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Dec 31, 2024
Parker-Hannifin Q2 2025 Earnings Report
Reported record segment operating margin, EPS, and YTD cash flow from operations.
Key Takeaways
Parker-Hannifin reported strong Q2 2025 results, with record segment operating margin, earnings per share, and year-to-date cash flow from operations. The company reduced debt by $1.1 billion and updated its fiscal year 2025 outlook to reflect stronger Aerospace growth.
Sales were $4.7 billion; organic sales growth was 1%.
Net income was $949 million, an increase of 39%, or $853 million adjusted, an increase of 6%.
EPS were $7.25, an increase of 39%, or $6.53 adjusted, an increase of 6%.
Segment operating margin was 22.1%, an increase of 100 bps, or 25.6% adjusted, an increase of 110 bps.
Revenue by Segment
Forward Guidance
Guidance for the fiscal year ending June 30, 2025 has been updated. The company expects sales growth of (2%) to 1%, with organic sales growth of approximately 2%, divestitures of (1.5%) and unfavorable currency of (1.0%). Total segment operating margin of approximately 22.7%, or approximately 25.8% on an adjusted basis. EPS of $24.46 to $25.06, or $26.40 to $27.00 on an adjusted basis
Positive Outlook
- Sales growth in fiscal 2025 of (2%) to 1%
- Organic sales growth of approximately 2%
- Total segment operating margin of approximately 22.7%
- Adjusted total segment operating margin approximately 25.8%
- EPS of $24.46 to $25.06, or $26.40 to $27.00 on an adjusted basis
Challenges Ahead
- Divestitures of (1.5%)
- Unfavorable currency of (1.0%)
- Changes in business relationships with and orders by or from major customers, suppliers or distributors, including delays or cancellations in shipments
Historical Earnings Impact
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Avg. Return Before/After Earnings
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