Parker Reports Fiscal 2025 Fourth Quarter and Full Year Results
CLEVELAND, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Parker Hannifin Corporation (NYSE:PH), the global leader in motion and control technologies, today reported results for the quarter and fiscal year ended June 30, 2025, that included the following highlights (compared with the prior year period):
Fiscal 2025 Fourth Quarter Highlights:
Sales were a record $5.2 billion; organic sales growth was 2%
Net income was $923 million, an increase of 18%, or $992 million adjusted, an increase of 12%
EPS were $7.15, an increase of 19%, or a record $7.69 adjusted, an increase of 14%
Segment operating margin was 23.9%, an increase of 170 bps, or 26.9% adjusted, an increase of 160 bps
Repurchased $851 million of shares
Announced agreement to acquire Curtis Instruments, Inc., expanding electrification offering
Fiscal 2025 Full Year Highlights:
Sales were $19.9 billion; organic sales growth was 1%
Net income was $3.5 billion, an increase of 24%, or $3.6 billion adjusted, an increase of 7%
EPS were $27.12, an increase of 24%, or a record $27.33 adjusted, an increase of 7%
EBITDA margin was 27.3%, an increase of 210 bps, or 26.4% adjusted, an increase of 80 bps
Segment operating margin was 23.0%, an increase of 150 bps, or a record 26.1% adjusted, an increase of 120 bps
Cash flow from operations increased 12% to $3.8 billion, or 19.0% of sales
Repurchased $1.6 billion of shares
"Our outstanding performance contributed to a record year for safety, engagement, earnings per share, margins and cash flow," said Jenny Parmentier, Chairman and Chief Executive Officer. "Delivering strong margin expansion and earnings growth in a dynamic macro environment is a testament to the resilience of our portfolio and the power of our business system, The Win Strategy™. We generated full year cash flow of $3.8 billion and through balanced capital deployment, increased our quarterly cash dividend by 10 percent, repurchased $1.6 billion of shares, and announced an agreement to acquire Curtis Instruments to expand our electrification offering. Thanks to our global team for another record year and the continued transformation of Parker.
"Looking ahead to fiscal year 2026, we expect Aerospace to remain our fastest growing business and see a return to positive organic growth in our Industrial businesses. We remain committed to being great generators and deployers of cash to drive shareholder value and look forward to another excellent year powered by our people and our business system."
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, 2026. The company expects:
Sales growth in fiscal 2026 of 2% to 5%, with organic sales growth of approximately 3% at the midpoint; previously completed divestitures of 1% and favorable currency of 1.5%
Total segment operating margin of 23.3% to 23.7%, or 26.3% to 26.7% on an adjusted basis
EPS of $24.68 to $25.68, or $28.40 to $29.40 on an adjusted basis
Segment Results
Diversified Industrial Segment
North America Businesses
$ in mm
FY25 Q4
FY24 Q4
Change
Organic Growth
Sales
$
2,075
$
2,229
-6.9
%
-1.4
%
Segment Operating Income
$
513
$
505
1.6
%
Segment Operating Margin
24.7
%
22.7
%
200 bps
Adjusted Segment Operating Income
$
555
$
558
-0.5
%
Adjusted Segment Operating Margin
26.7
%
25.0
%
170 bps
Achieved record adjusted segment operating margin
Gradual broad-based improvement across market verticals
Order rates positive for third consecutive quarter
International Businesses
$ in mm
FY25 Q4
FY24 Q4
Change
Organic Growth
Sales
$
1,492
$
1,430
4.3
%
0.6
%
Segment Operating Income
$
334
$
312
7.1
%
Segment Operating Margin
22.4
%
21.8
%
60 bps
Adjusted Segment Operating Income
$
369
$
342
7.9
%
Adjusted Segment Operating Margin
24.7
%
23.9
%
80 bps
Achieved record adjusted segment operating margin
Organic growth turned positive in the quarter with 6% APAC; (3%) EMEA; 4% LA
Order rates flat on tougher prior year comparison
Fiscal 2025 third quarter included large long-cycle orders
Aerospace Systems Segment
$ in mm
FY25 Q4
FY24 Q4
Change
Organic Growth
Sales
$
1,676
$
1,528
9.7
%
8.6
%
Segment Operating Income
$
407
$
332
22.6
%
Segment Operating Margin
24.3
%
21.7
%
260 bps
Adjusted Segment Operating Income
$
486
$
415
17.1
%
Adjusted Segment Operating Margin
29.0
%
27.1
%
190 bps
Achieved record sales on continued aftermarket strength
Delivered record adjusted segment operating margin
Aerospace backlog increased to a record $7.4 billion
Order Rates
FY25 Q4
Parker
+5
%
Diversified Industrial Segment - North America Businesses
+2
%
Diversified Industrial Segment - International Businesses
0
%
Aerospace Systems Segment
+12
%
Parker order rates remain strong at 5% reflecting our transformed portfolio
Industrial Segment order rates remain positive in a dynamic environment
Aerospace order rates up 12% driven by continued strength in both commercial and defense
About Parker HannifinParker 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
Contacts:
Media:
Financial Analysts:
Aidan Gormley
Jeff Miller
216-896-3258
216-896-2708
Notice of Webcast Parker Hannifin's conference call and slide presentation to discuss its fiscal 2025 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, 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 MeasuresThis 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; (e) organic sales growth; (f) EBITDA margin and (g) adjusted EBITDA margin. The adjusted net income, adjusted earnings per share, adjusted segment operating margin, adjusted segment operating income, organic sales growth, EBITDA margin and adjusted EBITDA margin 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. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Although adjusted net income, adjusted earnings per share, adjusted segment operating margin, adjusted segment operating income, organic sales growth, EBITDA margin and adjusted EBITDA margin 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 StatementsForward-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, including the acquisition of Curtis Instruments, Inc.; 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
Twelve Months Ended
(Unaudited)
June 30,
June 30,
(In millions, except per share amounts)
2025
2024
2025
2024
Net sales
$
5,243
$
5,187
$
19,850
$
19,930
Cost of sales
3,285
3,323
12,535
12,802
Selling, general and administrative expenses
839
818
3,255
3,315
Interest expense
99
119
409
506
Other income, net
(51
)
(59
)
(456
)
(288
)
Income before income taxes
1,071
986
4,107
3,595
Income taxes
148
201
575
750
Net income
923
785
3,532
2,845
Less: Noncontrolling interests
—
—
1
1
Net income attributable to common shareholders
$
923
$
785
$
3,531
$
2,844
Earnings per share attributable to common shareholders:
Basic
$
7.25
$
6.10
$
27.52
$
22.13
Diluted
$
7.15
$
6.01
$
27.12
$
21.84
Weighted average shares outstanding:
Basic
127.2
128.6
128.3
128.5
Diluted
129.0
130.6
130.2
130.2
Cash dividends per common share
$
1.80
$
1.63
$
6.69
$
6.07
BUSINESS SEGMENT INFORMATION
Three Months Ended
Twelve Months Ended
(Unaudited)
June 30,
June 30,
(Dollars in millions)
2025
2024
2025
2024
Net sales
Diversified Industrial
$
3,567
$
3,659
$
13,665
$
14,458
Aerospace Systems
1,676
1,528
6,185
5,472
Total net sales
$
5,243
$
5,187
$
19,850
$
19,930
Segment operating income
Diversified Industrial
$
847
$
817
$
3,120
$
3,176
Aerospace Systems
407
332
1,441
1,111
Total segment operating income
1,254
1,149
4,561
4,287
Corporate general and administrative expenses
65
56
214
218
Income before interest expense and other expense (income), net
1,189
1,093
4,347
4,069
Interest expense
99
119
409
506
Other expense (income), net
19
(12
)
(169
)
(32
)
Income before income taxes
$
1,071
$
986
$
4,107
$
3,595
SUPPLEMENTAL FINANCIAL INFORMATION AND NON-GAAP RECONCILIATIONS
ADJUSTED SEGMENT OPERATING INCOME AND ORGANIC SALES GROWTH RECONCILIATION
Three Months Ended June 30, 2025
Three Months Ended June 30, 2024
Diversified Industrial Segment
Aerospace Systems Segment
Diversified Industrial Segment
Aerospace Systems Segment
(Unaudited)(Dollars in millions)
North America
Int'l
