Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q2 2026 Earnings Presentation
30 slides from Parker-hannifin's earnings presentation, Jan 29, 2026
Slide 1: Fiscal 2026 Second Quarter Earnings Presentation
PARKER HANNIFIN CORPORATION Fiscal 2026 Second Quarter Earnings Presentation January 29, 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: One Team, One Strategy: Compounding Performance
One Team, One Strategy: Compounding Performance FY26 Q2 Highlights • Top quartile safety performance 8% $5.2B • Record sales of $5.2B, +6.6% organic growth 1 Reduction in Sales Recordable +9.1% Reported Incident Rate +6.6% Organic1 • Record adjusted segment operating margin1 of 27.1% • Record adjust
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 ~$21B FY26G Sales Other 6% HVAC/R 4% • Interconnected technologies and solutions Energy 7% Aerospace & across market verticals Defense 35% • 2/3’s of our sales come from customers who A Technology buy 4
Slide 6: Off-Highway Market Vertical
Motion Systems Filtration Flow & Process Control Engineered Materials Off-Highway Market Vertical ~13% of FY25 Parker Sales Other Construction • Comprehensive offering of differentiated solutions • Poised for growth from capex & infrastructure spending Mining Off-Highway • Technical expertise & trus
Slide 7: Continued Progress on Filtration Group Acquisition
Continued Progress on Filtration Group Acquisition Another Strategic Addition to Parker Adds Complementary & Proprietary Filtration Technologies 7
Slide 8: The Win Strategy Coupled with Disciplined Capital Allocation
The Win Strategy Coupled with Disciplined Capital Allocation $30.70 $27.33 $18.72 $13.10 $6.99 Adjusted EPS1 FY16 FY19 FY22 FY25 FY26G As Reported EPS $5.89 $11.57 $10.09 $27.12 $26.56 1. Adjusted numbers include certain non-GAAP adjustments and financial measures. See Appendix for additional detail
Slide 9: Summary of Fiscal 2026 2nd Quarter Highlights
SUMMARY OF FISCAL 2026 2ND QUARTER HIGHLIGHTS 9
Slide 10: FY26 Q2 Financial Summary
FY26 Q2 Financial Summary Record Sales and Segment Operating Margin Drive Adjusted EPS Growth $ Millions, except per share amounts FY26 Q2 FY26 Q2 FY25 Q2 YoY Change As Reported Adjusted¹ Adjusted¹ Adjusted¹ Sales $5,174 $5,174 $4,743 +9% Segment Operating Margin 23.9% 27.1% 25.6% +150 bps EBITDA Ma
Slide 11: FY26 Q2 Adjusted Earnings per Share Bridge
FY26 Q2 Adjusted Earnings per Share Bridge $0.16 $0.01 $0.01 $1.15 ($0.18) ($0.03) $6.53 $7.65 FY25 Q2 Segment Share Corporate Income Other Interest FY26 Q2 Adjusted Operating Count Tax Expense Adjusted EPS¹ Income EPS¹ 1. FY25 Q2 As Reported EPS of $7.25 which included a one-time after-tax gain fro
Slide 12: FY26 Q2 Segment Performance
FY26 Q2 Segment Performance Segment Segment Sales Operating Operating As Reported $ Margin Margin Order Organic %1 As Reported Adjusted 1 Rates2 Commentary Diversified Industrial • Organic growth from in-plant, off-highway and A&D North America $1,986M 22.4% 25.4% +7% +80 bps YoY • Achieved record a
Slide 13: FY26 Q2 YTD Cash Flow Performance
FY26 Q2 YTD Cash Flow Performance Cash Flow from Operations Free Cash Flow1 Cash Flow Highlights $1.6B 16.0% 17.4% 16.0% 15.2% 14.2% Cash Flow from Cash Flow from Operations Operations Margin $1.7B $1.6B $1.5B $1.5B $1.5B 14.2% Free Cash Flow1 Free Cash Flow Margin1 FY25 FY26 FY25 FY26 % to sales 1.
Slide 14: FY26 Guidance
FY26 GUIDANCE 14
Slide 15: FY26 Market Vertical Growth Guidance
FY26 Market Vertical Growth Guidance Previous Current 1 Key Market Verticals % of Sales Commentary FY26 FY26 Guidance2 Guidance2 Aerospace & • Commercial OEM growth as production rates increase ~35% ~9.5% ~11% Defense • Commercial Aftermarket strong with aged fleet & air traffic growth In-Plant & •
Slide 16: FY26 Guidance Raised Across the Board
FY26 Guidance Raised Across the Board Raising Sales, Margin, EPS, and Free Cash Flow Guidance Metric Previous Current Full Year Assumptions FY26 Q3 FY26 Full Year FY26 Full Year Midpoint • Currency favorable ~1.5% Reported Sales Growth 4% - 7% 5.5% - 7.5% • Acquisitions ~1%; Divestitures ~(1%) ~8.5%
Slide 17: What Drives Parker
What Drives Parker • Safety, Engagement, Ownership • Living up to Our Purpose • Top Quartile Performance • Great Generators & Deployers of Cash 17
Slide 18: Upcoming Event Calendar
UPCOMING EVENT CALENDAR FY26 Q3 Earnings Release April 30, 2026 FY26 Q4 Earnings Release August 6, 2026 18
Slide 19: Appendix
Appendix • FY26 Guidance Details • Reconciliation of Q2 Organic Growth • Adjusted Amounts Reconciliation – Q2 Consolidated Statement of Income • Adjusted Amounts Reconciliation – Q2 Segment Operating Income • Reconciliation of EBITDA to Adjusted EBITDA • Reconciliation of Operating Cash Flow Margin
Slide 20: 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 1.5% - 3.5% 1.5% - 3.5% Interest Expense ~$415M International Businesses 6.0% - 8.0% 1.0% - 3.0% Other (Income) Expense ~$8
Slide 21: Reconciliation of Q2 Organic Growth
Reconciliation of Q2 Organic Growth Quarter-to-Date 21
Slide 22: Adjusted Amounts Reconciliation Q2 Consolidated Statement of Income
Adjusted Amounts Reconciliation Q2 Consolidated Statement of Income 22
Slide 23: Adjusted Amounts Reconciliation Q2 Segment Operating Income
Adjusted Amounts Reconciliation Q2 Segment Operating Income 23
Slide 24: Reconciliation of EBITDA to Adjusted EBITDA
Reconciliation of EBITDA to Adjusted EBITDA 24
Slide 25: 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) Six Months Ended December 31, 2025 2024 Net Sales $10,258 $9,647 Cash Flow from Operations $1,644 $1,679 Capital Expenditures (183) (216) Free Cash Flow $1,461 $1,463 Cash Flow from Operations Ma
Slide 26: Supplemental Sales Information
Supplemental Sales Information Global Technology Platforms (Unaudited) (Dollars in millions) Three Months Ended December 31, Net Sales 2025 2024 Diversified Industrial: Motion Systems $ 893 $ 804 Flow and Process Control 1,114 1,059 Filtration and Engineered Materials 1,461 1,390 Aerospace Systems 1
Slide 27: Reconciliation of FY26 Q3 Guidance
Reconciliation of FY26 Q3 Guidance RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE (Unaudited) Fiscal Year 2026 Q3 RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH Forecasted earnings per diluted share ~$6.66 (Unaudited) Adju
Slide 28: 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 1.5% t
Slide 29: Previous Reconciliation of FY26 Guidance (from Nov 6, 2025)
Previous Reconciliation of FY26 Guidance (from Nov 6, 2025) 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 percentag
Slide 30: Reconciliation of Earnings Per Diluted Share to Adjusted EPS FY16 – FY25
Reconciliation of Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share FY16 – FY25 (Amounts in dollars) 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended (Unaudited) 6/30/16 6/30/19* 6/30/22 6/30/25 Earnings per diluted share $5.89 $11.57 $10.09 $27.12 Adjustments: Acquisi