8-K
Parker-Hannifin Corp (PH)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): May 1, 2025
PARKER-HANNIFIN CORPORATION
(Exact Name of Registrant as Specified in Charter)
| Ohio | 1-4982 | 34-0451060 |
|---|---|---|
| (State or other jurisdiction of<br><br>Incorporation or Organization) | (Commission File Number) | (I.R.S. Employer<br><br>Identification No.) |
| 6035 Parkland Boulevard, Cleveland, Ohio | 44124-4141 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant's telephone number, including area code: (216) 896-3000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on which Registered |
|---|---|---|
| Common Shares, $.50 par value | PH | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company ☐ |
|---|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On May 1, 2025, Parker-Hannifin Corporation issued a press release and presented a Webcast announcing results of operations for the quarter ended March 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this report. A copy of the Webcast presentation is furnished as Exhibit 99.2 to this report.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:
99.1 Press release issued by Parker-Hannifin Corporation, datedMay 1, 2025.
99.2 Webcast presentation by Parker-Hannifin Corporation, datedMay 1, 2025.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| PARKER-HANNIFIN CORPORATION | ||
|---|---|---|
| By: /s/ Todd M. Leombruno | ||
| Todd M. Leombruno | ||
| Executive Vice President and Chief Financial Officer | ||
| Date: | May 1, 2025 |
Document
Exhibit 99.1
Parker Reports Fiscal 2025 Third Quarter Results
Record margins, EPS and YTD cash flow from operations
CLEVELAND, May 1, 2025 -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the quarter ended March 31, 2025, that included the following highlights (compared with the prior year quarter):
Fiscal 2025 Third Quarter Highlights:
•Sales were $5.0 billion; organic sales growth was 1%
•Net income was $961 million, an increase of 32%, or $904 million adjusted, an increase of 6%
•EPS were $7.37, an increase of 33%, or $6.94 adjusted, an increase of 7%
•Segment operating margin was 23.2%, an increase of 170 bps, or 26.3% adjusted, an increase of 160 bps
•YTD cash flow from operations increased 8% to $2.3 billion, or 15.8% of sales
•Repurchased $650 million of shares in the quarter
“Our third quarter performance demonstrates the strength of our business and our global team’s ability to continue to deliver record results,” said Jenny Parmentier, Chairman and Chief Executive Officer. “All reported businesses showed substantial margin expansion and helped us surpass 26% adjusted segment operating margin for the first time. We also produced record earnings per share, generated record cash flow from operations, and repurchased $650 million of shares. We recently announced a 10% increase in our quarterly cash dividend and are committed to our strategy of actively deploying capital to drive shareholder value, including acquisitions and increased share repurchase activity, depending on market conditions."
"The resiliency of our portfolio coupled with the power of our business system, The Win Strategy™, has enabled us to consistently deliver strong results through business cycles. With our decentralized structure and the agility of our global teams, we are confident in our ability to manage through macroeconomic uncertainty, including tariffs. We are fully committed to achieving our fiscal year 2029 financial targets.”
This news release contains non-GAAP financial measures. Reconciliations of adjusted numbers and certain non-GAAP financial measures are included in the financial tables of this press release.
Outlook
Guidance for the fiscal year ending June 30, 2025 has been updated. The company expects:
•Sales growth in fiscal 2025 of approximately (1%), with organic sales growth of approximately 1%; divestitures of (1.5%) and unfavorable currency of (0.5%)
•Total segment operating margin of approximately 22.7%, or approximately 25.9% on an adjusted basis
•EPS of $25.92 to $26.12, or $26.60 to $26.80 on an adjusted basis, and includes the effect of announced tariffs fully offset by mitigation actions
Segment Results
Diversified Industrial Segment
| North America Businesses | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| $ in mm | FY25 Q3 | FY24 Q3 | Change | Organic Growth | ||||||
| Sales | $ | 2,031 | $ | 2,231 | -9.0 | % | -3.5 | % | ||
| Segment Operating Income | $ | 467 | $ | 490 | -4.8 | % | ||||
| Segment Operating Margin | 23.0 | % | 22.0 | % | 100 | bps | ||||
| Adjusted Segment Operating Income | $ | 513 | $ | 538 | -4.8 | % | ||||
| Adjusted Segment Operating Margin | 25.2 | % | 24.1 | % | 110 | bps |
•Achieved record adjusted segment operating margin
•Softness in transportation, off-highway and energy markets
•Orders positive for second consecutive quarter
| International Businesses | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| $ in mm | FY25 Q3 | FY24 Q3 | Change | Organic Growth | ||||||
| Sales | $ | 1,358 | $ | 1,434 | -5.3 | % | -2.8 | % | ||
| Segment Operating Income | $ | 312 | $ | 310 | 0.7 | % | ||||
| Segment Operating Margin | 23.0 | % | 21.6 | % | 140 | bps | ||||
| Adjusted Segment Operating Income | $ | 340 | $ | 337 | 1.2 | % | ||||
| Adjusted Segment Operating Margin | 25.1 | % | 23.5 | % | 160 | bps |
•Achieved record adjusted segment operating margin
•Organic growth: 2% APAC; (7%) EMEA; 8% LA
•Orders accelerate on long-cycle strength
Aerospace Systems Segment
| $ in mm | FY25 Q3 | FY24 Q3 | Change | Organic Growth | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | $ | 1,572 | $ | 1,409 | 11.6 | % | 11.7 | % | ||
| Segment Operating Income | $ | 373 | $ | 289 | 28.9 | % | ||||
| Segment Operating Margin | 23.7 | % | 20.5 | % | 320 | bps | ||||
| Adjusted Segment Operating Income | $ | 451 | $ | 376 | 19.8 | % | ||||
| Adjusted Segment Operating Margin | 28.7 | % | 26.7 | % | 200 | bps |
•Achieved record sales on continued aftermarket strength
•Delivered record adjusted segment operating margin
•Aerospace backlog increased to a record $7.3 billion
Order Rates
| FY25 Q3 | |
|---|---|
| Parker | +9% |
| Diversified Industrial Segment - North America Businesses | +3% |
| Diversified Industrial Segment - International Businesses | +11% |
| Aerospace Systems Segment | +14% |
•Parker order rates increased to 9% reflecting our transformed portfolio and long-cycle strength
•Aerospace orders increased to 14% driven by strength in both commercial and defense
•Orders remained positive across all reported businesses
About Parker Hannifin
Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Learn more at www.parker.com or @parkerhannifin.
| Contacts: | |
|---|---|
| Media: | Financial Analysts: |
| Aidan Gormley | Jeff Miller |
| 216-896-3258 | 216-896-2708 |
| aidan.gormley@parker.com | jeffrey.miller@parker.com |
Notice of Webcast
Parker Hannifin's conference call and slide presentation to discuss its fiscal 2025 third quarter results are available to all interested parties via live webcast today at 11:00 a.m. ET, at investors.parker.com. A replay of the webcast will be available on the site approximately one hour after the completion of the call and will remain available for one year. To register for e-mail notification of future events please visit investors.parker.com.
Note on Orders The company reported orders for the quarter ending March 31, 2025, compared with the same quarter a year ago. All comparisons are at constant currency exchange rates, with the prior year quarter restated to the current-year rates, and exclude divestitures. Diversified Industrial comparisons are on 3-month average computations and Aerospace Systems comparisons are on rolling 12-month average computations.
Note on Non-GAAP Financial Measures
This press release contains references to non-GAAP financial information including (a) adjusted net income; (b) adjusted earnings per share; (c) adjusted segment operating margin for Parker and by segment; (d) adjusted segment operating income for Parker and by segment and (e) organic sales growth. The adjusted net income, adjusted earnings per share, adjusted segment operating margin, adjusted segment operating income and organic sales measures are presented to allow investors and the company to meaningfully evaluate changes in net income, earnings per share and segment operating margins on a comparable basis from period to period. Although adjusted net income, adjusted earnings per share, adjusted segment operating margin, adjusted segment operating income, and organic sales growth are not measures of performance calculated in accordance with GAAP, we believe that they are useful to an investor in evaluating the results of this quarter versus the prior period. Comparable descriptions of record adjusted results in this release refer only to the period from the first quarter of FY2011 to the periods presented in this release. This period coincides with recast historical financial results provided in association with our FY2014 change in segment reporting. A reconciliation of non-GAAP measures is included in the financial tables of this press release.
Forward-Looking Statements
Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. Often but not always, these statements may be identified from the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “should,” “could,” “expects,” “targets,” “is likely,” “will,” or the negative of these terms and similar expressions, and may also include statements regarding future performance, orders, earnings projections, events or developments. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance may differ materially from expectations, including those based on past performance.
Among other factors that may affect future performance are: changes in business relationships with and orders by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms, changes in contract costs and revenue estimates for new development programs; changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions; ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination and ability to successfully undertake business realignment activities and the expected costs, including cost savings, thereof; ability to implement successfully business and operating initiatives, including the timing, price and execution of share repurchases and other capital initiatives; availability, cost increases of or other limitations on our access to raw materials, component products and/or commodities if associated costs cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; legal and regulatory developments and other government actions, including related to environmental protection, and associated compliance costs; supply chain and labor disruptions, including as a result of tariffs and labor shortages; threats associated with international conflicts and cybersecurity risks and risks associated with protecting our intellectual property; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; effects on market conditions, including sales and pricing, resulting from global reactions to U.S. trade policies; manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and economic conditions such as inflation, deflation, interest rates and credit availability; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; changes in the tax laws in the United States and foreign jurisdictions and judicial or regulatory interpretations thereof; and large scale disasters, such as floods, earthquakes, hurricanes, industrial accidents and pandemics. Readers should also consider forward-looking statements in light of risk factors discussed in Parker’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024 and other periodic filings made with the SEC.
Exhibit 99.1
PARKER HANNIFIN CORPORATION - MARCH 31, 2025
| CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| (Unaudited) | March 31, | March 31, | ||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Net sales | $ | 4,960,349 | $ | 5,074,356 | $ | 14,606,926 | $ | 14,742,791 | ||||||||||
| Cost of sales | 3,129,951 | 3,279,650 | 9,249,899 | 9,478,961 | ||||||||||||||
| Selling, general and administrative expenses | 784,355 | 816,337 | 2,415,565 | 2,496,830 | ||||||||||||||
| Interest expense | 95,942 | 123,732 | 309,835 | 387,229 | ||||||||||||||
| Other income, net | (44,713) | (65,406) | (404,230) | (228,872) | ||||||||||||||
| Income before income taxes | 994,814 | 920,043 | 3,035,857 | 2,608,643 | ||||||||||||||
| Income taxes | 33,628 | 193,309 | 427,494 | 548,780 | ||||||||||||||
| Net income | 961,186 | 726,734 | 2,608,363 | 2,059,863 | ||||||||||||||
| Less: Noncontrolling interests | 320 | 160 | 535 | 611 | ||||||||||||||
| Net income attributable to common shareholders | $ | 960,866 | $ | 726,574 | $ | 2,607,828 | $ | 2,059,252 | ||||||||||
| Earnings per share attributable to common shareholders: | ||||||||||||||||||
| Basic earnings per share | $ | 7.48 | $ | 5.65 | $ | 20.28 | $ | 16.03 | ||||||||||
| Diluted earnings per share | $ | 7.37 | $ | 5.56 | $ | 19.97 | $ | 15.82 | ||||||||||
| Average shares outstanding during period - Basic | 128,442,623 | 128,502,829 | 128,619,515 | 128,467,209 | ||||||||||||||
| Average shares outstanding during period - Diluted | 130,320,802 | 130,593,026 | 130,576,225 | 130,169,331 | ||||||||||||||
| CASH DIVIDENDS PER COMMON SHARE | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| (Unaudited) | March 31, | March 31, | ||||||||||||||||
| (Amounts in dollars) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Cash dividends per common share | $ | 1.63 | $ | 1.48 | $ | 4.89 | $ | 4.44 | RECONCILIATION OF ORGANIC GROWTH | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||
| (Unaudited) | Three Months Ended | |||||||||||||||||
| As Reported | Adjusted | |||||||||||||||||
| March 31, 2025 | Currency | Divestitures | March 31, 2025 | |||||||||||||||
| Diversified Industrial Segment | (7.6) | % | (1.5) | % | (2.9) | % | (3.2) | % | ||||||||||
| Aerospace Systems Segment | 11.6 | % | (0.1) | % | — | % | 11.7 | % | ||||||||||
| Total | (2.2) | % | (1.0) | % | (2.1) | % | 0.9 | % | ||||||||||
| (Unaudited) | Nine Months Ended | |||||||||||||||||
| As Reported | Adjusted | |||||||||||||||||
| March 31, 2025 | Currency | Divestitures | March 31, 2025 | |||||||||||||||
| Diversified Industrial Segment | (6.5) | % | (1.0) | % | (1.7) | % | (3.8) | % | ||||||||||
| Aerospace Systems Segment | 14.3 | % | 0.1 | % | — | % | 14.2 | % | ||||||||||
| Total | (0.9) | % | (0.7) | % | (1.2) | % | 1.0 | % |
Exhibit 99.1
PARKER HANNIFIN CORPORATION - MARCH 31, 2025
| RECONCILIATION OF NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | ||||||||
|---|---|---|---|---|---|---|---|---|
| Three Months Ended | Nine Months Ended | |||||||
| (Unaudited) | March 31, | March 31, | ||||||
| (Dollars in thousands) | 2025 | 2024 | 2025 | 2024 | ||||
| Net income attributable to common shareholders | $ | 960,866 | $ | 726,574 | $ | 2,607,828 | $ | 2,059,252 |
| Adjustments: | ||||||||
| Acquired intangible asset amortization expense | 135,964 | 141,216 | 414,211 | 438,763 | ||||
| Business realignment charges | 10,379 | 8,468 | 40,740 | 35,914 | ||||
| Integration costs to achieve | 5,447 | 13,256 | 18,751 | 29,676 | ||||
| Gain on sale of building | — | — | (10,461) | — | ||||
| Gain on divestitures | — | — | (249,748) | (25,651) | ||||
| Saegertown incident | 7,725 | — | 7,725 | — | ||||
| Tax effect of adjustments1 | (36,689) | (38,779) | (82,337) | (108,403) | ||||
| Discrete tax benefit2 | (179,849) | — | (179,849) | — | ||||
| Adjusted net income attributable to common shareholders | $ | 903,843 | $ | 850,735 | $ | 2,566,860 | $ | 2,429,551 |
| RECONCILIATION OF EARNINGS PER DILUTED SHARE TO ADJUSTED EARNINGS PER DILUTED SHARE | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Three Months Ended | Nine Months Ended | |||||||
| (Unaudited) | March 31, | March 31, | ||||||
| (Amounts in dollars) | 2025 | 2024 | 2025 | 2024 | ||||
| Earnings per diluted share | $ | 7.37 | $ | 5.56 | $ | 19.97 | $ | 15.82 |
| Adjustments: | ||||||||
| Acquired intangible asset amortization expense | 1.04 | 1.08 | 3.17 | 3.36 | ||||
| Business realignment charges | 0.08 | 0.06 | 0.31 | 0.27 | ||||
| Integration costs to achieve | 0.04 | 0.10 | 0.14 | 0.23 | ||||
| Gain on sale of building | — | — | (0.08) | — | ||||
| Gain on divestitures | — | — | (1.91) | (0.20) | ||||
| Saegertown incident | 0.06 | — | 0.06 | — | ||||
| Tax effect of adjustments1 | (0.28) | (0.29) | (0.61) | (0.82) | ||||
| Discrete tax benefit2 | (1.37) | — | (1.37) | — | ||||
| Adjusted earnings per diluted share | $ | 6.94 | $ | 6.51 | $ | 19.68 | $ | 18.66 |
| 1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. | ||||||||
| 2Release of a tax valuation allowance. |
Exhibit 99.1
PARKER HANNIFIN CORPORATION - MARCH 31, 2025
| BUSINESS SEGMENT INFORMATION | ||||||||
|---|---|---|---|---|---|---|---|---|
| Three Months Ended | Nine Months Ended | |||||||
| (Unaudited) | March 31, | March 31, | ||||||
| (Dollars in thousands) | 2025 | 2024 | 2025 | 2024 | ||||
| Net sales | ||||||||
| Diversified Industrial | $ | 3,388,759 | $ | 3,665,643 | $ | 10,097,723 | $ | 10,798,644 |
| Aerospace Systems | 1,571,590 | 1,408,713 | 4,509,203 | 3,944,147 | ||||
| Total net sales | $ | 4,960,349 | $ | 5,074,356 | $ | 14,606,926 | $ | 14,742,791 |
| Segment operating income | ||||||||
| Diversified Industrial | $ | 779,103 | $ | 800,211 | $ | 2,273,211 | $ | 2,359,299 |
| Aerospace Systems | 372,908 | 289,339 | 1,034,078 | 778,711 | ||||
| Total segment operating income | 1,152,011 | 1,089,550 | 3,307,289 | 3,138,010 | ||||
| Corporate general and administrative expenses | 43,698 | 56,782 | 148,756 | 162,340 | ||||
| Income before interest expense and other expense (income), net | 1,108,313 | 1,032,768 | 3,158,533 | 2,975,670 | ||||
| Interest expense | 95,942 | 123,732 | 309,835 | 387,229 | ||||
| Other expense (income), net | 17,557 | (11,007) | (187,159) | (20,202) | ||||
| Income before income taxes | $ | 994,814 | $ | 920,043 | $ | 3,035,857 | $ | 2,608,643 |
Exhibit 99.1
PARKER HANNIFIN CORPORATION - MARCH 31, 2025
| RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended | Nine Months Ended | |||||||||||
| (Unaudited) | March 31, | March 31, | ||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Diversified Industrial Segment sales | $ | 3,388,759 | $ | 3,665,643 | $ | 10,097,723 | $ | 10,798,644 | ||||
| Diversified Industrial Segment operating income | $ | 779,103 | $ | 800,211 | $ | 2,273,211 | $ | 2,359,299 | ||||
| Adjustments: | ||||||||||||
| Acquired intangible asset amortization | 61,600 | 66,409 | 189,434 | 201,669 | ||||||||
| Business realignment charges | 10,249 | 6,953 | 38,492 | 32,877 | ||||||||
| Integration costs to achieve | 2,072 | 1,292 | 3,477 | 3,302 | ||||||||
| Adjusted Diversified Industrial Segment operating income | $ | 853,024 | $ | 874,865 | $ | 2,504,614 | $ | 2,597,147 | ||||
| Diversified Industrial Segment operating margin | 23.0 | % | 21.8 | % | 22.5 | % | 21.8 | % | ||||
| Adjusted Diversified Industrial Segment operating margin | 25.2 | % | 23.9 | % | 24.8 | % | 24.1 | % | ||||
| Three Months Ended | Nine Months Ended | |||||||||||
| (Unaudited) | March 31, | March 31, | ||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Aerospace Systems Segment sales | $ | 1,571,590 | $ | 1,408,713 | $ | 4,509,203 | $ | 3,944,147 | ||||
| Aerospace Systems Segment operating income | $ | 372,908 | $ | 289,339 | $ | 1,034,078 | $ | 778,711 | ||||
| Adjustments: | ||||||||||||
| Acquired intangible asset amortization | 74,364 | 74,807 | 224,777 | 237,094 | ||||||||
| Business realignment charges | 35 | (12) | 429 | 318 | ||||||||
| Integration costs to achieve | 3,375 | 11,964 | 15,274 | 26,374 | ||||||||
| Adjusted Aerospace Systems Segment operating income | $ | 450,682 | $ | 376,098 | $ | 1,274,558 | $ | 1,042,497 | ||||
| Aerospace Systems Segment operating margin | 23.7 | % | 20.5 | % | 22.9 | % | 19.7 | % | ||||
| Adjusted Aerospace Systems Segment operating margin | 28.7 | % | 26.7 | % | 28.3 | % | 26.4 | % | ||||
| Three Months Ended | Nine Months Ended | |||||||||||
| (Unaudited) | March 31, | March 31, | ||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Total net sales | $ | 4,960,349 | $ | 5,074,356 | $ | 14,606,926 | $ | 14,742,791 | ||||
| Total segment operating income | $ | 1,152,011 | $ | 1,089,550 | $ | 3,307,289 | $ | 3,138,010 | ||||
| Adjustments: | ||||||||||||
| Acquired intangible asset amortization | 135,964 | 141,216 | 414,211 | 438,763 | ||||||||
| Business realignment charges | 10,284 | 6,941 | 38,921 | 33,195 | ||||||||
| Integration costs to achieve | 5,447 | 13,256 | 18,751 | 29,676 | ||||||||
| Adjusted total segment operating income | $ | 1,303,706 | $ | 1,250,963 | $ | 3,779,172 | $ | 3,639,644 | ||||
| Total segment operating margin | 23.2 | % | 21.5 | % | 22.6 | % | 21.3 | % | ||||
| Adjusted total segment operating margin | 26.3 | % | 24.7 | % | 25.9 | % | 24.7 | % |
Exhibit 99.1
PARKER HANNIFIN CORPORATION - MARCH 31, 2025
| CONSOLIDATED BALANCE SHEET | ||||
|---|---|---|---|---|
| (Unaudited) | March 31, | June 30, | ||
| (Dollars in thousands) | 2025 | 2024 | ||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 408,735 | $ | 422,027 |
| Trade accounts receivable, net | 2,852,833 | 2,865,546 | ||
| Non-trade and notes receivable | 281,789 | 331,429 | ||
| Inventories | 2,822,547 | 2,786,800 | ||
| Prepaid expenses | 253,436 | 252,618 | ||
| Other current assets | 157,800 | 140,204 | ||
| Total current assets | 6,777,140 | 6,798,624 | ||
| Property, plant and equipment, net | 2,821,566 | 2,875,668 | ||
| Deferred income taxes | 271,431 | 92,704 | ||
| Investments and other assets | 1,215,201 | 1,207,232 | ||
| Intangible assets, net | 7,370,524 | 7,816,181 | ||
| Goodwill | 10,461,946 | 10,507,433 | ||
| Total assets | $ | 28,917,808 | $ | 29,297,842 |
| Liabilities and equity | ||||
| Current liabilities: | ||||
| Notes payable and long-term debt payable within one year | $ | 1,951,543 | $ | 3,403,065 |
| Accounts payable, trade | 1,980,967 | 1,991,639 | ||
| Accrued payrolls and other compensation | 473,725 | 581,251 | ||
| Accrued domestic and foreign taxes | 356,506 | 354,659 | ||
| Other accrued liabilities | 851,725 | 982,695 | ||
| Total current liabilities | 5,614,466 | 7,313,309 | ||
| Long-term debt | 7,421,370 | 7,157,034 | ||
| Pensions and other postretirement benefits | 389,891 | 437,490 | ||
| Deferred income taxes | 1,399,612 | 1,583,923 | ||
| Other liabilities | 692,644 | 725,193 | ||
| Shareholders' equity | 13,390,974 | 12,071,972 | ||
| Noncontrolling interests | 8,851 | 8,921 | ||
| Total liabilities and equity | $ | 28,917,808 | $ | 29,297,842 |
Exhibit 99.1
PARKER HANNIFIN CORPORATION - MARCH 31, 2025
| CONSOLIDATED STATEMENT OF CASH FLOWS | ||||
|---|---|---|---|---|
| Nine Months Ended | ||||
| (Unaudited) | March 31, | |||
| (Dollars in thousands) | 2025 | 2024 | ||
| Cash flows from operating activities: | ||||
| Net income | $ | 2,608,363 | $ | 2,059,863 |
| Depreciation and amortization | 677,665 | 696,463 | ||
| Stock incentive plan compensation | 129,766 | 128,682 | ||
| Gain on sale of businesses | (253,043) | (23,667) | ||
| (Gain) loss on property, plant and equipment and intangible assets | (8,531) | 5,847 | ||
| Net change in receivables, inventories and trade payables | (101,351) | (244,268) | ||
| Net change in other assets and liabilities | (514,937) | (427,509) | ||
| Other, net | (229,171) | (48,334) | ||
| Net cash provided by operating activities | 2,308,761 | 2,147,077 | ||
| Cash flows from investing activities: | ||||
| Capital expenditures | (304,153) | (283,328) | ||
| Proceeds from property, plant and equipment | 31,871 | 8,905 | ||
| Proceeds from sale of businesses | 622,697 | 75,561 | ||
| Other, net | (5,745) | 4,561 | ||
| Net cash provided by (used in) investing activities | 344,670 | (194,301) | ||
| Cash flows from financing activities: | ||||
| Net payments for common stock activity | (856,925) | (237,689) | ||
| Acquisition of noncontrolling interests | — | (2,883) | ||
| Net payments for debt | (1,193,952) | (1,193,373) | ||
| Dividends paid | (630,168) | (571,583) | ||
| Net cash used in financing activities | (2,681,045) | (2,005,528) | ||
| Effect of exchange rate changes on cash | 14,322 | (16,946) | ||
| Net decrease in cash and cash equivalents | (13,292) | (69,698) | ||
| Cash and cash equivalents at beginning of year | 422,027 | 475,182 | ||
| Cash and cash equivalents at end of period | $ | 408,735 | $ | 405,484 |
Exhibit 99.1
PARKER HANNIFIN CORPORATION - MARCH 31, 2025
| RECONCILIATION OF FORECASTED ORGANIC GROWTH | ||||
|---|---|---|---|---|
| (Unaudited) | ||||
| (Amounts in percentages) | Fiscal Year 2025 | |||
| Forecasted net sales | ~ (1%) | |||
| Adjustments: | ||||
| Currency | 0.5% | |||
| Divestitures | 1.5% | |||
| Adjusted forecasted net sales | ~ 1% | |||
| RECONCILIATION OF FORECASTED SEGMENT OPERATING MARGIN TO ADJUSTED FORECASTED SEGMENT OPERATING MARGIN | ||||
| (Unaudited) | ||||
| (Amounts in percentages) | Fiscal Year 2025 | |||
| Forecasted segment operating margin | ~ 22.7% | |||
| Adjustments: | ||||
| Business realignment charges | 0.3% | |||
| Costs to achieve | 0.1% | |||
| Acquisition-related intangible asset amortization expense | 2.8% | |||
| Adjusted forecasted segment operating margin | ~ 25.9% | PARKER HANNIFIN CORPORATION - MARCH 31, 2025 | Exhibit 99.1 | |
| --- | --- | |||
| RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE | ||||
| (Unaudited) | ||||
| (Amounts in dollars) | Fiscal Year 2025 | |||
| Forecasted earnings per diluted share | $25.92 to $26.12 | |||
| Adjustments: | ||||
| Business realignment charges | 0.47 | |||
| Costs to achieve | 0.17 | |||
| Acquisition-related intangible asset amortization expense | 4.22 | |||
| Net gain on divestitures | (1.91) | |||
| Gain on sale of building | (0.08) | |||
| Saegertown incident | 0.06 | |||
| Tax effect of adjustments1 | (0.88) | |||
| Discrete tax benefit2 | (1.37) | |||
| Adjusted forecasted earnings per diluted share | $26.60 to $26.80 | |||
| 1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. | ||||
| 2Release of a tax valuation allowance. | ||||
| Note: Totals may not foot due to rounding |
Exhibit 99.1
PARKER HANNIFIN CORPORATION - MARCH 31, 2025
SUPPLEMENTAL INFORMATION
| BUSINESS SEGMENT INFORMATION | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| (Unaudited) | March 31, | March 31, | ||||||||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Net sales | ||||||||||||||||||
| Diversified Industrial: | ||||||||||||||||||
| North America businesses | $ | 2,030,970 | $ | 2,231,478 | $ | 6,059,302 | $ | 6,571,587 | ||||||||||
| International businesses | 1,357,789 | 1,434,165 | 4,038,421 | 4,227,057 | ||||||||||||||
| Segment operating income | ||||||||||||||||||
| Diversified Industrial: | ||||||||||||||||||
| North America businesses | $ | 467,064 | $ | 490,452 | $ | 1,378,194 | $ | 1,458,355 | ||||||||||
| International businesses | 312,039 | 309,759 | 895,017 | 900,944 | RECONCILIATION OF ORGANIC GROWTH | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||
| (Unaudited) | Three Months Ended | |||||||||||||||||
| As Reported | Adjusted | |||||||||||||||||
| March 31, 2025 | Currency | Divestitures | March 31, 2025 | |||||||||||||||
| Diversified Industrial Segment: | ||||||||||||||||||
| North America businesses | (9.0) | % | (0.8) | % | (4.7) | % | (3.5) | % | ||||||||||
| International businesses: | ||||||||||||||||||
| Europe | (8.6) | % | (1.7) | % | — | % | (6.9) | % | ||||||||||
| Asia Pacific | (0.8) | % | (3.0) | % | — | % | 2.2 | % | ||||||||||
| Latin America | (0.2) | % | (8.1) | % | — | % | 7.9 | % | ||||||||||
| International businesses | (5.3) | % | (2.5) | % | — | % | (2.8) | % | ||||||||||
| (Unaudited) | Nine Months Ended | |||||||||||||||||
| As Reported | Adjusted | |||||||||||||||||
| March 31, 2025 | Currency | Divestitures | March 31, 2025 | |||||||||||||||
| Diversified Industrial Segment: | ||||||||||||||||||
| North America businesses | (7.8) | % | (0.6) | % | (2.7) | % | (4.5) | % | ||||||||||
| International businesses: | ||||||||||||||||||
| Europe | (8.1) | % | (0.4) | % | — | % | (7.7) | % | ||||||||||
| Asia Pacific | 0.8 | % | (1.9) | % | — | % | 2.7 | % | ||||||||||
| Latin America | (3.3) | % | (13.9) | % | — | % | 10.6 | % | ||||||||||
| International businesses | (4.5) | % | (1.8) | % | — | % | (2.7) | % |
Exhibit 99.1
PARKER HANNIFIN CORPORATION - MARCH 31, 2025
SUPPLEMENTAL INFORMATION
| RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended | Nine Months Ended | |||||||||||
| (Unaudited) | March 31, | March 31, | ||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Diversified Industrial Segment: | ||||||||||||
| North America businesses sales | $ | 2,030,970 | $ | 2,231,478 | $ | 6,059,302 | $ | 6,571,587 | ||||
| North America businesses operating income | $ | 467,064 | $ | 490,452 | $ | 1,378,194 | $ | 1,458,355 | ||||
| Adjustments: | ||||||||||||
| Acquired intangible asset amortization | 40,209 | 43,945 | 124,169 | 133,327 | ||||||||
| Business realignment charges | 4,218 | 3,058 | 13,106 | 8,892 | ||||||||
| Integration costs to achieve | 1,038 | 841 | 2,088 | 2,348 | ||||||||
| Adjusted North America businesses operating income | $ | 512,529 | $ | 538,296 | $ | 1,517,557 | $ | 1,602,922 | ||||
| North America businesses operating margin | 23.0 | % | 22.0 | % | 22.7 | % | 22.2 | % | ||||
| Adjusted North America businesses operating margin | 25.2 | % | 24.1 | % | 25.0 | % | 24.4 | % | ||||
| Three Months Ended | Nine Months Ended | |||||||||||
| (Unaudited) | March 31, | March 31, | ||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Diversified Industrial Segment: | ||||||||||||
| International businesses sales | $ | 1,357,789 | $ | 1,434,165 | $ | 4,038,421 | $ | 4,227,057 | ||||
| International businesses operating income | $ | 312,039 | $ | 309,759 | $ | 895,017 | $ | 900,944 | ||||
| Adjustments: | ||||||||||||
| Acquired intangible asset amortization | 21,391 | 22,464 | 65,265 | 68,342 | ||||||||
| Business realignment charges | 6,031 | 3,895 | 25,386 | 23,985 | ||||||||
| Integration costs to achieve | 1,034 | 451 | 1,389 | 954 | ||||||||
| Adjusted International businesses operating income | $ | 340,495 | $ | 336,569 | $ | 987,057 | $ | 994,225 | ||||
| International businesses operating margin | 23.0 | % | 21.6 | % | 22.2 | % | 21.3 | % | ||||
| Adjusted International businesses operating margin | 25.1 | % | 23.5 | % | 24.4 | % | 23.5 | % |
earningscallpresentation
May 1, 2025 PARKER HANNIFIN CORPORATION Fiscal 2025 Third Quarter Earnings Presentation Exhibit 99.2
2 Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. Often but not always, these statements may be identified from the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “should,” “could,” “expects,” “targets,” “is likely,” “will,” or the negative of these terms and similar expressions, and may also include statements regarding future performance, orders, earnings projections, events or developments. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance may differ materially from expectations, including those based on past performance. Among other factors that may affect future performance are: changes in business relationships with and orders by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms, changes in contract costs and revenue estimates for new development programs; changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions; ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination and ability to successfully undertake business realignment activities and the expected costs, including cost savings, thereof; ability to implement successfully business and operating initiatives, including the timing, price and execution of share repurchases and other capital initiatives; availability, cost increases of or other limitations on our access to raw materials, component products and/or commodities if associated costs cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; legal and regulatory developments and other government actions, including related to environmental protection, and associated compliance costs; supply chain and labor disruptions, including as a result of tariffs and labor shortages; threats associated with international conflicts and cybersecurity risks and risks associated with protecting our intellectual property; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; effects on market conditions, including sales and pricing, resulting from global reactions to U.S. trade policies; manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and economic conditions such as inflation, deflation, interest rates and credit availability; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; changes in the tax laws in the United States and foreign jurisdictions and judicial or regulatory interpretations thereof; and large scale disasters, such as floods, earthquakes, hurricanes, industrial accidents and pandemics. Readers should also consider forward-looking statements in light of risk factors discussed in Parker’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024 and other periodic filings made with the SEC. This presentation contains references to non-GAAP financial information including adjusted net income, organic sales, adjusted earnings per share, adjusted segment operating margin for Parker and by segment, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted free cash flow conversion, and free cash flow margin. As used in this presentation, EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before business realignment, integration costs to achieve, acquisition related expenses, and other one-time items. Free cash flow is defined as cash flow from operations less capital expenditures. Adjusted free cash flow conversion is defined as free cash flow adjusted for one-time items divided by net income. Although adjusted net income, organic sales, adjusted earnings per share, adjusted segment operating margin for Parker and by segment, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted free cash flow conversion, and free cash flow margin are not measures of performance calculated in accordance with GAAP, we believe that they are useful to an investor in evaluating the company performance for the periods presented. Detailed reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures have been included in the appendix to this presentation. Please visit investors.parker.com for more information. Forward-Looking Statements and Non-GAAP Financial Measures
3 Strength of our Business and Team Delivers Record Results FY25 Q3 Highlights $5.0B Sales (2%) Reported +1% Organic1 26.3% Adjusted Segment Operating Margin1 +160 bps 27.0% Adjusted EBITDA Margin1 +150 bps $2.3B YTD CFOA 8% Growth 19% Reduction in Recordable Incident Rate 7% Adjusted EPS Growth1 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. Note: FY25 Q3 As Reported: Segment Operating Margin of 23.2%, EBITDA Margin of 26.5%, Net Income of $961M, EPS growth of 33%. • Top quartile safety performance • Record Adjusted Segment Operating Margin1 of 26.3% • Record Adjusted EBITDA Margin1 of 27.0% • Record YTD Cash Flow from Operations of $2.3B • Order rates increase to +9% on long-cycle strength • Expanding margins & EPS in a dynamic environment
4 Our Business System Drives Performance Over the Cycle
5 Our Portfolio Is More Resilient Than Ever ~60% FY25G Revenue ~$20B Flow & Process Control 23% Motion Systems 17% Aerospace 31% Filtration & Engineered Materials 29% • #1 position in Motion & Control industry • Interconnected technologies & solutions across market verticals • Acquisitions of Clarcor, LORD, Exotic, & Meggitt • Greater exposure to longer cycle & secular growth trends Technology Platforms
6 Simplification Drives Margin Expansion Across Cycles Structure & Footprint Continuous improvement to increase profitability Organization Design Optimizing resources Revenue Complexity Leveraging distribution; Product rationalization Simple by Design Reducing complexity to enable growth & efficiency 80/20
7 Strategic Supply Chain is a Competitive Differentiator Dual Sourcing Increasing resiliency Local for Local Source, make and deliver in region, for the region Demand & Capacity Planning Improving customer experience Tariff Mitigation Robust analytics and processes designed to protect EPS
8 SUMMARY OF FISCAL 2025 3RD QUARTER HIGHLIGHTS
9 FY25 Q3 Financial Summary $ Millions, except per share amounts FY25 Q3 FY25 Q3 FY24 Q3 YoY Change As Reported Adjusted¹ Adjusted¹ Adjusted Sales $4,960 $4,960 $5,074 (2%) Segment Operating Margin 23.2% 26.3% 24.7% +160 bps EBITDA Margin 26.5% 27.0% 25.5% +150 bps Net Income $961 $904 $851 +6% EPS $7.37 $6.94 $6.51 +7% 1. Sales figures As Reported. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. Note: FY24 Q3 As Reported: Segment Operating Margin of 21.5%, EBITDA Margin of 25.1%, Net Income of $727M, EPS of $5.56.
10 FY25 Q3 Adjusted Earnings per Share Bridge 1. FY24 Q3 As Reported EPS of $5.56. FY25 Q3 As Reported EPS of $7.37. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. $0.17 ($0.02) $0.32 $0.08 $0.01 ($0.13) FY24 Q3 Adjusted EPS¹ Segment Operating Income Interest Expense Corp G&A Share Count Income Tax Other Expense FY25 Q3 Adjusted EPS¹ $6.51 $6.94
11 FY25 Q3 Segment Performance Sales As Reported $ Organic %1 Segment Operating Margin As Reported Segment Operating Margin Adjusted1 Order Rates2 Commentary D iv er si fie d In du st ria l North America Businesses $2,031M (3%) Organic 23.0% 25.2% +110 bps YoY +3% • Record adjusted segment operating margin • Softness in transportation, off-highway & energy • Orders positive for second consecutive quarter International Businesses $1,358M (3%) Organic 23.0% 25.1% +160 bps YoY +11% • Record adjusted segment operating margin • Organic growth: +2% APAC, (7%) EMEA, +8% LA • Orders accelerate on long-cycle strength Aerospace Systems $1,572M +12% Organic 23.7% 28.7% +200 bps YoY +14% • Record sales and adjusted segment operating margin • 12% organic growth on aftermarket strength • Record Aerospace segment backlog of $7.3B Parker $4,960M +1% Organic 23.2% 26.3% +160 bps YoY +9% • Win StrategyTM execution delivers record margins • Order rates accelerate to +9% reflecting our transformed portfolio and long-cycle strength 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. 2. All comparisons are at constant currency exchange rates; with the prior year quarter restated to the current-year rates and exclude divestitures. Diversified Industrial orders are rolling 3-month average computations and Aerospace Systems are rolling 12-month average computations.
12 FY25 Q3 YTD Cash Flow Performance $2.3B Cash Flow from Operations +8% growth 15.8% Cash Flow from Operations Margin 13.7% Free Cash Flow Margin1 $2.0B Free Cash Flow1 +8% growth $750M YTD Share Repurchases2 Cash Flow Highlights 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. 2. Includes discretionary and 10b5-1 share repurchases. $1.9B $2.0B CFOA Free Cash Flow1Cash Flow from Operations % to sales $2.1B $2.3B 12.6% 13.7%14.6% 15.8% FY24 FY25FY25FY24 10% Quarterly Dividend Increase • $1.80 declared April 24, 2025 • 69 fiscal years of increasing annual dividend per share paid
13 FY25 GUIDANCE UPDATE
14 FY25 Sales Growth Forecast by Key Market Verticals Key Market Verticals % of Sales Previous FY25 Guidance Commentary Current FY25 Guidance Aerospace & Defense 33% ~11% • High-teens aftermarket growth • Continued progress on commercial OEM growth ~12% In-Plant & Industrial 20% LSD • Prolonged delay in industrial recovery • Active quoting despite project delays (LSD) Transportation 15% Neutral • Lower auto production forecast in NA & EMEA • Work truck demand stronger vs. on-highway (LSD) Off-Highway 15% (Mid-Teens) • OEM destocking & end market weakness persists • Partially offset by stronger aftermarket (Low-Teens) Energy 8% Neutral • Lower oil prices & disciplined capital spending (LSD) HVAC/R 4% MSD • Continued strength from residential HSD Aerospace: ~12% Industrial: (~3%) Parker: ~1% FY25 Organic Forecast: 14
15 FY25 Guidance Update EPS Midpoint: $26.02 As Reported, Maintaining $26.70 Adjusted Guidance Metric FY25 Full Year Full Year Assumptions FY25 Q4 Midpoint Reported Sales Growth ~(1%) • Currency unfavorable ~(0.5%) • Divestitures impact ~(1.5%) ~$5.1B Organic Sales Growth1 ~1% • Raised Aerospace organic growth to 12% • Lowered Industrial organic growth to (3%) ~0.5% Adj. Operating Margin1 ~25.9% • All segments expected to expand margins • 100 bps margin expansion vs. prior year ~26.1% Adj. EPS Midpoint1 $26.70 • Maintaining guidance midpoint • Includes announced tariffs fully offset by mitigation actions • Annualized gross tariffs: ~$375M or estimated 3% of COGS $7.05 Free Cash Flow1 ~$3.1B • CapEx: ~2% of sales • FCF Conversion2 >100% - - 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. 2. FCF conversion >100% adjusting for after tax gain on divestitures ($223M) and gain on sale of building ($8M), and discrete tax benefit ($180M).
16 • Safety, Engagement, Ownership • Living up to Our Purpose • Top Quartile Performance • Great Generators & Deployers of Cash What Drives Parker
17 FY25 Q4 Earnings Release August 7, 2025 FY26 Q1 Earnings Release November 6, 2025 UPCOMING EVENT CALENDAR
18 • FY25 Guidance Details • Reconciliation of Organic Growth • Adjusted Amounts Reconciliation – Consolidated Statement of Income • Adjusted Amounts Reconciliation – Segment Operating Income • Reconciliation of EBITDA to Adjusted EBITDA • Reconciliation of Operating Cash Flow Margin and Free Cash Flow Margin • Supplemental Sales Information – Global Technology Platforms • Reconciliation of Q4 FY25 Guidance • Reconciliation of FY25 Guidance Appendix
19 FY25 Guidance Details Sales Growth vs. Prior Year As Reported Organic1 Diversified Industrial Segment North America Businesses ~(8%) ~(4%) International Businesses ~(4%) ~(2.5%) Aerospace Systems Segment ~12% ~12% Parker ~(1%) ~1% Segment Operating Margins As Reported Adjusted1 Diversified Industrial Segment North America Businesses ~22.9% ~25.1% International Businesses ~22.1% ~24.5% Aerospace Systems Segment ~23.1% ~28.3% Parker ~22.7% ~25.9% Earnings Per Share As Reported Adjusted1 Midpoint $26.02 $26.70 Detail of Pre-Tax Adjustments to: Segment Margins Below Segment Acquired Intangible Asset Amortization ~$550M — Business Realignment & Other ~$60M ~$10M Integration Costs to Achieve ~$22M — Gain on Sale of Building __ (~$10M) Gain on Divestitures — (~$250M) Additional Items As Reported Adjusted1 Corporate G&A ~$205M Interest Expense ~$410M Other (Income) Expense (~$190M) ~$65M Tax Rate ~16.5% ~21.5% Diluted Shares Outstanding ~130.4M 1. Includes certain non-GAAP adjustments and financial measures. Additional Adjustments to EPS: Segment Margins Below Segment Discrete Tax Benefit — ~$180M
20 Reconciliation of Organic Growth (Dollars in thousands) (Unaudited) Quarter-to-Date As Reported Adjusted As Reported Net Sales March 31, 2025 March 31, 2025 March 31, 2024 Diversified Industrial 3,388,759$ 54,201$ 104,980$ 3,547,940$ 3,665,643$ Aerospace Systems 1,571,590 2,336 - 1,573,926 1,408,713 Total Parker Hannifin 4,960,349$ 56,537$ 104,980$ 5,121,866$ 5,074,356$ As reported Currency Divestitures Organic Diversified Industrial (7.6)% (1.5)% (2.9)% (3.2)% Aerospace Systems 11.6 % (0.1)% 0.0 % 11.7 % Total Parker Hannifin (2.2)% (1.0)% (2.1)% 0.9 % Supplemental Information: As Reported Adjusted As Reported Net Sales March 31, 2025 March 31, 2025 March 31, 2024 Diversified Industrial: North America businesses 2,030,970$ 17,458$ 104,980$ 2,153,408$ 2,231,478$ International businesses Europe 758,405 14,486 - 772,891 830,166 Asia Pacific 523,307 16,046 - 539,353 527,732 Latin America 76,077 6,211 - 82,288 76,267 International businesses 1,357,789$ 36,743$ -$ 1,394,532$ 1,434,165$ As reported Currency Divestitures Organic Diversified Industrial: North America businesses (9.0)% (0.8)% (4.7)% (3.5)% International businesses Europe (8.6)% (1.7)% 0.0 % (6.9)% Asia Pacific (0.8)% (3.0)% 0.0 % 2.2 % Latin America (0.2)% (8.1)% 0.0 % 7.9 % International businesses (5.3)% (2.5)% 0.0 % (2.8)% Currency Divestitures Currency Divestitures
21 Adjusted Amounts Reconciliation Consolidated Statement of Income (Dollars in thousands, except per share data) (Unaudited) Quarter-to-Date FY 2025 Acquired Business Meggitt As Reported Intangible Asset Realignment Costs to Saegertown Discrete Tax Adjusted March 31, 2025 % of Sales Amortization Charges Achieve Incident Benefit March 31, 2025 % of Sales Net sales 4,960,349$ 100.0 % -$ -$ -$ -$ -$ 4,960,349$ 100.0 % Cost of sales 3,129,951 63.1 % 19,618 4,742 210 - - 3,105,381 62.6 % Selling, general and admin. expenses 784,355 15.8 % 116,346 5,521 5,237 - - 657,251 13.3 % Interest expense 95,942 1.9 % - - - - - 95,942 1.9 % Other (income) expense, net (44,713) (0.9)% - 116 - 7,725 - (52,554) (1.1)% Income before income taxes 994,814 20.1 % (135,964) (10,379) (5,447) (7,725) - 1,154,329 23.3 % Income taxes 33,628 0.7 % 31,272 2,387 1,253 1,777 179,849 250,166 5.0 % Net income 961,186 19.4 % (104,692) (7,992) (4,194) (5,948) 179,849 904,163 18.2 % Less: Noncontrolling interests 320 0.0 % - - - - - 320 0.0 % Net income - common shareholders 960,866$ 19.4 % (104,692)$ (7,992)$ (4,194)$ (5,948)$ 179,849$ 903,843$ 18.2 % Diluted earnings per share 7.37$ (0.80)$ (0.06)$ (0.03)$ (0.05)$ 1.37$ 6.94$ Quarter-to-Date FY 2024 Acquired Business Meggitt As Reported Intangible Asset Realignment Costs to Adjusted March 31, 2024 % of Sales Amortization Charges Achieve March 31, 2024 % of Sales Net sales 5,074,356$ 100.0 % -$ -$ -$ -$ -$ 5,074,356$ 100.0 % Cost of sales 3,279,650 64.6 % 27,193 3,014 743 - - 3,248,700 64.0 % Selling, general and admin. Expenses 816,337 16.1 % 114,023 3,927 12,513 - - 685,874 13.5 % Interest expense 123,732 2.4 % - - - - - 123,732 2.4 % Other (income) expense, net (65,406) (1.3)% - 1,527 - - - (66,933) (1.3)% Income before income taxes 920,043 18.1 % (141,216) (8,468) (13,256) - - 1,082,983 21.3 % Income taxes 193,309 3.8 % 33,609 2,015 3,155 - - 232,088 4.6 % Net income 726,734 14.3 % (107,607) (6,453) (10,101) - - 850,895 16.8 % Less: Noncontrolling interests 160 0.0 % - - - - - 160 0.0 % Net income - common shareholders 726,574$ 14.3 % (107,607)$ (6,453)$ (10,101)$ -$ -$ 850,735$ 16.8 % Diluted earnings per share 5.56$ (0.82)$ (0.05)$ (0.08)$ -$ -$ 6.51$ 1 1. Release of a tax valuation allowance.
22 1. Segment operating income as a percent of sales is calculated on segment sales. 2. Adjusted amounts as a percent of sales are calculated on as reported sales. Adjusted Amounts Reconciliation Segment Operating Income (Dollars in thousands) (Unaudited) Quarter-to-Date FY 2025 Acquired Business Meggitt As Reported Intangible Asset Realignment Costs to Saegertown Adjusted March 31, 2025 % of Sales Amortization Charges Achieve Incident March 31, 2025 % of Sales2 Diversified Industrial1 779,103$ 23.0% 61,600$ 10,249$ 2,072$ -$ 853,024$ 25.2% Aerospace Systems1 372,908 23.7% 74,364 35 3,375 - 450,682 28.7% Total segment operating income 1,152,011 23.2% (135,964) (10,284) (5,447) - 1,303,706 26.3% Corporate administration 43,698 0.9% - (21) - - 43,719 0.9% Income before interest and other 1,108,313 22.3% (135,964) (10,263) (5,447) - 1,259,987 25.4% Interest expense 95,942 1.9% - - - - 95,942 1.9% Other (income) expense 17,557 0.4% - 116 - 7,725 9,716 0.2% Income before income taxes 994,814$ 20.1% (135,964)$ (10,379)$ (5,447)$ (7,725)$ 1,154,329$ 23.3% Supplemental Information: Diversified Industrial: North America businesses1 467,064$ 23.0% 40,209$ 4,218$ 1,038$ -$ 512,529$ 25.2% International businesses1 312,039 23.0% 21,391 6,031 1,034 - 340,495 25.1% Quarter-to-Date FY 2024 Acquired Business Meggitt As Reported Intangible Asset Realignment Cost to Adjusted March 31, 2024 % of Sales Amortization Charges Achieve March 31, 2024 % of Sales2 Diversified Industrial1 800,211$ 21.8% 66,409$ 6,953$ 1,292$ -$ 874,865$ 23.9% Aerospace Systems1 289,339 20.5% 74,807 (12) 11,964 - 376,098 26.7% Total segment operating income 1,089,550 21.5% (141,216) (6,941) (13,256) - 1,250,963 24.7% Corporate administration 56,782 1.1% - - - - 56,782 1.1% Income before interest and other 1,032,768 20.4% (141,216) (6,941) (13,256) - 1,194,181 23.5% Interest expense 123,732 2.4% - - - - 123,732 2.4% Other (income) expense (11,007) -0.2% - 1,527 - - (12,534) -0.2% Income before income taxes 920,043$ 18.1% (141,216)$ (8,468)$ (13,256)$ -$ 1,082,983$ 21.3% Supplemental Information: Diversified Industrial: North America businesses1 490,452$ 22.0% 43,945$ 3,058$ 841$ -$ 538,296$ 24.1% International businesses1 309,759 21.6% 22,464 3,895 451 - 336,569 23.5%
23 Reconciliation of EBITDA to Adjusted EBITDA (Dollars in thousands) Three Months Ended (Unaudited) March 31, 2025 % of Sales 2024 % of Sales Net sales $ 4,960,349 100.0 % $ 5,074,356 100.0 % Net income $ 961,186 19.4 % $ 726,734 14.3 % Income taxes 33,628 0.7 % 193,309 3.8 % Depreciation 86,832 1.8 % 87,082 1.7 % Amortization 135,964 2.7 % 141,216 2.8 % Interest expense 95,942 1.9 % 123,732 2.4 % EBITDA 1,313,552 26.5 % 1,272,073 25.1 % Adjustments: Business realignment charges 10,379 0.2 % 8,468 0.2 % Meggitt costs to achieve 5,447 0.1 % 13,256 0.3 % Saegertown Incident 7,725 0.2 % - 0.0 % EBITDA - Adjusted $ 1,337,103 27.0 % $ 1,293,797 25.5 % EBITDA margin 26.5 % 25.1 % EBITDA margin - Adjusted 27.0 % 25.5 %
24 Reconciliation of Operating Cash Flow Margin and Free Cash Flow Margin (Unaudited) (Dollars in thousands) 2025 2024 Net Sales 14,606,926$ 14,742,791$ Net Income 2,608,363$ 2,059,863$ Cash Flow from Operations 2,308,761$ 2,147,077$ Capital Expenditures (304,153) (283,328) Free Cash Flow 2,004,608$ 1,863,749$ Cash Flow from Operations Margin 15.8% 14.6% Free Cash Flow Margin 13.7% 12.6% Nine Months Ended March 31,
25 (Unaudited) (Dollars in thousands) 2025 2024 Net sales Diversified Industrial: Motion Systems $ 827,987 $ 942,667 Flow and Process Control 1,141,072 1,185,622 Filtration and Engineered Materials 1,419,700 1,537,354 Aerospace Systems 1,571,590 1,408,713 Total $ 4,960,349 $ 5,074,356 Three Months Ended March 31, Supplemental Sales Information Global Technology Platforms
26 RECONCILIATION OF FORECASTED EARNINGS PER SHARE (Unaudited) (Amounts in dollars) Q4 Fiscal Year 2025 Forecasted earnings per diluted share ~$6.05 Adjustments: Business realignment charges 0.17 Costs to achieve 0.02 Acquisition-related intangible asset amortization expense 1.07 Tax effect of adjustments1 (0.27) Adjusted forecasted earnings per diluted share ~$7.05 1. This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. *Totals may not foot due to rounding Reconciliation of Q4 FY25 Guidance RECONCILIATION OF ORGANIC GROWTH (Unaudited) (Amounts in percentages) Q4 Fiscal Year 2025 Forecasted net sales (~2.0%) Adjustments: Currency 0.0% Divestitures 2.5% Adjusted forecasted net sales ~0.5% RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME (Unaudited) (Amounts in percentages) Q4 Fiscal Year 2025 Forecasted segment operating margin ~23.0% Adjustments: Business realignment charges 0.4% Costs to achieve 0.1% Acquisition-related intangible asset amortization expense 2.6% Adjusted forecasted segment operating margin ~26.1%
27 RECONCILIATION OF ORGANIC GROWTH (Unaudited) Fiscal Year 2025 (Amounts in percentages) Forecasted Net Sales Divestitures Currency Adjusted Forecasted Net Sales Diversified Industrial ~(6.0%) ~2.0% ~1.0% ~(3.0%) North America Businesses ~(8.0%) ~3.5% ~0.5% ~(4.0%) International Businesses ~(4.0%) - ~1.5% ~(2.5%) Aerospace Systems ~12.0% - ~0.0% ~12.0% Parker ~(1.0%) ~1.5% ~0.5% ~1.0% RECONCILIATION OF FORECASTED EARNINGS PER SHARE (Unaudited) (Amounts in dollars) Fiscal Year 2025 Forecasted earnings per diluted share $25.92 to $26.12 Adjustments: Business realignment charges 0.47 Costs to achieve 0.17 Acquisition-related intangible asset amortization expense 4.22 Saegertown incident 0.06 Net gain on divestitures (1.91) Gain on sale of building (0.08) Tax effect of adjustments1 (0.88) Discrete tax benefit2 (1.37) Adjusted forecasted earnings per diluted share $26.60 to $26.80 1. This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. 2. Release of a tax valuation allowance. *Totals may not foot due to rounding Reconciliation of FY25 Guidance RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME (Unaudited) Fiscal Year 2025 (Amounts in percentages) Forecasted Segment Operating Margin Business Realignment Charges Costs to Achieve Acquisition-Related Intangible Asset Amortization Expense Adjusted Forecasted Segment Operating Margin Diversified Industrial North America Businesses ~22.9% ~0.2% - ~2.0% ~25.1% International Businesses ~22.1% ~0.8% - ~1.6% ~24.5% Aerospace Systems ~23.1% - ~0.3% ~4.9% ~28.3% Parker ~22.7% ~0.3% ~0.1% ~2.8% ~25.9% RECONCILIATION OF CASH FLOW FROM OPERATIONS TO FREE CASH FLOW (Unaudited) (Dollars in millions) Fiscal Year 2025 Cash flow from operations $3,500 to $3,600 Less: Capital Expenditures ~(400) Free cash flow $3,100 to $3,200