Scott Robinson: In addition, we expect full year fiscal 2024 life sciences pre-tax profit margins to be positive and remain confident in our life sciences investor-day targets. Moving on to operating margin, we expect full year operating margin within a range of between 14.7 and 15.3%. An increased versus 14.6% in fiscal 2023 driven by gross margin expansion and partially offset by higher expenses as a rate of sales. Our guidance implies an operating margin at an all-time high for dollars, which is important to note, particularly given our ongoing investments as we work to scale our life sciences businesses.

Speaker 4: A few comments on our progress in this regard, which gives us confidence in achieving our growth objective.

A few comments on our progress in this regard, which gives us confidence in achieving our growth objectives.

Speaker 4: We have added over 1,000 years of bioprofacing experience to our team, including 150 scientists, engineers, and commercial and operations personnel.

We have added over 1000 years of bio processing experience to our team, including 150, scientists engineers and commercial and operations personnel.

Speaker 4: Customer interest in our pure logics and isolation technology is tremendous.

Customer interest in our <unk> and Isolator technology is tremendous we.

Speaker 4: We are building onto a $210 million opportunity pipeline with large customers, and over 20% of this pipeline has already achieved technical approval.

We're building onto a $210 million opportunity pipeline with large customers and over 20% of this pipeline has already achieved technical approval.

Scott Robinson: As I always say, we remain committed to higher levels of profitability on higher levels of sales and we plan to deliver this again in fiscal 2024. In terms of EPS, we are forecasting a range between $3.14 and $3.30 from $3.04 in fiscal 2023. Not only through our balance sheet and cash flow outlook. Cash conversion is expected to be in the range of 95 to 105%, slightly down from 114% in fiscal 2023, but still above our historical averages.

Speaker 3: And lastly, sales of Solaris BioReactor products more than doubled year over year in the fourth quarter. And we enter fiscal 2024 with backlogs at record high.

And lastly sales of Soliris bioreactor products more than doubled year over year in the fourth quarter and we enter fiscal 2024 with backlogs at record highs.

Speaker 3: In closing, I look forward to the journey that Liza had as we execute on our longer term strategy and drive towards our financial targets. And then confident we have the right team in place to achieve those goals.

In closing I look forward to the journey that lies ahead as we execute on our longer term strategy and drive towards our financial targets and Im confident we have the right team in place to achieve those goals.

Speaker 3: With that, I will now turn the call back to the operator to open the line.

With that I will now turn the call back to the operator to open the line for questions.

Speaker 1: At this time, I'd like to remind everyone in order to ask a question, press star followed by the number one on your telephone keypad. Our first question will come from the line of Ryan Blair with Oppenheimer. Please go ahead. Please go ahead.

At this time I would like to remind everyone in order to ask a question press star followed by the number one on your telephone keypad. Our first question will come from the line of Bryan Blair with Oppenheimer. Please go ahead.

Scott Robinson: Our capital expenditures forecast is 95 million to 115 million, and while heavily weighted towards growth initiatives, includes maintenance investments such as workplace of the future, our initiative to update and modernize our building facilities in our continued commitment to attract and retain talent. In terms of other capital deployment, priorities, we continue to focus on reinvesting back into the company, strategic acquisitions, and our commitment to returning value to shareholders through dividends and share repurchases.

Thank you good morning, everyone.

Yeah.

Speaker 5: Starting with your top line of look, maybe you'll offer some more color on what you're seeing in current order rates and higher teams contemplating first and second half growth by segment. There's, you know, quite a bit of nuance there and certainly different comps that the segments phase is fiscal 24 move store.

Starting with your top line outlook, maybe offer some more color on what youre seeing in <unk>.

Current order rates and how your teams contemplating first and second half growth by segment there is.

Now quite a bit of nuance there.

Certainly different comps that the segments face this fiscal 'twenty four.

Speaker 6: So maybe what I'll do is this is top. So maybe what I'll do is talk at the macro and it's got to give you a little bit of feel for numbers that I'm not cadence as you work to build your model. Just at a macro level, we see strengths in Europe followed by good markets in the United States.

So maybe what I'll do is this is tod so maybe what I'll do is talk.

Todd Carpenter: Now I'll turn the call back to Todd. Thanks, Scott.

At the macro and Scott could give you a little bit.

Our feel for numbers on cadence as you work to build your models just at a macro level.

Todd Carpenter: As we begin fiscal 2024, through each of our segments, we are steadfast in fulfilling our purpose of advancing filtration for our cleaner world. In mobile, we are addressing a growing need, helping our customers solve sustainability challenges by delivering higher performance solutions and utilizing our technology to improve efficiencies and fuel economies. We continue to build our alternative power solutions portfolio to ensure we remain well positioned to address all future engine adoption scenarios.

We see strength in Europe.

Followed by good markets in the United States.

Speaker 3: Okay, markets in Latin America, and travel markets in A-PAC.

Okay markets in Latin America, and troubled markets in APAC.

Speaker 3: as you kind of look at across our businesses. Clearly the mobile solutions segment is experiencing destacking largely because of the OE portion of our aftermarket business.

As you as you kind of look at across our businesses.

Clearly the mobile solutions segment.

Is experiencing destocking.

Largely because of the OE.

A portion of our aftermarket business.

Speaker 3: And that is what's keeping us in the low single digits type of growth level. IFS continues to be strong both aftermarket as well as the equipment side. And that's more of a broad base type of a comment. And within life sciences, we would look to continue to execute and see growth across those base businesses that we have been growing in the prior year.

And that is what's keeping us into the low single digits type of growth level.

Todd Carpenter: In industrial, we are growing our technologies and solutions to form strategic customer partnerships. Our expanded connectivity applications enable monitoring and alerting and drive energy efficiency. Our Dustin Fume control product portfolio designed for optimized energy consumption and carbon footprint reduction provide solutions for customer environmental filtration challenges. In life sciences, we are building out capabilities to address process, integrity, and food and beverage and improve the sustainability of the global food supply through entry into alternative proteins.

<unk> continues to be strong both aftermarket.

As well as the equipment side and that's more of a broad based type of comment.

Within life Sciences.

We would look to continue to execute and see growth across those base businesses that we have been growing in the prior years.

Speaker 3: So, as we just maybe look at the macro model, we're returning more to a more normal cadence of Donaldson company, whereby out last year we were 49%, 1st, half 51% 2nd, half. We would expect this fiscal year to be more of a 48 52 type of the split.

So as we just maybe look at the macro model.

We're returning more to a more normal cadence of Donaldson company.

Todd Carpenter: In life sciences, we are building out capabilities to address process, integrity, and food and beverage and improve the sustainability of the global food supply through entry into alternative proteins. We are also leveraging our existing technology, R&D capabilities, and acquisitions to support the development of new therapeutics through differentiated and disruptive technologies. A few comments on our progress in this regard, which gives us confidence in achieving our growth objectives. We have added over 1,000 years of bioprofacing experience to our team, including 150 scientists, engineers, and commercial and operations personnel.

Thereby last year, we were 49% first half 51% of second half we would expect this fiscal year to be more of a $48 52 type of a slip.

Speaker 5: So maybe I'll just add on a little bit that to that Brian . So, you know, in terms of quarterly sequencing, in total, you know, like Todd said, we're kind of back to normal seasonality. So that means revenues in the second half will be higher than in the first half.

So maybe I'll just add on a little bit to that Bryan so.

Todd Carpenter: We are also leveraging our existing technology, R&D capabilities, and acquisitions to support the development of new therapeutics through differentiated and disruptive technologies. A few comments on our progress in this regard, which gives us confidence in achieving our growth objectives. We have added over 1,000 years of bioprofacing experience to our team, including 150 scientists, engineers, and commercial and operations personnel. Customer interest in our pure logics and isolare technology is tremendous. We are building onto a $210 million opportunity pipeline with large customers and over 20% of this pipeline has already achieved technical approval. And lastly, sales of Solaris BioReactor products more than doubled year over year in the fourth quarter, and we enter fiscal 2024 with backlogs at record highs.

In terms of.

Quarterly sequencing.

In total.

Like Todd said, we're kind of back to normal seasonality. So that means our revenues in the second half will be higher than in the first half and also in terms of profitability. Both gross margin and operating margin I mean, we've given you a guidance for the year in total but generally.

Todd Carpenter: In closing, I look forward to the journey that Liza had as we execute on our longer-term strategy and drive towards our financial targets, and then confident we have the right team in place to achieve those goals.

Speaker 4: and also in terms of profitability, both gross margin and operating margin. I mean, we've given you guidance for the year in total. But generally, both the gross margin and the operating margin.

Both the gross margin on the operating margin.

Speaker 4: are going to be generally sequential up quarter over quarter in each of the quarters throughout the year. So, a little bit of a ram.

Or are going to be generally sequential up quarter over quarter and each of the quarters throughout the year. So it is a little bit of a ramp this year on both gross margin operating margin with.

Todd Carpenter: Customer interest in our pure logics and isolare technology is tremendous. We are building onto a $210 million opportunity pipeline with large customers and over 20% of this pipeline has already achieved technical approval. And lastly, sales of Solaris BioReactor products more than doubled year over year in the fourth quarter, and we enter fiscal 2024 with backlogs at record highs.

Speaker 4: this year on both gross margin and operating margin.

Speaker 4: with revenues, you know, a little bit higher in the back half than in the front half as Todd mentioned. So we're kind of sticking to the guidance at the whole level from a quarterly perspective. There's some pluses of minuses within each of the business units.

With revenues, a little bit higher in the back half than in the front half as Todd mentioned, so we're kind of sticking to the guidance at the whole level from a quarterly perspective, there are some pluses and minuses within each of the business units, but I think if you stick with the normal seasonality in.

Speaker 4: but I think if you stick with the normal seasonality um... and revenues generally increasing you know first after back half and gross margins and operating margin generally sequentially improving in each of the quarters throughout the year

And revenues generally increasing first half to back half and gross margins and operating margins generally sequentially improving in each of the quarters throughout the year.

Speaker 5: Okay, appreciate the color there. I'm sticking with margin. Industrial profitability was again, actually pretty exceptional in the quarter. An industrial performance overall has been very solid. The last three quarters, you've come in well ahead of your fiscal 26 targets for industrial margin. Seems just pretty good momentum. Going into fiscal 24.

Okay I appreciate the color there.

Sticking with margin industrial profitability was again.

Actually pretty exceptional in the quarter and industrial performance overall has been very solid.

Regina: With that, I will now turn the call back to the operator to open the line for questions. At this time, I'd like to remind everyone in order to ask a question, press star followed by the number one on your telephone keypad.

Operator: With that, I will now turn the call back to the operator to open the line for questions. At this time, I'd like to remind everyone in order to ask a question, press star followed by the number one on your telephone keypad.

The last three quarters, you've come in well ahead of your fiscal 'twenty six targets for industrial margins.

It seems it's pretty good momentum going into fiscal 'twenty four.

Speaker 5: are run rate margins sustainable for the segments or are there cost, mix, other factors that we should keep in mind that may moderate process level.

Our run rate margin is sustainable for the segments or other cost mix. Other factors that we should keep in mind that may moderate profit level going forward.

Bryan Blair: Our first question will come from the line of Ryan Blair with Oppenheimer. Please go ahead. Thank you, good morning, Earl. Good morning. Starting with your top line outlook, maybe offer some more color on what you're seeing in current order rates and higher-teens contemplating first and second half growth by segment. There's now quite a bit of nuance there and certainly different comps that the segment's face is fiscal 24 move start.

Speaker 3: Well, let me just start now, I'll turn it over to Scott here for a little bit more color, but just at the macro level, we're executing extremely well with our strategy on industrial clearly that we talked about in an investor's day with the connected base products. We are seeing share gain within our aftermarket businesses, our equipment based businesses are hanging quite well, overall at the macro atmosphere. So we're pretty comfortable with where we are, what we're seeing, and we'll continue to press and execute our strategy.

Well, let me just start and I'll let.

Ill turn it over to Scott here for a little bit more color, but just at the macro level, we are executing extremely well with our strategy on industrial clearly that we talked about in an investors day with the connected based products. We are seeing share gain within our aftermarket businesses our equipment based businesses are hanging quite well.

Todd Carpenter: So maybe what I'll do is this is top. So maybe what I'll do is talk at the macro and Scott could give you a little bit up feel for numbers on cadence as you work to build your model. Just at a macro level, we see strength in Europe followed by good markets in the United States, okay markets in Latin America and troubles markets in ATAC. As you kind of look at across our businesses, clearly the mobile solutions segment is experiencing destocking largely because of the elite portion of our aftermarket business.

Overall at the macro atmosphere, so we're pretty comfortable with where we are what we're seeing and we'll continue to process and execute our strategy.

Speaker 4: yeah maybe i just have brought you know we like you said we did have very good performance and we really had strong

And maybe I'd just add Brian like you said, we did have very good performance and.

And we really had strong.

Yeah.

Speaker 4: project-based shipments in the last part of last year, so that really drove a very strong leverage.

Project based shipments in the last part of last year, So that really drove a very strong leverage and high profitability. So we are very pleased to see the progress and success of the organization. So we probably overleveraged a bit.

Speaker 4: and high profitability. So we're very pleased to see the progress and success of the organization. So we probably overlavered a bit.

Speaker 4: But we expect industrial margins to continue to be strong. And we do think about our investor day targets. At this point, we've chosen not to change them. We're certainly committed to achieving all of those investor day targets. And as you've noted, industrial has got a very good jump.

But we expect industrial margins to continue to be strong and we do think about our investor day targets at this point, we've chosen not to change them. We're certainly committed to achieving all of those investor day targets and kind of as you've noted industrial has got a very good jump on achieving their operating margin targets that we laid out on industrial Bay and <unk>.

Todd Carpenter: And that is what's keeping us in the low single digits type of growth level. IFS continues to be strong both aftermarket as well as the equipment side and that's more of a broad base type of a comment. And within life sciences, we would look to continue to execute and see growth across those base businesses that we have been growing in the prior years. So as we just maybe look at the macro model, we're returning more to a more normal cadence of Donaldson company whereby out last year we were 49% first half, 51%.

Speaker 4: on achieving their operating margin targets that we laid out in industrial bay and is actually slightly ahead right now.

Slightly ahead right now.

Speaker 5: Absolutely. And then for Life Sciences, Scott, I think you called it last quarter, you know, 800 basis points are there about margin impact from acquisitions.

Yeah, absolutely and then for life Sciences, Scott I think you called out last quarter 800 basis points or thereabouts margin impact from acquisitions. It sounds like that was it.

Speaker 5: Sounds like that was, you know, was worse than that at 8 million or so in dollar impact for fiscal 4Q. We know there's a lot of investment there and it's a long term outlook for the build out of the platform. But how should we think about the near term progression of margin impact from the acquisitions and how that is ultimately contemplated in your fiscal 24.

It was worse than that.

$8 million or so in dollar impact for fiscal <unk>.

We know Theres a lot of investment there and it's a long term outlook for the Buildout of the platform, but how should we think about the near term progression of margin impact from the acquisitions.

Todd Carpenter: Second half, we would expect this fiscal year to be more of a 48 52 type of display. So maybe I'll just add on a little bit that to that Brian. So in terms of quarterly sequencing, in total, like Todd said, we're kind of back to normal seasonality. So that means a revenue is in the second half will be higher than in the first half. And also in terms of profitability, both gross margin and operating margin, we've given you guidance for the year in total.

So that is ultimately contemplated in your fiscal 'twenty forecast, yes.

Speaker 4: Yeah, so I mean we certainly talked about that quite a bit and first off just a note, I'm where we're very proud of the fact that the company continues to put up record levels of sales and record levels of property while we are investing in our life sciences and other businesses to really make sure we secure long-term growth potential for the company.

Yes, so I mean, we certainly talked about that quite a bit in <unk> and first off just to note. We're very proud of the fact that the company continues to put up record levels of sales and record levels of property. While we are investing in our life sciences and other businesses to really make sure we secure long term.

Growth potential for the company and we've done some acquisitions and with that comes some amortization and some startup costs.

Speaker 4: And we've done some acquisitions and with that come some amortization and some startup costs and and we've done some investments like that and we want to make sure we properly fund those businesses. I said in my script that we expect the life sciences.

Todd Carpenter: But generally both the gross margin and the operating margin are going to be generally sequential up quarter over quarter in each of the quarters throughout the year. So it's a little bit of a ramp this year on both gross margin and operating margin with revenues a little bit higher in the back half than in the front half as Todd mentioned. So we're kind of sticking to the guidance at the whole level from a quarterly perspective.

And we've done some investments like that and we want to make sure we properly fund those businesses.

I said in my script that we expect the life Sciences operating margin to be positive next year. So.

Speaker 4: operating margin to be positive next year. So, you know, we definitely invested heavily and we took on a bit of a run rate expense and you see that in our op-x. But we do expect the operating margin for life sciences to be positive for the next year's fiscal results.

We definitely invested heavily and we took a bit of a run rate expenses and you'll see that in our opex, but we do expect the operating margin for life Sciences.

Positive for next year fiscal.

Todd Carpenter: There's some pluses of minuses within each of the business units. But I think if you stick with the normal seasonality and revenues generally increasing, you know, first half the back half and gross margins and operating margin generally sequentially improving in each of the quarters throughout the year. Okay. Appreciate the color there.

Fiscal results.

Understood. Thanks again.

Speaker 1: Your next question will come from the line of Nathan Jones with Stiefel. Please go ahead.

Your next question will come from the line of Nathan Jones with Stifel. Please go ahead.

Speaker 7: Good morning everyone. Morning, Nate.

Good morning, everyone.

Good morning, <unk> morning.

Speaker 8: I am going to follow up on Brian's last question on the life signs as margin and if we can get any more help with the progression of that through 24. I margins swung by 30 points from the first quarter of 23 to the fourth quarter of 23.

Im going to follow up on Brian's last question on the life Sciences margin and say, if we can get any.

Todd Carpenter: And sticking with margin, industrial profitability was again actually pretty exceptional in the quarter. And industrial performance overall has been very solid.

Bryan Blair: And sticking with margin, industrial profitability was again actually pretty exceptional in the quarter. And industrial performance overall has been very solid.

<unk> will help with that progression of that through 'twenty four the margins swung by 30 points.

Scott Robinson: The last three quarters you've come in well ahead of your fiscal 26 targets for industrial margin seemed to have pretty good momentum going into fiscal 24. Our run rate margins sustainable for the segments are there, you know, cost, mix, other factors that we should keep in mind that may moderate process level. Well, let me just start now, I'll turn it over to Scott here for a little bit more color, but just at the macro level, we're executing extremely well with our strategy on industrial.

Todd Carpenter: The last three quarters you've come in well ahead of your fiscal 26 targets for industrial margin seemed to have pretty good momentum going into fiscal 24. Our run rate margins sustainable for the segments are there, you know, cost, mix, other factors that we should keep in mind that may moderate process level. Well, let me just start now, I'll turn it over to Scott here for a little bit more color, but just at the macro level, we're executing extremely well with our strategy on industrial.

From the first quarter of 'twenty trade in the fourth quarter of 2003.

Speaker 7: Just, I know Scott, you said positive for the year, is there any help you can give us with, I mean, I assume they're going to start out negative in the first quarter. Should we be thinking about something like the fourth quarter margin in the first quarter and how that kind of raps up through the year to get to progress?

I know Scott you said positive for the year is that.

Any help you can give us with I mean, I assume they are going to start out negative in the first quarter.

Should we be thinking about something lots at fourth quarter margin in the first quarter and how that kind of ramps up through the year to get to positive.

Speaker 4: Yeah, I mean, we're looking at next year where, you know, we definitely stepped up our investments in the fourth quarter. So as sales increased, you know, we'll certainly have helped cover those costs. Don't forget, we also had the disk drive headwind this year that we expect to abate next year. You know, so we're looking at, you know, low single digit profitability. And for the most part, relatively consistent.

Yes, I mean, we're looking at next year, where we definitely stepped up our investments in the fourth quarter. So as sales increase we will certainly help cover those costs don't forget. We also had the disk drive headwinds this year that we expect to abate next year.

Scott Robinson: Clearly that we talked about an investor's day with the connected based products, we are seeing share gained within our aftermarket businesses, our equipment based businesses are hanging quite well overall at the macro atmosphere, so we're pretty comfortable with with where we are, what we're seeing, and we'll continue to press and execute our strategy. Yeah, and maybe I just add, Brian, you know, like you said, we did have very good performance, and we really had strong project based shipments in the last part of last year, so that really drove a very strong leverage and high profitability, so we're, you know, very pleased to see the progress and success of the organization.

Todd Carpenter: Clearly that we talked about an investor's day with the connected based products, we are seeing share gained within our aftermarket businesses, our equipment based businesses are hanging quite well overall at the macro atmosphere, so we're pretty comfortable with with where we are, what we're seeing, and we'll continue to press and execute our strategy. Yeah, and maybe I just add, Brian, you know, like you said, we did have very good performance, and we really had strong project based shipments in the last part of last year, so that really drove a very strong leverage and high profitability, so we're, you know, very pleased to see the progress and success of the organization.

So we're looking at low single digit profitability.

And for the most part relatively consistent throughout the fiscal year.

Speaker 4: throughout the fiscal year, achieving a positive operating margin for the next year. So there's not any math that swings contemplated. The really big investment period was the fourth quarter, and we had to just drive headwinds that will normalize sequentially going forward. So we feel like we're in a better position and the results will reflect that.

Meaning a positive operating margins for the next year. So there's there's not any massive swings positive bladed.

Really big investment period.

The fourth quarter, and we had the disk drive headwinds that will normalize sequentially going forward. So we feel like were worried about our position and the results will.

Yes.

Reflect that.

Scott Robinson: So we probably overlavered a bit, but we expect industrial margins to continue to be strong, and we do think about our investor's day targets at this point, we've chosen not to change them, we're certainly committed to achieving all of those investor's day targets, and kind of as you've noted, industrial has got a very good jump on achieving their operative margin targets that we laid out in industrial bay, and it's actually slightly ahead right now.

Todd Carpenter: So we probably overlavered a bit, but we expect industrial margins to continue to be strong, and we do think about our investor's day targets at this point, we've chosen not to change them, we're certainly committed to achieving all of those investor's day targets, and kind of as you've noted, industrial has got a very good jump on achieving their operative margin targets that we laid out in industrial bay, and it's actually slightly ahead right now.

Speaker 7: So the margins, you're not thinking the margins in lot of sciences have a big wrap up throughout the year. They're relatively consistent. I mean, if you're assuming volume gets...

So the margins you're not taking the margin in life Sciences had a big ramp up throughout the year relatively consistent.

We're assuming volume yet.

Speaker 7: sequentially better through the year. I assume margins would get sequentially better through the year, but there's not a huge variance in those.

Sequentially better through the year I assume margins would get sequentially better through the year, but theres not a huge variance hitting those numbers.

Speaker 3: There's not a huge variance in the numbers, Nathan, and life science will be actually a little bit lumpy in the year more than some of the other than the other 2 segments. But just just slight degrees of difference throughout the year. And we, we put out the investor a target right of. Twenty two point five percent operating margin for life sciences, three years out, and we're still committed to that number and believe it's achievable. Right?

There's not a huge variance in the numbers Nathan and life science will be actually a little bit lumpy.

In the year.

Scott Robinson: Yep, absolutely, and then for life sciences, Scott, I think you call that last quarter, you know, 800 basis points are there about margin impact from acquisitions, sounds like that was, you know, was worse than that at eight million or so and dollar impact for fiscal for you, we know there's a lot of investment there, and it's a long term outlook for, you know, build out of the platform. But how should we think about, you know, the near term progression of margin impact from from the acquisitions and how that is ultimately concentrated in your fiscal 24 guy.

More than some of the other than the other two segments, but.

Just slight.

Degrees of difference throughout the year and we we put at the Investor day target rate of 22, 5% operating margin for life Sciences, three years out and we're still committed to that number and believe its achievable right.

Speaker 7: And that just comes from absorbing these costs with revenue as those businesses ramp up, right? I mean, you're still in a position with a number of those businesses where revenue is pretty minimal.

And Thats just that just comes from absorbing these costs with revenue as those businesses ramp up Brian I mean, you're still in a position with a number of those businesses where revenues pretty minimal.

Speaker 3: Exactly. And when you look at what additional capital might be needed in the businesses, that particular way we look at that is we will need some additional manufacturing capability across the life sciences segment. We will have that investment within the next three years.

And when you look at what additional capex might be needed in the businesses that particular the way we look at that is.

Scott Robinson: Yeah, so I mean we certainly talked about that quite a bit and and first off, just a note, I'm where we're very proud of the fact that the company continues to put up record levels of sales and record levels of property. While we are investing in our life sciences and other businesses to really make sure we secure long term growth potential for the company, and we've done some acquisitions and with that come some amortization and some startup costs and, and we've done some investments like that, and we want to make sure we properly fund those businesses.

We will need some additional manufacturing capability across our life Sciences segment, we will have that investment within the next three years.

Speaker 3: adding that in to be able to meet the manufacturing capabilities. But we've baked that all within this guide. We put that all within the investor's targets and gives us confidence within the targets that we talked about last week.

Adding that in to be able to meet the manufacturing capabilities.

But we baked that all within this guide we've put that all of the investors targets.

And gives us confidence within the targets that we talked about last April.

Speaker 7: Maybe we could get some more color on that $210 million opportunity pipeline that you talked about, Todd. Half of the chain technical approval, I guess that means the other half still waiting for it. Is that $210 million all business that you expect to win or is that business that you still have to compete to win? And how should we think about that kind of those projects being released and ramping up?

Maybe we could get some more color on that 210 million dollar opportunity pipeline that you talked about.

Scott Robinson: I said in my script that we expect the life sciences operating margin to be positive next year, so, you know, we definitely invested heavily and we took on a bit of a run rate expenses and you see that in our backs, but we do expect the operating margin for life sciences to be positive for the next years fiscal results. Okay, understood next again.

Half of it Jay technical approval I guess that means the other half still waiting for it is that $210 million.

All business that you expect to win or is that business that you still have to compete to win and how should we think about that kind of those projects being released and ramping up.

Speaker 3: So the $210 million is the opportunity pipeline, and that's why we pointed out that where 20% of it is approved, right? So 80% of it, we are still looking to go through with the particular OE, the approval process, or we are in flight of the approval process. But that's near term what we're chasing, and we've looked at that $210 million over a seven year period.

So the $210 million is the opportunity pipeline and that's why we pointed out that were 20% of it is approved right. So 80% of it we are still <unk>.

Nathan Jones: Your next question will come from the line of Nathan Jones with Steve, please go ahead.

Looking to go through with the particular OE the approval process or we are in flight of the approval process. So.

Nathan Jones: Good morning, everyone. Morning, Nathan. I am going to follow up on Brian's last question on the life sciences margin and say if we can get, you know, any more help with that progression of that through 24 imagines swung by, you know, 30 points from the first quarter of 2020. I know Scott, you said positive for the year, is there, you know, any help you can give us with, I mean, I assume they're going to start out negative in the first quarter.

But that's that's near term, what we're chasing and we've looked at that $210 million over a seven year period.

Speaker 3: It's important to also understand that what we baked into this particular guide out of those seed planting based businesses is very little revenue for this fiscal year. It really starts to show a bit more next year and then ramps up.

It's important to also understand that what we've baked into this particular guide out of those seed.

<unk> based businesses is very little revenue for this fiscal year.

Nathan Jones: Should we be thinking about something like the fourth quarter margin in the first quarter and how that kind of wraps up through the year to get the positive. Yeah, I mean, we're looking at next year where, you know, we definitely stepped up our investments in the fourth quarter. So, as sales increased, you know, we'll certainly help cover those costs. Don't forget, we also had the disc drive headwind this year that we expect to abate next year.

It really starts to show a bit more next year and then ramps up.

Okay.

Great. Thanks for taking my questions I'll pass it along.

Nathan Jones: You know, so we're looking at, you know, low single digit profitability and for the most part relatively consistent throughout the fiscal year, achieving a positive operating margin for the next year. So, there's not any massive swings contemplated. You know, the really big investment period, you know, was the fourth quarter and we had the disc drive headwinds that will normalize sequentially going forward. So, we feel like we're in better position and the results will, you know, reflect that.

Your next question comes from the line of Brian Drab with William Blair. Please go ahead.

Speaker 1: Your next question comes from the line of Brian Drab with William Blair. Please go ahead.

Speaker 9: Hi, good morning. Thanks for taking my questions. The universe cells acquisition was curious. That was 10 million in revenue in 22. You know, it paid a good multiple for that. I think it's like 13 and a half times trailing sales. So I assume that's growing rapidly. What should we model for that business, so roughly for fiscal 24?

Hi, good morning, Thanks for taking my questions.

The the universe cells acquisition.

Just curious those $10 million revenue in 'twenty two.

<unk>.

Paid a good multiple for that I think it was like $13 five times trailing sales side I'm, assuming that's growing rapidly.

What should we model.

In.

For that business roughly.

As for fiscal 'twenty four.

Speaker 9: It must be in the like I guess like 15 million range or something there about

It must be in the I guess like $15 million range or thereabouts.

Speaker 3: Yeah, we, you know, we baked that into the current guy that we gave you obviously with one our expectation, with one our expectations are we do expect it to grow double digits.

Yes.

Baked that into the current guide that we gave you obviously.

With one of our expectation with what our expectations are we do expect it to grow double digits.

Speaker 3: within that business, but we also have some pieces to put in place in order to be able to execute that, which we have all put in on the revenue side as well as any particular cost on that into this guide that we just gave you, remembering that we have not owned that business very long. So we'll be integrating it throughout this year.

Within that business, but we also have.

Nathan Jones: So, the margins, you're not thinking the margins in large sciences have a big wrap up throughout the year, they're relatively consistent. I mean, if you're assuming volume gets sequentially better through the year, I assume margins would get sequentially better through the year, but there's not a huge variance in those numbers. There's not a huge variance in the numbers, Nathan, and life science will be actually a little bit lumpy in the year.

Some pieces to put in place in order for that in order to be able to execute that which we have all put in on the revenue side as well as any particular cost on that.

Into this guidance, we just gave you remembering that.

We have not own that business very long so.

We will be integrating it throughout this year.

Speaker 9: Yeah, okay, God, it makes sense. And so with the 20%

Nathan Jones: More than some of the other than the other two segments, but just light degrees of difference throughout the year. And we put up the administrative target right of 22.5% operating margin for life sciences three years out and we're still committed to that number and believe it's achievable. And that's just, that just comes from absorbing these costs with revenue as those businesses ramp up, right? I mean, you're still in a position with a number of those businesses where revenue is, you know, pretty minimal.

Yes, Okay got it makes sense.

So with the 20%.

Speaker 9: for the life sciences segment, I guess maybe like, I'm going to probably model like 15% organic revenue growth. And I'm just wondering, can you, should I discern anything from the press release in terms of the order that you listed? Dennis?

The forecast for the life Sciences segment.

I guess maybe like.

I'm going to probably modeling like 15% organic.

Organic revenue growth and I'm just wondering.

Can can you.

<unk>.

Should I discern anything from the press release in terms of the order that you listed the drivers of growth in life Sciences because.

Speaker 5: the drivers of growth in life sciences because you know food and beverage, bioprocessing, then disk drive.

Food and beverage bioprocess thing than disk drive.

Speaker 5: I'm just wondering which of those is expected to

I'm just wondering if you like which of those is expected to.

Nathan Jones: Exactly. And when you look at what additional capital might be needed in the businesses, that particular way we look at that is, we will need some additional manufacturing capability across the life sciences segment. And we will have that investment within the next three years, adding that in to be able to meet the manufacturing capabilities. But we think that all within this guide, we put that all within the investors targets and gives us confidence within the targets that we talked about last April.

Speaker 5: contribute most of the incremental organic revenue in fiscal 24, which is a so-it's hot.

Contribute most of the incremental organic revenue in fiscal 'twenty, four which is <unk> or can.

Can you rank order them.

Speaker 3: Yeah, it's going to be broad based Ryan, but you're right. We've grown the Food and Beverage Business Double Digits for a number of years. We expect that to happen again this year. And then, of course, we noted that our solaris backlogs are at all time highs. We would have expected that. That just is a good indicator to you that we're executing quite well. And then we would expect this drive coming off, easier comp.

Yes, it's going to be broad based Brian, but you are right, we've grown the food and beverage business double digits for a number of years, we expect that to happen again this year.

And then of course, we noted that our Solaris backlogs are at all time highs. We would've expected that just is a good indicator to you that we're executing quite well.

Todd Carpenter: Maybe we could get some more color on that 210 million dollar opportunity pipeline that you talked about Todd. Half of the chain technical approval, I guess that means you have the house still waiting for it. Is that 210 million all business that you expect to win or is that business that you still have to compete to win?

And and.

And then we would expect disk drive coming off easier comps too.

Speaker 3: to have a low double digit type of a growth rate. So, you know, you pack all that together, that's how, that's what really gives us confidence in the numbers we're giving.

<unk>.

A low double digit.

Type of a growth rate. So you pack all of that together.

That's how that's what really gives us confidence in the numbers we're giving.

Brian Drab: And how should we think about that kind of those projects being released and ramping up? So the 210 million is the opportunity pipeline, and that's why we pointed out that we're 20% of it is approved, right? So 80% of it, we are still looking to go through with the particular OE, the approval process, or we are in flight of the approval process. But that's near term what we're chasing, and we looked at that 210 million over a seven year period.

Speaker 5: Okay, got it. Thanks. So then just one last one. Can you talk about customer development within the acquisition progress that you're making with customers within the life sciences segment? How many customers do you have now? That's the LARIS backlog. Is that across many different customers or is it one big project for one customer and any color on that would be really helpful?

Okay got it thanks, and then just one last one can you talk about.

Todd Carpenter: So the 210 million is the opportunity pipeline, and that's why we pointed out that we're 20% of it is approved, right? So 80% of it, we are still looking to go through with the particular OE, the approval process, or we are in flight of the approval process. But that's near term what we're chasing, and we looked at that 210 million over a seven year period. It's important to also understand that what we baked into this particular guide out of those seed planting based businesses is very little revenue for this fiscal year.

Customer development within the.

Physician progress that youre, making with customers within the life Sciences segment, how many customers.

Do you have known that Solaris backlog is that across many different customers or is it one big project for one customer and any color on that would be really helpful. Thanks.

Speaker 3: Yeah, thanks, Ryan. So it's not one big project. It is more broad days.

Yes, thanks, Brian So it's not one big project it is more broad based.

Speaker 3: And remember that Solaris makes the very small desktop type of bioreactors that would go into laboratory type of use as well as the larger project type of bioreactors that you're referring to. Their backlog is a bit more broad based than one big elephant so to speak. So we're happy with.

Brian Drab: It's important to also understand that what we baked into this particular guide out of those seed planting based businesses is very little revenue for this fiscal year. It really starts to show a bit more next year, and then ramp up. Great. Thanks for taking my questions. I'll pass it along.

And remember that Solaris makes the very small desktop type of Bioreactors that would go into laboratory type of abuse as well as the larger project type of Bioreactors that you're referring to their backlog is a bit more broad based.

Nathan Jones: It really starts to show a bit more next year, and then ramp up. Great. Thanks for taking my questions.

And then one big elephant so to speak so we're happy with.

Speaker 3: with the progress that we have there. And then with the newer acquisitions, we're also happy with the very, very broad-based customer acceptance of those particular products and are working with a number of opportunities.

With the progress that we have there.

Operator: I'll pass it along.

Then with the newer acquisitions. We're also happy with the very very broad based customer acceptance of those of those particular products and are working with a number of.

Todd Carpenter: Your next question comes from the line of Brian Drab with William Blair. Please go ahead. Hi, good morning. Thanks for taking my questions. The the universe sells Acquisition was curious. You know, that was 10 million in revenue in 22. You know, you paid a good multiple for that. I think it's like 13 and a half times trailing sales. So I assume that's growing rapidly. What do we model in for that business so roughly for fiscal 24?

Brian Drab: Your next question comes from the line of Brian Drab with William Blair. Please go ahead. Hi, good morning. Thanks for taking my questions. The the universe sells Acquisition was curious. You know, that was 10 million in revenue in 22. You know, you paid a good multiple for that. I think it's like 13 and a half times trailing sales. So I assume that's growing rapidly. What do we model in for that business so roughly for fiscal 24?

Of opportunities.

Okay. Thanks Todd.

Speaker 1: Your next question comes from the line of Lawrence Alexander with Jeffries. Please go ahead.

Your next question comes from the line of Laurence Alexander with Jefferies. Please go ahead.

Speaker 10: Hi, good morning. This is Kevin S. Gaughan for Lawrence. So my question is largely already been asked, but I guess just do you guys see any risk of a recession impacting any of your end markets in 24? And I guess, if so, which areas would be most at risk? And when you said that you expect your top line and APAC to be troubled next year, is that mostly related to China or, you know, are there issues elsewhere in the region?

Hi, Good morning, this is Kevin Estok on for Laurence.

So my questions are largely already been asked but I guess you guys see any risk of a recession impacting any of your end markets in 'twenty, four and I guess.

Todd Carpenter: It must be in the like I guess like 15 million range or something thereabouts. Yeah, we you know, we baked that into the current guy that we gave you obviously with what our expectation with what our expectations are. We do expect to grow double digits within that business. But we we also have. Some pieces to put in place in order in order to be able to execute that which we have all put in on the revenue side as well as any particular cost on that into this guy that we just gave you remembering that we have not owned that business very long.

Brian Drab: It must be in the like I guess like 15 million range or something thereabouts. Yeah, we you know, we baked that into the current guy that we gave you obviously with what our expectation with what our expectations are. We do expect to grow double digits within that business. But we we also have. Some pieces to put in place in order in order to be able to execute that which we have all put in on the revenue side as well as any particular cost on that into this guy that we just gave you remembering that we have not owned that business very long.

Which areas would be most at risk and when you said that you expect your topline in APAC to be troubled next year is that mostly related to China or are there issues elsewhere in the region that youre seeing.

Speaker 3: Yeah, so when you talk about the recession, it's really China for us all the time. You know, we're really happy with where we are with China based upon. We know that that's a very troubled economy over there. Everybody knows that in the world. But we're happy with where we sit position to when it comes out. That should give us tailwind. We have a number of different markets or gains over there that that should be able to.

So when you talk about the recession, it's really China for US all the time, we're really happy with where we are with China based upon that we know that thats, a very troubled economy over there everybody knows that in the world.

But we're happy with where we sit positioned to when it comes out that should give us tailwind we have a number of different market share gains over there.

That should be able to.

Todd Carpenter: So we'll be integrating it throughout this year. Yeah, okay, got it makes sense. And so with the 20% forecast for the life sciences segment, you know, I guess maybe like, you know, I'm going to probably model like 15% organic revenue growth. And I'm just wondering. Can you, you know, should I discern anything from the press release in terms of the order that you listed the drivers of growth and life sciences because you know food food and beverage bioprocessing then disk drive.

Speaker 3: Give us some positive outcomes. However, we have not baked any of that type of lift into into F24 guidance. We believe that it'll just be a bit more protracted than.

Give us some positive outcomes. However, we have not baked any of that type of lift into into F. 'twenty for guidance, we believe that it'll just be a bit more protracted than.

Speaker 3: than it's currently or then was let's say seen six months ago.

That is currently or then was let's say six months ago. So we're very careful about <unk>.

Speaker 3: So we're very careful about projecting China, but for the rest of the world, we have not really seen any early indicators of recessionary type of behavior in any of the other geographies. And so we have not contemplated that at this time.

Projecting China, but for the rest of the world. We have not really seen any early indicators of recessionary type of behavior in any of the other geographies and so we have not contemplated that.

Todd Carpenter: I'm just wondering if you like which of those is expected to contribute most of the incremental organic revenue in fiscal 24, which is so as broad. Yeah, it's going to be broad based right, but you're right. We've grown the food and beverage business double digits for a number of years. We expect that to happen again this year. And then, of course, we noted that our solaris backlogs are at all time highs.

At this time.

Okay. Thank you.

Speaker 1: Your next question comes from the line of Rob Mason with Beard. Please go ahead.

Your next question comes from the line of Rob Mason with Baird. Please go ahead.

Speaker 11: Yes, good morning. Maybe Todd just wanted to follow up on that last comment. I mean, to the extent that you've not baked in any recessionary impact, I guess, how do you reconcile some of the PMIs that we see out of Europe versus your results which seem to be very good? It just seems like there's some disconnect there.

Hi, yes, good morning.

Todd just wanted to follow up on that last comment I mean to the extent that.

You've not.

Thanks, Dan in a recessionary impact.

How do you reconcile some of the PMI is that we see out of Europe versus your results, which seem to be very good.

It just seems like there is some disconnect there.

Todd Carpenter: We would have expected that that just is a good indicator to you that we're executing quite well. And then we would expect a disk drive coming off easier comps to have a low double digit type of a growth rate. So, you know, you pack all that together. That's how that's what really gives us confidence in in the numbers we're giving. Okay, got it. Thanks. And then just one last one. Can you talk about, you know, customer development within the in like acquisition progress that you're making with customers within the life sciences segment.

Speaker 11: Given the results, is that more share gain oriented on your side or just you know kind of help us versus what we you know historically would have expected? Given those macro and

The result is that more share gain oriented on your side or just kind of help us versus what we historically would have expected.

Given the.

Macro indices.

Speaker 3: So we've long said that we're a diverse portfolio of businesses across our company. You're starting to see the strength of that, particularly as you read about particular sectors having some headwinds. Donaldson Company is more broad than that. Some of the execution within the strategy that we talked about, Investors Day, is actually going extremely well. We clearly have share gains in some of our replacement part-based businesses. And so we have good momentum at this point in time and will continue to press, continue to be there.

Sure. So we've long said that we're a diverse portfolio of businesses across our company youre starting to see the strength of that particularly as you read about particular sectors, having some headwinds Donaldson company is more broad than that some of the execution within the strategies that we talked about at investors day is actually going extremely well, we clearly have sure.

Gains in some of our replacement part based businesses.

Todd Carpenter: How many customers do you have now like that solaris backlog is that across many different customers or is it one big project for one customer and any color on that would be really helpful. Thanks. Yeah, thanks. Right. So it's not one big project. It is more broad based. And remember that solaris makes the very small desktop type of bioreactors that would go into laboratory type of use as well as the larger project type of bioreactors that you're referring to.

So we have we have good good momentum at this point in time, and we'll continue to press.

Continue to invest.

Speaker 3: and look for a continuation of the solid execution that we're seeing across our company.

And look for.

Continuation of the solid execution that we're seeing across our company.

Yes.

Speaker 11: At two the extent and speaking to the mobile business, I think particularly, to the extent destocking was heavy in the fourth quarter, it's been going on for several months.

To the extent and speaking to the mobile business I think particularly.

To the extent destocking.

As heavy in the fourth quarter.

<unk> been going on for several quarters I thought your commentary around the aftermarket mogul aftermarket business implied that it may continue and I was just curious if thats. The case you said it could weigh on the low single digit or influence at low single digit growth rate.

Speaker 11: I thought your commentary around the aftermarket, mobile aftermarket business implied that it may continue. And I was just curious if that's the case. You said it could weigh on the most single digit or influence that single digit growth rate.

Todd Carpenter: Their backlog is a bit more broad based than one big elephant, so to speak. So we're happy with with the progress that we have there. And then with the newer acquisitions, we're also happy with the very, very broad based customer acceptance of those particular products and are working with a number of opportunities. Okay, thanks, Todd.

Todd Carpenter: And then with the newer acquisitions, we're also happy with the very, very broad based customer acceptance of those particular products and are working with a number of opportunities. Okay, thanks, Todd.

Speaker 11: How much longer do you think are you anticipating that these stocking headwinds impact that?

How much longer you think are you anticipating that destocking headwinds impact.

Speaker 3: Yeah, thanks Rob. Let me just give a little bit more specific color on that. If you recall in our mobile solutions aftermarket business, our OE portion of that business is 40% of the revenue. Our independent channel is 60% of the revenue. If you look at just the fourth quarter, we would tell you that our independent channel is roughly flat. Year over year and the OE channel was down mid-teens.

Yes, Thanks, Rob let me just give a little bit more specific color on that if you recall in our mobile solutions the aftermarket business.

Our OE portion of that business is 40% of the revenue our independent channel is 60% of the revenue. If you look at just the fourth quarter. We would tell you that our independent channel was roughly flat year over year in the OE channel was down mid teens.

Lawrence Alexander: Your next question comes from the line of Lawrence Alexander with Jeff Rees.

Kevin S: Your next question comes from the line of Lawrence Alexander with Jeff Rees. Please go ahead. Hi, good morning. This is Kevin S, back on for Lawrence. So my question is largely already been asked, but I guess you have seen a risk of a recession impacting any of your end markets in 24, and I guess if so, which areas of the growth at risk. And when you said that you expect your top line and APEC to be troubled next year, is that most people that are related to China or are there issues elsewhere in the region that you're seeing?

Kevin S: Please go ahead. Hi, good morning. This is Kevin S, back on for Lawrence. So my question is largely already been asked, but I guess you have seen a risk of a recession impacting any of your end markets in 24, and I guess if so, which areas of the growth at risk. And when you said that you expect your top line and APEC to be troubled next year, is that most people that are related to China or are there issues elsewhere in the region that you're seeing?

Speaker 3: So that suggests to you that the destocking across the OE channel, and it's not specific to one end market, but now has more broadened to multiple customers.

So that suggests to you that the destocking across the OE channel and it's not specific to one end market but.

Now has more broadened to multiple customers.

Speaker 3: It has really created the headwind across our aftermarket. It is not the independent distributor channels. In fact, looking forward, we would expect that destocking from all the behaviors we've seen from the OEB to pick up just a little bit.

It has really created a headwind across our aftermarket is not the independent distributor channels. In fact looking forward, we would expect that destocking from all of the behaviors that we've seen.

Kevin S: Yeah, so when you talk about the recession, it's really China for us all the time. You know, we're really happy with where we are with China based upon, we know that that's a very troubled economy over there. Everybody knows that in the world, but we're happy with where we sit position to when it comes out. That should give us tailwind. We have a number of different markets which are gains over there that should be able to give us some positive outcomes.

Kevin S: However, we have not baked any of that type of lift into into F-24 guidance. We believe it'll just be a bit more protracted than it's currently or then was, let's say, seen six months ago. So we're very careful about projecting China, but for the rest of the world, we have not really seen any early indicators of recessionary type of behavior in any of the other geographies. And so we have not contemplated that at this time.

The OE.

Kevin S: Okay, thank you.

To pick up just a little bit looking.

Speaker 3: Looking forward here in the first two quarters, but not appreciably. So therefore, our estimation is that the destacking at the OE side would go in the first queue and likely the second quarter because there's a lot of balance sheet man is going across the OE sector in our second quarter as we end the calendar year and then pick up in the second half of the year.

Looking forward here.

In the first two quarters, but not appreciably. So therefore, our estimation is that the destocking at the OE side. We go in the first Q and likely the second quarter, because theres a lot of balance sheet management across the OE sector in our second quarter as we end the calendar year, and then pick up in the second half of the year.

Speaker 11: And maybe just to take the other side of that, the first-side in mobile. Now the supply chains have largely normalized, lead times have come down. Are your OE customers still giving you the same level of visibility on their production schedules? Or is that shortened up as well? How do you feel about the level of visibility?

Yes.

And maybe just to take the other side of that the first fit side and mobile.

Now the supply chain largely normalized lead times have come down.

Are your customers still giving you the same level of visibility on their production schedules or is that.

Is that shortened up as well how do you feel about the level of visibility.

Speaker 3: So nothing changed, yeah, nothing changed about the models between the way we operate with our OE's and Downs and Companies. We do things where our computers are linked and so we get a longer look at their production build.

So nothing has changed nothing has changed about the models between.

Rob Mason: Your next question comes from the line of Rob Mason with Beard. Please go ahead. Yes, good morning. Maybe Todd just wanted to follow up on the last comment. I mean, to the extent that you've not baked in any recessionary impact, I guess, how do you reconcile some of them, you know, the PMI that we see out of Europe versus your results we've seen to be very good? It just seems like there's some disconnect there given the results.

Our the way, we operate with our Oes and bouncing companies, we do things, where our computers are linked and so we get a longer.

Look at their production build rates.

Speaker 3: Um, they may firm the build rates a little.

They may firm the build rates a little tighter.

Speaker 3: so say at more like 90 days rather than 150 days, but we're still very comfortable with.

So say at.

More like 90 days, rather than 150 days.

But we're still very comfortable with with with what we're seeing across all of the end markets in the mobile solutions. So thats agriculture, construction mining and non road with on road.

Speaker 3: with what we're seeing across all of the end markets in the mobile solutions. So that's agriculture construction mining and on-road. With on-road.

Rob Mason: Is that more share gain oriented on your side or just kind of help us versus what we, you know, historically would have expected given those macro indices? Sure. So we've long said that we're a diverse portfolio of businesses across our company. You're starting to see the strength of that, particularly as you read about particular sectors having some headwinds. Donaldson company is more broad than that. Some of the execution within the strategy that we talked about investors day is actually going extremely well.

Speaker 3: likely showing a bit more resiliency than the others. Very good. I'll hop back in.

Likely showing a bit more resiliency than the others.

Very good.

Rob Mason: Sure. So we've long said that we're a diverse portfolio of businesses across our company. You're starting to see the strength of that, particularly as you read about particular sectors having some headwinds. Donaldson company is more broad than that. Some of the execution within the strategy that we talked about investors day is actually going extremely well. We clearly have share gains in some of our replacement part-based businesses. And so we have good momentum at this point in time and we'll continue to press, continue to invest and look for a continuation of the solid execution that we're seeing across our company.

Hop back in the queue. Thank you.

Again that is star one to ask a question.

Okay.

Speaker 1: And we have no further questions at this time. I'll turn the call back over to Todd Carpenter for any closing remarks.

And we have no further questions at this time I will turn the call back over to Tod Carpenter for any closing remarks.

Speaker 3: That concludes the call today. Thanks to everyone who participated. And I look forward to reporting our first quarter of fiscal 2024 results in November . Have a great day. Goodbye.

That concludes the call today, thanks to everyone, who participated and I look forward to reporting our first quarter fiscal 2024 results in November have a great day Goodbye.

Rob Mason: We clearly have share gains in some of our replacement part-based businesses. And so we have good momentum at this point in time and we'll continue to press, continue to invest and look for a continuation of the solid execution that we're seeing across our company. Yep. To the extent, and speaking to the mobile business, I think particularly, to the extent de-stocking was heavy in the fourth quarter, it's been going on for several quarters.

Speaker 1: That will conclude today's call. We thank you all for joining. You may now disconnect.

That will conclude today's call. We thank you all for joining you may now disconnect.

Okay.

Rob Mason: Yep. To the extent, and speaking to the mobile business, I think particularly, to the extent de-stocking was heavy in the fourth quarter, it's been going on for several quarters. I thought your commentary around the aftermarket, mobile aftermarket business implied that it may continue. And I was just curious if that's the case, you said it could weigh on the low single digit or influence that low single-digit growth rate. How much longer do you think are you anticipating that de-stocking headwinds impact that business? Yeah.

Well for joining you may now disconnect.

Okay.

Rob Mason: I thought your commentary around the aftermarket, mobile aftermarket business implied that it may continue. And I was just curious if that's the case, you said it could weigh on the low single digit or influence that low single-digit growth rate. How much longer do you think are you anticipating that de-stocking headwinds impact that business? Yeah. Thanks Rob. Let me just give a little bit more specific color on that. If you recall in our mobile solutions aftermarket business, our OE portion of that business is 40% of the revenue.

Todd Carpenter: Thanks Rob. Let me just give a little bit more specific color on that. If you recall in our mobile solutions aftermarket business, our OE portion of that business is 40% of the revenue. Our independent channel is 60% of the revenue. If you look at just the fourth quarter, we would tell you that our independent channel is roughly flat. Year over year and the OE channel was down mid-teens. So that suggests to you that the destocking across the OE channel, and it's not specific to one end market, but now has more broadened to multiple customers.

Rob Mason: Our independent channel is 60% of the revenue. If you look at just the fourth quarter, we would tell you that our independent channel is roughly flat. Year over year and the OE channel was down mid-teens. So that suggests to you that the destocking across the OE channel, and it's not specific to one end market, but now has more broadened to multiple customers. It has really created the headwind across our aftermarket. It is not the independent distributor channels.

Todd Carpenter: It has really created the headwind across our aftermarket. It is not the independent distributor channels. In fact, looking forward, we would expect that destocking from all the behaviors we've seen from the OE to pick up just a little bit, looking forward here in the first two quarters, but not appreciably. Therefore, our estimation is that the destocking at the OE side would go in the first queue, and likely the second quarter, because there's a lot of balance sheet management across the OE sector in our second quarter as we end the calendar year, and then pick up in the second half of the year.

Rob Mason: In fact, looking forward, we would expect that destocking from all the behaviors we've seen from the OE to pick up just a little bit, looking forward here in the first two quarters, but not appreciably. Therefore, our estimation is that the destocking at the OE side would go in the first queue, and likely the second quarter, because there's a lot of balance sheet management across the OE sector in our second quarter as we end the calendar year, and then pick up in the second half of the year.

Rob Mason: Yeah, and maybe just to take the other side of that, the first-fit side in mobile. Now, the supply chains have largely normalized, lead times have come down. Are your OE customers still giving you the same level of visibility on their production schedules? Or is that, you know, is that shortened up as well? How do you feel about the level of visibility? Nothing's changed. Yeah, nothing's changed about the models between the way we operate with our OE's and Downs and Companies.

Todd Carpenter: Yeah, and maybe just to take the other side of that, the first-fit side in mobile. Now, the supply chains have largely normalized, lead times have come down. Are your OE customers still giving you the same level of visibility on their production schedules? Or is that, you know, is that shortened up as well? How do you feel about the level of visibility? Nothing's changed. Yeah, nothing's changed about the models between the way we operate with our OE's and Downs and Companies.

Rob Mason: We do things where our computers are linked, and so we get a longer look at their production build rates. They may firm the build rates a little tighter, so say at more like 90 days rather than 150 days, but we're still very comfortable with what we're seeing across all of the end markets in the mobile solutions. So that's agriculture construction mining and on-road, with on-road likely showing a bit more resiliency than the others. Very good. I'll hop back in and keep. Thank you. Again, that is. Start a one-to-ask question. And we have no further questions at this time.

Todd Carpenter: We do things where our computers are linked, and so we get a longer look at their production build rates. They may firm the build rates a little tighter, so say at more like 90 days rather than 150 days, but we're still very comfortable with what we're seeing across all of the end markets in the mobile solutions. So that's agriculture construction mining and on-road, with on-road likely showing a bit more resiliency than the others.

Operator: Very good. I'll hop back in and keep. Thank you. Again, that is. Start a one-to-ask question. And we have no further questions at this time.

Todd Carpenter: I'll turn the call back over to Todd Carpenter for any closing remarks.

Todd Carpenter: That concludes the call today. Thanks to everyone who participated, and I look forward to reporting our first quarter of fiscal 2024 results in November. Have a great day. Goodbye.

Regina: That will conclude today's call. We thank you all for joining. You may now disconnect.

Operator: That will conclude today's call. We thank you all for joining.

Operator: You may now disconnect.

Q4 2023 Donaldson Company Inc Earnings Call

Request a DemoDemo

DNZ

D & Z Media Acquisition

Earnings