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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.
Parker-Hannifin
Parker-Hannifin
Parker-Hannifin Revenue by Segment
Revenue by Segment
Aerospace Systems Revenue
CapyFin.com 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
- Disputes regarding contract terms, changes in contract costs and revenue estimates for new development programs
- Changes in product mix