Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q3 2025 Earnings Presentation
27 slides from Parker-hannifin's earnings presentation, May 1, 2025
Slide 1: Fiscal 2025 Third Quarter Earnings Presentation
PARKER HANNIFIN CORPORATION Fiscal 2025 Third Quarter Earnings Presentation May 1, 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: Strength of our Business and Team Delivers Record Results
Strength of our Business and Team Delivers Record Results FY25 Q3 Highlights • Top quartile safety performance 19% $5.0B • Record Adjusted Segment Operating Margin1 of 26.3% Reduction in Sales Recordable (2%) Reported Incident Rate +1% Organic1 • Record Adjusted EBITDA Margin1 of 27.0% • Record YTD
Slide 4: Our Business System Drives Performance Over the Cycle
Our Business System Drives Performance Over the Cycle 4
Slide 5: Our Portfolio Is More Resilient Than Ever
Our Portfolio Is More Resilient Than Ever FY25G Revenue ~$20B • #1 position in Motion & Control industry Motion Aerospace Systems 31% • Interconnected technologies & solutions 17% across market verticals • Acquisitions of Clarcor, LORD, Exotic, Technology & Meggitt ~60% Platforms • Greater exposure
Slide 6: Simplification Drives Margin Expansion Across Cycles
Simplification Drives Margin Expansion Across Cycles 80/20 Structure & Organization Revenue Simple by Footprint Design Complexity Design™ Continuous improvement to Optimizing Leveraging distribution; Reducing complexity to increase profitability resources Product rationalization enable growth & effi
Slide 7: Strategic Supply Chain is a Competitive Differentiator
Strategic Supply Chain is a Competitive Differentiator Demand & Dual Local for Tariff Capacity Planning Sourcing Local Mitigation Improving customer Increasing Source, make and Robust analytics and experience resiliency deliver in region, processes designed to for the region protect EPS 7
Slide 8: Summary of Fiscal 2025 3rd Quarter Highlights
SUMMARY OF FISCAL 2025 3RD QUARTER HIGHLIGHTS 8
Slide 9: FY25 Q3 Financial Summary
FY25 Q3 Financial Summary $ Millions, except per share amounts FY25 Q3 FY25 Q3 FY24 Q3 YoY Change As Reported Adjusted¹ Adjusted¹ Adjusted Sales $4,960 $4,960 $5,074 (2%) Segment Operating Margin 23.2% 26.3% 24.7% +160 bps EBITDA Margin 26.5% 27.0% 25.5% +150 bps Net Income $961 $904 $851 +6% EPS $7
Slide 10: FY25 Q3 Adjusted Earnings per Share Bridge
FY25 Q3 Adjusted Earnings per Share Bridge $0.08 $0.01 $0.17 ($0.02) ($0.13) $0.32 $6.94 $6.51 FY24 Q3 Segment Interest Corp G&A Share Income Other FY25 Q3 Adjusted Operating Expense Count Tax Expense Adjusted EPS¹ Income EPS¹ 1. FY24 Q3 As Reported EPS of $5.56. FY25 Q3 As Reported EPS of $7.37. In
Slide 11: FY25 Q3 Segment Performance
FY25 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 $2,031M 23.0% 25.2% +3% • Softness in transportation, off-highwa
Slide 12: FY25 Q3 YTD Cash Flow Performance
FY25 Q3 YTD Cash Flow Performance Cash Flow Highlights 10% Quarterly Dividend Increase • $1.80 declared April 24, 2025 $2.3B 15.8% • 69 fiscal years of increasing annual Cash Flow from Cash Flow from dividend per share paid Operations Operations +8% growth Margin Cash Flow from Operations Free Cash
Slide 13: FY25 Guidance Update
FY25 GUIDANCE UPDATE 13
Slide 14: FY25 Sales Growth Forecast by Key Market Verticals
FY25 Sales Growth Forecast by Key Market Verticals Previous Current Key Market Verticals % of Sales FY25 Commentary FY25 Guidance Guidance Aerospace & • High-teens aftermarket growth 33% ~11% ~12% Defense • Continued progress on commercial OEM growth In-Plant & • Prolonged delay in industrial recove
Slide 15: FY25 Guidance Update
FY25 Guidance Update EPS Midpoint: $26.02 As Reported, Maintaining $26.70 Adjusted Guidance Metric FY25 Full Year Full Year Assumptions FY25 Q4 Midpoint • Currency unfavorable ~(0.5%) Reported Sales Growth ~(1%) ~$5.1B • Divestitures impact ~(1.5%) • Raised Aerospace organic growth to 12% Organic Sa
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 FY25 Q4 Earnings Release August 7, 2025 FY26 Q1 Earnings Release November 6, 2025 17
Slide 18: Appendix
Appendix • FY25 Guidance Details • Reconciliation of Organic Growth • Adjusted Amounts Reconciliation – Consolidated Statement of Income • Adjusted Amounts Reconciliation – Segment Operating Income • Reconciliation of EBITDA to Adjusted EBITDA • Reconciliation of Operating Cash Flow Margin and Free
Slide 19: FY25 Guidance Details
FY25 Guidance Details Sales Growth vs. Prior Year As Reported Organic1 Additional Items As Reported Adjusted1 Diversified Industrial Segment Corporate G&A ~$205M North America Businesses ~(8%) ~(4%) Interest Expense ~$410M International Businesses ~(4%) ~(2.5%) Other (Income) Expense (~$190M) ~$65M
Slide 20: Reconciliation of Organic Growth
Reconciliation of Organic Growth (Dollars in thousands) (Unaudited) Quarter-to-Date As Reported Adjusted As Reported Net Sales March 31, 2025 Currency Divestitures March 31, 2025 March 31, 2024 Diversified Industrial $ 3,388,759 $ 54,201 $ 104,980 $ 3,547,940 $ 3,665,643 Aerospace Systems 1,571,590
Slide 21: Adjusted Amounts Reconciliation Consolidated Statement of Income
Adjusted Amounts Reconciliation Consolidated Statement of Income (Dollars in thousands, except per share data) (Unaudited) Quarter-to-Date FY 2025 Acquired Business Meggitt As Reported Intangible Asset Realignment Costs to Saegertown Discrete Tax1 Adjusted March 31, 2025 % of Sales Amortization Char
Slide 22: Adjusted Amounts Reconciliation Segment Operating Income
Adjusted Amounts Reconciliation Segment Operating Income (Dollars in thousands) (Unaudited) Quarter-to-Date FY 2025 Acquired Business Meggitt As Reported Intangible Asset Realignment Costs to Saegertown Adjusted March 31, 2025 % of Sales Amortization Charges Achieve Incident March 31, 2025 % of Sale
Slide 23: Reconciliation of EBITDA to Adjusted EBITDA
Reconciliation of EBITDA to Adjusted EBITDA (Dollars in thousands) Three Months Ended (Unaudited) March 31, 2025 % of Sales 2024 % of Sales Net sales $ 4,960,349 100.0 % $ 5,074,356 100.0 % Net income $ 961,186 19.4 % $ 726,734 14.3 % Income taxes 33,628 0.7 % 193,309 3.8 % Depreciation 86,832 1.8 %
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) Nine Months Ended March 31, (Dollars in thousands) 2025 2024 Net Sales $ 14,606,926 $ 14,742,791 Net Income $ 2,608,363 $ 2,059,863 Cash Flow from Operations $ 2,308,761 $ 2,147,077 Capital Expenditures (304,153) (283
Slide 25: Supplemental Sales Information
Supplemental Sales Information Global Technology Platforms (Unaudited) Three Months Ended March 31, (Dollars in thousands) 2025 2024 Net sales Diversified Industrial: Motion Systems $ 827,987 $ 942,667 Flow and Process Control 1,141,072 1,185,622 Filtration and Engineered Materials 1,419,700 1,537,3
Slide 26: Reconciliation of Q4 FY25 Guidance
Reconciliation of Q4 FY25 Guidance RECONCILIATION OF ORGANIC GROWTH RECONCILIATION OF FORECASTED EARNINGS PER SHARE (Unaudited) (Unaudited) (Amounts in percentages) Q4 Fiscal Year 2025 (Amounts in dollars) Q4 Fiscal Year 2025 Forecasted net sales (~2.0%) Forecasted earnings per diluted share ~$6.05
Slide 27: Reconciliation of FY25 Guidance
Reconciliation of FY25 Guidance RECONCILIATION OF ORGANIC GROWTH RECONCILIATION OF FORECASTED EARNINGS PER SHARE (Unaudited) (Unaudited) Fiscal Year 2025 (Amounts in dollars) Fiscal Year 2025 (Amounts in percentages) Adjusted Forecasted Forecasted earnings per diluted share $25.92 to $26.12 Forecast