Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q3 2026 Earnings Presentation
28 slides from Parker-hannifin's earnings presentation, Apr 30, 2026
Slide 1: Fiscal 2026 Third Quarter Earnings Presentation
PARKER HANNIFIN CORPORATION Fiscal 2026 Third Quarter Earnings Presentation April 30, 2026
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. Often but
Slide 3: Record Performance Enabled by the Strength of Our Portfolio
Record Performance Enabled by the Strength of Our Portfolio FY26 Q3 Highlights • Top quartile safety performance 1 12% $5.5B • Record sales of $5.5B, +6.5% organic growth Reduction in Sales Recordable +10.6% Reported Incident Rate +6.5% Organic 1 • Record adjusted segment operating margin1 of 26.7%
Slide 4: Why We Win
Why We Win Strong Competitive Advantages Parker’s Innovative Application Interconnected Distribution Business System Products Engineering Technologies Network Decentralized structure, Deep customer Technical expertise Enables Serving global strategic positioning & partnership to creates competitive
Slide 5: #1 Position in Motion & Control Industry
#1 Position in Motion & Control Industry Focused Portfolio Creating Distinct Value for Customers Across Market Verticals ~$21B FY26G Sales Other 6% HVAC/R 4% • Interconnected technologies and solutions Energy 7% Aerospace & across market verticals Defense 35% • 2/3s of our sales come from customers
Slide 6: Aerospace & Defense Market Vertical
Aerospace & Defense Market Vertical Trusted Partner Helping to Shape the Future of Flight Sales by Platform1 Sales by Market Segment1 Leading Commercial Programs Energy & Other A220 G400/500/600 737 Regional Transport Defense Commercial A320 G650/700/800 777 Helicopters A350 ERJ-175/195 E1 787 Comme
Slide 7: Transportation Market Vertical
Transportation Market Vertical Interconnected Technologies and Engineering Expertise Sales by Platform1 Competitive Advantages Rail Heavy Truck • Comprehensive offering of differentiated solutions Marine • Energy agnostic to meet changing customer needs • Improving reliability, safety & fuel efficie
Slide 8: Summary of Fiscal 2026 3rd Quarter Highlights
SUMMARY OF FISCAL 2026 3RD QUARTER HIGHLIGHTS 8
Slide 9: FY26 Q3 Financial Summary
FY26 Q3 Financial Summary Another Quarter of Record Performance $ Millions, except per share amounts FY26 Q3 FY26 Q3 FY25 Q3 YoY Change As Reported Adjusted¹ Adjusted¹ Adjusted¹ Sales $5,486 $5,486 $4,960 +11% Segment Operating Margin 23.4% 26.7% 26.3% +40 bps EBITDA Margin 26.5% 27.2% 27.0% +20 bps
Slide 10: FY26 Q3 Adjusted Earnings per Share Bridge
FY26 Q3 Adjusted Earnings per Share Bridge $0.14 $0.18 ($0.02) $0.96 ($0.03) $6.94 $8.17 FY25 Q3 Segment Income Share Interest Corporate FY26 Q3 Adjusted Operating Tax Count Expense & Other Adjusted EPS¹ Income EPS¹ 1. FY25 Q3 As Reported EPS of $7.37. FY26 Q3 As Reported EPS of $7.06. Includes cert
Slide 11: FY26 Q3 Segment Performance
FY26 Q3 Segment Performance Segment Segment Sales Operating Operating As Reported $ Margin Margin Order Organic %1 As Reported Adjusted 1 Rates2 Commentary Diversified Industrial • Record adjusted segment operating margin North America $2,141M 22.6% 25.3% +7% • Organic growth driven by in-plant, off
Slide 12: FY26 Q3 YTD Cash Flow Performance
FY26 Q3 YTD Cash Flow Performance Cash Flow Highlights 11% Quarterly Dividend Increase • $2.00 declared April 23, 2026 $2.6B 16.7% • 70 fiscal years of increasing annual Cash Flow from dividend per share paid Cash Flow from Operations Operations Margin Cash Flow from Operations Free Cash Flow 1 $2.3
Slide 13: FY26 Guidance
FY26 GUIDANCE 13
Slide 14: FY26 Market Vertical Growth Guidance
FY26 Market Vertical Growth Guidance Previous Current 1 Key Market Verticals % of Sales Commentary FY26 FY26 Guidance2 Guidance2 Aerospace & • Progress continues on increasing commercial transport build rates ~35% ~11% ~12% Defense • Aftermarket remains strong due to fleet age In-Plant & • Quoting a
Slide 15: FY26 Guidance Update
FY26 Guidance Update EPS: $27.10 As Reported, $31.20 Adjusted Previous FY26 Full Year Current Guidance Metric FY26 Full Year Full Year Assumptions FY26 Q4 Range • Currency favorable ~1.5% Reported Sales Growth 5.5% - 7.5% ~7% • Acquisitions ~1%; Divestitures ~(1%) ~5.5% • Split: 1H: 48% | 2H: 52% •
Slide 16: What Drives Parker
What Drives Parker • Safety, Engagement, Ownership • Living up to Our Purpose • Top Quartile Performance • Great Generators & Deployers of Cash 16
Slide 17: Upcoming Event Calendar
UPCOMING EVENT CALENDAR FY26 Q4 Earnings Release August 6, 2026 FY27 Q1 Earnings Release November 5, 2026 17
Slide 18: Appendix
Appendix • FY26 Guidance Details • Reconciliation of Q3 Organic Growth • Adjusted Amounts Reconciliation – Q3 Consolidated Statement of Income • Adjusted Amounts Reconciliation – Q3 Segment Operating Income • Reconciliation of EBITDA to Adjusted EBITDA • Reconciliation of Operating Cash Flow Margin
Slide 19: FY26 Guidance Details
FY26 Guidance Details Sales Growth vs. Prior Year As Reported Organic1 Additional Items As Reported Diversified Industrial Segment Corporate G&A ~$210M North America Businesses ~2.5% ~2.5% Interest Expense ~$405M International Businesses ~7.5% ~2.5% Other (Income) Expense ~$85M Aerospace Systems Seg
Slide 20: Reconciliation of Q3 Organic Growth
Reconciliation of Q3 Organic Growth Quarter-to-Date 20
Slide 21: Adjusted Amounts Reconciliation Q3 Consolidated Statement of Income
Adjusted Amounts Reconciliation Q3 Consolidated Statement of Income 21
Slide 22: Adjusted Amounts Reconciliation Q3 Segment Operating Income
Adjusted Amounts Reconciliation Q3 Segment Operating Income 22
Slide 23: Reconciliation of EBITDA to Adjusted EBITDA
Reconciliation of EBITDA to Adjusted EBITDA 23
Slide 24: Reconciliation of Operating Cash Flow Margin and Free Cash Flow Margin
Reconciliation of Operating Cash Flow Margin and Free Cash Flow Margin (Unaudited) (Dollars in millions) Nine Months Ended March 31, 2026 2025 Net Sales $15,744 $14,607 Cash Flow from Operations $2,628 $2,309 Capital Expenditures (286) (304) Free Cash Flow $2,342 $2,005 Cash Flow from Operations Mar
Slide 25: Supplemental Sales Information
Supplemental Sales Information Global Technology Platforms (Unaudited) (Dollars in millions) Three Months Ended March 31, Net Sales 2026 2025 Diversified Industrial: Motion Systems $ 919 $ 828 Flow and Process Control 1,220 1,141 Filtration and Engineered Materials 1,533 1,420 Aerospace Systems 1,81
Slide 26: Reconciliation of FY26 Q4 Guidance
Reconciliation of FY26 Q4 Guidance RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE (Unaudited) Fiscal Year 2026 Q4 RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH Forecasted earnings per diluted share ~$7.15 (Unaudited) Adju
Slide 27: Current Reconciliation of FY26 Guidance
Current Reconciliation of FY26 Guidance RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH (Unaudited) (Amounts in percentages) Fiscal Year 2026 Forecasted Net Currency Acquisitions Divestitures Adjusted Forecasted Sales Net Sales Diversified Industrial North America Businesses ~2.5%
Slide 28: Previous Reconciliation of FY26 Guidance (from Jan 29, 2026)
Previous Reconciliation of FY26 Guidance (from Jan 29, 2026) RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH (Unaudited) (Amounts in percentages) Fiscal Year 2026 Forecasted Net Currency Acquisitions Divestitures Adjusted Forecasted Sales Net Sales Diversified Industrial North Amer