Parker Reports Fiscal 2024 Fourth Quarter and Full Year Results and Issues Guidance for Fiscal 2025
Parker Hannifin (NYSE: PH) reported record results for fiscal 2024, with sales increasing 5% to $19.9 billion and organic sales growth of 2%. The company achieved record adjusted earnings per share of $25.44, up 18% from the previous year. Adjusted segment operating margin reached a record 24.9%, a 200 basis point increase. Cash flow from operations rose 14% to $3.4 billion.
For fiscal 2025, Parker expects total sales growth of 1.5% - 4.5%, with organic sales growth of 2% to 5%. The company forecasts adjusted EPS between $26.30 and $27.00. CEO Jenny Parmentier highlighted the company's strong performance and positive outlook, attributing success to their portfolio strength and business strategy.
Parker Hannifin (NYSE: PH) ha riportato risultati record per l'esercizio fiscale 2024, con un aumento delle vendite del 5%, pari a 19,9 miliardi di dollari, e una crescita delle vendite organiche del 2%. L'azienda ha raggiunto un utile per azione rettificato record di 25,44 dollari, in aumento del 18% rispetto all'anno precedente. Il margine operativo rettificato del segmento ha raggiunto un record del 24,9%, con un incremento di 200 punti base. Il flusso di cassa dalle operazioni è aumentato del 14%, toccando i 3,4 miliardi di dollari.
Per l'esercizio fiscale 2025, Parker prevede una crescita totale delle vendite tra l'1,5% e il 4,5%, con una crescita delle vendite organiche tra il 2% e il 5%. L'azienda prevede un utile per azione rettificato compreso tra 26,30 e 27,00 dollari. La CEO Jenny Parmentier ha sottolineato le solide prestazioni dell'azienda e le prospettive positive, attribuendo il successo alla forza del loro portafoglio e alla strategia aziendale.
Parker Hannifin (NYSE: PH) informó resultados récord para el ejercicio fiscal 2024, con ventas aumentando un 5% hasta 19.9 mil millones de dólares y un crecimiento de ventas orgánicas del 2%. La compañía logró un récord de ganancias por acción ajustadas de 25.44 dólares, un aumento del 18% respecto al año anterior. El margen operativo ajustado del segmento alcanzó un récord del 24.9%, un incremento de 200 puntos básicos. El flujo de caja de las operaciones aumentó un 14% hasta 3.4 mil millones de dólares.
Para el ejercicio fiscal 2025, Parker espera un crecimiento total de ventas del 1.5% al 4.5%, con un crecimiento de ventas orgánico del 2% al 5%. La compañía prevé un EPS ajustado entre 26.30 y 27.00 dólares. La CEO Jenny Parmentier destacó el sólido desempeño de la compañía y su perspectiva positiva, atribuyendo el éxito a la fortaleza de su portafolio y a la estrategia comercial.
Parker Hannifin (NYSE: PH)는 2024 회계연도의 기록적인 결과를 보고했으며, 매출이 5% 증가하여 199억 달러에 달하고 유기적 매출 성장률은 2%입니다. 이 회사는 주당 조정 이익 25.44달러를 기록하며, 이는 작년 대비 18% 증가한 수치입니다. 조정된 부문 운영 마진은 24.9%로 기록을 세우며 200베이시스 포인트 상승했습니다. 운영으로부터의 현금 흐름은 14% 증가하여 34억 달러에 도달했습니다.
2025 회계연도에 대해 Parker는 총 매출 성장률이 1.5%에서 4.5% 사이일 것으로 예상하며, 유기적 매출 성장률은 2%에서 5% 사이로 예상하고 있습니다. 이 회사는 조정된 EPS가 26.30달러에서 27.00달러 사이일 것으로 예측하고 있습니다. CEO 제니 파르멘티에(Jenny Parmentier)는 회사의 강력한 성과와 긍정적인 전망을 강조하며, 성공이 그들의 포트폴리오 강점과 비즈니스 전략 덕분이라고 밝혔습니다.
Parker Hannifin (NYSE: PH) a annoncé des résultats records pour l'exercice fiscal 2024, avec des ventes en hausse de 5%, atteignant 19,9 milliards de dollars, et une croissance des ventes organiques de 2%. L'entreprise a réalisé un bénéfice ajusté par action record de 25,44 dollars, en hausse de 18% par rapport à l'année précédente. La marge opérationnelle ajustée du segment a atteint un record de 24,9%, soit une augmentation de 200 points de base. Les flux de trésorerie d'exploitation ont augmenté de 14%, pour atteindre 3,4 milliards de dollars.
Pour l'exercice fiscal 2025, Parker prévoit une croissance totale des ventes de 1,5 % à 4,5 %, avec une croissance des ventes organiques de 2 % à 5 %. L'entreprise prévoit un bénéfice par action ajusté compris entre 26,30 et 27,00 dollars. La PDG Jenny Parmentier a souligné les performances solides de l'entreprise et les perspectives positives, attribuant le succès à la force de leur portefeuille et à la stratégie commerciale.
Parker Hannifin (NYSE: PH) meldete rekordverdächtige Ergebnisse für das Geschäftsjahr 2024, mit einem Umsatzanstieg von 5% auf 19,9 Milliarden US-Dollar und einem organischen Umsatzwachstum von 2%. Das Unternehmen verzeichnete ein Rekord-angepasstes Ergebnis je Aktie von 25,44 US-Dollar, was einem Anstieg von 18% gegenüber dem Vorjahr entspricht. Die angepasste Segmentbetriebsrendite erreichte einen Rekordwert von 24,9%, was einem Anstieg um 200 Basispunkte entspricht. Der Cashflow aus dem operativen Geschäft stieg um 14% auf 3,4 Milliarden US-Dollar.
Für das Geschäftsjahr 2025 erwartet Parker ein Gesamtumsatzwachstum von 1,5% bis 4,5%, mit einem organischen Umsatzwachstum von 2% bis 5%. Das Unternehmen prognostiziert ein angepasstes EPS zwischen 26,30 und 27,00 US-Dollar. CEO Jenny Parmentier hob die starke Leistung des Unternehmens und die positiven Aussichten hervor und führte den Erfolg auf die Stärke ihres Portfolios und die Unternehmensstrategie zurück.
- Record fiscal 2024 sales of $19.9 billion, up 5% year-over-year
- Adjusted EPS increased 18% to a record $25.44
- Adjusted segment operating margin improved 200 basis points to 24.9%
- Cash flow from operations grew 14% to $3.4 billion
- Aerospace Systems segment quarterly sales surpassed $1.5 billion for the first time
- Diversified Industrial Segment North America sales declined 3.2%
- International Businesses sales decreased 5.4%
- Market softness continues in Europe and Asia
Insights
Parker Hannifin's Q4 and FY2024 results demonstrate robust financial performance. The company achieved record sales of
The company's adjusted segment operating margin improved by 200 basis points to a record
Parker's guidance for FY2025 suggests continued growth, with projected organic sales growth of
Parker Hannifin's results reveal interesting market dynamics. The Diversified Industrial segment faced challenges, with North America sales declining
Conversely, the Aerospace Systems segment showed remarkable strength, with sales surging
Order rates provide insight into future trends. While overall orders grew modestly at
Parker Hannifin's operational performance is impressive, particularly in margin improvement. Despite lower sales in some segments, the company achieved record adjusted segment operating margins across the board. This suggests successful implementation of efficiency initiatives and strong cost management.
The company's Win Strategy™ business system appears to be driving these improvements, enabling Parker to navigate market challenges effectively. The ability to expand margins in the face of sales declines in the Diversified Industrial segments is particularly noteworthy.
Looking ahead, Parker's guidance for FY2025 projects further margin expansion, with adjusted segment operating margin expected to reach
Strong Fourth Quarter Caps Record Year; Guidance and FY29 Targets Point to Bright Future
CLEVELAND, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the quarter and year ended June 30, 2024, that included the following highlights (compared with the prior year period):
Fiscal 2024 Fourth Quarter Highlights:
- Sales increased
2% to a record$5.2 billion ; Organic sales growth was3% - Net income was
$785 million , or$884 million adjusted - EPS were
$6.01 , an increase of10% , or a record$6.77 adjusted, an increase of11% - EBITDA margin was
25.8% , an increase of 90 bps, or26.3% adjusted, an increase of 190 bps - Segment operating margin was
22.2% , an increase of 10 bps, or a record25.3% adjusted, an increase of 130 bps
Fiscal 2024 Full Year Highlights:
- Sales increased
5% to a record$19.9 billion ; Organic sales growth was2% - Net income was
$2.8 billion , or$3.3 billion adjusted - EPS were
$21.84 , an increase of36% , or a record$25.44 adjusted, an increase of18% - EBITDA margin was
25.2% , an increase of 380 bps, or25.6% adjusted, an increase of 200 bps - Segment operating margin was
21.5% , an increase of 240 bps, or a record24.9% adjusted, an increase of 200 bps - Cash flow from operations increased
14% to$3.4 billion , or17.0% of sales
“We delivered an exceptionally strong fourth quarter capping another year of record performance,” said Chairman and Chief Executive Officer, Jenny Parmentier. “Our ability to drive outstanding results reflects the dedication and commitment of our people, the strength and balance of our portfolio, and the power of our business system, The Win Strategy™.
“For the year, we delivered on our commitments with respect to safety and financial targets. We had record sales approaching
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
Parker issued guidance for the fiscal year ending June 30, 2025. The company expects:
- Total sales growth in fiscal 2025 of
1.5% -4.5% , with organic sales growth of2% to5% - Total segment operating margin of
22.1% to22.5% , or25.2% to25.6% on an adjusted basis - EPS of
$22.65 t o$23.35 , or$26.30 t o$27.00 on an adjusted basis
Segment Results
Diversified Industrial Segment
| North America Businesses $ in mm | FY24 Q4 | FY23 Q4 | Change | Organic Growth | |||||||||
| Sales | $ | 2,228 | $ | 2,301 | -3.2 | % | -2.8 | % | |||||
| Segment Operating Income | $ | 506 | $ | 491 | 3.0 | % | |||||||
| Segment Operating Margin | 22.7 | % | 21.3 | % | 140 bps | ||||||||
| Adjusted Segment Operating Income | $ | 558 | $ | 541 | 3.2 | % | |||||||
| Adjusted Segment Operating Margin | 25.0 | % | 23.5 | % | 150 bps | ||||||||
- Achieved record segment operating margin on lower sales
- Softness continues in transportation and off-highway markets
| International Businesses $ in mm | FY24 Q4 | FY23 Q4 | Change | Organic Growth | |||||||||
| Sales | $ | 1,430 | $ | 1,512 | -5.4 | % | -2.5 | % | |||||
| Segment Operating Income | $ | 312 | $ | 309 | 0.7 | % | |||||||
| Segment Operating Margin | 21.8 | % | 20.5 | % | 130 bps | ||||||||
| Adjusted Segment Operating Income | $ | 342 | $ | 352 | -2.9 | % | |||||||
| Adjusted Segment Operating Margin | 23.9 | % | 23.3 | % | 60 bps | ||||||||
- Achieved record segment operating margin on lower sales
- Market softness continues in Europe
- Asia sales declined at a decreasing rate
Aerospace Systems Segment
| $ in mm | FY24 Q4 | FY23 Q4 | Change | Organic Growth | |||||||||
| Sales | $ | 1,528 | $ | 1,283 | 19.2 | % | 19.1 | % | |||||
| Segment Operating Income | $ | 332 | $ | 328 | 1.4 | % | |||||||
| Segment Operating Margin | 21.7 | % | 25.5 | % | -380 bps | ||||||||
| Adjusted Segment Operating Income | $ | 415 | $ | 331 | 25.1 | % | |||||||
| Adjusted Segment Operating Margin | 27.1 | % | 25.8 | % | 130 bps | ||||||||
- Quarterly sales surpassed
$1.5 billion for the first time - Broad based strength across all commercial and defense markets
- Aftermarket strength drove record adjusted segment operating margin
Order Rates
| FY24 Q4 | ||
| Parker | +1 | % |
| Diversified Industrial Segment - North America Businesses | 0 | % |
| Diversified Industrial Segment - International Businesses | -1 | % |
| Aerospace Systems Segment | +7 | % |
- Company order rates improved sequentially
- Aerospace orders remained strong against a tough prior year comparison
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 2024 fourth quarter and full year 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 June 30, 2024, 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. 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 operating margin and segment operating margins; (d) adjusted operating income and segment operating income; (e) EBITDA margin; (f) adjusted EBITDA margin; (g) organic sales growth and (h) free cash flow. The adjusted net income, adjusted earnings per share, adjusted operating margin, adjusted segment operating margin, adjusted operating income, 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. This press release also contains references to EBITDA margin, adjusted EBITDA margin and free cash flow. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Free cash flow is defined as cash flow from operations less capital expenditures. Although adjusted net income, adjusted earnings per share, adjusted operating margin and segment operating margins, adjusted operating income and segment operating income, EBITDA margin, adjusted EBITDA margin, organic sales growth and free cash flow 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 and fiscal year versus the prior periods. 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 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, 2023 and other periodic filings made with the SEC.
| CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||
| (Unaudited) | Three Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||
| (Dollars in thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net sales | $ | 5,186,815 | $ | 5,095,943 | $ | 19,929,606 | $ | 19,065,194 | ||||||||
| Cost of sales | 3,322,855 | 3,262,860 | 12,801,816 | 12,635,892 | ||||||||||||
| Selling, general and administrative expenses | 818,347 | 834,940 | 3,315,177 | 3,354,103 | ||||||||||||
| Interest expense | 119,266 | 157,176 | 506,495 | 573,894 | ||||||||||||
| Other income, net | (59,613 | ) | (62,228 | ) | (288,485 | ) | (178,359 | ) | ||||||||
| Income before income taxes | 985,960 | 903,195 | 3,594,603 | 2,679,664 | ||||||||||||
| Income taxes | 200,887 | 194,117 | 749,667 | 596,128 | ||||||||||||
| Net income | 785,073 | 709,078 | 2,844,936 | 2,083,536 | ||||||||||||
| Less: Noncontrolling interests | 110 | 122 | 721 | 600 | ||||||||||||
| Net income attributable to common shareholders | $ | 784,963 | $ | 708,956 | $ | 2,844,215 | $ | 2,082,936 | ||||||||
| Earnings per share attributable to common shareholders: | ||||||||||||||||
| Basic earnings per share | $ | 6.10 | $ | 5.52 | $ | 22.13 | $ | 16.23 | ||||||||
| Diluted earnings per share | $ | 6.01 | $ | 5.44 | $ | 21.84 | $ | 16.04 | ||||||||
| Average shares outstanding during period - Basic | 128,627,781 | 128,440,007 | 128,507,352 | 128,367,842 | ||||||||||||
| Average shares outstanding during period - Diluted | 130,643,758 | 130,222,542 | 130,239,737 | 129,822,085 | ||||||||||||
| CASH DIVIDENDS PER COMMON SHARE | ||||||||||||||||
| (Unaudited) | Three Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||
| (Amounts in dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Cash dividends per common share | $ | 1.63 | $ | 1.48 | $ | 6.07 | $ | 5.47 | ||||||||
| RECONCILIATION OF ORGANIC GROWTH | ||||||||||||||
| (Unaudited) | Three Months Ended | |||||||||||||
| As Reported | Adjusted | |||||||||||||
| June 30, 2024 | Currency | Divestitures | Acquisitions | June 30, 2024 | ||||||||||
| Diversified Industrial Segment | (4.1)% | (1.2)% | (0.2)% | — | % | (2.7)% | ||||||||
| Aerospace Systems Segment | 19.2 | % | 0.1 | % | — | % | — | % | 19.1 | % | ||||
| Total | 1.8 | % | (0.8)% | (0.2)% | — | % | 2.8 | % | ||||||
| (Unaudited) | Twelve Months Ended | |||||||||||||
| As Reported | Adjusted | |||||||||||||
| June 30, 2024 | Currency | Divestitures | Acquisitions | June 30, 2024 | ||||||||||
| Diversified Industrial Segment | (1.7)% | (0.2)% | (0.2)% | 0.8 | % | (2.1)% | ||||||||
| Aerospace Systems Segment | 25.5 | % | 0.4 | % | (0.9)% | 8.8 | % | 17.2 | % | |||||
| Total | 4.5 | % | (0.1)% | (0.3)% | 2.6 | % | 2.3 | % | ||||||
| RECONCILIATION OF NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | ||||||||||||||||
| (Unaudited) | Three Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income attributable to common shareholders | $ | 784,963 | $ | 708,956 | $ | 2,844,215 | $ | 2,082,936 | ||||||||
| Adjustments: | ||||||||||||||||
| Acquired intangible asset amortization expense | 139,232 | 126,296 | 577,995 | 500,713 | ||||||||||||
| Business realignment charges | 17,542 | 9,226 | 53,456 | 26,706 | ||||||||||||
| Integration costs to achieve | 8,597 | 18,786 | 38,273 | 95,439 | ||||||||||||
| Acquisition-related expenses | — | 2,754 | — | 166,294 | ||||||||||||
| Loss on deal-contingent forward contracts | — | — | — | 389,992 | ||||||||||||
| Net gain on divestitures | — | — | (25,651 | ) | (362,003 | ) | ||||||||||
| Amortization of inventory step-up to fair value | — | (57,992 | ) | — | 109,981 | |||||||||||
| Meggitt early debt retirement | — | 9,999 | — | 9,999 | ||||||||||||
| Tax effect of adjustments1 | (39,358 | ) | (26,613 | ) | (147,761 | ) | (222,379 | ) | ||||||||
| Discrete Tax Benefit2 | (27,068 | ) | — | (27,068 | ) | — | ||||||||||
| Adjusted net income attributable to common shareholders | $ | 883,908 | $ | 791,412 | $ | 3,313,459 | $ | 2,797,678 | ||||||||
| RECONCILIATION OF EARNINGS PER DILUTED SHARE TO ADJUSTED EARNINGS PER DILUTED SHARE | ||||||||||||||||
| (Unaudited) | Three Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||
| (Amounts in dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Earnings per diluted share | $ | 6.01 | $ | 5.44 | $ | 21.84 | $ | 16.04 | ||||||||
| Adjustments: | ||||||||||||||||
| Acquired intangible asset amortization expense | 1.07 | 0.97 | 4.43 | 3.85 | ||||||||||||
| Business realignment charges | 0.13 | 0.07 | 0.40 | 0.20 | ||||||||||||
| Integration costs to achieve | 0.07 | 0.14 | 0.30 | 0.73 | ||||||||||||
| Acquisition-related expenses | — | 0.02 | — | 1.29 | ||||||||||||
| Loss on deal-contingent forward contracts | — | — | — | 3.00 | ||||||||||||
| Net gain on divestitures | — | — | (0.20 | ) | (2.78 | ) | ||||||||||
| Amortization of inventory step-up to fair value | — | (0.45 | ) | — | 0.84 | |||||||||||
| Meggitt early debt retirement | — | 0.08 | — | 0.08 | ||||||||||||
| Tax effect of adjustments1 | (0.30 | ) | (0.19 | ) | (1.12 | ) | (1.70 | ) | ||||||||
| Discrete Tax Benefit2 | (0.21 | ) | — | (0.21 | ) | — | ||||||||||
| Adjusted earnings per diluted share | $ | 6.77 | $ | 6.08 | $ | 25.44 | $ | 21.55 | ||||||||
| 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. | ||||||||||||||||
| 2 A recent Swiss tax law change resulted in the recording of a deferred tax asset. | ||||||||||||||||
| RECONCILIATION OF EBITDA TO ADJUSTED EBITDA | ||||||||||||||||
| (Unaudited) | Three Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net sales | $ | 5,186,815 | $ | 5,095,943 | $ | 19,929,606 | $ | 19,065,194 | ||||||||
| Net income | $ | 785,073 | $ | 709,078 | $ | 2,844,936 | $ | 2,083,536 | ||||||||
| Income taxes | 200,887 | 194,117 | 749,667 | 596,128 | ||||||||||||
| Depreciation | 91,436 | 82,767 | 349,136 | 317,416 | ||||||||||||
| Amortization | 139,232 | 126,296 | 577,995 | 500,713 | ||||||||||||
| Interest expense | 119,266 | 157,176 | 506,495 | 573,894 | ||||||||||||
| EBITDA | 1,335,894 | 1,269,434 | 5,028,229 | 4,071,687 | ||||||||||||
| Adjustments: | ||||||||||||||||
| Business realignment charges | 17,542 | 9,226 | 53,456 | 26,706 | ||||||||||||
| Integration costs to achieve | 8,597 | 18,786 | 38,273 | 95,439 | ||||||||||||
| Acquisition-related expenses | — | 2,754 | — | 166,294 | ||||||||||||
| Loss on deal-contingent forward contracts | — | — | — | 389,992 | ||||||||||||
| Net gain on divestitures | — | — | (25,651 | ) | (362,003 | ) | ||||||||||
| Amortization of inventory step-up to fair value | — | (57,992 | ) | — | 109,981 | |||||||||||
| Adjusted EBITDA | $ | 1,362,033 | $ | 1,242,208 | $ | 5,094,307 | $ | 4,498,096 | ||||||||
| EBITDA margin | 25.8 | % | 24.9 | % | 25.2 | % | 21.4 | % | ||||||||
| Adjusted EBITDA margin | 26.3 | % | 24.4 | % | 25.6 | % | 23.6 | % | ||||||||
| BUSINESS SEGMENT INFORMATION | |||||||||||||||
| (Unaudited) | Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net sales | |||||||||||||||
| Diversified Industrial | $ | 3,658,502 | $ | 3,813,431 | $ | 14,457,146 | $ | 14,705,693 | |||||||
| Aerospace Systems | 1,528,313 | 1,282,512 | 5,472,460 | 4,359,501 | |||||||||||
| Total net sales | $ | 5,186,815 | $ | 5,095,943 | $ | 19,929,606 | $ | 19,065,194 | |||||||
| Segment operating income | |||||||||||||||
| Diversified Industrial | $ | 817,085 | $ | 800,196 | $ | 3,176,384 | $ | 3,071,410 | |||||||
| Aerospace Systems | 332,035 | 327,595 | 1,110,746 | 562,444 | |||||||||||
| Total segment operating income | 1,149,120 | 1,127,791 | 4,287,130 | 3,633,854 | |||||||||||
| Corporate general and administrative expenses | 55,972 | 83,336 | 218,312 | 229,677 | |||||||||||
| Income before interest expense and other (income) expense, net | 1,093,148 | 1,044,455 | 4,068,818 | 3,404,177 | |||||||||||
| Interest expense | 119,266 | 157,176 | 506,495 | 573,894 | |||||||||||
| Other (income) expense, net | (12,078 | ) | (15,916 | ) | (32,280 | ) | 150,619 | ||||||||
| Income before income taxes | $ | 985,960 | $ | 903,195 | $ | 3,594,603 | $ | 2,679,664 | |||||||
| RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS | ||||||||||||||||
| (Unaudited) | Three Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Diversified Industrial Segment sales | $ | 3,658,502 | $ | 3,813,431 | $ | 14,457,146 | $ | 14,705,693 | ||||||||
| Diversified Industrial Segment operating income | $ | 817,085 | $ | 800,196 | $ | 3,176,384 | $ | 3,071,410 | ||||||||
| Adjustments: | ||||||||||||||||
| Acquired intangible asset amortization | 64,550 | 82,073 | 266,219 | 267,779 | ||||||||||||
| Business realignment charges | 17,198 | 9,177 | 50,075 | 23,641 | ||||||||||||
| Integration costs to achieve | 628 | 1,235 | 3,930 | 8,511 | ||||||||||||
| Adjusted Diversified Industrial Segment operating income | $ | 899,461 | $ | 892,681 | $ | 3,496,608 | $ | 3,371,341 | ||||||||
| Diversified Industrial Segment operating margin | 22.3 | % | 21.0 | % | 22.0 | % | 20.9 | % | ||||||||
| Adjusted Diversified Industrial Segment operating margin | 24.6 | % | 23.4 | % | 24.2 | % | 22.9 | % | ||||||||
| (Unaudited) | Three Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Aerospace Systems Segment sales | $ | 1,528,313 | $ | 1,282,512 | $ | 5,472,460 | $ | 4,359,501 | ||||||||
| Aerospace Systems Segment operating income | $ | 332,035 | $ | 327,595 | $ | 1,110,746 | $ | 562,444 | ||||||||
| Adjustments: | ||||||||||||||||
| Acquired intangible asset amortization | 74,682 | 44,223 | 311,776 | 232,934 | ||||||||||||
| Business realignment charges | 1 | 49 | 319 | 3,065 | ||||||||||||
| Integration costs to achieve | 7,969 | 17,551 | 34,343 | 86,928 | ||||||||||||
| Amortization of inventory step-up to fair value | — | (57,992 | ) | — | 109,981 | |||||||||||
| Adjusted Aerospace Systems Segment operating income | $ | 414,687 | $ | 331,426 | $ | 1,457,184 | $ | 995,352 | ||||||||
| Aerospace Systems Segment operating margin | 21.7 | % | 25.5 | % | 20.3 | % | 12.9 | % | ||||||||
| Adjusted Aerospace Systems Segment operating margin | 27.1 | % | 25.8 | % | 26.6 | % | 22.8 | % | ||||||||
| (Unaudited) | Three Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Total net sales | $ | 5,186,815 | $ | 5,095,943 | $ | 19,929,606 | $ | 19,065,194 | ||||||||
| Total segment operating income | $ | 1,149,120 | $ | 1,127,791 | $ | 4,287,130 | $ | 3,633,854 | ||||||||
| Adjustments: | ||||||||||||||||
| Acquired intangible asset amortization | 139,232 | 126,296 | 577,995 | 500,713 | ||||||||||||
| Business realignment charges | 17,199 | 9,226 | 50,394 | 26,706 | ||||||||||||
| Integration costs to achieve | 8,597 | 18,786 | 38,273 | 95,439 | ||||||||||||
| Amortization of inventory step-up to fair value | — | (57,992 | ) | — | 109,981 | |||||||||||
| Adjusted total segment operating income | $ | 1,314,148 | $ | 1,224,107 | $ | 4,953,792 | $ | 4,366,693 | ||||||||
| Total segment operating margin | 22.2 | % | 22.1 | % | 21.5 | % | 19.1 | % | ||||||||
| Adjusted total segment operating margin | 25.3 | % | 24.0 | % | 24.9 | % | 22.9 | % | ||||||||
| CONSOLIDATED BALANCE SHEET | ||||||
| (Unaudited) | June 30, | June 30, | ||||
| (Dollars in thousands) | 2024 | 2023 | ||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 422,027 | $ | 475,182 | ||
| Trade accounts receivable, net | 2,865,546 | 2,827,297 | ||||
| Non-trade and notes receivable | 331,429 | 309,167 | ||||
| Inventories | 2,786,800 | 2,907,879 | ||||
| Prepaid expenses and other | 392,822 | 314,704 | ||||
| Total current assets | 6,798,624 | 6,834,229 | ||||
| Property, plant and equipment, net | 2,875,668 | 2,865,030 | ||||
| Deferred income taxes | 92,704 | 81,429 | ||||
| Investments and other assets | 1,207,232 | 1,104,576 | ||||
| Intangible assets, net | 7,816,181 | 8,450,614 | ||||
| Goodwill | 10,507,433 | 10,628,594 | ||||
| Total assets | $ | 29,297,842 | $ | 29,964,472 | ||
| Liabilities and equity | ||||||
| Current liabilities: | ||||||
| Notes payable and long-term debt payable within one year | $ | 3,403,065 | $ | 3,763,175 | ||
| Accounts payable, trade | 1,991,639 | 2,050,934 | ||||
| Accrued payrolls and other compensation | 581,251 | 651,319 | ||||
| Accrued domestic and foreign taxes | 354,659 | 374,571 | ||||
| Other accrued liabilities | 982,695 | 895,371 | ||||
| Total current liabilities | 7,313,309 | 7,735,370 | ||||
| Long-term debt | 7,157,034 | 8,796,284 | ||||
| Pensions and other postretirement benefits | 437,490 | 551,510 | ||||
| Deferred income taxes | 1,583,923 | 1,649,674 | ||||
| Other liabilities | 725,193 | 893,355 | ||||
| Shareholders' equity | 12,071,972 | 10,326,888 | ||||
| Noncontrolling interests | 8,921 | 11,391 | ||||
| Total liabilities and equity | $ | 29,297,842 | $ | 29,964,472 | ||
| CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
| (Unaudited) | Twelve Months Ended June 30, | |||||||
| (Dollars in thousands) | 2024 | 2023 | ||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 2,844,936 | $ | 2,083,536 | ||||
| Depreciation and amortization | 927,131 | 818,129 | ||||||
| Stock incentive plan compensation | 155,175 | 142,720 | ||||||
| Gain on sale of businesses | (23,979 | ) | (366,345 | ) | ||||
| Loss on property, plant and equipment and intangible assets | 12,382 | 3,819 | ||||||
| Gain on marketable securities and other investments | (5,708 | ) | (6,176 | ) | ||||
| Net change in receivables, inventories and trade payables | (28,135 | ) | 128,000 | |||||
| Net change in other assets and liabilities | (516,854 | ) | 13,211 | |||||
| Other, net | 19,381 | 163,036 | ||||||
| Net cash provided by operating activities | 3,384,329 | 2,979,930 | ||||||
| Cash flows from investing activities: | ||||||||
| Acquisitions (net of cash of | — | (7,146,110 | ) | |||||
| Capital expenditures | (400,112 | ) | (380,747 | ) | ||||
| Proceeds from sale of property, plant and equipment | 9,065 | 13,244 | ||||||
| Proceeds from sale of businesses | 77,666 | 473,207 | ||||||
| Purchases of marketable securities and other investments | (17,186 | ) | (37,791 | ) | ||||
| Maturities and sales of marketable securities and other investments | 24,292 | 56,786 | ||||||
| Payments of deal-contingent forward contracts | — | (1,405,418 | ) | |||||
| Other | 7,687 | 250,017 | ||||||
| Net cash used in investing activities | (298,588 | ) | (8,176,812 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Net payments for common stock activity | (328,449 | ) | (293,847 | ) | ||||
| Acquisition of noncontrolling interests | (2,883 | ) | — | |||||
| Net (payments for) proceeds from debt | (2,001,519 | ) | 40,470 | |||||
| Financing fees paid | — | (13,605 | ) | |||||
| Dividends paid | (782,048 | ) | (704,054 | ) | ||||
| Net cash used in financing activities | (3,114,899 | ) | (971,036 | ) | ||||
| Effect of exchange rate changes on cash | (23,997 | ) | (4,776 | ) | ||||
| Net decrease in cash, cash equivalents and restricted cash | (53,155 | ) | (6,172,694 | ) | ||||
| Cash, cash equivalents and restricted cash at beginning of year | 475,182 | 6,647,876 | ||||||
| Cash and cash equivalents at end of period | $ | 422,027 | $ | 475,182 | ||||
| RECONCILIATION OF CASH FLOW FROM OPERATIONS TO FREE CASH FLOW | ||||
| (Unaudited) | Twelve Months Ended | |||
| (Dollars in thousands) | June 30, 2024 | |||
| As reported cash flow from operations | $ | 3,384,329 | ||
| Capital expenditures | (400,112 | ) | ||
| Free cash flow | $ | 2,984,217 | ||
| RECONCILIATION OF FORECASTED ORGANIC GROWTH | |||
| (Unaudited) | |||
| (Amounts in percentages) | Fiscal Year 2025 | ||
| Forecasted net sales | |||
| Adjustments: | |||
| Currency | 0.5% | ||
| Divestitures | —% | ||
| Adjusted forecasted net sales | |||
| RECONCILIATION OF FORECASTED SEGMENT OPERATING MARGIN TO ADJUSTED FORECASTED SEGMENT OPERATING MARGIN | |||
| (Unaudited) | |||
| (Amounts in percentages) | Fiscal Year 2025 | ||
| Forecasted segment operating margin | |||
| Adjustments: | |||
| Business realignment charges | 0.2% | ||
| Costs to achieve | 0.1% | ||
| Acquisition-related intangible asset amortization expense | |||
| Adjusted forecasted segment operating margin | |||
| Note: Totals may not foot due to rounding | |||
| 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 | |||
| Adjustments: | |||
| Business realignment charges | 0.38 | ||
| Costs to achieve | 0.11 | ||
| Acquisition-related intangible asset amortization expense | 4.25 | ||
| Tax effect of adjustments1 | (1.09) | ||
| Adjusted forecasted earnings per diluted share | |||
| 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. | |||
| SUPPLEMENTAL INFORMATION | ||||||||||||
| BUSINESS SEGMENT INFORMATION | ||||||||||||
| (Unaudited) | Three Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net sales | ||||||||||||
| Diversified Industrial: | ||||||||||||
| North America businesses | $ | 2,228,449 | $ | 2,301,159 | $ | 8,800,036 | $ | 8,916,194 | ||||
| International businesses | 1,430,053 | 1,512,272 | 5,657,110 | 5,789,499 | ||||||||
| Segment operating income | ||||||||||||
| Diversified Industrial: | ||||||||||||
| North America businesses | $ | 505,521 | $ | 490,823 | $ | 1,963,876 | $ | 1,853,079 | ||||
| International businesses | 311,564 | 309,373 | 1,212,508 | 1,218,331 | ||||||||
| RECONCILIATION OF ORGANIC GROWTH | ||||||||||||
| (Unaudited) | Three Months Ended | |||||||||||
| As Reported | Adjusted | |||||||||||
| June 30, 2024 | Currency | Divestitures | Acquisitions | June 30, 2024 | ||||||||
| Diversified Industrial Segment: | ||||||||||||
| North America businesses | (3.2)% | — | % | (0.4)% | — | % | (2.8)% | |||||
| International businesses | (5.4)% | (2.9)% | —% | — | % | (2.5)% | ||||||
| (Unaudited) | Twelve Months Ended | |||||||||||
| As Reported | Adjusted | |||||||||||
| June 30, 2024 | Currency | Divestitures | Acquisitions | June 30, 2024 | ||||||||
| Diversified Industrial Segment: | ||||||||||||
| North America businesses | (1.3)% | 0.3 | % | (0.3)% | 0.9 | % | (2.2)% | |||||
| International businesses | (2.3)% | (1.0)% | —% | 0.7 | % | (2.0)% | ||||||
| RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS | ||||||||||||||||
| (Unaudited) | Three Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Diversified Industrial Segment: | ||||||||||||||||
| North America businesses sales | $ | 2,228,449 | $ | 2,301,159 | $ | 8,800,036 | $ | 8,916,194 | ||||||||
| North America businesses operating income | $ | 505,521 | $ | 490,823 | $ | 1,963,876 | $ | 1,853,079 | ||||||||
| Adjustments: | ||||||||||||||||
| Acquired intangible asset amortization | 43,010 | 47,138 | 176,337 | 181,954 | ||||||||||||
| Business realignment charges | 8,857 | 1,792 | 17,749 | 4,024 | ||||||||||||
| Integration costs to achieve | 295 | 877 | 2,643 | 4,636 | ||||||||||||
| Adjusted North America businesses operating income | $ | 557,683 | $ | 540,630 | $ | 2,160,605 | $ | 2,043,693 | ||||||||
| North America businesses operating margin | 22.7 | % | 21.3 | % | 22.3 | % | 20.8 | % | ||||||||
| Adjusted North America businesses operating margin | 25.0 | % | 23.5 | % | 24.6 | % | 22.9 | % | ||||||||
| (Unaudited) | Three Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Diversified Industrial Segment: | ||||||||||||||||
| International businesses sales | $ | 1,430,053 | $ | 1,512,272 | $ | 5,657,110 | $ | 5,789,499 | ||||||||
| International businesses operating income | $ | 311,564 | $ | 309,373 | $ | 1,212,508 | $ | 1,218,331 | ||||||||
| Adjustments: | ||||||||||||||||
| Acquired intangible asset amortization | 21,540 | 34,935 | 89,882 | 85,825 | ||||||||||||
| Business realignment charges | 8,341 | 7,385 | 32,326 | 19,617 | ||||||||||||
| Integration costs to achieve | 333 | 358 | 1,287 | 3,875 | ||||||||||||
| Adjusted International businesses operating income | $ | 341,778 | $ | 352,051 | $ | 1,336,003 | $ | 1,327,648 | ||||||||
| International businesses operating margin | 21.8 | % | 20.5 | % | 21.4 | % | 21.0 | % | ||||||||
| Adjusted International businesses operating margin | 23.9 | % | 23.3 | % | 23.6 | % | 22.9 | % | ||||||||
FAQ
What were Parker Hannifin's (PH) key financial results for fiscal 2024?
What is Parker Hannifin's (PH) sales growth guidance for fiscal 2025?
How did Parker Hannifin's (PH) Aerospace Systems segment perform in Q4 fiscal 2024?
What were the order rates for Parker Hannifin (PH) in Q4 fiscal 2024?
