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Jun 30, 2023

Parker-Hannifin Q4 2023 Earnings Report

Parker-Hannifin's Q4 2023 results were reported, showcasing record sales and adjusted EPS, driven by the strength of the aerospace business and operational improvements.

Key Takeaways

Parker-Hannifin reported a record fourth quarter with sales of $5.1 billion, a 22% increase year-over-year. Adjusted earnings per share reached a record of $6.08, and the company reduced debt by $846 million during the quarter. The aerospace business showed remarkable growth, contributing significantly to the overall strong performance.

Sales increased 22% to a record $5.1 billion; organic sales increased 6%.

Total segment operating margin was 22.1%, or a record 24.0% adjusted.

EPS were $5.44, or a record of $6.08 adjusted.

Debt reduction of $846 million was achieved in the quarter.

Total Revenue
$5.1B
Previous year: $4.19B
+21.7%
EPS
$6.08
Previous year: $5.16
+17.8%
Gross Profit
$1.83B
Previous year: $1.21B
+51.8%
Cash and Equivalents
$475M
Previous year: $536M
-11.3%
Free Cash Flow
$1.08B
Previous year: $822M
+31.0%
Total Assets
$30B
Previous year: $25.9B
+15.5%

Parker-Hannifin

Parker-Hannifin

Parker-Hannifin Revenue by Segment

Forward Guidance

Parker expects total sales growth in the range of 3% to 6%; total segment operating margin in the range of 19.7% to 20.1%, or 23.0% to 23.4% on an adjusted basis; and earnings per share in the range of $18.05 to $19.05, or $21.90 to $22.90 on an adjusted basis for fiscal year 2024.

Positive Outlook

  • Total sales growth in the range of 3% to 6%
  • Total segment operating margin in the range of 19.7% to 20.1%, or 23.0% to 23.4% on an adjusted basis
  • Earnings per share in the range of $18.05 to $19.05, or $21.90 to $22.90 on an adjusted basis
  • Opportunities to accelerate performance through execution of the Win StrategyTM 3.0
  • Continued progress toward fiscal 2027 financial targets