Key Takeaways MSCI Q1 non-GAAP EPS of $4.55 and revenues of $850.8M beat estimates. Index-led segment revenue to $496.3M with asset-based fees of $224.5M, up 26.6%. MSCI repurchased $464M stock, paid ~$150M dividends. MSCI Inc. (MSCI - Free Report) delivered first-quarter 2026 adjusted earnings of $4.55 per share, up 13.8% year over year and beat the Zacks Consensus Estimate by 3.41%. The reported quarter’s operating revenues came in at $850.8 million, up 14.1% year over year and beat the consensus mark by 2.01%.
Strength in asset-based fees, along with steady growth in recurring subscription revenues, powered the top line. Profitability also improved, with operating margin expanding to 53.7% and adjusted EBITDA margin rising to 59.3% in the quarter.
MSCI shares were up 3.75% at the time of writing the article. MSCI shares have dropped 1.1% year to date compared with the broader Zacks Finance sector’s return of 0.8%.
MSCI Shows Broad-Based Growth Across SegmentsMSCI’s business momentum was also reflected in its recurring revenue indicators. Total Run Rate at March 31, 2026, was $3.36 billion, up 12.7% year over year, and the total retention rate for the first quarter was 95.4%, essentially steady with the prior-year period. Management pointed to strong sales execution and product momentum across client segments and product lines during the reported quarter. The company emphasized record asset-based-fee Run Rate and strong recurring sales activity, particularly within Index and Analytics.
Index remained the primary growth engine in the first quarter, with segment operating revenues of $496.3 million, up 17.7% year over year. Within the segment, asset-based fees totaled $224.5 million (up 26.6% year over year) while recurring subscription revenues were $254.2 million (up 9% year over year), highlighting a solid mix of usage-linked and subscription-driven revenue streams.
Analytics also posted a healthy quarter, with operating revenues increasing 10.3% to $190.0 million. Growth was supported by recurring subscription revenues of $183.2 million (up 7.9% year over year), while non-recurring revenues rose to $6.8 million (up 183.3% year over year), reflecting a stronger contribution from one-time sales versus the year-ago period.
Sustainability and Climate generated operating revenues of $91.9 million, up 8.6%, supported by recurring subscription revenues of $90.9 million (up 9.9% year over year). All Other – Private Assets contributed operating revenues of $72.6 million, up 7.9% year over year, with recurring subscription revenues of $71.9 million (up 7.6% year over year).
MSCI Expands Margins in Q1Adjusted EBITDA rose 18.6% year over year to $504.7 million. The adjusted EBITDA margin improved to 59.3% from 57.1% a year ago.
Adjusted EBITDA expenses were $346.1 million, up 8.1% year over year, reflecting higher compensation and benefits costs due to higher headcount, as well as elevated severance costs. Total operating expenses increased 6.8% on a year-over-year basis to $393.9 million due to higher compensation costs from a 2.2% increase in headcount.
Operating income increased 21.2% year over year to $456.9 million, with operating margin improving to 53.7% from 50.6% in the year-ago quarter.
MSCI Highlights Cash Flow and Capital ReturnsAs of March 31, 2026, MSCI had $385.3 million in cash and cash equivalents compared with $515.3 million as of Dec. 31, 2025.
Total principal debt outstanding stood at $6.5 billion at March 31, 2026, with management noting a total debt-to-adjusted EBITDA ratio of 3.2x on a trailing 12-month basis, within its target range of 3.0x to 3.5x.
Cash generation remained solid. Net cash provided by operating activities was $306.8 million in the reported quarter, while free cash flow increased 3.4% year over year to $278.0 million, reflecting higher cash collections partly offset by higher cash expenses and interest expense.
Shareholder returns were a notable highlight. MSCI repurchased $464 million of stock in the first quarter and through April 20, 2026, totaling 835,591 shares at an average repurchase price of $555.61. The company also paid approximately $150 million in dividends during the quarter and declared a cash dividend of $2.05 per share for the second quarter of 2026, payable May 29, 2026.
MSCI Maintains 2026 OutlookFor 2026, MSCI maintained its guidance framework. The company continues to expect operating expenses of $1.490-$1.530 billion and adjusted EBITDA expenses of $1.305-$1.335 billion.
Interest expense is projected at $274-$280 million, while capital expenditures are expected to be $160-$170 million.
Net cash provided by operating activities is guided to $1.640-$1.690 billion, with free cash flow projected at $1.470-$1.530 billion.
Zacks Rank & Stocks to ConsiderMSCI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Financial sector are Crown Castle (CCI - Free Report) , Equinix (EQIX - Free Report) , and Jones Lang LaSalle (JLL - Free Report) . Each stock currently has a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Crown Castle, Equinix and Jones Lang LaSalle are set to report their first-quarter 2026 results on April 22, 29 and 30, respectively.
In terms of share price movement, Equinix shares have jumped 44.1% year to date, while Jones Lang LaSalle climbed 5.1%. Crown Castle’s shares have dropped 1.5% over the same timeframe.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service makes this easier. It features daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All of these can help you quickly identify what stocks to buy, what to sell, and what are today's hottest industries.
Also included in Zacks Premium is the Focus List. This is a long-term portfolio of top stocks that have all the traits to beat the market.
Breaking Down the Zacks Focus ListIf you could get access to a curated list of stocks to kickstart your investment portfolio, wouldn't you jump at the chance to take a peek?
Enter the Zacks Focus List. It's a portfolio made up of 50 stocks that are set to beat the market over the next 12 months; each company selected serves as a foundation for long-term investors looking to create an individual portfolio.
One thing that makes the Focus List even more advantageous is that each pick comes with a full Zacks Analyst Report. This helps explain why each stock was selected and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
What a company will earn down the road also needs to be taken into consideration, and this is why earnings estimate revisions are so important.
When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each one of these features is then given a raw score that's recalculated every night and compiled into the Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Since stock prices respond to revisions, it can be very profitable to buy stocks with rising earnings estimates. By buying Focus List stocks, then, you're likely getting into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: MSCI (MSCI - Free Report) MSCI Inc. provides investment decision support tools, including indexes; portfolio construction and risk management products and services; Environmental, Social and Governance (ESG) research and ratings; and real estate research, reporting and benchmarking offerings.
MSCI, a #3 (Hold) stock, was added to the Focus List on October 10, 2018 at $166.96 per share. Since then, shares have increased 258.18% to $598.01.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.11 to $19.55. MSCI boasts an average earnings surprise of 1.7%.
Additionally, MSCI's earnings are expected to grow 13.1% for the current fiscal year.
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Morningstar’s Investing Insights podcast recently spotlighted four S&P 500 stocks that have already declared dividend increases of 10% or more, effectively locking in their place on next year’s Dividend Growers screen, which requires companies to grow dividends at least 10% annually.
The host’s framing was simple: “Dividends are paid out from earnings. So companies that are able to increase their dividends at a high ongoing rate are quality companies with growing earnings.” Defensive investors also like the category because dividend growers tend to strike a balance between the dividend income high-yielders offer and the earnings growth driven by earnings reinvestment that lower-yielding companies tend to provide.
Here are four Dividend Growers that have already declared 10% dividend increases for next year:
NextEra Energy NextEra Energy (NYSE:NEE | NEE Price Prediction) is the largest U.S. utility by market cap at ~$202.4 billion, operating Florida Power & Light and a renewables development arm with a ~33 GW backlog. Management guides to roughly 10% annual dividend growth through 2026, with the Q1 2026 quarterly payout stepping up to $0.6232 from $0.5665. Shares are up 50.7% over the past year. Q1 adjusted EPS rose 10% YoY to $1.09.
Snap-on Snap-on (NYSE:SNA), the Kenosha-based professional tools maker, raised its quarterly dividend to $2.44 from $2.14, clearing the 10% bar. Q1 2026 revenue of $1.207 billion beat consensus by 2.48%, and the board authorized a $500 million repurchase. CEO Nick Pinchuk cited “robust sales growth with customers in critical industries” despite tariff and FX turbulence.
MSCI MSCI (NYSE:MSCI) lifted its quarterly dividend to $2.05 from $1.80, a 13.9% step-up. The index provider posted Q1 2026 revenue of $850.8 million, up 14.1% YoY, with ETF AUM linked to MSCI indexes at $2.4 trillion and operating margin expanding to 53.7%.
Motorola Solutions Motorola Solutions (NYSE:MSI) bumped its quarterly dividend to $1.21 from $1.09, extending a streak of double-digit raises. The mission-critical communications leader closed 2025 with a record $15.7 billion backlog and guides to ~$12.7 billion in 2026 revenue with non-GAAP EPS of $16.70 to $16.85.
Two Exit Stories Worth Watching Zoetis (NYSE:ZTS) announced only a 6% dividend increase, raising its quarterly payout to $0.53 from $0.50. Unless the animal-health company announces a second increase this year, which is unlikely based on historical patterns, it will likely drop off the screen.
NextEra qualifies this cycle, but management’s 6% annual dividend growth guidance from year-end 2026 through 2028 signals a probable exit the following year. Investors monitoring dividend growth as a quality proxy should keep an eye on that step-down, since the screen rewards consistency above the 10% line.
LONDON--(BUSINESS WIRE)--MSCI Inc. (NYSE:MSCI), a leading provider of critical decision support tools and services for the global investment community, will announce the results of the May 2026 Index Review for the MSCI Equity Indexes - including the MSCI Global Standard, MSCI Global Small Cap and MSCI Micro Cap Indexes, the MSCI Global Value and Growth Indexes, the MSCI Frontier Markets, and MSCI Frontier Markets Small Cap Indexes, the MSCI US Equity Indexes, the MSCI US REIT Index, the MSCI C.
LONDON--(BUSINESS WIRE)--MSCI Inc. (NYSE:MSCI), a leading provider of critical decision support tools and services for the global investment community, announced the results of the May 2026 Index Review for the MSCI Equity Indexes. All changes will be implemented as of the close of May 29, 2026. Highlights include: MSCI Global Standard Indexes: Forty-nine securities will be added to and 101 securities will be deleted from the MSCI ACWI Index. The three largest additions to the MSCI World Index.
A month has gone by since the last earnings report for MSCI (MSCI - Free Report) . Shares have lost about 4.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is MSCI due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for MSCI Inc before we dive into how investors and analysts have reacted as of late.
MSCI Q1 Earnings Beat Estimates, Revenues Rise Y/YMSCI delivered first-quarter 2026 adjusted earnings of $4.55 per share, up 13.8% year over year and beat the Zacks Consensus Estimate by 3.41%. The reported quarter’s operating revenues came in at $850.8 million, up 14.1% year over year and beat the consensus mark by 2.01%.
Strength in asset-based fees, along with steady growth in recurring subscription revenues, powered the top line. Profitability also improved, with operating margin expanding to 53.7% and adjusted EBITDA margin rising to 59.3% in the quarter.
MSCI Shows Broad-Based Growth Across SegmentsMSCI’s business momentum was also reflected in its recurring revenue indicators. Total Run Rate at March 31, 2026, was $3.36 billion, up 12.7% year over year, and the total retention rate for the first quarter was 95.4%, essentially steady with the prior-year period. Management pointed to strong sales execution and product momentum across client segments and product lines during the reported quarter. The company emphasized record asset-based-fee Run Rate and strong recurring sales activity, particularly within Index and Analytics.
Index remained the primary growth engine in the first quarter, with segment operating revenues of $496.3 million, up 17.7% year over year. Within the segment, asset-based fees totaled $224.5 million (up 26.6% year over year) while recurring subscription revenues were $254.2 million (up 9% year over year), highlighting a solid mix of usage-linked and subscription-driven revenue streams.
Analytics also posted a healthy quarter, with operating revenues increasing 10.3% to $190.0 million. Growth was supported by recurring subscription revenues of $183.2 million (up 7.9% year over year), while non-recurring revenues rose to $6.8 million (up 183.3% year over year), reflecting a stronger contribution from one-time sales versus the year-ago period.
Sustainability and Climate generated operating revenues of $91.9 million, up 8.6%, supported by recurring subscription revenues of $90.9 million (up 9.9% year over year). All Other – Private Assets contributed operating revenues of $72.6 million, up 7.9% year over year, with recurring subscription revenues of $71.9 million (up 7.6% year over year).
MSCI Expands Margins in Q1Adjusted EBITDA rose 18.6% year over year to $504.7 million. The adjusted EBITDA margin improved to 59.3% from 57.1% a year ago.
Adjusted EBITDA expenses were $346.1 million, up 8.1% year over year, reflecting higher compensation and benefits costs due to higher headcount, as well as elevated severance costs. Total operating expenses increased 6.8% on a year-over-year basis to $393.9 million due to higher compensation costs from a 2.2% increase in headcount.
Operating income increased 21.2% year over year to $456.9 million, with operating margin improving to 53.7% from 50.6% in the year-ago quarter.
MSCI Highlights Cash Flow and Capital ReturnsAs of March 31, 2026, MSCI had $385.3 million in cash and cash equivalents compared with $515.3 million as of Dec. 31, 2025.
Total principal debt outstanding stood at $6.5 billion at March 31, 2026, with management noting a total debt-to-adjusted EBITDA ratio of 3.2x on a trailing 12-month basis, within its target range of 3.0x to 3.5x.
Cash generation remained solid. Net cash provided by operating activities was $306.8 million in the reported quarter, while free cash flow increased 3.4% year over year to $278.0 million, reflecting higher cash collections partly offset by higher cash expenses and interest expense.
Shareholder returns were a notable highlight. MSCI repurchased $464 million of stock in the first quarter and through April 20, 2026, totaling 835,591 shares at an average repurchase price of $555.61. The company also paid approximately $150 million in dividends during the quarter and declared a cash dividend of $2.05 per share for the second quarter of 2026, payable May 29, 2026.
MSCI Maintains 2026 OutlookFor 2026, MSCI maintained its guidance framework. The company continues to expect operating expenses of $1.490-$1.530 billion and adjusted EBITDA expenses of $1.305-$1.335 billion.
Interest expense is projected at $274-$280 million, while capital expenditures are expected to be $160-$170 million.
Net cash provided by operating activities is guided to $1.640-$1.690 billion, with free cash flow projected at $1.470-$1.530 billion.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.
VGM ScoresCurrently, MSCI has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a score of F on the value side, putting it in the lowest quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Interestingly, MSCI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerMSCI is part of the Zacks Financial - Investment Management industry. Over the past month, Cohen & Steers Inc (CNS - Free Report) , a stock from the same industry, has gained 4.8%. The company reported its results for the quarter ended March 2026 more than a month ago.
Cohen & Steers reported revenues of $145.64 million in the last reported quarter, representing a year-over-year change of +8.3%. EPS of $0.79 for the same period compares with $0.75 a year ago.
For the current quarter, Cohen & Steers is expected to post break-even earnings per share, indicating a change of 0% from the year-ago quarter. The Zacks Consensus Estimate has changed 0% over the last 30 days.
Cohen & Steers has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
NEW YORK--(BUSINESS WIRE)--MSCI Inc. (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, announced today that it will release the results of the MSCI 2026 Global Market Accessibility Review on June 18, 2026, and the results of the MSCI 2026 Annual Market Classification Review on June 23, 2026. Both announcements will be made available shortly after 10:30 p.m. Central European Summer Time (CEST) on www.msci.com/market-classificati.
Some investors are embracing the financial sector ahead of what they deem as an even more euphoric stretch of a new roaring 20s, whereas others believe a recession is imminent.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service makes this easier. It features daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All of these can help you quickly identify what stocks to buy, what to sell, and what are today's hottest industries.
It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market.
Breaking Down the Zacks Focus ListIf you could get access to a curated list of stocks to kickstart your investment portfolio, wouldn't you jump at the chance to take a peek?
That's what the Zacks Focus List, a portfolio of 50 stocks, offers investors. Not only does it serve as a starting point for long-term investors, but all stocks included in the list are poised to outperform the market over the next 12 months.
Additionally, each selection is accompanied by a full Zacks Analyst Report, something that makes the Focus List even more valuable. The report explains in detail why each stock was picked and why we believe it's good for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Investors also need to look at what a company will earn down the road. This is why earnings estimate revisions are so important.
Stocks that receive upward earnings estimate revisions are more likely to receive even more upward changes in the future. For example, if an analyst raised their estimates last month, they're more likely to do it again this month, and other analysts are likely to do the same.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each one of these features is then given a raw score that's recalculated every night and compiled into the Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Since stock prices respond to revisions, it can be very profitable to buy stocks with rising earnings estimates. By buying Focus List stocks, then, you're likely getting into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: MSCI (MSCI - Free Report) MSCI Inc. provides investment decision support tools, including indexes; portfolio construction and risk management products and services; Environmental, Social and Governance (ESG) research and ratings; and real estate research, reporting and benchmarking offerings.
MSCI, a #3 (Hold) stock, was added to the Focus List on October 10, 2018 at $166.96 per share. Since then, shares have increased 278.16% to $631.38.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.18 to $19.62. MSCI boasts an average earnings surprise of 1.7%.
Additionally, MSCI's earnings are expected to grow 13.5% for the current fiscal year.
Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
NEW YORK--(BUSINESS WIRE)--MSCI Inc. (NYSE: MSCI) appointed Kashi Kakarla as Chief Technology Officer and Head of Product Engineering, effective June 22. He will report to Henry Fernandez, Chairman and Chief Executive Officer, and will serve on MSCI's Management Committee. Kakarla joins from Intuit, where he spent 17 years building and transforming products and platforms serving millions of customers worldwide. Most recently, he led technology and engineering for the Intuit Small Business Platf.
MSCI Inc. is positioned to benefit from accelerating ETF AUM growth, with strong recurring revenues and robust operating leverage. MSCI delivered 14.1% YoY revenue growth in Q1 2026, with 95.4% retention and double-digit adjusted EPS growth, validating its high-quality, scalable model. Trading at a forward P/E of 28.1, MSCI offers a 17% discount to fair value and a potential 25% upside through June 2027 if growth projections are met.
Baron Focused Growth Fund (BFGIX - Free Report) is an actively managed mutual fund that seeks long-term capital appreciation by investing primarily in small and mid-cap growth companies. Managed by Ronald Baron and David Baron, the fund employs a high-conviction, non-diversified strategy, typically holding a relatively small number of stocks compared with many diversified growth funds.
The fund has delivered strong long-term results. As of April 2026, BFGIX generated a 10-year annualized return of 20.51%, significantly outperforming both the Russell 2500 Growth Index and the broader Russell 3000 Index. Five-year annualized returns were 10.23%, while one-year returns soared to 27.65%, reflecting the fund’s ability to benefit from successful stock selection and long-term growth trends.
A distinguishing feature of BFGIX is its concentrated portfolio. The fund typically owns around 20 to 35 holdings, allowing successful investments to have a meaningful impact on performance. As of March 2026, major positions included private aerospace company SpaceX, along with holdings in Tesla, MSCI, Hyatt Hotels, Spotify and Interactive Brokers. The top 10 holdings currently account for nearly half of total assets.
A key driver of BFGIX’s strong recent performance has been the substantial appreciation in the estimated valuations of its private investments, particularly SpaceX and, thus, indirectly, xAI, which was taken over by SpaceX. These holdings have benefited from growing investor enthusiasm surrounding artificial intelligence, space technology and innovation-driven businesses.
The strategy focuses on businesses that management believes possess durable competitive advantages, strong leadership and significant growth opportunities. While this approach has contributed to impressive long-term returns, it also increases portfolio risk. A concentrated structure means performance can be heavily influenced by a limited number of investments, leading to periods of higher volatility than more diversified funds.
BFGIX currently carries a Zacks Mutual Fund Rank #2 (Buy) within the Mid-Cap Growth category, reflecting its strong risk-adjusted performance over time. For investors evaluating actively managed growth funds, BFGIX stands out for its concentrated portfolio, substantial exposure to innovative companies and long-term record of outperforming key benchmarks, though its focused nature may not suit all risk profiles.
However, being an actively managed fund, its expense ratio is slightly on the higher side at 1.05, and its entry point is expensive at a minimum initial investment of $1,000,000.
Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Want key mutual fund info delivered straight to your inbox?Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service makes this easier. It features daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All of these can help you quickly identify what stocks to buy, what to sell, and what are today's hottest industries.
The service also includes the Focus List, which is a long-term portfolio of top stocks that boast a winning, market-beating combination of growth and momentum qualities.
Breaking Down the Zacks Focus ListIf you could get access to a curated list of stocks to kickstart your investment portfolio, wouldn't you jump at the chance to take a peek?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
Additionally, each selection is accompanied by a full Zacks Analyst Report, something that makes the Focus List even more valuable. The report explains in detail why each stock was picked and why we believe it's good for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.
When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: MSCI (MSCI - Free Report) MSCI Inc. provides investment decision support tools, including indexes; portfolio construction and risk management products and services; Environmental, Social and Governance (ESG) research and ratings; and real estate research, reporting and benchmarking offerings.
On October 10, 2018, MSCI was added to the Focus List at $166.96 per share. Shares have increased 255.96% to $594.31 since then, and the company is a #3 (Hold) on the Zacks Rank.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.19 to $19.62. MSCI also boasts an average earnings surprise of 1.7%.
Additionally, MSCI's earnings are expected to grow 13.5% for the current fiscal year.
Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
Wall Street analysts expect Winnebago Industries (WGO - Free Report) to post quarterly earnings of $0.25 per share in its upcoming report, which indicates a year-over-year increase of 31.6%. Revenues are expected to be $625.03 million, up 0.8% from the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
In light of this perspective, let's dive into the average estimates of certain Winnebago metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts expect 'Net Revenues- Motorhome RV' to come in at $235.66 million. The estimate indicates a change of 0% from the prior-year quarter.
Analysts predict that the 'Net Revenues- Marine' will reach $84.83 million. The estimate indicates a year-over-year change of +3.8%.
The collective assessment of analysts points to an estimated 'Net Revenues- Corporate / All Other' of $14.75 million. The estimate points to a change of +0.3% from the year-ago quarter.
The combined assessment of analysts suggests that 'Net Revenues- Towable RV' will likely reach $288.78 million. The estimate indicates a year-over-year change of +0.2%.
Analysts' assessment points toward 'Unit deliveries - Marine - Boats' reaching 1,125 . The estimate compares to the year-ago value of 1,046 .
The average prediction of analysts places 'Unit deliveries - Total Towable RV' at 7,218 . The estimate is in contrast to the year-ago figure of 7,225 .
Based on the collective assessment of analysts, 'Unit deliveries - Total Motorhome RV' should arrive at 1,015 . Compared to the present estimate, the company reported 1,144 in the same quarter last year.
View all Key Company Metrics for Winnebago here>>>
Shares of Winnebago have experienced a change of -28% in the past month compared to the -3.6% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), WGO is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
– New Products and Grand Design Expansion Drive Strong Motorhome RV Performance –
– Top- and Bottom-Line Growth Reflect Diversified Portfolio and Operational Discipline –
– $100 Million Debt Redemption Further Strengthens Balance Sheet –
– Company Maintains Fiscal 2026 Guidance for Revenue and Adjusted EPS –
EDEN PRAIRIE, Minn., March 25, 2026 (GLOBE NEWSWIRE) -- Winnebago Industries, Inc. (NYSE: WGO), a leading manufacturer of outdoor recreation products, today reported financial results for the Fiscal 2026 second quarter ended February 28, 2026.
Second Quarter Fiscal 2026 Financial Summary
Net revenues of $657.4 million compared to $620.2 million in the second quarter of Fiscal 2025Gross profit of $85.6 million, representing 13.0% gross margin, compared to $83.1 million in the second quarter of Fiscal 2025Net income of $4.8 million, or $0.17 per diluted share; adjusted earnings per diluted share of $0.27 compared to adjusted earnings per diluted share of $0.19 in the second quarter of Fiscal 2025Adjusted EBITDA of $24.4 million, up 7.0% year-over-year CEO Commentary
“Our team delivered a solid quarter and executed with diligence in a challenging market,” said President and Chief Executive Officer Michael Happe. “Dealers remain focused on profitable cash flow and disciplined inventory, and we are managing the business with that sentiment in mind. While seasonal factors and unfavorable winter weather tempered retail activity during the quarter, several segments still showed signs of resilience. As we move through Fiscal 2026, we continue to prioritize operational execution and strengthening the fundamentals of the business. Our premium branded diversified portfolio continues to help navigate variability across categories, and we are executing each business with a clear focus on prudent inventory management, product innovation, profitability and cash flow.
“Consistent with our capital allocation framework, we took proactive steps during the quarter to improve our capital structure, redeeming $100 million of our outstanding Senior Secured Notes, demonstrating our commitment to further strengthening our balance sheet.
“As we move beyond the winter selling season into the seasonally stronger spring and summer months, new products and cost management actions implemented this year are expected to support our performance anticipated in the second half. We believe this approach positions the business for healthier, more resilient growth in the future. Our outlook reflects that measured view. However, it remains subject to recent macro events and the duration and severity of their potential effects, including impacts on commodity prices and other factors that could influence consumer sentiment and demand,” Happe said.
Second Quarter Fiscal 2026 Results
Net revenues were $657.4 million, an increase of 6.0% compared to $620.2 million in the second quarter of Fiscal 2025, driven primarily by selective price adjustments and product mix, partially offset by lower unit volume.
Gross profit was $85.6 million, an increase of 2.9% compared to $83.1 million in the second quarter of Fiscal 2025. Gross profit margin decreased 40 basis points in the quarter to 13.0%, primarily as a result of product mix, partially offset by selective price adjustments.
Selling, general and administrative expenses decreased 1.9% to $68.4 million from $69.7 million in the second quarter of Fiscal 2025, primarily driven by cost reduction initiatives.
Operating income improved 50.7% to $11.8 million from $7.8 million in the second quarter of Fiscal 2025.
Net income was $4.8 million, or $0.17 per diluted share, compared to net loss of $0.4 million, or $0.02 per diluted share in the second quarter of Fiscal 2025. Adjusted earnings per diluted share was $0.27, an increase of 42.1%, compared to adjusted earnings per diluted share of $0.19 in the second quarter of Fiscal 2025.
Consolidated Adjusted EBITDA was $24.4 million, an increase of 7.0%, compared to $22.8 million in the second quarter of Fiscal 2025.
Second Quarter Fiscal 2026 Segments Summary
Towable RV
Three Months Ended
($, in millions) February 28, 2026 March 1, 2025 Change(1)
Net revenues $262.4 $288.2 (9.0)%Operating income $11.1 $12.7 (12.2)%Operating income margin 4.2% 4.4% (20) bps
(1) Amounts are calculated based on unrounded numbers and therefore may not recalculate using the rounded numbers provided.
Net revenues decreased primarily due to a shift in product mix toward lower price-point models and lower unit volume, partially offset by selective price adjustments.Operating income margin decreased primarily due to volume deleverage and product mix, largely offset by selective price adjustments and cost containment initiatives. Motorhome RV
Three Months Ended($, in millions) February 28, 2026 March 1, 2025 Change(1)Net revenues $304.7 $235.6 29.3%Operating income (loss) $7.5 $(0.6) NMOperating income margin 2.4% (0.3)% 270 bps (1) Amounts are calculated based on unrounded numbers and therefore may not recalculate using the rounded numbers provided.
NM: Not meaningful.
Net revenues increased primarily due to higher unit volume driven by new products, partially offset by product mix.Operating income margin increased primarily due to volume leverage. Marine
Three Months Ended
($, in millions) February 28, 2026 March 1, 2025 Change(1)
Net revenues $79.2 $81.7 (3.0)%Operating income $2.9 $5.4 (46.2)%Operating income margin 3.7% 6.6% (300) bps
(1) Amounts are calculated based on unrounded numbers and therefore may not recalculate using the rounded numbers provided.
Net revenues decreased primarily due to lower unit volume and product mix, partially offset by selective price adjustments.Operating income decreased primarily due to higher warranty expense and volume deleverage. Balance Sheet and Cash Flow
At the end of the second quarter of Fiscal 2026, cash and cash equivalents totaled $47.4 million compared to $181.7 million at the end of the first quarter of Fiscal 2026 and $174.0 million at the end of Fiscal 2025. The decrease primarily reflects the $100.0 million Senior Secured Note redemption completed in the second quarter of Fiscal 2026. As of February 28, 2026, total outstanding debt was $442.3 million, which included $450.0 million of debt, net of debt issuance costs of $7.7 million. Working capital was $403.5 million as of February 28, 2026 compared to $465.1 million at the end of Fiscal 2025. Cash flow provided by operations was $0.6 million in the first half of Fiscal 2026, a significant improvement compared to the same period last year. The Company's gross leverage ratio improved to 3.2x as of February 28, 2026 from 4.0x as of November 29, 2025. Net leverage ratio as of February 28, 2026 was 2.9x.
Quarterly Cash Dividend
On March 18, 2026, the Company’s Board of Directors approved a quarterly cash dividend of $0.35 per share payable on April 29, 2026, to common stockholders of record at the close of business on April 15, 2026.
Outlook
For calendar year 2026, Winnebago Industries expects North American RV wholesale shipments in the range of 315,000 to 345,000 units. Based on this outlook, the current business environment, and results in the first half of the fiscal year, Winnebago Industries is maintaining its revenue and adjusted EPS guidance, while updating reported EPS as follows:
Consolidated net revenues in the range of $2.8 billion to $3.0 billion;Reported earnings per diluted share in the range of $1.50 to $2.20 compared to the Company's prior expectations for reported earnings per diluted share in the range of $1.40 to $2.10; andAdjusted earnings per diluted share guidance to a range of $2.10 to $2.80(1). The Company’s outlook takes into account prevailing trends in the RV sector, including the current policy and trade environment, competitive dynamics, shifts in consumer preferences, and key macroeconomic factors that may influence overall demand.
“Our focus remains on disciplined execution in Fiscal 2026 and controlling what we can,” Happe said. “We are advancing our product roadmaps, driving continued progress in our Winnebago-branded RV businesses, and meaningfully improving the margin profile and retail share trends of our Motorhome RV segment. The value of our diversified platform, combined with the operational work already underway, positions us to navigate ongoing market volatility and build a more resilient earnings profile over time. While the external environment remains quite uncertain, we’re confident in the foundation we’ve built and the actions within our control."
Q2 FY 2026 Conference Call
Winnebago Industries, Inc. will discuss second quarter of Fiscal 2026 earnings results during a conference call scheduled for 9:00 a.m. Central Time today. Members of the news media, investors and the general public are invited to access a live broadcast of the conference call and view the accompanying presentation slides via the Investor Relations page of the Company's website at http://investor.wgo.net. The event will be archived and available for replay for the next 90 days.
About Winnebago Industries
Winnebago Industries, Inc. is a leading North American manufacturer of outdoor recreation products under the Winnebago, Grand Design, Chris-Craft, Newmar and Barletta brands, which are used primarily in leisure travel and outdoor recreation activities. The Company builds high-quality motorhomes, travel trailers, fifth-wheel products, outboard and sterndrive powerboats, pontoons, and commercial community outreach vehicles. Committed to advancing sustainable innovation and leveraging vertical integration in key component areas, Winnebago Industries has multiple facilities in Iowa, Indiana, Minnesota and Florida. The Company’s common stock is listed on the New York Stock Exchange and traded under the symbol WGO. For access to Winnebago Industries' investor relations material or to add your name to an automatic email list for Company news releases, visit http://investor.wgo.net.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the business outlook and financial guidance for Fiscal 2026. Investors are cautioned that forward-looking statements are inherently uncertain and involve potential risks and uncertainties. A number of factors could cause actual results to differ materially from these statements, including, but not limited to general economic uncertainty in key markets and a worsening of domestic and global economic conditions or low levels of economic growth; availability of financing for RV and marine dealers and retail purchasers; competition and new product introductions by competitors; ability to innovate and commercialize new products; ability to manage our inventory to meet demand; risk related to cyclicality and seasonality of our business; risk related to independent dealers; risk related to dealer consolidation or the loss of a significant dealer; significant increase in repurchase obligations; ability to retain relationships with our suppliers and obtain components; business or production disruptions; inadequate management of dealer inventory levels; increased material and component costs, including availability and price of fuel and other raw materials; ability to integrate mergers and acquisitions; ability to attract and retain qualified personnel and changes in market compensation rates; exposure to warranty claims and product recalls; ability to protect our information technology systems from data security, cyberattacks, and network disruption risks and the ability to successfully upgrade and evolve our information technology systems; ability to retain brand reputation and related exposure to product liability claims; governmental regulation, including for climate change; increased attention to environmental, social, and governance matters, and our ability to meet our commitments; impairment of goodwill and trade names; risks related to our 2030 Convertible Notes and Senior Secured Notes, including our ability to satisfy our obligations under these notes; and changes in recommendations or a withdrawal of coverage by third party securities analysts. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission ("SEC") over the last 12 months, copies of which are available from the SEC or from the Company upon request. We caution that the foregoing list of important factors is not complete. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release or to reflect any changes in the Company's expectations after the date of this release or any change in events, conditions or circumstances on which any statement is based, except as required by law.
Winnebago Industries, Inc.
Footnotes to News Release
Footnotes:
(1) Fiscal 2026 adjusted EPS guidance primarily excludes the pretax impact of intangible amortization of approximately $22 million.
Winnebago Industries, Inc.
Condensed Consolidated Statements of Income
(Unaudited and subject to reclassification)
Three Months Ended(in millions, except percent and per share data) February 28, 2026 March 1, 2025Net revenues $657.4 100.0% $620.2 100.0%Cost of goods sold 571.8 87.0% 537.1 86.6%Gross profit 85.6 13.0% 83.1 13.4%Selling, general, and administrative expenses 68.4 10.4% 69.7 11.2%Amortization 5.4 0.8% 5.6 0.9%Total operating expenses 73.8 11.2% 75.3 12.1%Operating income 11.8 1.8% 7.8 1.3%Interest expense, net 5.8 0.9% 6.8 1.1%Loss on note repurchase 0.8 0.1% 2.0 0.3%Non-operating income (0.2) —% (0.6) (0.1)%Income (loss) before income taxes 5.4 0.8% (0.4) (0.1)%Income tax provision 0.6 0.1% — —%Net income (loss) $4.8 0.7% $(0.4) (0.1)% Earnings (loss) per common share: Basic $0.17 $(0.02) Diluted $0.17 $(0.02) Weighted average common shares outstanding: Basic 28.2 28.1 Diluted 28.5 28.1 Six Months Ended(in millions, except percent and per share data) February 28, 2026 March 1, 2025Net revenues $1,360.1 100.0% $1,245.8 100.0%Cost of goods sold 1,185.5 87.2% 1,085.9 87.2%Gross profit 174.6 12.8% 159.9 12.8%Selling, general, and administrative expenses 138.2 10.2% 141.8 11.4%Amortization 10.8 0.8% 11.2 0.9%Total operating expenses 149.0 11.0% 153.0 12.3%Operating income 25.6 1.9% 6.9 0.6%Interest expense, net 11.3 0.8% 12.6 1.0%Loss on note repurchase 0.8 0.1% 2.0 0.2%Non-operating loss (0.3) —% (0.6) —%Income (loss) before income taxes 13.8 1.0% (7.1) (0.6)%Income tax provision (benefit) 3.5 0.3% (1.5) (0.1)%Net income (loss) $10.3 0.8% $(5.6) (0.5)% Earnings (loss) per common share: Basic $0.37 $(0.20) Diluted $0.36 $(0.20) Weighted average common shares outstanding: Basic 28.2 28.4 Diluted 28.4 28.4 Amounts in tables are calculated based on unrounded numbers and therefore may not recalculate using the rounded numbers provided.
In addition, percentages may not add in total due to rounding.
Winnebago Industries, Inc.
Condensed Consolidated Balance Sheets
(Unaudited and subject to reclassification)
(in millions) February 28, 2026
August 30, 2025
Assets Current assets Cash and cash equivalents $47.4 $174.0 Receivables, net 223.0 192.0 Inventories, net 407.6 396.4 Prepaid expenses and other current assets 36.8 29.8 Total current assets 714.8 792.2 Property, plant, and equipment, net 321.9 333.0 Goodwill 484.2 484.2 Other intangible assets, net 446.1 456.9 Investment in life insurance 27.8 27.1 Operating lease assets 38.8 41.6 Other long-term assets 17.9 19.4 Total assets $2,051.5 $2,154.4 Liabilities and Shareholders' Equity Current liabilities Accounts payable $136.6 $129.3 Accrued expenses 174.7 197.8 Total current liabilities 311.3 327.1 Long-term debt, net 442.3 540.5 Deferred income tax liabilities, net 11.3 5.9 Unrecognized tax benefits 5.0 4.8 Long-term operating lease liabilities 35.9 39.3 Deferred compensation benefits, net of current portion 4.7 5.1 Other long-term liabilities 5.9 7.0 Total liabilities 816.4 929.7 Shareholders' equity 1,235.1 1,224.7 Total liabilities and shareholders' equity $2,051.5 $2,154.4
Winnebago Industries, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited and subject to reclassification)
Six Months Ended(in millions) February 28, 2026 March 1, 2025Operating activities Net income (loss) $10.3 $(5.6)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Depreciation 19.4 19.1 Amortization 10.8 11.2 Amortization of debt issuance costs 1.3 1.6 Last in, first-out ("LIFO") expense (0.9) (0.4)Stock-based compensation 10.6 10.8 Deferred income taxes 5.4 (0.3)Loss on note repurchase 0.8 2.0 Restructuring and related costs 1.6 — Other, net (1.7) (0.7)Change in operating assets and liabilities, net of assets and liabilities acquired Receivables, net (31.0) (18.1)Inventories, net (10.2) (21.0)Prepaid expenses and other assets 0.2 5.1 Accounts payable 6.9 (1.3)Income taxes and unrecognized tax benefits (3.1) (1.7)Accrued expenses and other liabilities (19.8) (27.9)Net cash provided by (used in) operating activities 0.6 (27.2) Investing activities Purchases of property, plant, and equipment (9.9) (18.4)Proceeds from sale of property, plant, and equipment 4.0 2.1 Other, net 0.1 1.1 Net cash used in investing activities (5.8) (15.2) Financing activities Borrowings on long-term debt 3.0 — Repayments on long-term debt (103.0) (100.5)Payments of cash dividends (20.1) (19.8)Payments for repurchases of common stock (1.7) (53.6)Other, net 0.4 0.9 Net cash used in financing activities (121.4) (173.0) Net decrease in cash and cash equivalents (126.6) (215.4)Cash and cash equivalents at beginning of period 174.0 330.9 Cash and cash equivalents at end of period $47.4 $115.5 Supplemental Disclosures Income taxes paid, net $1.4 $1.6 Interest paid 13.0 16.6 Non-cash investing and financing activities Capital expenditures in accounts payable $0.7 $5.1 Increase in lease assets in exchange for lease liabilities: Operating leases 0.9 2.3 Finance leases — 0.2
Winnebago Industries, Inc.
Supplemental Information by Reportable Segment – Towable RV
(in millions, except unit data)
(Unaudited and subject to reclassification)
Three Months Ended February 28, 2026 % of Revenues(1) March 1, 2025 % of Revenues(1) $ Change(1) % Change(1)Net revenues$262.4 $288.2 $(25.9) (9.0)%Operating income 11.1 4.2% 12.7 4.4% (1.5) (12.2)% Three Months EndedUnit deliveriesFebruary 28, 2026 Product Mix(2) March 1, 2025 Product Mix(2) Unit Change % ChangeTravel trailer 4,917 74.3% 4,828 66.8% 89 1.8%Fifth wheel 1,698 25.7% 2,397 33.2% (699) (29.2)%Total Towable RV 6,615 100.0% 7,225 100.0% (610) (8.4)% Six Months Ended February 28, 2026 % of Revenues(1) March 1, 2025 % of Revenues(1) $ Change(1) % Change(1)Net revenues$555.8 $542.2 $13.5 2.5%Operating income 22.2 4.0% 21.6 4.0% 0.7 3.0% Six Months EndedUnit deliveriesFebruary 28, 2026 Product Mix(2) March 1, 2025 Product Mix(2) Unit Change % ChangeTravel trailer 10,076 71.8% 9,465 68.4% 611 6.5%Fifth wheel 3,960 28.2% 4,376 31.6% (416) (9.5)%Total Towable RV 14,036 100.0% 13,841 100.0% 195 1.4% Dealer Inventory(3)February 28, 2026 March 1, 2025 Unit Change % ChangeUnits 19,855 17,406 2,449 14.1% (1) Amounts are calculated based on unrounded numbers and therefore may not recalculate using the rounded numbers provided.
(2) Percentages may not add due to rounding differences.
(3) Data is based on the latest information available from our dealer partners and is subject to timing of reporting and other limitations.
Winnebago Industries, Inc.
Supplemental Information by Reportable Segment – Motorhome RV
(in millions, except unit data)
(Unaudited and subject to reclassification)
Three Months Ended February 28, 2026 % of Revenues(1) March 1, 2025 % of Revenues(1) $ Change(1) % Change(1)Net revenues$304.7 $235.6 $69.0 29.3%Operating income (loss) 7.5 2.4% (0.6) (0.3)% 8.0 NM Three Months EndedUnit deliveriesFebruary 28, 2026 Product Mix(2) March 1, 2025 Product Mix(2) Unit Change % ChangeClass A 206 13.6% 278 24.3% (72) (25.9)%Class B 642 42.3% 283 24.7% 359 126.9%Class C 670 44.1% 583 51.0% 87 14.9%Total Motorhome RV 1,518 100.0% 1,144 100.0% 374 32.7% Six Months Ended February 28, 2026 % of Revenues(1) March 1, 2025 % of Revenues(1) $ Change(1) % Change(1)Net revenues$613.2 $507.3 $105.8 20.9%Operating income (loss) 15.7 2.6% (3.8) (0.8)% 19.5 NM Six Months EndedUnit deliveriesFebruary 28, 2026 Product Mix(2) March 1, 2025 Product Mix(2) Unit Change % ChangeClass A 486 17.2% 520 20.3% (34) (6.5)%Class B 899 31.9% 752 29.3% 147 19.5%Class C 1,437 50.9% 1,294 50.4% 143 11.1%Total Motorhome RV 2,822 100.0% 2,566 100.0% 256 10.0% Dealer Inventory(3)February 28, 2026 March 1, 2025 Unit Change % ChangeUnits 3,581 3,784 (203) (5.4)% (1) Amounts are calculated based on unrounded numbers and therefore may not recalculate using the rounded numbers provided.
(2) Percentages may not add due to rounding differences.
(3) Data is based on the latest information available from our dealer partners and is subject to timing of reporting and other limitations.
NM: Not meaningful.
Winnebago Industries, Inc.
Supplemental Information by Reportable Segment – Marine
(in millions, except unit data)
(Unaudited and subject to reclassification)
Three Months Ended February 28, 2026 % of Revenues(1) March 1, 2025 % of Revenues(1) $ Change(1) % Change(1)Net revenues$79.2 $81.7 $(2.5) (3.0)%Operating income 2.9 3.7% 5.4 6.6% (2.5) (46.2)% Three Months EndedUnit deliveriesFebruary 28, 2026 March 1, 2025 Unit Change % ChangeBoats 992 1,046 (54) (5.2)% Six Months Ended February 28, 2026 % of Revenues(1) March 1, 2025 % of Revenues(1) $ Change(1) % Change(1)Net revenues$171.7 $172.2 $(0.4) (0.3)%Operating income 9.0 5.3% 11.6 6.7% (2.5) (21.9)% Six Months EndedUnit deliveriesFebruary 28, 2026 March 1, 2025 Unit Change % ChangeBoats 2,127 2,217 (90) (4.1)% Dealer Inventory(2,3)February 28, 2026 March 1, 2025 Unit Change % ChangeUnits 3,632 3,610 22 0.6% (1) Amounts are calculated based on unrounded numbers and therefore may not recalculate using the rounded numbers provided.
(2) Due to the nature of the Marine industry, this amount includes a higher proportion of retail sold units than our other segments.
(3) Data is based on the latest information available from our dealer partners and is subject to timing of reporting and other limitations.
Winnebago Industries, Inc.
Non-GAAP Reconciliation
(Unaudited and subject to reclassification)
Non-GAAP financial measures, which are not calculated or presented in accordance with accounting principles generally accepted in the United States (“GAAP”), have been provided as information supplemental and in addition to the financial measures presented in the accompanying news release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented in the news release. The non-GAAP financial measures presented may differ from similar measures used by other companies.
The following table reconciles diluted earnings per share to Adjusted diluted earnings per share:
Three Months Ended Six Months Ended February 28, 2026 March 1, 2025 February 28, 2026 March 1, 2025Diluted earnings (loss) per share $0.17 $(0.02) $0.36 $(0.20)Amortization(1) 0.19 0.20 0.38 0.40 Loss on note repurchase(1) 0.03 0.07 0.03 0.07 Restructuring and related costs(1) 0.02 — 0.06 — Gain on sale of property, plant and equipment(1) (0.10) — (0.10) — Tax impact of adjustments(2) (0.03) (0.06) (0.08) (0.11)Adjusted diluted earnings per share(3) $0.27 $0.19 $0.65 $0.16 (1) Represents a pre-tax adjustment.
(2) The company's non-GAAP income tax impact is calculated using an estimated tax rate for the U.S. of 22.0% for Fiscal 2026 and 23.0% for Fiscal 2025.
(3) Per share numbers may not foot due to rounding.
The following table reconciles net income to consolidated EBITDA and Adjusted EBITDA.
Three Months Ended Six Months Ended(in millions) February 28, 2026 March 1, 2025 February 28, 2026 March 1, 2025Net income (loss) $4.8 $(0.4) $10.3 $(5.6)Interest expense, net 5.8 6.8 11.3 12.6 Income tax provision (benefit) 0.6 — 3.5 (1.5)Depreciation 9.6 9.4 19.4 19.1 Amortization 5.4 5.6 10.8 11.2 EBITDA 26.2 21.4 55.3 35.8 Loss on note repurchase 0.8 2.0 0.8 2.0 Restructuring and related costs 0.4 — 1.6 — Gain on sale of property, plant and equipment (2.8) — (2.8) — Non-operating income (0.2) (0.6) (0.3) (0.6)Adjusted EBITDA $24.4 $22.8 $54.6 $37.2
Non-GAAP performance measures of Adjusted diluted earnings per share, EBITDA and Adjusted EBITDA have been provided as comparable measures to illustrate the effect of non-recurring transactions occurring during the reported periods and to improve comparability of our results from period to period. Adjusted diluted earnings per share is defined as diluted earnings per share adjusted for after-tax items that impact the comparability of our results from period to period. EBITDA is defined as net income before interest expense, provision for income taxes, and depreciation and amortization expense. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation and amortization expense and other pretax adjustments made in order to present comparable results from period to period. Management believes Adjusted diluted earnings per share and Adjusted EBITDA provide meaningful supplemental information about our operating performance because these measures exclude amounts that we do not consider part of our core operating results when assessing our performance.
Management uses these non-GAAP financial measures (a) to evaluate historical and prospective financial performance and trends as well as assess performance relative to competitors and peers; (b) to measure operational profitability on a consistent basis; (c) in presentations to the members of our Board of Directors to enable our Board of Directors to have the same measurement basis of operating performance as is used by management in its assessments of performance and in forecasting and budgeting for the Company; (d) to evaluate potential acquisitions; and (e) to ensure compliance with restricted activities under the terms of our asset-backed revolving credit facility and outstanding notes. Management believes these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties to evaluate companies in our industry.
Winnebago Industries (WGO - Free Report) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +7.14%. A quarter ago, it was expected that this recreational vehicle maker would post earnings of $0.12 per share when it actually produced earnings of $0.38, delivering a surprise of +216.67%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Winnebago, which belongs to the Zacks Building Products - Mobile Homes and RV Builders industry, posted revenues of $657.4 million for the quarter ended February 2026, surpassing the Zacks Consensus Estimate by 5.18%. This compares to year-ago revenues of $620.2 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Winnebago shares have lost about 13.4% since the beginning of the year versus the S&P 500's decline of 4.2%.
What's Next for Winnebago?While Winnebago has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Winnebago was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.08 on $792.96 million in revenues for the coming quarter and $2.47 on $2.9 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Mobile Homes and RV Builders is currently in the bottom 12% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Lennox International (LII - Free Report) , another stock in the broader Zacks Construction sector, has yet to report results for the quarter ended March 2026.
This manufacturer of furnaces, air conditioners and other products is expected to post quarterly earnings of $3.14 per share in its upcoming report, which represents a year-over-year change of -6.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Lennox International's revenues are expected to be $1.06 billion, down 0.9% from the year-ago quarter.
For the quarter ended February 2026, Winnebago Industries (WGO - Free Report) reported revenue of $657.4 million, up 6% over the same period last year. EPS came in at $0.27, compared to $0.19 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $625.03 million, representing a surprise of +5.18%. The company delivered an EPS surprise of +7.14%, with the consensus EPS estimate being $0.25.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Winnebago performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Unit deliveries - Marine - Boats: 992 compared to the 1,125 average estimate based on two analysts.Unit deliveries - Total Towable RV: 6,615 versus 7,218 estimated by two analysts on average.Unit deliveries - Total Motorhome RV: 1,518 compared to the 1,015 average estimate based on two analysts.Net Revenues- Motorhome RV: $304.7 million versus the four-analyst average estimate of $235.66 million. The reported number represents a year-over-year change of +29.3%.Net Revenues- Marine: $79.2 million versus $84.83 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -3.1% change.Net Revenues- Towable RV: $262.4 million versus the four-analyst average estimate of $288.78 million. The reported number represents a year-over-year change of -9%.View all Key Company Metrics for Winnebago here>>>
Shares of Winnebago have returned -20.2% over the past month versus the Zacks S&P 500 composite's -4.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Winnebago WGO reported its Q2 results, showing a modest decline despite surpassing EPS expectations. Revenue increased 6% year-over-year to $657.4 million, exceeding forecasts. The company reaffirmed its FY26 guidance, maintaining expected EPS of $2.10-2.80 and revenue of $2.8-3.0 billion.
Despite seasonal and weather challenges, WGO demonstrated resilience through selective pricing and product mix adjustments. The Motorhome RV segment excelled, with revenue up 29.3% year-over-year to $304.7 million, driven by new products and Grand Design expansion. Operating margin improved by 270 bps to 2.4% due to better volume leverage. The Towable RV segment faced softness, with revenue down 9.0% year-over-year to $262.4 million due to lower unit volumes and a shift to lower price-point models. Operating margin decreased by 20 bps to 4.2% due to volume deleverage and product mix. Gross profit margin fell by 40 bps to 13.0%, indicating a less favorable mix, although selective price adjustments mitigated some pressure. As WGO enters the stronger spring and summer months, it expects new products and cost actions to bolster the second half. However, the company remains cautious due to an uncertain external environment and potential impacts from Middle East developments on consumer sentiment and demand.WGO's Q2 results were encouraging, especially in the Motorhome segment, showcasing its ability to differentiate in a challenging market. However, the Towable RV segment struggled with weaker volume and a shift to lower price models, impacting margins. The macroeconomic environment remains challenging, with weak consumer sentiment, financing pressures, and cautious dealer inventory levels. Additionally, uncertainties in the Middle East may affect demand. Despite these challenges, WGO's strong execution and new product offerings are positive, though gross margin concerns and a cautious outlook weigh on the results.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Winnebago Industries delivered Q2 FY2026 results exceeding analyst expectations, with revenue up 6% and EPS turning positive. WGO's Motorhome segment drove growth, offsetting declines in Towables and Marine, despite ongoing industry headwinds and a mixed market outlook. Management forecasts FY2026 revenue of $2.8–$3.0 billion and adjusted net profits of ~$69.8 million, signaling cautious optimism amid persistent macroeconomic challenges.
Winnebago Industries is attractively valued after a 24% drop, with fundamentals and liquidity supporting a renewed buy rating. WGO's Q2 2026 revenue grew 6% YoY, driven by a strategic shift toward higher-demand Motorhome RVs and prudent pricing adjustments. Despite inflation and tariff headwinds, WGO's affluent customer base and strong balance sheet provide resilience and operational flexibility.
Key Takeaways Winnebago Q2 EPS of 27 cents beat estimates, with revenues rising 6% year over year to $657 million.WGO Motorhome RV sales jumped 29.3% on higher volumes, lifting segment profitability.Towable and Marine segments declined due to lower volumes, product mix shifts and higher costs. Winnebago Industries (WGO - Free Report) reported adjusted earnings of 27 cents per share in the second quarter of fiscal 2026 (ended Feb. 28, 2026), beating the Zacks Consensus Estimate of 25 cents. WGO reported adjusted EPS of 19 cents in the year-ago period. The recreational vehicle (RV) maker reported revenues of $657 million for the quarter under review, surpassing the Zacks Consensus Estimate of $625 million. The top line increased 6% year over year.
Segmental PerformanceTowable RV: Revenues in the Towable RV segment fell 9% year over year to $262.4 million as a result of a shift in the product mix toward lower-priced models, coupled with reduced unit volumes. The metric also lagged our estimate of $304.3 million. Total deliveries from the segment came in at 6,615 units, which decreased 8.4% year over year and fell short of our estimate of 7,437 units. Operating income fell 12.2% to $11.1 million due to volume deleverage and product mix. The figure also fell short of our estimate of $17.6 million.
Motorhome RV: Revenues in the Motorhome RV segment rose 29.3% year over year to $304.7 million, mainly because of increased unit volumes. The top line also beat our estimate of $200.7 million. Total deliveries from the Motorhome RV segment came in at 1,518 units, up 32.7% year over year and topped our estimate of 930 units. The segment recorded an operating income of $7.5 million against the year-ago period’s operating loss of $0.6 million due to volume leverage.
Marine: Revenues from the segment totaled $79.2 million, down 3% year over year, primarily due to a decline in unit volumes. The metric also missed our estimate of $103.1 million. Total deliveries from the segment came in at 992 units, down 5.2% year over year and fell short of our estimate of 1,250 units. The segment’s operating income fell to $2.9 million from the year-ago operating income of $5.4 million due to increased warranty expense and volume deleverage. It also lagged our expectation of $7.6 million.
Financials & Fiscal 2026 OutlookWinnebago had cash and cash equivalents of $47.4 million as of Feb. 28, 2026. Long-term debt totaled $442.3 million.
On March 18, 2026, the company declared a quarterly cash dividend of 35 cents per share, payable on April 29, 2026, to shareholders of record as of the close of business on April 15, 2026.
WGO expects its fiscal 2026 consolidated revenues in the band of $2.8-$3 billion. Adjusted EPS is estimated between $2.10 and $2.80.
WGO’s Zacks Rank & Key PicksWinnebago stock currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Renault SA (RNLSY - Free Report) , Magna International Inc. (MGA - Free Report) and Modine Manufacturing Company (MOD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RNLSY’s 2026 sales and earnings implies year-over-year growth of 12.1% and 169.5%, respectively. The EPS estimates for 2026 and 2027 have moved down 4 cents each in the past 30 days.
The Zacks Consensus Estimate for MGA’s 2026 sales and earnings implies year-over-year growth of 2.3% and 19%, respectively. The EPS estimate for 2026 and 2027 has improved 10 cents and 30 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.3% and 19%, respectively. The EPS estimate for fiscal 2026 and fiscal 2027 has improved 19 cents and 89 cents, respectively, in the past 60 days.
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Key Takeaways WGO reported Q2 EPS of 27 cents and revenues of $657M, both up year over year.Winnebago's Motorhome RV segment growth offset declines in Towable RV and Marine segments.WGO's acquisitions and dividend payouts highlight portfolio strength and shareholder returns. Winnebago Industries (WGO - Free Report) , a leading producer of recreational vehicles in the United States, sent a positive signal to investors with both earnings and revenues growing year over year. It reported adjusted earnings of 27 cents per share in the second quarter of fiscal 2026 (ended Feb. 28, 2026), up from 19 cents in the year-ago period. It reported revenues of $657 million, which rose 6% year over year.
Despite ongoing near-term weakness in the Towable RV and Marine segments, solid performance in the Motorhome RV segment, supported by a strong product portfolio, contributes to a more balanced outlook for the stock following the fiscal second-quarter earnings release.
Strategic Acquisition & Expansion of Grand Design RV Aid WGOWinnebago continues to strengthen its product portfolio. The company has introduced Access in the Winnebago Towables line, Transcend One in the Grand Design line. It is also finding success with higher-priced offerings, including Newmar and Grand Design’s Super C models. The newly launched Sanza product line broadens the Barletta experience, making it accessible to customers seeking a more affordable entry into premium brands. Overall, the company aims to maintain a full lineup across its segments, appealing both to value-oriented buyers and to customers seeking more premium, top-tier options.
Winnebago's strategic acquisitions have strengthened its business portfolio. The Grand Design acquisition has solidified its towable RV offerings, while the Newmar purchase has enhanced the high-end motorized product lineup. Entering the marine segment through the Chris-Craft buyout has broadened Winnebago's market reach. The Barletta acquisition has further strengthened Winnebago's position in the marine market, augmenting its network, portfolio and revenues. Additionally, the acquisition of Lithionics Battery, a leading lithium-ion battery manufacturer, is driving innovation in diverse battery solutions, contributing to the advancement of Winnebago’s comprehensive electrical ecosystem.
In the second quarter of fiscal 2026, WGO’s revenue growth was attributable to the strong performance of the Motorhome RV segment, which more than compensated for declines in the Towable RV and Marine segments. The Motorhome RV segment’s growth was primarily driven by the continued expansion of Grand Design RV, along with solid contributions from the Winnebago and Newmar brands. The company expects the Motorhome RV segment to deliver both revenue growth and improved operating margins relative to fiscal 2025.
Winnebago’s commitment to return capital to shareholders is another positive. In fiscal 2025, the company returned a $88.9 million to investors via buybacks ($50 million) and dividends ($38.9 million). Winnebago has paid a quarterly dividend for 47 consecutive quarters so far. In August 2025, WGO hiked its quarterly dividend by 3% to 35 cents. The company has a five-year annualized dividend growth rate of 26.7%. These investor-friendly moves spark optimism.
Weakness in the Towable RV & Marine Segment to Ail WinnebagoIn the second quarter of fiscal 2026, Towable RV net revenues declined 9%, mainly due to a shift in product mix toward lower-priced models and reduced unit volumes. The company anticipates Towable RV revenues in fiscal 2026 to remain below fiscal 2025 levels. Meanwhile, the Marine segment net revenues fell 3%, largely attributable to lower unit volumes and an unfavorable product mix. Ongoing softness in retail demand is expected to keep full-year Marine revenues below those recorded in fiscal 2025. Softness across the Towable RV & Marine segments remains a concern.
Winnebago continues to face challenges from macroeconomic conditions affecting both retail consumers and dealers, including inflation, high interest rates and weakened consumer confidence. These factors have led to reduced consumer spending and a decline in short-term demand for large discretionary purchases such as RVs and marine products. In response, dealers have remained cautious in managing inventory levels.
WGO sources some key parts from a limited supplier base. In fiscal 2025, one supplier accounted for about 14% of raw material purchases. Major motorhome chassis suppliers include Mercedes-Benz, Stellantis, Freightliner, Ford and Spartan, while marine engine supply is heavily dependent on Mercury Marine. Any disruptions, production cuts, delays, or price increases from these suppliers could hinder production and negatively impact the company’s operations, financial condition and cash flows.
ConclusionWGO’s strong Motorhome RV segment continues to offset weakness in Towable RV and Marine businesses, supported by premium brands and successful product expansions. Strategic acquisitions like Grand Design and Newmar have strengthened its portfolio, while innovations such as Lithionics Battery enhance future growth potential.
Winnebago’s consistent shareholder returns, through dividends and buybacks, reflect financial discipline and investor commitment. Although macroeconomic pressures and segment softness persist, the company’s diversified offerings, improving margins in key segments, focus on operational efficiency and Zacks Rank #3 (Hold) position it well for recovery. Investors may consider retaining WGO stock due to its resilient performance and long-term strategic positioning despite near-term headwinds.
Stocks to ConsiderSome better-ranked stocks in the auto space are Renault SA (RNLSY - Free Report) , Magna International Inc. (MGA - Free Report) and Modine Manufacturing Company (MOD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RNLSY’s 2026 sales and earnings implies year-over-year growth of 12.1% and 169.5%, respectively. The EPS estimates for 2026 and 2027 have moved down 4 cents each in the past 30 days.
The Zacks Consensus Estimate for MGA’s 2026 sales and earnings implies year-over-year growth of 2.3% and 19%, respectively. The EPS estimate for 2026 and 2027 has improved 10 cents and 30 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.3% and 19%, respectively. The EPS estimate for fiscal 2026 and fiscal 2027 has improved 19 cents and 89 cents, respectively, in the past 60 days.
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Deprince Race & Zollo Inc. decreased its position in Winnebago Industries, Inc. (NYSE:WGO – Free Report) by 34.6% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 143,148 shares of the RV manufacturer’s stock after selling 75,710 shares during the quarter. Deprince Race & Zollo Inc. owned approximately 0.51% of Winnebago Industries worth $5,800,000 at the end of the most recent quarter.
A number of other hedge funds have also recently modified their holdings of WGO. Maple Rock Capital Partners Inc. increased its position in shares of Winnebago Industries by 111.2% in the third quarter. Maple Rock Capital Partners Inc. now owns 680,199 shares of the RV manufacturer’s stock valued at $22,746,000 after acquiring an additional 358,100 shares during the period. Hotchkis & Wiley Capital Management LLC purchased a new position in shares of Winnebago Industries in the third quarter valued at about $9,785,000. Royce & Associates LP purchased a new position in shares of Winnebago Industries in the third quarter valued at about $6,838,000. UBS Group AG increased its position in shares of Winnebago Industries by 75.8% in the third quarter. UBS Group AG now owns 417,015 shares of the RV manufacturer’s stock valued at $13,945,000 after acquiring an additional 179,853 shares during the period. Finally, Marshall Wace LLP increased its position in shares of Winnebago Industries by 142.3% in the second quarter. Marshall Wace LLP now owns 233,505 shares of the RV manufacturer’s stock valued at $6,772,000 after acquiring an additional 137,120 shares during the period.
Wall Street Analysts Forecast Growth A number of research firms have issued reports on WGO. Benchmark boosted their price objective on shares of Winnebago Industries from $42.00 to $48.00 and gave the company a “buy” rating in a research report on Tuesday, December 23rd. Robert W. Baird reduced their price target on shares of Winnebago Industries from $48.00 to $42.00 and set a “neutral” rating on the stock in a research report on Thursday, March 26th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Winnebago Industries in a research report on Monday, December 29th. Roth Mkm boosted their price target on shares of Winnebago Industries from $36.00 to $42.00 and gave the company a “neutral” rating in a research report on Monday, December 22nd. Finally, Griffin Securities set a $40.00 price target on shares of Winnebago Industries in a research report on Tuesday, December 23rd. Four equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, Winnebago Industries currently has a consensus rating of “Hold” and an average price target of $42.30.
Check Out Our Latest Analysis on WGO
Winnebago Industries Price Performance WGO stock opened at $32.63 on Tuesday. The firm has a 50 day moving average price of $38.36 and a 200-day moving average price of $38.56. Winnebago Industries, Inc. has a 52-week low of $28.00 and a 52-week high of $50.16. The firm has a market capitalization of $922.31 million, a price-to-earnings ratio of 22.19 and a beta of 1.20. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.99 and a current ratio of 2.30.
Winnebago Industries (NYSE:WGO – Get Free Report) last released its earnings results on Wednesday, March 25th. The RV manufacturer reported $0.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.25 by $0.02. Winnebago Industries had a net margin of 1.43% and a return on equity of 4.99%. The firm had revenue of $657.40 million during the quarter, compared to analyst estimates of $628.00 million. During the same period last year, the business earned $0.19 earnings per share. The business’s revenue was up 6.0% on a year-over-year basis. Equities research analysts forecast that Winnebago Industries, Inc. will post 3.41 EPS for the current fiscal year.
Winnebago Industries Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 29th. Stockholders of record on Wednesday, April 15th will be issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 4.3%. The ex-dividend date is Wednesday, April 15th. Winnebago Industries’s dividend payout ratio (DPR) is presently 95.24%.
Winnebago Industries Profile (Free Report)
Winnebago Industries, Inc is a leading manufacturer of recreational vehicles (RVs) and specialty vehicles, headquartered in Forest City, Iowa. Since its founding in 1958, the company has gained recognition for its motorhomes, travel trailers and fifth-wheel products under the Winnebago and Grand Design brands. Its portfolio also includes towable RVs, camper vans and commercial vehicles tailored for healthcare, government and mobile retail applications.
In addition to vehicle production, Winnebago Industries maintains an extensive dealer and service network across the United States and Canada, supplemented by parts distribution centers and customer support resources.
Further Reading Five stocks we like better than Winnebago Industries Want to see what other hedge funds are holding WGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Winnebago Industries, Inc. (NYSE:WGO – Free Report).
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On April 22, 2026, Winnebago Industries Inc (WGO) shares fell 3.1% to a current price of $32.59. The stock has seen a 52-week range of $28.00 to $50.16, reflect
A month has gone by since the last earnings report for Winnebago Industries (WGO - Free Report) . Shares have lost about 0.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Winnebago due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Winnebago Industries, Inc. before we dive into how investors and analysts have reacted as of late.
Winnebago Q2 Earnings Surpass ExpectationsWinnebago reported adjusted earnings of 27 cents per share in the second quarter of fiscal 2026 (ended Feb. 28, 2026), beating the Zacks Consensus Estimate of 25 cents. WGO reported adjusted EPS of 19 cents in the year-ago period. The recreational vehicle (RV) maker reported revenues of $657 million for the quarter under review, surpassing the Zacks Consensus Estimate of $625 million. The top line increased 6% year over year.
Segmental PerformanceTowable RV: Revenues in the Towable RV segment fell 9% year over year to $262.4 million as a result of a shift in the product mix toward lower-priced models, coupled with reduced unit volumes. The metric also lagged our estimate of $304.3 million. Total deliveries from the segment came in at 6,615 units, which decreased 8.4% year over year and fell short of our estimate of 7,437 units. Operating income fell 12.2% to $11.1 million due to volume deleverage and product mix. The figure also fell short of our estimate of $17.6 million.
Motorhome RV: Revenues in the Motorhome RV segment rose 29.3% year over year to $304.7 million, mainly because of increased unit volumes. The top line also beat our estimate of $200.7 million. Total deliveries from the Motorhome RV segment came in at 1,518 units, up 32.7% year over year and topped our estimate of 930 units. The segment recorded an operating income of $7.5 million against the year-ago period’s operating loss of $0.6 million due to volume leverage.
Marine: Revenues from the segment totaled $79.2 million, down 3% year over year, primarily due to a decline in unit volumes. The metric also missed our estimate of $103.1 million. Total deliveries from the segment came in at 992 units, down 5.2% year over year and fell short of our estimate of 1,250 units. The segment’s operating income fell to $2.9 million from the year-ago operating income of $5.4 million due to increased warranty expense and volume deleverage. It also lagged our expectation of $7.6 million.
Financials & Fiscal 2026 OutlookWinnebago had cash and cash equivalents of $47.4 million as of Feb. 28, 2026. Long-term debt totaled $442.3 million.
On March 18, 2026, the company declared a quarterly cash dividend of 35 cents per share, payable on April 29, 2026, to shareholders of record as of the close of business on April 15, 2026.
WGO expects its fiscal 2026 consolidated revenues in the band of $2.8-$3 billion. Adjusted EPS is estimated between $2.10 and $2.80.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -13.27% due to these changes.
VGM ScoresCurrently, Winnebago has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Winnebago has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
EDEN PRAIRIE, Minn., May 01, 2026 (GLOBE NEWSWIRE) -- Winnebago Industries, Inc. (NYSE: WGO), a leading manufacturer of premium outdoor recreation products, today announced the appointment of Emily Silver to its board of directors, effective May 1, 2026. Ms. Silver will serve as an independent director and as a member of the technology and human resources committees.
Ms. Silver is senior vice president, chief marketing, e-commerce and athlete experience officer of DICK’S Sporting Goods, where she leads the company’s overall marketing strategy and e-commerce business. In addition to leading marketing and digital transformation, she oversees cross-functional athlete experience initiatives and the DICK’S Media Network.
“Emily brings a powerful blend of strategic thinking and marketing leadership to the board,” said John Murabito, Winnebago Industries board chair. “Her perspectives on consumer insights, brand-led growth, and data-enabled decision making will meaningfully enhance the board’s capabilities as the company navigates dynamic times.”
Prior to joining DICK’S, Ms. Silver spent 16 years at PepsiCo where she held a variety of senior leadership roles with increasing responsibility and most recently served as senior vice president of portfolio marketing. Throughout her tenure, she developed a strong track record of driving brand strategy, innovation, analytics capabilities and commercial execution.
“Emily is a proven leader with deep expertise in digital marketing, brand building and customer engagement, all of which are critically important as we continue executing our long-term growth strategy,” said Michael Happe, president and chief executive officer of Winnebago Industries. “Her experience leading large-scale marketing and e-commerce transformations at iconic consumer brands will be invaluable as we strengthen our connection with customers and unlock new growth opportunities across our outdoor recreation portfolio.”
“I am honored to join the board of Winnebago Industries at such an exciting time in its evolution,” said Ms. Silver. “The company has a strong portfolio of premium brands and a clear strategic vision, and I look forward to contributing my experience to help more people enjoy the benefits of time outside.”
With the appointment of Ms. Silver, the Winnebago Industries Board of Directors will consist of ten members.
About Winnebago Industries
Winnebago Industries, Inc. is a leading North American manufacturer of outdoor recreation products under the Winnebago, Grand Design, Chris-Craft, Newmar and Barletta brands, which are used primarily in leisure travel and outdoor recreation activities. The Company builds high-quality motorhomes, travel trailers, fifth-wheel products, outboard and sterndrive powerboats, pontoons, and commercial community outreach vehicles. Committed to advancing sustainable innovation and leveraging vertical integration in key component areas, Winnebago Industries has multiple facilities in Iowa, Indiana, Minnesota, and Florida. The Company’s common stock is listed on the New York Stock Exchange and traded under the symbol WGO. For access to Winnebago Industries' investor relations material or to add your name to an automatic email list for Company news releases, visit http://investor.wgo.net.
FOREST CITY, Iowa, May 11, 2026 (GLOBE NEWSWIRE) -- Winnebago® announced the launch of ARKA™, a new off-grid, all-season adventure truck, expanding its rugged RV portfolio for travelers who go farther and stay longer. Joining Winnebago’s Backcountry Series alongside Revel® and EKKO™, ARKA is designed to be tough, approachable and reliable, prioritizing durability and real-world performance.
Bridging off-road capability and premium RV comfort, ARKA is a self-reliant basecamp engineered for the demands of real backcountry travel. Purpose-driven design, all-season durability and extended off-grid independence are backed by Winnebago’s OEM-level testing, including durability simulations replicating over 100,000 miles of road and trail input. This approach focuses on doing the right things exceptionally well, allowing owners to trust their vehicle and personalize it over time.
“ARKA was designed by listening closely to real backcountry travelers,” said Stefanie Whittington, senior product manager for Winnebago’s compact Class C and adventure platforms. “We looked at what breaks down, what creates friction and what gives people confidence when they’re days from pavement. Every decision came back to durability, autonomy, and ease of use.”
Turning nowhere into somewhere
ARKA transitions from rugged exploration to total comfort without compromise to allow adventurers to recover and recharge.
Durability and off-road performance: Built on the RAM® 5500 chassis with a 15,000 lb. towing capacity, the platform tackles tough terrain, vibration and gear-heavy adventures with confidence. A purpose-built exterior and optimized underbody provide protection and stability required for extended backcountry travel.
Comfort and adaptability: Inside, ARKA balances rugged utility with comfort designed to help users recover and recharge between days on the move. Hydronic heating, heated tanks and floors, advanced insulation and industry-first heat recovery ventilation regulate temperature, manage humidity and reduce condensation across conditions from -10ºF to 120ºF. A durable interior featuring aluminum cabinetry, modular sleeping options, convertible dinette, L-track mounting and full-height gear garage support seamless transitions between remote exploration and everyday comfort.
Autonomy and connectivity: ARKA is designed so essential systems are centrally managed and intentionally accessible. Winnebago Connect™ allows users to monitor and control power, climate, water and security from a connected device, simplifying off-grid living. A 48-volt electrical architecture with up to 15kWh of lithium battery capacity, a 3,600-watt inverter and multiple charging sources including solar, alternator and shore power deliver reliable, long-duration autonomy without added complexity.
Safety and security: Reinforced construction and integrated systems support awareness and control in changing conditions. Thoughtful engineering helps protect both the vehicle and its occupants, supporting confident travel across unfamiliar terrain and environments.
Utility and adaptability: ARKA is built as a flexible platform that evolves with its owners over time. Modular storage solutions and a curated range of bolt-on interior and exterior accessories allow users to personalize their setup as needs change, while preserving a focused foundation that comes equipped with everything they need and nothing they don’t. “Every strong brand has chapters that redefine it, and ARKA marks one of those moments for Winnebago,” said Chris West, president of Winnebago Motorhomes. “We are honoring our heritage and strengthening the brand, our focus is simple: purposeful innovation, authentic outdoor experiences and products that truly earn the trust of our customers.”
See ARKA in person:
ARKA will make its public debut at Overland Expo West in Flagstaff, Arizona (May 15–17, 2026), followed by appearances at Overland Expo PNW in Redmond, Oregon (June 26–28) and Overland Mountain West in Loveland, Colorado (August 21–23). Additional product information is available at www.winnebago.com/models/arka.
About Winnebago
Winnebago® has been a part of the American outdoor experience and an RV industry pioneer since 1958. The brand offers legendary innovation, quality and customer experience across a full spectrum of towable travel trailers and motorhomes, from camper vans to luxury Class A diesel pushers. Headquartered in Forest City, Iowa, the brand is a wholly owned subsidiary of Winnebago Industries (NYSE: WGO), a leading manufacturer of premium outdoor recreation products committed to elevating every moment outdoors. For more information, visit www.winnebago.com.
Media contact: [email protected]
ARKA press kit and product imagery available upon request.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f8803080-6e1d-4a29-94dd-04bf26e2ae6e
EDEN PRAIRIE, Minn., May 15, 2026 (GLOBE NEWSWIRE) -- Winnebago Industries, Inc. (NYSE: WGO), a leading manufacturer of outdoor recreation products, today announced that the company’s board of directors has approved a quarterly cash dividend of $0.35 per share, payable on June 24, 2026, to shareholders of record as of the close of business on June 10, 2026.
“Returning capital to shareholders remains a priority for Winnebago Industries,” said Bryan Hughes, chief financial officer for Winnebago Industries. “Our disciplined capital allocation strategy allows us to invest in our brands and enterprise capabilities while maintaining financial flexibility. This dividend, which marks our 48th consecutive quarterly payment, reflects confidence in the strength of the business and the durability of our cash flows.”
About Winnebago Industries
Winnebago Industries, Inc. is a leading North American manufacturer of outdoor recreation products under the Winnebago, Grand Design, Chris-Craft, Newmar and Barletta brands, which are used primarily in leisure travel and outdoor recreation activities. The Company builds high-quality motorhomes, travel trailers, fifth-wheel products, outboard and sterndrive powerboats, pontoons, and commercial community outreach vehicles. Committed to advancing sustainable innovation and leveraging vertical integration in key component areas, Winnebago Industries has multiple facilities in Iowa, Indiana, Minnesota, and Florida. The Company’s common stock is listed on the New York Stock Exchange and traded under the symbol WGO. For access to Winnebago Industries' investor relations material visit www.winnebagoind.com/investors.
EDEN PRAIRIE, Minn., June 02, 2026 (GLOBE NEWSWIRE) -- Winnebago Industries, Inc. (NYSE: WGO), a leading manufacturer of outdoor recreation products, today announced that President and Chief Executive Officer Michael Happe will participate in an analyst-led fireside chat at the Baird 2026 Global Consumer, Technology & Services Conference in New York City at 10:50 a.m. ET on Wednesday, June 3, 2026. Management will also host one-on-one meetings with institutional investors and analysts.
A live webcast of the fireside chat will be available on Winnebago Industries’ investor relations website at https://investor.wgo.net/. A replay will be archived and accessible for 90 days following the presentation.
About Winnebago Industries
Winnebago Industries, Inc. is a leading North American manufacturer of outdoor recreation products under the Winnebago, Grand Design, Chris-Craft, Newmar and Barletta brands, which are used primarily in leisure travel and outdoor recreation activities. The Company builds high-quality motorhomes, travel trailers, fifth-wheel products, outboard and sterndrive powerboats, pontoons, and commercial community outreach vehicles. Committed to advancing sustainable innovation and leveraging vertical integration in key component areas, Winnebago Industries has multiple facilities in Iowa, Indiana, Minnesota, and Florida. The Company’s common stock is listed on the New York Stock Exchange and traded under the symbol WGO. For access to Winnebago Industries' investor relations materials visit www.winnebagoind.com/investors.
EDEN PRAIRIE, Minn., June 04, 2026 (GLOBE NEWSWIRE) -- Winnebago Industries, Inc. (NYSE: WGO), a leading manufacturer of outdoor recreation products, plans to issue its third quarter fiscal 2026 financial results before the opening of the New York Stock Exchange on Thursday, June 25, 2026. At 9:00 a.m. CT, the company will conduct a conference call hosted by Michael Happe, president and chief executive officer, and Bryan Hughes, senior vice president and chief financial officer.
You are invited to listen to the call via the “Investors” section of the company's website, https://www.winnebagoind.com/investors. The event will be archived and available for replay for up to one year. To access the replay, click on https://winnebagoind.com/event-calendar.
About Winnebago Industries
Winnebago Industries, Inc. is a leading North American manufacturer of outdoor recreation products under the Winnebago, Grand Design, Chris-Craft, Newmar and Barletta brands, which are used primarily in leisure travel and outdoor recreation activities. The company builds high-quality motorhomes, travel trailers, fifth-wheel products, outboard and sterndrive powerboats, pontoons, and commercial community outreach vehicles. Committed to advancing sustainable innovation and leveraging vertical integration in key component areas, Winnebago Industries has multiple facilities in Iowa, Indiana, Minnesota, and Florida. The company’s common stock is listed on the New York Stock Exchange and traded under the symbol WGO. For access to Winnebago Industries' investor relations material visit www.winnebagoind.com/investors.
Investors in Donaldson Company, Inc. (DCI - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the May 15, 2026 $110 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Donaldson shares, but what is the fundamental picture for the company? Currently, Donaldson is a Zacks Rank #3 (Hold) in the Pollution Control industry that ranks in the Top 16% of our Zacks Industry Rank. Over the last 60 days, the Zacks Consensus Estimate for the current quarter has moved from $1.06 per share to $1.05 in that period.
Given the way analysts feel about Donaldson right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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MINNEAPOLIS--(BUSINESS WIRE)-- #DonaldsonCompany--Donaldson Company, Inc. (NYSE:DCI), a leading worldwide manufacturer of innovative filtration products and solutions, announced its calendar year 2025 Patent Recipients and Inventor Award winners. The annual recognition celebrates employees whose ideas, inventions, and technical leadership strengthen Donaldson's technology leadership and enduring culture of innovation. In 2025, 213 Donaldson employees were named on patents granted during the year, contributing to a.
Atmus acquired Koch Filter, directly entering the data center filtration market, with the accretion already visible in its first quarter of ownership at 21.9% EBITDA margins. Donaldson's industrial margins collapsed 420 basis points YoY, management cut guidance, and paid 20x EBITDA for acquiring Facet with no earnings accretion expected until FY2027. Atmus trades at a forward PE of 16.64x and Donaldson at 21.03x, a 4.4 point gap that makes no sense given Atmus is the faster-growing, better-executing business.
Analysts on Wall Street project that Donaldson (DCI - Free Report) will announce quarterly earnings of $1.05 per share in its forthcoming report, representing an increase of 6.1% year over year. Revenues are projected to reach $979.07 million, increasing 4.1% from the same quarter last year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Donaldson metrics that Wall Street analysts commonly model and monitor.
The consensus estimate for 'Net Sales- Industrial Solutions segment' stands at $290.35 million. The estimate suggests a change of +2.5% year over year.
It is projected by analysts that the 'Net Sales- Life Sciences segment' will reach $79.45 million. The estimate suggests a change of +7.1% year over year.
The collective assessment of analysts points to an estimated 'Net Sales- Mobile Solutions' of $613.24 million. The estimate suggests a change of +5.3% year over year.
Analysts predict that the 'Net Sales- Mobile Solutions- On-Road' will reach $31.21 million. The estimate indicates a change of +16% from the prior-year quarter.
Based on the collective assessment of analysts, 'Net Sales- Mobile Solutions- Off-Road' should arrive at $99.29 million. The estimate points to a change of +3.9% from the year-ago quarter.
The consensus among analysts is that 'Net Sales- Industrial Solutions- Aerospace and Defense' will reach $49.32 million. The estimate suggests a change of -4.2% year over year.
Analysts expect 'Net Sales- Industrial Solutions- Industrial Filtration Solutions' to come in at $241.37 million. The estimate suggests a change of +4.1% year over year.
According to the collective judgment of analysts, 'Net Sales- Mobile Solutions- Aftermarket' should come in at $482.40 million. The estimate suggests a change of +4.9% year over year.
The combined assessment of analysts suggests that 'Earnings / (loss) before income taxes- Mobile Solutions' will likely reach $113.36 million. Compared to the present estimate, the company reported $105.30 million in the same quarter last year.
The average prediction of analysts places 'Earnings / (loss) before income taxes- Life Sciences' at $6.46 million. The estimate compares to the year-ago value of $5.80 million.
Analysts' assessment points toward 'Earnings / (loss) before income taxes- Industrial Solutions' reaching $53.01 million. The estimate compares to the year-ago value of $51.20 million.
View all Key Company Metrics for Donaldson here>>>
Shares of Donaldson have demonstrated returns of -3.8% over the past month compared to the Zacks S&P 500 composite's +5% change. With a Zacks Rank #3 (Hold), DCI is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
MINNEAPOLIS--(BUSINESS WIRE)--Donaldson Company, Inc. (NYSE: DCI) today announced that its Board of Directors declared a regular cash dividend of 32.0 cents per share, an increase of 6.7% from the prior quarterly dividend of 30.0 cents per share. The dividend is payable June 30, 2026, to shareholders of record on June 15, 2026. Donaldson is a member of the S&P High-Yield Dividend Aristocrats Index and calendar year 2025 marked the 30th consecutive year of annual dividend increases. The Comp.
Donaldson Company, Inc. (NYSE: DCI) today announced that its Board of Directors declared a regular cash dividend of 32.0 cents per share, an increase of 6.7% f
Key Takeaways DCI is set to report Q3 fiscal 2026 results June 2, with revenue and earnings growth expected.Donaldson may see Industrial and Life Sciences gains from filtration, disk drive and food demand.DCI faces SG&A cost pressure and currency headwinds despite expected Mobile segment growth. Donaldson Company, Inc. (DCI - Free Report) is scheduled to release third-quarter fiscal 2026 (ended April 30) results on June 2, before market open.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing the mark in one. The average surprise was negative 0.4%. In the last reported quarter, its earnings of 83 cents per share missed the Zacks Consensus Estimate of 90 cents by 7.8%.
Let’s see how things have shaped up for Donaldson this earnings season.
Factors to NoteIn the third quarter of fiscal 2026, the Industrial Solutions segment’s results are expected to benefit from strong momentum in the industrial filtration solutions business, driven by increased demand for products in the power generation end market and industrial gases. The Zacks Consensus Estimate for the segment’s revenues is pegged at $290 million, indicating a 2.5% jump from the year-ago reported number.
The Life Sciences segment has been reaping the benefits from an increase in demand for disk drives and food & beverage products. The consensus mark for the segment’s revenues is pegged at $79 million, which implies a 6.8% increase from the year-ago reported figure.
Higher volume in the aftermarket business, driven by higher vehicle utilization rates in Europe, the Middle East and Africa (EMEA) and Asia Pacific (APAC), is expected to have driven the performance of the Mobile Solutions segment. The consensus estimate for the segment’s revenues stands at $613 million. This represents a 5.1% increase from the same quarter last year.
The Zacks Consensus Estimate for the company’s revenues is pegged at $979.1 million, which implies an increase of 4.2% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings is pinned at $1.1 per share, indicating a 6.1% increase from the year-ago quarter’s reported number.
However, the escalating selling, general and administrative (SG&A) expenses pose a threat to DCI’s bottom line. Increasing headcount and incremental expenses are expected to have pushed up the SG&A expenses, which are likely to have impacted Donaldson’s margins in the fiscal third quarter.
Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.
Earnings WhispersOur proven model predicts an earnings beat for DCI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: DCI has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.05 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: DCI currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other CompaniesGraco Inc. (GGG - Free Report) posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. (SWK - Free Report) reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.
MINNEAPOLIS--(BUSINESS WIRE)--Donaldson Company, Inc. (NYSE: DCI) (Donaldson or the Company), a global leader in technology-led filtration products and solutions, today reported third quarter fiscal 2026 generally accepted accounting principles (GAAP) net earnings of $118.1 million, compared with $57.8 million a year ago. Earnings per share (EPS)1 were $1.00 compared with third quarter fiscal 2025 EPS of $0.48. Third quarter fiscal 2026 results include $9.8 million of pre-tax, non-recurring net.
Donaldson (DCI - Free Report) came out with quarterly earnings of $1.06 per share, beating the Zacks Consensus Estimate of $1.05 per share. This compares to earnings of $0.99 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +0.57%. A quarter ago, it was expected that this maker of filtration systems would post earnings of $0.9 per share when it actually produced earnings of $0.83, delivering a surprise of -7.78%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Donaldson, which belongs to the Zacks Pollution Control industry, posted revenues of $995.1 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 1.64%. This compares to year-ago revenues of $940.1 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Donaldson shares have lost about 7.8% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for Donaldson?While Donaldson has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Donaldson was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.15 on $1.01 billion in revenues for the coming quarter and $3.97 on $3.82 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Pollution Control is currently in the bottom 15% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Industrial Products sector, Columbus McKinnon (CMCO - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on June 4.
This maker of materials handling products and systems is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of -55%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Columbus McKinnon's revenues are expected to be $414.5 million, up 67.9% from the year-ago quarter.
Donaldson (DCI - Free Report) reported $995.1 million in revenue for the quarter ended April 2026, representing a year-over-year increase of 5.9%. EPS of $1.06 for the same period compares to $0.99 a year ago.
The reported revenue represents a surprise of +1.64% over the Zacks Consensus Estimate of $979.07 million. With the consensus EPS estimate being $1.05, the EPS surprise was +0.57%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Donaldson performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Industrial Solutions segment: $281.7 million versus the three-analyst average estimate of $290.35 million. The reported number represents a year-over-year change of -0.6%.Net Sales- Life Sciences segment: $83.5 million versus $79.45 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +12.5% change.Net Sales- Mobile Solutions segment: $629.9 million versus $613.24 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +8.1% change.Net Sales- Mobile Solutions- On-Road: $28.3 million versus $31.21 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.2% change.Net Sales- Mobile Solutions- Off-Road: $104 million versus the three-analyst average estimate of $99.29 million. The reported number represents a year-over-year change of +8.8%.Net Sales- Industrial Solutions- Aerospace and Defense: $44.6 million versus $49.32 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -13.4% change.Net Sales- Industrial Solutions- Industrial Filtration Solutions: $237.1 million versus the three-analyst average estimate of $241.37 million. The reported number represents a year-over-year change of +2.3%.Net Sales- Mobile Solutions- Aftermarket: $497.6 million compared to the $482.4 million average estimate based on three analysts. The reported number represents a change of +8.2% year over year.Earnings / (loss) before income taxes- Mobile Solutions: $127 million versus $113.36 million estimated by three analysts on average.Earnings / (loss) before income taxes- Corporate and unallocated: $-16.7 million compared to the $-8.79 million average estimate based on three analysts.Earnings / (loss) before income taxes- Life Sciences: $6.8 million versus the three-analyst average estimate of $6.46 million.Earnings / (loss) before income taxes- Industrial Solutions: $37.7 million versus the three-analyst average estimate of $53.01 million.View all Key Company Metrics for Donaldson here>>>
Shares of Donaldson have returned -4% over the past month versus the Zacks S&P 500 composite's +5.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Analysts Have "Buy" Rating On This Mid-Cap Dividend AchieverDonaldson NYSE: DCI reported record third-quarter fiscal 2026 sales, adjusted operating margin and adjusted earnings per share, as strength in its Mobile Solutions and Life Sciences segments helped offset operational pressure in Industrial Solutions.
President and CEO Rich Lewis said the quarter marked “a significant step-up in performance” from the company’s second quarter. Total sales rose 6% from the prior year to a record $995 million, driven by currency translation, net pricing benefits and volume growth. Adjusted operating margin was 16.6%, up 30 basis points from a year earlier and 260 basis points higher than the second quarter. Adjusted earnings per share were $1.06, up 7% year over year.
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Donaldson’s non-GAAP results excluded $9.8 million of pretax charges, including $9 million of restructuring and other charges and $800,000 of business development charges, according to Sarika Dhadwal, head of investor relations.
Mobile Solutions and Life Sciences Drive Growth Mobile Solutions sales increased 8% to $630 million, supported by strong volume growth. Aftermarket sales rose 8% to $498 million, with gains in all regions and in both channels. Lewis said the company posted double-digit growth in its independent channel, where product availability, reliability and consistency continued to drive share gains.
Lewis also highlighted a “large competitive win” with a major North American fleet operator, covering air, lube and fuel products. During the question-and-answer session, he said the award was not as large as a prior NAPA win, but described it as “sizable” and strategically important because it puts Donaldson products on shelves at dealers where the company had not previously been present.
In Mobile Solutions’ first-fit businesses, off-road sales rose 9% to $104 million, led by construction, while on-road sales increased 5% to $28 million as truck production began to ramp, particularly in EMEA. Lewis said China sales in Mobile Solutions increased 6% due to strength in off-road markets, with export demand supporting Donaldson’s technology-led solutions.
Life Sciences sales increased 13% to $84 million, driven largely by new equipment volume in food and beverage and continued strength in disk drive. Lewis said food and beverage sales grew more than 30%, supported by new equipment sales and a growing installed base that is driving consumables demand.
Industrial Solutions Pressured by Operational Inefficiencies Industrial Solutions sales declined 1% to $282 million, with volume declines partially offset by pricing and currency benefits. Within the segment, Industrial Filtration Solutions sales rose 2% to $237 million, helped by net pricing and power generation volume growth, primarily in EMEA, where new equipment sales more than doubled. Donaldson said those gains were partly offset by lower new equipment sales in industrial gases and dust collection.
Aerospace and Defense sales fell 14% to $45 million because of weaker new equipment sales. Lewis said volumes were affected by ongoing supply chain constraints and project timing. In response to an analyst question, he said the business exited the quarter with “near record backlogs” that had been increasing steadily during the year, and said the backlog could become a tailwind into fiscal 2027 as supply chain issues are resolved.
Chief Financial Officer Brad Pogalz said Industrial Solutions’ pretax margin was 13.4% in the quarter, down from 18.1% a year earlier, due to gross margin pressure from power generation production shifts and footprint optimization work. Donaldson realized about 80 basis points of pressure from shifting production to Mexico for large turbine systems in power generation, and nearly 20 basis points of pressure from plant closures and production transfers tied to footprint optimization.
Pogalz said Donaldson views the third quarter as the low point for the power generation-related pressure and expects to be fully recovered midway through fiscal 2027. The company completed the last two plant closures tied to its footprint optimization initiative during the quarter and is now focused on ramping productivity in the new locations. Pogalz said those initiatives are expected to generate about $10 million in annualized benefits once run-rate productivity is reached during fiscal 2027.
Facet Filtration Acquisition Adds Aftermarket Exposure Donaldson closed its acquisition of Facet Filtration after the quarter ended. The business will be included in fourth-quarter consolidated results and reported in the Aerospace and Defense business unit within Industrial Solutions.
Lewis said Facet adds high-performance fuel and fluid capabilities to Donaldson’s Industrial Solutions portfolio and increases the company’s exposure to aerospace and power generation. He said about 70% of Facet’s revenue comes from recurring, regulated replacement part sales with “highly accretive margins.”
During the Q&A session, Lewis said the acquisition rationale remains intact after the company’s first post-close business review. He said Facet has natural end-market tailwinds, higher margins and higher growth rates. Donaldson expects cost synergies in the range of $4 million to $5 million, primarily from procurement. Lewis said the company did not include revenue synergies in its acquisition justification, but believes opportunities exist because Facet and Donaldson have relationships with different customers and sell complementary products.
Guidance Updated for Fiscal 2026 Donaldson raised the midpoint of its organic sales outlook and now expects consolidated organic sales growth of 3% to 5% for fiscal 2026. Pogalz said the midpoint is about 1 percentage point higher than prior guidance due to strength in Mobile Solutions and Life Sciences. Pricing and currency translation are each expected to contribute a little more than 1% to growth.
Mobile Solutions: Sales are expected to grow 3.5% to 5.5%, slightly above prior guidance, driven by aftermarket share gains and higher vehicle utilization rates. Industrial Solutions: Organic sales are projected to be flat to up 2%, with Industrial Filtration Solutions expected to grow in the low single digits. Aerospace and Defense: Sales are expected to decline in the mid-single digits due to program timing and supply chain issues. Life Sciences: Sales are expected to increase 9% to 11%, up from prior guidance of 5% to 9%, reflecting strength in food and beverage and disk drive. Donaldson now expects organic operating margin of 15.8% to 16.2%, compared with prior guidance of 16.0% to 16.4%. Pogalz said the range implies full-year organic operating margin expansion of 10 to 50 basis points, with expense leverage partially offset by gross margin pressure. Excluding Facet, adjusted EPS is projected at $3.94 to $4.01, with the midpoint representing an 8% increase from the prior year.
Facet is expected to contribute $25 million to $30 million in fourth-quarter sales, adding about 70 to 80 basis points to full-year growth. Pogalz said its operating margin impact is likely to be immaterial this year because strong business performance will be offset by amortization costs. Debt from the transaction is expected to add about $9 million of interest expense in the quarter, with net EPS dilution of about $0.03.
Cash Flow, Capital Allocation and Outlook Donaldson expects capital expenditures of $60 million to $75 million and cash conversion of 85% to 95% for fiscal 2026. Pogalz said the company’s leverage ratio, including Facet, is approximately 1.8 times net debt to EBITDA, leaving “ample financial flexibility” to invest for growth.
The company said its capital allocation priorities remain reinvestment in the business, disciplined mergers and acquisitions, dividends and share repurchases. Pogalz noted that Donaldson has paid dividends for 70 consecutive years, increased its dividend for 30 consecutive years and recently announced a 7% dividend increase. Share repurchases have been paused as the company focuses on paying down Facet-related debt, though Pogalz said repurchases remain the company’s “variable lever.”
Lewis, who described his first 90 days as CEO as “remarkable,” said Donaldson will continue investing in attractive markets where it has a clear path to win while also evaluating its existing portfolio. He said the company exited the quarter with robust order volumes, elevated backlogs and focused execution, giving management confidence in delivering record organic sales of more than $3.8 billion for fiscal 2026.
About Donaldson NYSE: DCIDonaldson Company, Inc NYSE: DCI is a global provider of filtration systems and replacement parts for a wide range of industries. The company develops and manufactures air, liquid and gas filtration solutions for engine and industrial applications, helping customers improve performance, lower emissions and extend equipment life. Donaldson's product portfolio includes engine air intake filters, fuel filters, hydraulic filters, compressor filters, dust collection systems and gas turbine air intake systems.
Serving markets such as agriculture, construction, mining, power generation, aerospace and original equipment manufacturing, Donaldson operates through two primary business segments: Engine Products and Industrial Products.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Revenue rose 5.8% year over year to $995.1 million, exceeding analysts’ estimates of $973.6 million. Adjusted earnings were $1.06 per share, slightly ahead of the consensus estimate of $1.05.
Adjusted gross margin was 34.4%, down 10 basis points from a year earlier as operational inefficiencies partially offset benefits from pricing, product mix improvements and volume leverage.
“Third quarter results marked a significant sequential step-up in performance, including all-time high sales, adjusted operating margin and adjusted earnings,” said Rich Lewis, president and chief executive officer.
“Strong performance in our Mobile and Life Sciences segments more than offset near-term operating headwinds in the Industrial segment, demonstrating the benefit of our diversified portfolio of businesses.
During the earnings call, the CEO said the company “successfully navigated macro uncertainty,” including uneven cyclical trends and the ongoing conflict in the Middle East.
During the quarter, Donaldson completed its acquisition of Facet Filtration, expanding its Industrial Solutions platform and increasing exposure to aerospace and power generation end markets.
Segment PerformanceMobile Solutions revenue increased 8.1% from a year ago, supported by higher volumes, pricing improvements and favorable foreign exchange rates. Off-Road sales rose 8.8% on stronger construction-related demand, while On-Road sales increased 5.2% due to higher truck production in Europe, the Middle East and Africa. Aftermarket revenue climbed 8.1%, reflecting broad-based growth across regions and channels.
Industrial Solutions revenue declined 0.6% as lower volumes offset pricing and foreign exchange benefits. Industrial Filtration Solutions sales increased 2.3%, supported by pricing actions and strength in power generation, partially offset by softer demand in industrial gases and dust collection. Aerospace and Defense sales fell 13.5% because of supply chain constraints and project timing.
Life Sciences revenue increased 12.7%, driven by strong demand in food and beverage applications and disk drive markets.
Outlook RaisedDonaldson raised its fiscal 2026 adjusted earnings outlook to a range of $3.94 to $4.01 per share from a prior range of $3.93 to $4.01. The updated guidance compares with analyst expectations of $3.98 per share.
The company also increased its fiscal 2026 sales forecast to between $3.801 billion and $3.875 billion, up from its previous outlook of $3.728 billion to $3.875 billion. Analysts were expecting revenue of $3.822 billion.
Donaldson now expects organic sales growth of 3% to 5%, compared with its previous forecast of 1% to 5%. The outlook includes $25 million to $30 million of revenue from the Facet acquisition and approximately $0.03 of earnings-per-share dilution.
Management said it remains focused on margin expansion and cost-efficiency initiatives, including footprint rationalization efforts expected to generate about $10 million in annualized savings by fiscal 2027.
DCI Price Action: Donaldson shares were up 2.32% at $83.60 at the time of publication on Tuesday, according to Benzinga Pro data.
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Key Takeaways Donaldson increased its quarterly dividend 6.7% to 32 cents per share.DCI marked its 30th straight year of annual dividend increases and 70 years of payouts.DCI paid $69.3M in dividends and repurchased $108.6M of shares in fiscal H1 2026. In a shareholder-friendly move, Donaldson Company, Inc. (DCI - Free Report) has announced a hike in its dividend payout. The company increased its quarterly dividend 6.7% to 32 cents per share (annually: $1.28). The new dividend will be paid out on June 30, 2026, to shareholders of record as of June 15.
The move underscores DCI’s sound financial health as it utilizes free cash flow to enhance its shareholders’ returns. This marks Donaldson’s 30th consecutive year of annual dividend increase. It has been paying dividends every quarter for the last 70 years. Prior to this, it had hiked its dividend 11.1% to 30 cents per share in May 2025.
Strong cash flows allow Donaldson to effectively deploy capital for making acquisitions, repurchasing shares and paying out dividends. Dividend payments totaled $69.3 million in the first six months of fiscal 2026 (ended January 2026) and $131.9 million in fiscal 2025 (ended July 2025). The company bought back shares worth $108.6 million in the first six months of fiscal 2026 and $333.6 million in fiscal 2025. We believe such disbursements highlight the company’s operational strength and commitment to enhancing shareholders’ wealth.
DCI’s Zacks Rank & Price PerformanceDonaldson is benefiting from higher volume in the aftermarket business, driven by positive market trends and the impact of expanded market share within the Mobile Solutions segment. Persistent strength in the filtration solutions business is aiding DCI’s Industrial Solutions segment. However, weakness in the on-road business remains a concern.
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In the past year, this Zacks Rank #3 (Hold) company’s shares have gained 18% compared with the industry’s 29.4% growth.
The Zacks Consensus Estimate for DCI’s fiscal 2027 (ending July 2026) earnings has been stable at $3.97 per share over the past 60 days.
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CECO Environmental (CECO - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CECO delivered a trailing four-quarter average earnings surprise of 46.5%. In the past 60 days, the Zacks Consensus Estimate for CECO Environmental’s 2026 earnings has increased 17.2%.
Helios Technologies (HLIO - Free Report) presently sports a Zacks Rank of 1. Helios has a trailing four-quarter average earnings surprise of 15.7%.
The Zacks Consensus Estimate for HLIO’s 2026 earnings has increased 4% in the past 60 days.
RBC Bearings (RBC - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 6.2%.
In the past 60 days, the consensus estimate for RBC’ fiscal 2027 (ending March 2027) earnings has increased 0.5%.
Key Takeaways DCI reported record Q3 sales, adj operating margin and adj EPS; revenues were $995.1M.DCI's Mobile Solutions sales rose 8% to $630M, fueled by 8% aftermarket growth and a fleet win.DCI sees Q3 as the Industrial low point, aiming for recovery by mid-fiscal 2027. Donaldson Company, Inc. (DCI - Free Report) used its third-quarter fiscal 2026 earnings call to argue that the biggest near-term issue is execution, not demand. Management pointed to record sales, adjusted operating margin and adjusted EPS, while stressing that temporary Industrial inefficiencies are moving toward resolution.
The call mattered because it paired a narrower full-year outlook with a clear message on backlog, aftermarket strength and the newly closed Facet Filtration acquisition. Analyst questions centered on how quickly margins can recover and how much of today’s pressure shifts into fiscal 2027.
DCI Puts Focus on ExecutionRichard Lewis, president and chief executive officer, said that the quarter marked a significant step up from the fiscal second quarter and described it as the company’s strongest period to date for sales, adjusted operating margin and adjusted EPS. He framed the results as evidence that Donaldson can work through uneven cyclical conditions and still produce record quarterly performance.
That message was backed by the headline numbers. Adjusted EPS came in at $1.06, beating the Zacks Consensus Estimate of $1.05 by 0.57%. Revenues were $995.1 million, surpassing the Zacks Consensus Estimate of $979.1 million by 1.64%.
Lewis also emphasized that robust orders and elevated backlog left management confident in a stronger finish to fiscal 2026, which set the tone for the rest of the call.
Donaldson Leans on Mobile & Life SciencesLewis highlighted Mobile Solutions as the clearest growth engine in the quarter. Segment sales rose 8% to $630 million, helped by an 8% gain in aftermarket sales, with growth in all regions and both channels. He said that double-digit expansion in the independent channel reflected product availability and share gains.
Management also pointed to a major North America fleet win that covers air, lube and fuel products. Lewis said that the award should strengthen dealer relationships and create pull-through demand, extending the benefit beyond the initial contract.
Life Sciences added another bright spot. Sales increased 13% to $83.5 million, driven by Food and Beverage, and Disk Drive, while Lewis said that the company continues to see strong customer reception for newer technology-led offerings.
DCI Details Industrial Margin DragBrad Pogalz, chief financial officer, said that the central issue since last quarter had been whether Donaldson could restore its operating margin momentum. He said that the company delivered a 260-basis-point sequential improvement, but also made clear that the Industrial segment remains the pressure point.
The adjusted gross margin slipped 10 basis points to 34.4%, as pricing, volume and mix were offset by roughly 100 basis points of temporary headwinds tied to production shifts in Power Generation and plant transfer activity under the footprint optimization program. The adjusted operating margin still improved 30 basis points to 16.6% on expense leverage.
Industrial Solutions sales fell 1% to $281.7 million and the segment’s pretax margin dropped to 13.4% from 18.1% a year ago. Pogalz said that the company views the fiscal third quarter as the low point and expects recovery by the middle of fiscal 2027, with footprint actions eventually contributing about $10 million in annualized benefits once productivity reaches run rate.
Donaldson Narrows 2026 OutlookPogalz said that full-year organic sales are expected to grow 3-5% compared with the prior mentioned 1-5%, helped by stronger Mobile Solutions and Life Sciences trends. Life Sciences guidance moved up to 9-11% growth, while Mobile is now seen rising 3.5-5.5%.
The margin outlook was tightened in the other direction. The organic operating margin is projected at 15.8-16.2% versus 16-16.4% previously, reflecting the lingering gross margin pressure in Industrial. Management still said that fiscal 2026 should be a record year for sales, adjusted operating margin and adjusted EPS.
Excluding Facet, adjusted EPS is forecast at $3.94-$4.01. The company also expects a free cash flow conversion of 85-95% and capital expenditure of $60-$75 million.
DCI Uses Q&A to Clarify Facet & A&DAnalysts pressed management on whether Industrial can return to its prior profitability. Lewis told Oppenheimer that, excluding mix changes, the recovery path would bring the business back near earlier high-water marks, with the footprint savings layered on afterward.
Questions on Facet focused on integration, synergy potential and dilution. Lewis said that the strategic case remains strong because the business adds higher-margin, higher-growth exposure, while procurement synergies are expected to be $4-$5 million. Pogalz added that the fiscal fourth quarter should be the peak for interest expense impact, making the $0.03 EPS dilution an elevated starting point rather than a simple annual run rate.
On Aerospace and Defense, management acknowledged continued supply-chain constraints and lumpy project timing, but said that backlog exited the quarter near record levels. Lewis told Morgan Stanley and William Blair that much of the delayed volume should become a tailwind into fiscal 2027 as shipments catch up.
Donaldson Leaves Clear Operating MessageThe closing message from management was consistent. Lewis described Donaldson as operating from a position of strength, with a diversified portfolio, deeper technical capabilities and room to keep investing in end markets where it has a clear path to win.
Pogalz reinforced that posture with capital allocation comments that prioritized reinvestment, disciplined M&A and dividends, while confirming that share repurchases have been paused to reduce Facet-related debt. The call left investors with a company focused less on demand shortfalls and more on converting backlog, restoring Industrial efficiency and integrating a new asset.
DCI’s Zacks Signals Remain CautiousDonaldson currently carries a Zacks Rank #3 (Hold), along with a Value Score of C, a Growth Score of D, a Momentum Score of D and a VGM Score of D. Under Zacks methodology, the strongest setup tends to be Zacks Rank #1 (Strong Buy) or #2 (Buy) stocks with Style Scores of A or B, while a Rank #3 can be held but does not carry the same expected near-term performance profile. You can see the complete list of today’s Zacks #1 Rank stocks here.
The current score mix points to a more restrained signal than the quarter’s headline beat alone might imply. The Zacks Rank can also change as earnings estimate revisions move after the release, so the stock’s standing will depend on how analysts update forecasts following management’s latest guidance and call commentary.
