# Donaldson's Replacement Filter Business Gains Second Engine

> Donaldson's replacement filter business shows strong growth with new revenue streams and margin recovery.
- Title: Donaldson's Replacement Filter Business Gains Second Engine
- Summary: Donaldson's replacement filter business shows strong growth with new revenue streams and margin recovery. Donaldson Company's replacement filter business has…
- Keywords: donaldson, replacement filter business, recurring demand, acquisitions, margin recovery, fiscal 2027, money, business, Donaldson's, Replacement, Filter, Gains
- Source: Seekingalpha — https://seekingalpha.com/article/4953369-donaldson-the-replacement-filter-business-has-a-second-engine
- Author: LL Insights
- Published: 2026-10-11T20:39:46+00:00
- Read time: 1 min
- Topics: donaldson, replacement filter business, recurring demand, acquisitions, margin recovery, fiscal 2027, money, business
## Replacement Filter Business
Donaldson Company's replacement filter business has recurring demand and a diversified portfolio supporting margin recovery and growth.
## Acquisitions Boost Revenue
Recent acquisitions like Facet enhance consumables exposure and recurring revenue streams for Donaldson.
## Fiscal 2027 Projections
Fiscal 2027 projections include $4.18B revenue, 16.9% GAAP operating margin, and ~$4.30 EPS with upside to $4.72 EPS in 2028.
## Valuation and Risks
Valuation at 20, 22x forward earnings is justified by consistent demand but risks include weaker replacement demand, acquisition integration, and margin pressures.
## Key takeaway

Donaldson Company's replacement filter business has a second engine through recurring demand and acquisitions, driving margin recovery and growth.