Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q1 2026 Earnings Presentation
28 slides from Parker-hannifin's earnings presentation, Nov 6, 2025
Slide 1: Fiscal 2026 First Quarter Earnings Presentation
PARKER HANNIFIN CORPORATION Fiscal 2026 First Quarter Earnings Presentation November 6, 2025
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: Operational Excellence Powered by The Win Strategy
Operational Excellence Powered by The Win Strategy Great Start to the Fiscal Year FY26 Q1 Highlights • Top quartile safety performance 1 20% $5.1B • Record Sales of $5.1B, +5% organic growth Reduction in Sales Recordable +3.7% Reported Incident Rate +5.0% Organic1 • Record Adjusted Earnings Per Shar
Slide 4: Parker Welcomes Curtis Instruments - Day One Events
Parker Welcomes Curtis Instruments - Day One Events New York Puerto Rico UK China Bulgaria New York 4
Slide 5: 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 6: #1 Position in Motion & Control Industry
#1 Position in Motion & Control Industry >90% of Sales Comes from 6 Market Verticals ~$145B Market Size Other 6% HVAC/R 4% • Interconnected technologies and solutions Energy 7% Aerospace & Defense 35% across market verticals • 2/3 of our revenue comes from customers who Off Highway 13% ~$20B buy 4 o
Slide 7: Energy Market Solutions
Energy Market Solutions Gas Turbine Power Generation Parker Technology Platforms Flow and Process Control Filtration & Engineered Materials Instrumentation tube fittings Medium pressure filters Fuel metering valves Natural gas filters Hydraulic tube fittings Liquid fuel & cartridge filters Casing &
Slide 8: Summary of Fiscal 2026 1st Quarter Highlights
SUMMARY OF FISCAL 2026 1ST QUARTER HIGHLIGHTS 8
Slide 9: FY26 Q1 Financial Summary
FY26 Q1 Financial Summary Sales Growth and Margin Expansion Fuels Mid-teens EPS Growth $ Millions, except per share amounts FY26 Q1 FY26 Q1 FY25 Q1 YoY Change As Reported Adjusted¹ Adjusted¹ Adjusted¹ Sales $5,084 $5,084 $4,904 +4% Segment Operating Margin 24.2% 27.4% 25.7% +170 bps EBITDA Margin 27
Slide 10: FY26 Q1 Adjusted Earnings per Share Bridge
FY26 Q1 Adjusted Earnings per Share Bridge $0.13 $0.07 $0.18 $0.80 ($0.16) $7.22 $6.20 FY25 Q1 Segment Corporate Interest Share Income FY26 Q1 Adjusted Operating & Other Expense Count Tax Adjusted EPS¹ Income EPS¹ 1. FY25 Q1 As Reported EPS of $5.34. FY26 Q1 As Reported EPS of $6.29. Includes certai
Slide 11: FY26 Q1 Segment Performance
FY26 Q1 Segment Performance Segment Segment Sales Operating Operating As Reported $ Margin Margin Order Organic %1 As Reported Adjusted 1 Rates2 Commentary • Organic growth turned positive driven by Aerospace & Diversified Industrial North America $2,044M 24.8% 27.0% +3% Defense, In-Plant, and impro
Slide 12: FY26 Q1 Cash Flow Performance
FY26 Q1 Cash Flow Performance Cash Flow Highlights Cash Flow from Operations Free Cash Flow1 $782M 15.4% 15.2% 15.4% 13.6% Cash Flow from Cash Flow from 13.2% Operations Operations +5% growth Margin $693M 13.6% $744M $782M $693M Free Cash Flow1 Free Cash Flow $649M +7% growth Margin1 $475M Share FY2
Slide 13: FY26 Guidance
FY26 GUIDANCE 13
Slide 14: FY26 Organic Sales Growth Guidance
FY26 Organic Sales Growth Guidance Previous Current 1 Key Market Verticals % of Sales Commentary FY26 FY26 Guidance2 Guidance2 Aerospace & ~35% • Continued commercial OEM and aftermarket strength ~8.0% ~9.5% Defense In-Plant & • Sentiment remains positive with continued quoting activity ~20% LSD LSD
Slide 15: FY26 Guidance
FY26 Guidance Raising Sales, Margin, EPS, and Free Cash Flow Guidance Metric Previous Updated Full Year Assumptions FY26 Q2 FY26 Full Year FY26 Full Year Midpoint • Currency favorable ~1.5% Reported Sales Growth 2% - 5% 4% - 7% • Acquisitions ~1%; Divestitures ~(1%) ~6.5% • 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 Q2 Earnings Release January 29, 2026 FY26 Q3 Earnings Release April 30, 2026 17
Slide 18: Appendix
Appendix • FY26 Guidance Details • Reconciliation of Q1 Organic Growth • Adjusted Amounts Reconciliation – Q1 Consolidated Statement of Income • Adjusted Amounts Reconciliation – Q1 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 ~$200M North America Businesses 0.5% - 3.5% 0.5% - 3.5% Interest Expense ~$420M International Businesses 4.5% - 7.5% (0.5%) - 2.5% Other (Income) Expense ~
Slide 20: Reconciliation of Q1 Organic Growth
Reconciliation of Q1 Organic Growth Quarter-to-Date 20
Slide 21: Adjusted Amounts Reconciliation Q1 Consolidated Statement of Income
Adjusted Amounts Reconciliation Q1 Consolidated Statement of Income Parker Hannifin Corporation Consolidated Statement of Income - Adjusted Quarter-to-Date (Dollars in millions, except per share data) (Unaudited) Quarter-to-Date FY 2026 Acquired Business As Reported Intangible Asset Realignment Cost
Slide 22: Adjusted Amounts Reconciliation Q1 Segment Operating Income
Adjusted Amounts Reconciliation Q1 Segment Operating Income Parker Hannifin Corporation Segment Operating Income - Adjusted Quarter-to-Date (Dollars in millions) (Unaudited) Quarter-to-Date FY 2026 Acquired Business As Reported Intangible Asset Realignment Costs to Acquisition Gain on Insurance Adju
Slide 23: Reconciliation of EBITDA to Adjusted EBITDA
Reconciliation of EBITDA to Adjusted EBITDA Parker Hannifin Corporation EBITDA & Adjusted EBITDA (Dollars in millions) Three Months Ended (Unaudited) September 30, 2025 % of Sales 2024 % of Sales Net sales $ 5,084 100.0% $ 4,904 100.0% Net income $ 808 15.9% $ 698 14.2% Income taxes 232 4.6% 177 3.6
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) Three Months Ended September 30, 2025 2024 Net Sales $5,084 $4,904 Cash Flow from Operations $782 $744 Capital Expenditures ($89) ($95) Free Cash Flow $693 $649 Cash Flow from Operations Margin 1
Slide 25: Supplemental Sales Information
Supplemental Sales Information Global Technology Platforms (Unaudited) (Dollars in millions) Three Months Ended September 30, Net Sales 2025 2024 Diversified Industrial: Motion Systems $ 824 $ 849 Flow and Process Control 1,158 1,126 Filtration and Engineered Materials 1,461 1,481 Aerospace Systems
Slide 26: Reconciliation of FY26 Q2 Guidance
Reconciliation of FY26 Q2 Guidance RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE (Unaudited) (Amounts in percentages) Fiscal Year 2026 Q2 RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH Forecasted earnings per diluted shar
Slide 27: Current Reconciliation of FY26 Guidance
Current Reconciliation of FY26 Guidance RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH RECONCILIATION OF FORECASTED CASH FLOW FROM OPERATIONS TO FREE CASH FLOW (Unaudited) (Unaudited) Fiscal Year 2026 (Dollars in millions) Fiscal Year 2026 (Amounts in percentages) Cash flow from o
Slide 28: Previous Reconciliation of FY26 Guidance (from Aug 7, 2025)
Previous Reconciliation of FY26 Guidance (from Aug 7, 2025) RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH RECONCILIATION OF FORECASTED EARNINGS PER SHARE (Unaudited) (Unaudited) Fiscal Year 2026 (Amounts in percentages) (Amounts in dollars) Fiscal Year 2026 Adjusted Forecasted Fo