Parker-Hannifin Q1 2025 Earnings Report
Key Takeaways
Parker Hannifin reported strong Q1 2025 results, with record sales, adjusted segment operating margin, adjusted earnings per share and year-to-date cash flow from operations. Sales increased by 1.2% to $4.9 billion and EPS increased by 7% to $5.34. The company has raised its outlook for segment operating margin and earnings per share.
Sales increased 1.2% to $4.9 billion; Organic sales growth was 1.4%
Net income was $698 million, an increase of 7%, or $810 million adjusted, an increase of 4%
EPS were $5.34, an increase of 7%, or $6.20 adjusted, an increase of 4%
Segment operating margin was 22.6%, an increase of 130 bps, or a record 25.7% adjusted, an increase of 80 bps
Parker-Hannifin
Parker-Hannifin
Parker-Hannifin Revenue by Segment
Forward Guidance
Guidance for the fiscal year ending June 30, 2025 has been updated. The company now expects total sales growth in fiscal 2025 of 0.5% to 3.5%, with organic sales growth of 1.5% to 4.5%. Total segment operating margin to increase to approximately 22.6%, or approximately 25.7% on an adjusted basis. EPS to increase to $22.78 to $23.48, or $26.35 to $27.05 on an adjusted basis.
Positive Outlook
- Total sales growth in fiscal 2025 of 0.5% to 3.5%
- Organic sales growth of 1.5% to 4.5%
- Total segment operating margin to increase to approximately 22.6%
- Adjusted segment operating margin approximately 25.7%
- EPS to increase to $22.78 to $23.48, or $26.35 to $27.05 on an adjusted basis
Challenges Ahead
- Divestitures of (1.5%)
- Favorable currency of 0.5%
- Near-term pressure in select industrial markets
- Softness continues in transportation and off-highway markets
- Delays impact in-plant and energy markets