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Mar 31
Parker-Hannifin Q3 2025 Earnings Report
Parker-Hannifin reported results for the quarter ended March 31, 2025, including record margins, EPS, and YTD cash flow from operations.
Key Takeaways
Parker-Hannifin reported a strong fiscal third quarter for 2025, achieving record adjusted segment operating margins, record earnings per share, and record year-to-date cash flow from operations. Sales were $5.0 billion with 1% organic growth. Net income increased by 32% to $961 million, and adjusted EPS rose 7% to $6.94. The company also repurchased $650 million of shares and increased its quarterly cash dividend by 10%.
Sales for the quarter were $5.0 billion, with organic sales growth of 1%.
Net income reached $961 million, a 32% increase, and adjusted net income was $904 million, up 6%.
Diluted EPS was $7.37, a 33% increase, and adjusted diluted EPS was $6.94, up 7%.
Adjusted total segment operating margin reached a record 26.3%, increasing 160 basis points.
Parker-Hannifin
Parker-Hannifin
Parker-Hannifin Revenue by Segment
Parker-Hannifin Revenue by Geographic Location
Revenue by Segment
Diversified Industrial Revenue
CapyFin.comAerospace Systems Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
For fiscal year ending June 30, 2025, the company expects sales growth of approximately (1%), with organic sales growth of approximately 1%. Total segment operating margin is expected to be approximately 22.7%, or approximately 25.9% on an adjusted basis. EPS is guided between $25.92 and $26.12, or $26.60 to $26.80 on an adjusted basis, including the effect of announced tariffs fully offset by mitigation actions.
Positive Outlook
- Expected organic sales growth of approximately 1% for the fiscal year.
- Anticipated adjusted total segment operating margin of approximately 25.9% for the fiscal year.
- Forecasted adjusted EPS of $26.60 to $26.80 for the fiscal year.
- Mitigation actions are expected to fully offset the effect of announced tariffs.
- Commitment to achieving fiscal year 2029 financial targets.
Challenges Ahead
- Expected overall sales decline of approximately (1%) for the fiscal year.
- Divestitures are expected to negatively impact sales growth by (1.5%).
- Unfavorable currency is expected to negatively impact sales growth by (0.5%).
- Softness noted in transportation, off-highway, and energy markets in North America.
- Need to manage through macroeconomic uncertainty, including tariffs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income