Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q4 2025 Earnings Presentation
35 slides from Parker-hannifin's earnings presentation, Aug 7, 2025
Slide 1: Fiscal 2025 Fourth Quarter & Full Year Earnings Presentation
PARKER HANNIFIN CORPORATION Fiscal 2025 Fourth Quarter & Full Year Earnings Presentation August 7, 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: The Win Strategy Delivers Another Record Year
The Win Strategy Delivers Another Record Year A Culture of High Performance FY25 Highlights • Top quartile safety performance 17% $19.9B • Record engagement survey results Reduction in Sales Recordable Flat Reported • Record Adjusted Segment Operating Margin 1 of 26.1% Incident Rate +1% Organic1 • R
Slide 4: An Outstanding Year for Aerospace
An Outstanding Year for Aerospace Well Positioned for Sustained Growth & Operating Performance FY25 Highlights Competitive Advantages • Record $6.2B in Sales, 13% Organic Growth 1 • Proprietary designs on premier programs • Record Adjusted Segment Operating Margin 1 +190 bps • Long lifecycle with st
Slide 5: Expanding Industrial Segment Margins through the Cycle
Expanding Industrial Segment Margins through the Cycle Poised for a Return to Growth FY25 Highlights Competitive Advantages • Record 25.1% Adjusted Segment Operating Margin 1 • A powerhouse of interconnected technologies • Expanded Adjusted Segment Operating Margin 1 • Extensive global distribution
Slide 6: Portfolio Transformation Expands Longer Cycle and Secular Revenue Mix
Portfolio Transformation Expands Longer Cycle and Secular Revenue Mix FY15 FY25 FY29 Illustration Shorter Longer Shorter Longer Cycle + Shorter Longer Cycle + Cycle Cycle Cycle Secular Trends Cycle Secular Trends Industrial Aftermarket Industrial Aftermarket Industrial Aftermarket 6
Slide 7: Curtis Instruments Acquisition to Expand Electrification Offering
Curtis Instruments Acquisition to Expand Electrification Offering Further increasing our secular revenue mix Transaction Highlights Key Markets • Leader in low voltage motor control solutions for zero- emission and hybrid mobile equipment • Designs and manufactures motor speed controllers, instrumen
Slide 8: 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 9: Summary of Fiscal 2025 4th Quarter Highlights
SUMMARY OF FISCAL 2025 4TH QUARTER HIGHLIGHTS 9
Slide 10: FY25 Q4 Financial Summary
FY25 Q4 Financial Summary Another Quarter of Record Performance $ Millions, except per share amounts FY25 Q4 FY25 Q4 FY24 Q4 YoY Change As Reported Adjusted¹ Adjusted¹ Adjusted¹ Sales $5,243 $5,243 $5,187 +1% Segment Operating Margin 23.9% 26.9% 25.3% +160 bps EBITDA Margin 26.7% 26.8% 26.3% +50 bps
Slide 11: FY25 Q4 Adjusted Earnings per Share Bridge
FY25 Q4 Adjusted Earnings per Share Bridge $0.09 $0.12 $0.47 ($0.32) $0.56 $7.69 $6.77 FY24 Q4 Segment Income Interest Share Corporate FY25 Q4 Adjusted Operating Tax Expense Count & Other Adjusted EPS¹ Income EPS¹ 1. FY24 Q4 As Reported EPS of $6.01. FY25 Q4 As Reported EPS of $7.15. Includes certai
Slide 12: FY25 Q4 Segment Performance
FY25 Q4 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 $2,075M 24.7% 26.7% +2% +170 bps YoY • Gradual improvement acros
Slide 13: Record FY25 Cash Flow Performance
Record FY25 Cash Flow Performance Cash Flow Highlights Cash Flow from Operations Free Cash Flow1 $3.8B 19.0% 19.0% Cash Flow from Cash Flow from 16.8% Operations Operations 17.0% 15.0% +12% growth Margin $3.3B 16.8% $3.8B $3.3B Free Cash Flow1 Free Cash Flow $3.4B $3.0B +12% growth Margin1 $1.6B 109
Slide 14: FY26 Initial Guidance
FY26 INITIAL GUIDANCE 14
Slide 15: FY26 Organic Sales Growth Forecast by Key Market Vertical
FY26 Organic Sales Growth Forecast by Key Market Vertical Market Verticals Aerospace & In-Plant & Transportation Off-Highway Energy HVAC/R Defense Industrial % of Sales ~35% ~20% ~15% ~13% ~7% ~4% FY26 Organic Growth HSD LSD (MSD) (LSD) LSD LSD Guidance FY26 Organic Growth1: Aerospace: ~8% Industria
Slide 16: FY26 Initial Guidance
FY26 Initial Guidance Guidance Metric FY26 Full Year Full Year Assumptions FY26 Q1 Midpoint ▪ Previously completed divestitures impact ~(1%) Reported Sales Growth 2% - 5% ▪ Currency favorable ~1.5% 0.5% ▪ Split: 1H: 48% | 2H: 52% ▪ ~8% Aerospace organic growth Organic Sales Growth1 1.5% - 4.5% ▪ ~1%
Slide 17: FY26 Adjusted Earnings per Share Bridge
FY26 Adjusted Earnings per Share Bridge $0.18 $0.11 $0.37 $1.68 ($0.77) $28.90 $27.33 FY25 Segment Share Corporate Interest Income FY26 Adjusted Operating Count & Other Expense Tax Adjusted EPS¹ Income EPS¹ 1. FY25 As Reported EPS of $27.12. FY26 Projected EPS midpoint of $25.18. Includes certain no
Slide 18: What Drives Parker
What Drives Parker • Safety, Engagement, Ownership • Living up to Our Purpose • Top Quartile Performance • Great Generators & Deployers of Cash 18
Slide 19: Upcoming Event Calendar
UPCOMING EVENT CALENDAR FY26 Q1 Earnings Release November 6, 2025 FY26 Q2 Earnings Release January 29, 2026 19
Slide 20: Appendix
Appendix • FY26 Guidance Details • Reconciliation of Organic Growth • Adjusted Amounts Reconciliation – Consolidated Statement of Income • Adjusted Amounts Reconciliation – Segment Operating Income • Adjusted Amounts Reconciliation – FY19 – FY26G Sales Growth to Organic Sales Growth • Adjusted Amoun
Slide 21: 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 (2.0%) - 1.0% (0.5%) - 2.5% Interest Expense ~$390M International Businesses 3.0% - 6.0% (0.5%) - 2.5% Other (Income) Expen
Slide 22: Reconciliation of Q4 Organic Growth
Reconciliation of Q4 Organic Growth (Dollars in millions) (Unaudited) Quarter-to-Date As Reported Adjusted As Reported Net Sales June 30, 2025 Currency Divestitures June 30, 2025 June 30, 2024 Diversified Industrial: North America businesses $ 2,075 $ 7 $ 115 $ 2,197 $ 2,229 International businesses
Slide 23: Reconciliation of Full Year Organic Growth
Reconciliation of Full Year Organic Growth (Dollars in millions) (Unaudited) Year-to-Date As Reported Adjusted As Reported Net Sales June 30, 2025 Currency Divestitures June 30, 2025 June 30, 2024 Diversified Industrial: North America businesses $ 8,134 $ 43 $ 295 $ 8,472 $ 8,801 International busin
Slide 24: Adjusted Amounts Reconciliation Q4 Consolidated Statement of Income
Adjusted Amounts Reconciliation Q4 Consolidated Statement of Income (Dollars in millions, except per share data) (Unaudited) Quarter-to-Date FY 2025 Acquired Business Meggitt As Reported Intangible Asset Realignment Costs to Gain on Gain on Discrete Tax Adjusted June 30, 2025 % of Sales Amortization
Slide 25: Adjusted Amounts Reconciliation Full Year Consolidated Statement of Income
Adjusted Amounts Reconciliation Full Year Consolidated Statement of Income (Dollars in millions, except per share data) (Unaudited) Year-to-Date FY 2025 Acquired Business Meggitt As Reported Intangible Asset Realignment Costs to Gain on Gain on Saegertown Discrete Tax Adjusted June 30, 2025 % of Sal
Slide 26: Adjusted Amounts Reconciliation Q4 Segment Operating Income
Adjusted Amounts Reconciliation Q4 Segment Operating Income (Dollars in millions) (Unaudited) Quarter-to-Date FY 2025 Acquired Business Meggitt As Reported Intangible Asset Realignment Costs to Gain on Gain on Adjusted June 30, 2025 % of Sales Amortization Charges Achieve Sale of Building Divestitur
Slide 27: Adjusted Amounts Reconciliation Full Year Segment Operating Income
Adjusted Amounts Reconciliation Full Year Segment Operating Income (Dollars in millions) (Unaudited) Year-to-Date FY 2025 Acquired Business Meggitt Gain on As Reported Intangible Asset Realignment Costs to Sale of Gain on Saegertown Adjusted June 30, 2025 % of Sales Amortization Charges Achieve Buil
Slide 28: Adjusted Amounts Reconciliation FY19 – FY26G Segment Sales Growth to Organic Sales Growth
Adjusted Amounts Reconciliation FY19 – FY26G Segment Sales Growth to Organic Sales Growth DIVERSIFIED INDUSTRIAL RECONCILIATION OF SALES GROWTH TO ORGANIC SALES GROWTH (Unaudited) 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months ended ended ended ended ended ended ende
Slide 29: Adjusted Amounts Reconciliation FY19 – FY26G Segment Operating Margin
Adjusted Amounts Reconciliation FY19 – FY26G Segment Operating Margin DIVERSIFIED INDUSTRIAL RECONCILIATION OF OPERATING MARGIN TO ADJUSTED OPERATING MARGIN (Unaudited) 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months ended ended ended ended ended ended ended ended 6/3
Slide 30: Reconciliation of EBITDA to Adjusted EBITDA
Reconciliation of EBITDA to Adjusted EBITDA (Dollars in millions) Three Months Ended (Dollars in millions) Twelve Months Ended (Unaudited) June 30, (Unaudited) June 30, 2025 % of Sales 2024 % of Sales 2025 % of Sales 2024 % of Sales Net sales $ 5,243 100.0% $ 5,187 100.0% Net sales $ 19,850 100.0% $
Slide 31: Reconciliation of Operating Cash Flow Margin and Free Cash Flow Margin
Reconciliation of Operating Cash Flow Margin and Free Cash Flow Margin RECONCILIATION OF CASH FLOW FROM OPERATIONS TO FREE CASH FLOW (Unaudited) Twelve Months Ended June 30, (Dollars in millions) 2025 2024 Net Sales $ 19,850 $ 19,930 Cash Flow from Operations $ 3,776 $ 3,384 Capital Expenditures (43
Slide 32: Reconciliation of Adjusted Free Cash Flow Conversion
Reconciliation of Adjusted Free Cash Flow Conversion (Unaudited) (Dollars in millions) Twelve Months Ended June 30, 2025 Net Income $ 3,532 After-Tax Gain on Divestitures (231) After-Tax Gain on Sale of Buildings (18) Discrete Tax Benefits (215) Net Income Adjusted for Major Non-Recurring Items1 $ 3
Slide 33: Supplemental Sales Information
Supplemental Sales Information Global Technology Platforms (Unaudited) Three Months Ended June 30, Twelve Months Ended June 30, (Dollars in millions) 2025 2024 2025 2024 Net sales Diversified Industrial: Motion Systems $ 860 $ 903 $ 3,341 $ 3,706 Flow and Process Control 1,192 1,184 4,518 4,673 Filt
Slide 34: Reconciliation of Q1 FY26 Guidance
Reconciliation of Q1 FY26 Guidance RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH RECONCILIATION OF FORECASTED EARNINGS PER SHARE (Unaudited) (Unaudited) (Amounts in percentages) Q1 Fiscal Year 2026 (Amounts in dollars) Q1 Fiscal Year 2026 Forecasted net sales ~0.5% Forecasted ear
Slide 35: Reconciliation of FY26 Guidance
Reconciliation of FY26 Guidance 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 Forecasted earnings per dilute