Parker Reports Fiscal 2025 Second Quarter Results
Parker Hannifin (NYSE: PH) reported strong fiscal 2025 second quarter results with sales of $4.7 billion and organic sales growth of 1%. The company achieved record segment operating margin of 22.1% (25.6% adjusted) and net income of $949 million, a 39% increase. EPS rose 39% to $7.25 ($6.53 adjusted).
Year-to-date cash flow from operations increased 24% to $1.7 billion, representing 17.4% of sales. The company reduced debt by $1.1 billion during the quarter. The Aerospace Systems segment showed strong performance with 14% organic sales growth and record sales.
Parker updated its FY2025 guidance, projecting sales growth between -2% and 1%, with organic growth of approximately 2%. The company expects total segment operating margin of 22.7% (25.8% adjusted) and EPS of $24.46-$25.06 ($26.40-$27.00 adjusted).
Parker Hannifin (NYSE: PH) ha riportato risultati forti per il secondo trimestre fiscale 2025, con vendite di 4,7 miliardi di dollari e una crescita delle vendite organiche dell'1%. L'azienda ha raggiunto un margine operativo di segmento record del 22,1% (25,6% rettificato) e un reddito netto di 949 milioni di dollari, con un incremento del 39%. L'EPS è aumentato del 39% a 7,25 dollari (6,53 dollari rettificati).
Il flusso di cassa da operazioni da inizio anno è aumentato del 24% a 1,7 miliardi di dollari, pari al 17,4% delle vendite. L'azienda ha ridotto il debito di 1,1 miliardi di dollari durante il trimestre. Il segmento dei Sistemi Aerospaziali ha mostrato prestazioni forti con una crescita delle vendite organiche del 14% e vendite record.
Parker ha aggiornato le previsioni per l'anno fiscale 2025, stimando una crescita delle vendite compresa tra -2% e 1%, con una crescita organica di circa il 2%. L'azienda prevede un margine operativo totale di segmento del 22,7% (25,8% rettificato) e un EPS tra 24,46 e 25,06 dollari (tra 26,40 e 27,00 dollari rettificati).
Parker Hannifin (NYSE: PH) reportó sólidos resultados para el segundo trimestre fiscal de 2025, con ventas de 4.700 millones de dólares y un crecimiento de ventas orgánicas del 1%. La compañía logró un margen operativo de segmento récord del 22,1% (25,6% ajustado) y un ingreso neto de 949 millones de dólares, un aumento del 39%. El EPS aumentó un 39% a 7,25 dólares (6,53 dólares ajustado).
El flujo de efectivo de las operaciones desde el inicio del año aumentó un 24% hasta 1.700 millones de dólares, lo que representa el 17,4% de las ventas. La compañía redujo su deuda en 1.100 millones de dólares durante el trimestre. El segmento de Sistemas Aeroespaciales mostró un rendimiento sólido con un crecimiento de ventas orgánicas del 14% y ventas récord.
Parker actualizó su pronóstico para el año fiscal 2025, proyectando un crecimiento de ventas entre -2% y 1%, con un crecimiento orgánico de aproximadamente el 2%. La empresa espera un margen operativo total de segmento del 22,7% (25,8% ajustado) y un EPS de entre 24,46 y 25,06 dólares (de entre 26,40 y 27,00 dólares ajustado).
파커 헌니핀 (NYSE: PH)은 2025 회계연도 2분기에 47억 달러의 매출과 1%의 유기적 매출 성장으로 강력한 실적을 보고했습니다. 이 회사는 기록적인 부문 운영 마진 22.1% (25.6% 조정됨)와 9억 4900만 달러의 순이익을 달성하여 39% 증가했습니다. EPS는 39% 증가하여 7.25 달러 (6.53 달러 조정됨)로 상승했습니다.
연초부터 운영에서 발생한 현금 흐름은 24% 증가하여 17억 달러에 달하며, 이는 매출의 17.4%에 해당합니다. 이 회사는 분기 동안 부채를 11억 달러 줄였습니다. 항공 우주 시스템 부문은 14%의 유기적 매출 성장과 기록적인 매출로 강력한 성과를 보였습니다.
파커는 FY2025 가이던스를 업데이트하여 매출 성장이 -2%에서 1% 사이일 것으로 예상하고 있으며, 유기적 성장은 약 2%가 될 것으로 보입니다. 이 회사는 전체 부문 운영 마진을 22.7% (25.8% 조정)로, EPS를 24.46~25.06 달러 (26.40~27.00 달러 조정)로 예상하고 있습니다.
Parker Hannifin (NYSE: PH) a annoncé de solides résultats pour le deuxième trimestre de l'exercice 2025, avec des ventes atteignant 4,7 milliards de dollars et une croissance des ventes organiques de 1%. L'entreprise a réalisé un marge opérationnelle de segment record de 22,1% (25,6% ajusté) et un bénéfice net de 949 millions de dollars, soit une augmentation de 39%. L'EPS a augmenté de 39% pour atteindre 7,25 dollars (6,53 dollars ajusté).
Le flux de trésorerie d'exploitation depuis le début de l'année a augmenté de 24% pour atteindre 1,7 milliard de dollars, représentant 17,4% des ventes. L'entreprise a réduit sa dette de 1,1 milliard de dollars au cours du trimestre. Le secteur des systèmes aérospatiaux a montré de solides performances avec une croissance des ventes organiques de 14% et des ventes record.
Parker a mis à jour ses prévisions pour l'exercice 2025, prévoyant une croissance des ventes comprise entre -2% et 1%, avec une croissance organique d'environ 2%. L'entreprise s'attend à une marge opérationnelle totale de segment de 22,7% (25,8% ajusté) et un EPS de 24,46 à 25,06 dollars (de 26,40 à 27,00 dollars ajusté).
Parker Hannifin (NYSE: PH) berichtete über starke Ergebnisse für das zweite Quartal des Geschäftsjahres 2025 mit einem Umsatz von 4,7 Milliarden Dollar und einem organischen Umsatzwachstum von 1%. Das Unternehmen erreichte eine rekordverdächtige operative Segmentmarge von 22,1% (25,6% bereinigt) und einen Nettogewinn von 949 Millionen Dollar, was einem Anstieg von 39% entspricht. Der EPS stieg um 39% auf 7,25 Dollar (6,53 Dollar bereinigt).
Der Cashflow aus dem operativen Geschäft seit Jahresbeginn stieg um 24% auf 1,7 Milliarden Dollar, was 17,4% des Umsatzes ausmacht. Das Unternehmen reduzierte die Schulden im Quartal um 1,1 Milliarden Dollar. Das Segment Luft- und Raumfahrt zeigte eine starke Leistung mit einem organischen Umsatzwachstum von 14% und Rekordverkäufen.
Parker aktualisierte seine Prognose für das Geschäftsjahr 2025 und erwartet ein Umsatzwachstum von -2% bis 1%, mit einem organischen Wachstum von etwa 2%. Das Unternehmen rechnet mit einer gesamten operativen Segmentmarge von 22,7% (25,8% bereinigt) und einem EPS von 24,46 bis 25,06 Dollar (26,40 bis 27,00 Dollar bereinigt).
- Record segment operating margin of 22.1% (25.6% adjusted), up 100 bps
- Net income increased 39% to $949 million
- EPS grew 39% to $7.25
- Cash flow from operations up 24% to $1.7 billion
- Debt reduction of $1.1 billion in Q2
- Aerospace segment achieved 14% organic sales growth
- Company-wide orders increased across all businesses
- North America sales declined 8.6%
- International sales decreased 5.7%
- Continued softness in transportation and off-highway markets
- Broad-based softness in European markets
- Currency headwinds affecting outlook
- Lowered sales growth guidance to -2% to 1% for FY2025
Insights
Parker Hannifin's Q2 FY2025 results showcase exceptional operational execution despite mixed market conditions. The standout 22.1% segment operating margin (25.6% adjusted) demonstrates successful cost management and pricing power across all business segments.
The Aerospace Systems segment emerges as the growth engine, delivering 14% organic growth with robust aftermarket performance exceeding 20%. This strength, combined with positive order rates across all segments (+5% overall), signals improving market conditions, particularly in longer-cycle businesses.
Key financial metrics underscore the company's operational excellence:
- Strong cash flow from operations at
$1.7 billion (17.4% of sales) - Substantial debt reduction of
$1.1 billion - Adjusted EPS growth of
6% to$6.53
The updated FY2025 guidance reflects a nuanced market outlook: strong aerospace momentum offset by currency headwinds and delayed industrial recovery. The projected organic growth of
The company's robust cash generation provides significant capital deployment flexibility, supporting potential strategic investments while maintaining balance sheet strength. The positive order trends in Asia and long-cycle businesses indicate potential momentum building for future quarters, though near-term industrial market challenges persist.
Record segment operating margin, EPS and YTD cash flow from operations
CLEVELAND, Jan. 30, 2025 (GLOBE NEWSWIRE) -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the quarter ended December 31, 2024, that included the following highlights (compared with the prior year quarter):
Fiscal 2025 Second Quarter Highlights:
- Sales were
$4.7 billion ; organic sales growth was1% - Net income was
$949 million , an increase of39% , or$853 million adjusted, an increase of6% - EPS were
$7.25 , an increase of39% , or$6.53 adjusted, an increase of6% - Segment operating margin was
22.1% , an increase of 100 bps, or25.6% adjusted, an increase of 110 bps - YTD cash flow from operations increased
24% to$1.7 billion , or17.4% of sales
“Our performance this quarter reflects our focus on operational excellence and the strength of our balanced portfolio,” said Jenny Parmentier, Chairman and Chief Executive Officer. “We delivered record segment operating margin across all businesses, record earnings per share and year-to-date cash flow from operations. Strong cash flow from operations coupled with proceeds from previously announced divestitures allowed us to substantially reduce debt by
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 (
2% ) to1% , with organic sales growth of approximately2% ; divestitures of (1.5% ) and unfavorable currency of (1.0% ) - Total segment operating margin of approximately
22.7% , or approximately25.8% on an adjusted basis - EPS of
$24.46 t o$25.06 , or$26.40 t o$27.00 on an adjusted basis
Segment Results
Diversified Industrial Segment
| North America Businesses | |||||||||||||||
| $ in mm | FY25 Q2 | FY24 Q2 | Change | Organic Growth | |||||||||||
| Sales | $ | 1,928 | $ | 2,110 | -8.6 | % | -5.0 | % | |||||||
| Segment Operating Income | $ | 427 | $ | 462 | -7.6 | % | |||||||||
| Segment Operating Margin | 22.1 | % | 21.9 | % | 20 bps | ||||||||||
| Adjusted Segment Operating Income | $ | 473 | $ | 510 | -7.2 | % | |||||||||
| Adjusted Segment Operating Margin | 24.6 | % | 24.2 | % | 40 bps | ||||||||||
- Achieved record adjusted segment operating margin
- Continued softness in transportation and off-highway markets
- Delayed industrial recovery
| International Businesses | |||||||||||||||
| $ in mm | FY25 Q2 | FY24 Q2 | Change | Organic Growth | |||||||||||
| Sales | $ | 1,325 | $ | 1,404 | -5.7 | % | -3.0 | % | |||||||
| Segment Operating Income | $ | 284 | $ | 290 | -2.2 | % | |||||||||
| Segment Operating Margin | 21.4 | % | 20.7 | % | 70 bps | ||||||||||
| Adjusted Segment Operating Income | $ | 320 | $ | 323 | -1.2 | % | |||||||||
| Adjusted Segment Operating Margin | 24.1 | % | 23.0 | % | 110 bps | ||||||||||
- Achieved record adjusted segment operating margin
- Broad-based softness continued in Europe
- Gradual recovery continued in Asia
Aerospace Systems Segment
| $ in mm | FY25 Q2 | FY24 Q2 | Change | Organic Growth | |||||||||||
| Sales | $ | 1,490 | $ | 1,306 | 14.0 | % | 14.0 | % | |||||||
| Segment Operating Income | $ | 338 | $ | 263 | 28.5 | % | |||||||||
| Segment Operating Margin | 22.7 | % | 20.1 | % | 260 bps | ||||||||||
| Adjusted Segment Operating Income | $ | 420 | $ | 347 | 21.2 | % | |||||||||
| Adjusted Segment Operating Margin | 28.2 | % | 26.5 | % | 170 bps | ||||||||||
- Achieved record sales and adjusted segment operating margin
- Achieved
14% organic sales growth 20% + aftermarket and mid-single digit OEM sales growth
Order Rates
| FY25 Q2 | ||
| Parker | +5 | % |
| Diversified Industrial Segment - North America Businesses | +3 | % |
| Diversified Industrial Segment - International Businesses | +4 | % |
| Aerospace Systems Segment | +9 | % |
- Company order rates increased across all reported businesses
- North America orders turned positive on long-cycle strength
- International order growth continued, led by Asia
- Aerospace orders accelerated 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 2025 second 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 December 31, 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, 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 operating margin and segment operating margins; (d) adjusted operating income and segment operating income and (e) organic sales growth. 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. Although adjusted net income, adjusted earnings per share, adjusted operating margin and segment operating margins, adjusted operating income and 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.
| CONSOLIDATED STATEMENT OF INCOME | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (Unaudited) | December 31, | December 31, | |||||||||||||
| (Dollars in thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net sales | $ | 4,742,593 | $ | 4,820,947 | $ | 9,646,577 | $ | 9,668,435 | |||||||
| Cost of sales | 3,022,229 | 3,101,962 | 6,119,948 | 6,199,311 | |||||||||||
| Selling, general and administrative expenses | 782,421 | 806,802 | 1,631,210 | 1,680,493 | |||||||||||
| Interest expense | 100,802 | 129,029 | 213,893 | 263,497 | |||||||||||
| Other income, net | (328,716 | ) | (85,011 | ) | (359,517 | ) | (163,466 | ) | |||||||
| Income before income taxes | 1,165,857 | 868,165 | 2,041,043 | 1,688,600 | |||||||||||
| Income taxes | 217,208 | 186,108 | 393,866 | 355,471 | |||||||||||
| Net income | 948,649 | 682,057 | 1,647,177 | 1,333,129 | |||||||||||
| Less: Noncontrolling interests | 107 | 206 | 215 | 451 | |||||||||||
| Net income attributable to common shareholders | $ | 948,542 | $ | 681,851 | $ | 1,646,962 | $ | 1,332,678 | |||||||
| Earnings per share attributable to common shareholders: | |||||||||||||||
| Basic earnings per share | $ | 7.37 | $ | 5.31 | $ | 12.80 | $ | 10.38 | |||||||
| Diluted earnings per share | $ | 7.25 | $ | 5.23 | $ | 12.60 | $ | 10.23 | |||||||
| Average shares outstanding during period - Basic | 128,752,836 | 128,426,247 | 128,707,962 | 128,449,398 | |||||||||||
| Average shares outstanding during period - Diluted | 130,758,808 | 130,367,351 | 130,716,482 | 130,314,326 | |||||||||||
| CASH DIVIDENDS PER COMMON SHARE | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (Unaudited) | December 31, | December 31, | |||||||||||||
| (Amounts in dollars) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Cash dividends per common share | $ | 1.63 | $ | 1.48 | $ | 3.26 | $ | 2.96 | |||||||
| RECONCILIATION OF ORGANIC GROWTH | |||||||||||||||
| (Unaudited) | Three Months Ended | ||||||||||||||
| As Reported | Adjusted | ||||||||||||||
| December 31, 2024 | Currency | Divestitures | December 31, 2024 | ||||||||||||
| Diversified Industrial Segment | (7.4 | )% | (1.3 | )% | (1.9 | )% | (4.2 | )% | |||||||
| Aerospace Systems Segment | 14.0 | % | — | % | — | % | 14.0 | % | |||||||
| Total | (1.6 | )% | (0.9 | )% | (1.4 | )% | 0.7 | % | |||||||
| (Unaudited) | Six Months Ended | ||||||||||||||
| As Reported | Adjusted | ||||||||||||||
| December 31, 2024 | Currency | Divestitures | December 31, 2024 | ||||||||||||
| Diversified Industrial Segment | (5.9 | )% | (0.8 | )% | (1.0 | )% | (4.1 | )% | |||||||
| Aerospace Systems Segment | 15.9 | % | 0.3 | % | — | % | 15.6 | % | |||||||
| Total | (0.2 | )% | (0.5 | )% | (0.8 | )% | 1.1 | % | |||||||
| RECONCILIATION OF NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (Unaudited) | December 31, | December 31, | |||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income attributable to common shareholders | $ | 948,542 | $ | 681,851 | $ | 1,646,962 | $ | 1,332,678 | |||||||
| Adjustments: | |||||||||||||||
| Acquired intangible asset amortization expense | 138,126 | 142,027 | 278,247 | 297,547 | |||||||||||
| Business realignment charges | 20,855 | 14,354 | 30,361 | 27,446 | |||||||||||
| Integration costs to achieve | 6,893 | 10,014 | 13,304 | 16,420 | |||||||||||
| Gain on sale of building | — | — | (10,461 | ) | — | ||||||||||
| Gain on divestitures | (249,748 | ) | (12,391 | ) | (249,748 | ) | (25,651 | ) | |||||||
| Tax effect of adjustments1 | (11,437 | ) | (33,476 | ) | (45,648 | ) | (69,624 | ) | |||||||
| Adjusted net income attributable to common shareholders | $ | 853,231 | $ | 802,379 | $ | 1,663,017 | $ | 1,578,816 | |||||||
| RECONCILIATION OF EARNINGS PER DILUTED SHARE TO ADJUSTED EARNINGS PER DILUTED SHARE | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (Unaudited) | December 31, | December 31, | |||||||||||||
| (Amounts in dollars) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Earnings per diluted share | $ | 7.25 | $ | 5.23 | $ | 12.60 | $ | 10.23 | |||||||
| Adjustments: | |||||||||||||||
| Acquired intangible asset amortization expense | 1.06 | 1.09 | 2.13 | 2.28 | |||||||||||
| Business realignment charges | 0.16 | 0.11 | 0.23 | 0.21 | |||||||||||
| Integration costs to achieve | 0.05 | 0.08 | 0.10 | 0.13 | |||||||||||
| Gain on sale of building | — | — | (0.08 | ) | — | ||||||||||
| Gain on divestitures | (1.91 | ) | (0.10 | ) | (1.91 | ) | (0.20 | ) | |||||||
| Tax effect of adjustments1 | (0.08 | ) | (0.26 | ) | (0.33 | ) | (0.53 | ) | |||||||
| Adjusted earnings per diluted share | $ | 6.53 | $ | 6.15 | $ | 12.74 | $ | 12.12 | |||||||
| 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. | |||||||||||||||
| BUSINESS SEGMENT INFORMATION | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (Unaudited) | December 31, | December 31, | |||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net sales | |||||||||||||||
| Diversified Industrial | $ | 3,252,806 | $ | 3,514,473 | $ | 6,708,964 | $ | 7,133,001 | |||||||
| Aerospace Systems | 1,489,787 | 1,306,474 | 2,937,613 | 2,535,434 | |||||||||||
| Total net sales | $ | 4,742,593 | $ | 4,820,947 | $ | 9,646,577 | $ | 9,668,435 | |||||||
| Segment operating income | |||||||||||||||
| Diversified Industrial | $ | 710,562 | $ | 752,334 | $ | 1,494,108 | $ | 1,559,088 | |||||||
| Aerospace Systems | 338,184 | 263,112 | 661,170 | 489,372 | |||||||||||
| Total segment operating income | 1,048,746 | 1,015,446 | 2,155,278 | 2,048,460 | |||||||||||
| Corporate general and administrative expenses | 56,264 | 49,902 | 105,058 | 105,558 | |||||||||||
| Income before interest expense and other income, net | 992,482 | 965,544 | 2,050,220 | 1,942,902 | |||||||||||
| Interest expense | 100,802 | 129,029 | 213,893 | 263,497 | |||||||||||
| Other income, net | (274,177 | ) | (31,650 | ) | (204,716 | ) | (9,195 | ) | |||||||
| Income before income taxes | $ | 1,165,857 | $ | 868,165 | $ | 2,041,043 | $ | 1,688,600 | |||||||
| RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (Unaudited) | December 31, | December 31, | |||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Diversified Industrial Segment sales | $ | 3,252,806 | $ | 3,514,473 | $ | 6,708,964 | $ | 7,133,001 | |||||||
| Diversified Industrial Segment operating income | $ | 710,562 | $ | 752,334 | $ | 1,494,108 | $ | 1,559,088 | |||||||
| Adjustments: | |||||||||||||||
| Acquired intangible asset amortization | 62,570 | 67,309 | 127,834 | 135,260 | |||||||||||
| Business realignment charges | 19,343 | 13,285 | 28,243 | 25,924 | |||||||||||
| Integration costs to achieve | 627 | 871 | 1,405 | 2,010 | |||||||||||
| Adjusted Diversified Industrial Segment operating income | $ | 793,102 | $ | 833,799 | $ | 1,651,590 | $ | 1,722,282 | |||||||
| Diversified Industrial Segment operating margin | 21.8 | % | 21.4 | % | 22.3 | % | 21.9 | % | |||||||
| Adjusted Diversified Industrial Segment operating margin | 24.4 | % | 23.7 | % | 24.6 | % | 24.1 | % | |||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (Unaudited) | December 31, | December 31, | |||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Aerospace Systems Segment sales | $ | 1,489,787 | $ | 1,306,474 | $ | 2,937,613 | $ | 2,535,434 | |||||||
| Aerospace Systems Segment operating income | $ | 338,184 | $ | 263,112 | $ | 661,170 | $ | 489,372 | |||||||
| Adjustments: | |||||||||||||||
| Acquired intangible asset amortization | 75,556 | 74,718 | 150,413 | 162,287 | |||||||||||
| Business realignment charges | 386 | (123 | ) | 394 | 330 | ||||||||||
| Integration costs to achieve | 6,266 | 9,143 | 11,899 | 14,410 | |||||||||||
| Adjusted Aerospace Systems Segment operating income | $ | 420,392 | $ | 346,850 | $ | 823,876 | $ | 666,399 | |||||||
| Aerospace Systems Segment operating margin | 22.7 | % | 20.1 | % | 22.5 | % | 19.3 | % | |||||||
| Adjusted Aerospace Systems Segment operating margin | 28.2 | % | 26.5 | % | 28.0 | % | 26.3 | % | |||||||
| RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (Unaudited) | December 31, | December 31, | |||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Total net sales | $ | 4,742,593 | $ | 4,820,947 | $ | 9,646,577 | $ | 9,668,435 | |||||||
| Total segment operating income | $ | 1,048,746 | $ | 1,015,446 | $ | 2,155,278 | $ | 2,048,460 | |||||||
| Adjustments: | |||||||||||||||
| Acquired intangible asset amortization | 138,126 | 142,027 | 278,247 | 297,547 | |||||||||||
| Business realignment charges | 19,729 | 13,162 | 28,637 | 26,254 | |||||||||||
| Integration costs to achieve | 6,893 | 10,014 | 13,304 | 16,420 | |||||||||||
| Adjusted total segment operating income | $ | 1,213,494 | $ | 1,180,649 | $ | 2,475,466 | $ | 2,388,681 | |||||||
| Total segment operating margin | 22.1 | % | 21.1 | % | 22.3 | % | 21.2 | % | |||||||
| Adjusted total segment operating margin | 25.6 | % | 24.5 | % | 25.7 | % | 24.7 | % | |||||||
| CONSOLIDATED BALANCE SHEET | |||||||
| (Unaudited) | December 31, | June 30, | |||||
| (Dollars in thousands) | 2024 | 2024 | |||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 395,507 | $ | 422,027 | |||
| Trade accounts receivable, net | 2,445,845 | 2,865,546 | |||||
| Non-trade and notes receivable | 304,829 | 331,429 | |||||
| Inventories | 2,806,983 | 2,786,800 | |||||
| Prepaid expenses | 246,467 | 252,618 | |||||
| Other current assets | 148,831 | 140,204 | |||||
| Total current assets | 6,348,462 | 6,798,624 | |||||
| Property, plant and equipment, net | 2,800,992 | 2,875,668 | |||||
| Deferred income taxes | 87,400 | 92,704 | |||||
| Investments and other assets | 1,232,636 | 1,207,232 | |||||
| Intangible assets, net | 7,444,670 | 7,816,181 | |||||
| Goodwill | 10,357,303 | 10,507,433 | |||||
| Total assets | $ | 28,271,463 | $ | 29,297,842 | |||
| Liabilities and equity | |||||||
| Current liabilities: | |||||||
| Notes payable and long-term debt payable within one year | $ | 2,373,286 | $ | 3,403,065 | |||
| Accounts payable, trade | 1,794,884 | 1,991,639 | |||||
| Accrued payrolls and other compensation | 420,477 | 581,251 | |||||
| Accrued domestic and foreign taxes | 364,143 | 354,659 | |||||
| Other accrued liabilities | 1,034,501 | 982,695 | |||||
| Total current liabilities | 5,987,291 | 7,313,309 | |||||
| Long-term debt | 6,667,955 | 7,157,034 | |||||
| Pensions and other postretirement benefits | 409,873 | 437,490 | |||||
| Deferred income taxes | 1,394,882 | 1,583,923 | |||||
| Other liabilities | 684,401 | 725,193 | |||||
| Shareholders' equity | 13,118,553 | 12,071,972 | |||||
| Noncontrolling interests | 8,508 | 8,921 | |||||
| Total liabilities and equity | $ | 28,271,463 | $ | 29,297,842 | |||
| CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
| Six Months Ended | |||||||
| (Unaudited) | December 31, | ||||||
| (Dollars in thousands) | 2024 | 2023 | |||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 1,647,177 | $ | 1,333,129 | |||
| Depreciation and amortization | 454,869 | 468,165 | |||||
| Stock incentive plan compensation | 106,472 | 108,061 | |||||
| Gain on sale of businesses | (250,373 | ) | (25,964 | ) | |||
| (Gain) loss on property, plant and equipment and intangible assets | (6,975 | ) | 5,097 | ||||
| Net change in receivables, inventories and trade payables | 70,981 | (42,804 | ) | ||||
| Net change in other assets and liabilities | (405,002 | ) | (407,366 | ) | |||
| Other, net | 61,584 | (86,331 | ) | ||||
| Net cash provided by operating activities | 1,678,733 | 1,351,987 | |||||
| Cash flows from investing activities: | |||||||
| Capital expenditures | (216,493 | ) | (204,117 | ) | |||
| Proceeds from sale of property, plant and equipment | 13,259 | 1,360 | |||||
| Proceeds from sale of businesses | 622,182 | 74,595 | |||||
| Other, net | (6,941 | ) | (2,954 | ) | |||
| Net cash provided by (used in) investing activities | 412,007 | (131,116 | ) | ||||
| Cash flows from financing activities: | |||||||
| Net payments for common stock activity | (189,681 | ) | (136,394 | ) | |||
| Acquisition of noncontrolling interests | — | (2,883 | ) | ||||
| Net payments for debt | (1,494,484 | ) | (784,847 | ) | |||
| Dividends paid | (420,061 | ) | (381,115 | ) | |||
| Net cash used in financing activities | (2,104,226 | ) | (1,305,239 | ) | |||
| Effect of exchange rate changes on cash | (13,034 | ) | (7,999 | ) | |||
| Net decrease in cash and cash equivalents | (26,520 | ) | (92,367 | ) | |||
| Cash and cash equivalents at beginning of year | 422,027 | 475,182 | |||||
| Cash and cash equivalents at end of period | $ | 395,507 | $ | 382,815 | |||
| RECONCILIATION OF FORECASTED ORGANIC GROWTH | |
| (Unaudited) | |
| (Amounts in percentages) | Fiscal Year 2025 |
| Forecasted net sales | ( |
| Adjustments: | |
| Currency | 1.0% |
| Divestitures | 1.5% |
| 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 | 2.8% |
| Adjusted forecasted segment operating margin | ~ |
| 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 | 0.39 |
| Costs to achieve | 0.15 |
| Acquisition-related intangible asset amortization expense | 4.22 |
| Net gain on divestitures | (1.91) |
| Gain on sale of building | (0.08) |
| Tax effect of adjustments1 | (0.83) |
| 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. | |
| Note: Totals may not foot due to rounding | |
| SUPPLEMENTAL INFORMATION | |||||||||||||||
| BUSINESS SEGMENT INFORMATION | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (Unaudited) | December 31, | December 31, | |||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net sales | |||||||||||||||
| Diversified Industrial: | |||||||||||||||
| North America businesses | $ | 1,928,008 | $ | 2,110,203 | $ | 4,028,332 | $ | 4,340,109 | |||||||
| International businesses | 1,324,798 | 1,404,270 | 2,680,632 | 2,792,892 | |||||||||||
| Segment operating income | |||||||||||||||
| Diversified Industrial: | |||||||||||||||
| North America businesses | $ | 426,567 | $ | 461,850 | $ | 911,130 | $ | 967,903 | |||||||
| International businesses | 283,995 | 290,484 | 582,978 | 591,185 | |||||||||||
| RECONCILIATION OF ORGANIC GROWTH | |||||||||||||||
| (Unaudited) | Three Months Ended | ||||||||||||||
| As Reported | Adjusted | ||||||||||||||
| December 31, 2024 | Currency | Divestitures | December 31, 2024 | ||||||||||||
| Diversified Industrial Segment: | |||||||||||||||
| North America businesses | (8.6 | )% | (0.4 | )% | (3.2 | )% | (5.0 | )% | |||||||
| International businesses | (5.7 | )% | (2.7 | )% | — | % | (3.0 | )% | |||||||
| (Unaudited) | Six Months Ended | ||||||||||||||
| As Reported | Adjusted | ||||||||||||||
| December 31, 2024 | Currency | Divestitures | December 31, 2024 | ||||||||||||
| Diversified Industrial Segment: | |||||||||||||||
| North America businesses | (7.2 | )% | (0.5 | )% | (1.7 | )% | (5.0 | )% | |||||||
| International businesses | (4.0 | )% | (1.3 | )% | — | % | (2.7 | )% | |||||||
| RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (Unaudited) | December 31, | December 31, | |||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Diversified Industrial Segment: | |||||||||||||||
| North America businesses sales | $ | 1,928,008 | $ | 2,110,203 | $ | 4,028,332 | $ | 4,340,109 | |||||||
| North America businesses operating income | $ | 426,567 | $ | 461,850 | $ | 911,130 | $ | 967,903 | |||||||
| Adjustments: | |||||||||||||||
| Acquired intangible asset amortization | 40,985 | 44,699 | 83,960 | 89,382 | |||||||||||
| Business realignment charges | 5,444 | 3,250 | 8,888 | 5,834 | |||||||||||
| Integration costs to achieve | 445 | 562 | 1,050 | 1,507 | |||||||||||
| Adjusted North America businesses operating income | $ | 473,441 | $ | 510,361 | $ | 1,005,028 | $ | 1,064,626 | |||||||
| North America businesses operating margin | 22.1 | % | 21.9 | % | 22.6 | % | 22.3 | % | |||||||
| Adjusted North America businesses operating margin | 24.6 | % | 24.2 | % | 24.9 | % | 24.5 | % | |||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (Unaudited) | December 31, | December 31, | |||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Diversified Industrial Segment: | |||||||||||||||
| International businesses sales | $ | 1,324,798 | $ | 1,404,270 | $ | 2,680,632 | $ | 2,792,892 | |||||||
| International businesses operating income | $ | 283,995 | $ | 290,484 | $ | 582,978 | $ | 591,185 | |||||||
| Adjustments: | |||||||||||||||
| Acquired intangible asset amortization | 21,585 | 22,610 | 43,874 | 45,878 | |||||||||||
| Business realignment charges | 13,899 | 10,035 | 19,355 | 20,090 | |||||||||||
| Integration costs to achieve | 182 | 309 | 355 | 503 | |||||||||||
| Adjusted International businesses operating income | $ | 319,661 | $ | 323,438 | $ | 646,562 | $ | 657,656 | |||||||
| International businesses operating margin | 21.4 | % | 20.7 | % | 21.7 | % | 21.2 | % | |||||||
| Adjusted International businesses operating margin | 24.1 | % | 23.0 | % | 24.1 | % | 23.5 | % | |||||||
FAQ
What was Parker Hannifin's (PH) EPS for Q2 2025?
How much debt did Parker Hannifin (PH) reduce in Q2 2025?
What is Parker Hannifin's (PH) revenue guidance for fiscal 2025?
How did Parker Hannifin's (PH) Aerospace segment perform in Q2 2025?
What was Parker Hannifin's (PH) operating cash flow in Q2 2025?
