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Jun 30
Parker-Hannifin Q4 2025 Earnings Report
Parker-Hannifin reported record sales and earnings per share for the fourth quarter and full fiscal year 2025.
Key Takeaways
Parker-Hannifin delivered an outstanding performance in the fourth quarter of fiscal year 2025, achieving record sales of $5.2 billion and a record adjusted EPS of $7.69. The company saw significant increases in net income and segment operating margin, contributing to a record-breaking fiscal year across multiple key metrics including safety, engagement, earnings per share, margins, and cash flow. The Aerospace Systems segment was a strong performer with significant organic sales growth and record adjusted operating margin, while the Diversified Industrial segment achieved record adjusted operating margins in both North America and International businesses.
Record sales of $5.2 billion were achieved in Q4 FY25, with organic sales growth of 2%.
Diluted EPS increased by 19% to $7.15, and adjusted diluted EPS rose by 14% to a record $7.69.
Segment operating margin improved by 170 basis points to 23.9%, with adjusted segment operating margin increasing by 160 basis points to 26.9%.
The company repurchased $851 million of shares in Q4 and announced an agreement to acquire Curtis Instruments, Inc., expanding its electrification offering.
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 2026, Parker-Hannifin expects sales growth of 2% to 5%, with organic sales growth of approximately 3% at the midpoint. Total segment operating margin is projected to be between 23.3% and 23.7%, or 26.3% to 26.7% on an adjusted basis. Diluted EPS is forecasted to be in the range of $24.68 to $25.68, with adjusted diluted EPS between $28.40 and $29.40.
Positive Outlook
- Aerospace is expected to remain the fastest-growing business.
- Return to positive organic growth anticipated in Industrial businesses.
- Commitment to being strong generators and deployers of cash to drive shareholder value.
- Forecasted adjusted EPS of $28.40 to $29.40, indicating continued profitability.
- Anticipated adjusted total segment operating margin of 26.3% to 26.7%.
Challenges Ahead
- Previously completed divestitures are expected to negatively impact sales growth by 1%.
- Currency fluctuations are projected to have a negative impact of approximately 1.5% on sales growth.
- The forecasted EPS range of $24.68 to $25.68 is lower than the FY25 reported EPS of $27.12.
- The forecasted adjusted EPS range of $28.40 to $29.40 is only slightly higher than the FY25 adjusted EPS of $27.33, indicating a potential slowdown in growth rate.
- No specific negative factors were highlighted beyond the impact of divestitures and currency on sales.