Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q4 2026 Earnings Presentation
32 slides from Parker-hannifin's earnings presentation, Aug 6, 2026
Slide 1: Fiscal 2026 Fourth Quarter & Full Year Earnings Presentation
PARKER HANNIFIN CORPORATION Fiscal 2026 Fourth Quarter & Full Year Earnings Presentation August 6, 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 FY26 Performance Powered by The Win Strategy
Record FY26 Performance Powered by The Win Strategy FY26 Highlights • Record safety performance 1 9% $21.5B • Record sales of $21.5B, +6.6% organic growth Reduction in Sales Recordable +8.3% Reported Incident Rate +6.6% Organic1 • Record adjusted segment operating margin1 of 27.3% • Record adjusted
Slide 4: Strategic Capital Deployment to Further Compound Growth
Strategic Capital Deployment to Further Compound Growth Completed September 2025 Announced November 2025 Announced May 2026 Enhances electrification capabilities with Expands offering and aftermarket with Adds complementary flight critical complementary technologies proprietary filtration technologi
Slide 5: Raising Adjusted Segment Operating Margin Target to 30%
Raising Adjusted Segment Operating Margin Target to 30% Extending Our Track Record of Achieving and Raising Targets 30% +300 bps From previous target 27% 25% FY31 Targets: 21% • 4 to 6% organic growth 17% • 30% adjusted segment 15% operating margin • 17% free cash flow margin • 10%+ adjusted EPS gro
Slide 6: Order Rates
Order Rates All Businesses Moving to Rolling 12-Month Comparisons Beginning in FY27 Motion Aerospace Systems Motion Systems Profoundly Different Portfolio Systems 15% • Higher concentration of Aerospace & Defense FY26 Proforma1 • Longer cycle and more resilient end markets Sales by Tech Platform • S
Slide 7: Summary of Fiscal 2026 4th Quarter Highlights
SUMMARY OF FISCAL 2026 4TH QUARTER HIGHLIGHTS 7
Slide 8: FY26 Q4 Financial Summary
FY26 Q4 Financial Summary 21% Adjusted EPS Growth $ Millions, except per share amounts FY26 Q4 FY26 Q4 FY25 Q4 YoY Change As Reported Adjusted¹ Adjusted¹ Adjusted¹ Sales $5,755 $5,755 $5,243 +10% Segment Operating Margin 26.5% 28.0% 26.9% +110 bps EBITDA Margin 29.1% 28.6% 26.8% +180 bps Net Income
Slide 9: FY26 Q4 Adjusted Earnings per Share Bridge
FY26 Q4 Adjusted Earnings per Share Bridge $0.25 $0.09 $0.02 $1.29 ($0.07) $7.69 $9.27 FY25 Q4 Segment Corporate Share Count Interest Income FY26 Q4 Adjusted Operating & Other Expense Tax Adjusted EPS¹ Income EPS¹ 1. FY25 Q4 As Reported EPS of $7.15. FY26 Q4 As Reported EPS of $8.54. Includes certai
Slide 10: FY26 Q4 Segment Performance
FY26 Q4 Segment Performance Segment Segment Sales Operating Operating Existing Rolling 12 As Reported $ Margin Margin Order Order Organic %1 As Reported Adjusted1 Rates2 Rates3 Commentary Diversified Industrial North • Organic sales growth of 5% as recovery broadens $2,221M 27.3% 27.4% +16% +9% Amer
Slide 11: Record FY26 Cash Flow Performance
Record FY26 Cash Flow Performance FY26 Capital Deployment Actions: Cash Flow Highlights • $1.0B Share Repurchases • $0.9B Dividends Paid $4.4B 20.3% • $0.5B Capital Expenditures Cash Flow from • $1.0B Acquisition of Curtis Instruments CFOA Operations +16% Growth • $11.8B Announced Filtration Group &
Slide 12: FY27 Initial Guidance
FY27 INITIAL GUIDANCE 12
Slide 13: FY27 Market Vertical Growth Guidance
FY27 Market Vertical Growth Guidance Current 1 Key Market Verticals % of Sales Commentary FY27 Guidance Aerospace & • Robust Commercial OEM, sustained Aftermarket growth ~37% +HSD Defense • Global defense spending driving stronger growth In-Plant & • Customer demand improving, expect gradual acceler
Slide 14: Initiating FY27 Guidance
Initiating FY27 Guidance EPS Midpoint: $30.50 As Reported, $34.75 Adjusted FY27 Q1 Guidance Metric FY27 Full Year Full Year Assumptions Midpoint • Currency unfavorable ~0.5% Reported Sales Growth 5.5% - 8.5% • Previously completed acquisitions ~0.5% ~9% • Split: 1H: 48% | 2H: 52% • 5% to 8% Industri
Slide 15: FY27 Guidance Adjusted Earnings per Share Bridge
FY27 Guidance Adjusted Earnings per Share Bridge $0.38 $0.07 $3.07 ($0.94) ($0.14) $32.31 $34.75 FY26 Segment Interest Share Income Corporate FY27 Guidance Adjusted Operating Expense Count Tax & Other Adjusted EPS¹ EPS¹ Income 1. FY26 As Reported EPS of $28.48. FY27 Projected As Reported EPS midpoin
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 FY27 Q1 Earnings Release November 5, 2026 FY27 Q2 Earnings Release February 4, 2027 17
Slide 18: Appendix
Appendix • FY27 Guidance Details • Historical Order Rate Comparison • 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 N
Slide 19: FY27 Guidance Details
FY27 Guidance Details Sales Growth vs. Prior Year As Reported Organic1 Additional Items As Reported Diversified Industrial Segment Corporate G&A ~$200M North America Businesses 5.5% - 8.5% 5% - 8% Interest Expense ~$340M International Businesses 3.5% - 6.5% 4% - 7% Other (Income) Expense ~$100M Aero
Slide 20: Historical Order Rate Comparison
Historical Order Rate Comparison FY25 FY26 Order Rates as Previously Disclosed1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Diversified North America (3%) 3% 3% 2% 3% 7% 7% 16% Rolling 3 Diversified International 1% 4% 11% 0% 6% 6% 6% 24% Rolling 3 Aerospace 7% 9% 14% 12% 15% 14% 14% 18% Rolling 12 Parker 1% 5% 9% 5% 8
Slide 21: Reconciliation of Q4 Organic Growth
Reconciliation of Q4 Organic Growth Parker Hannifin Corporation Sales by Segment - Adjusted (Dollars in millions) (Unaudited) Quarter-to-Date As reported Currency Divestitures Acquisitions Organic Diversified Industrial: North America businesses 7.0 % 0.3 % 0.0 % 1.8 % 4.9 % International businesses
Slide 22: Reconciliation of Full Year Organic Growth
Reconciliation of Full Year Organic Growth Parker Hannifin Corporation Sales by Segment - Adjusted (Dollars in millions) (Unaudited) Year-to-Date As reported Currency Divestitures Acquisitions Organic Diversified Industrial: North America businesses 3.2 % 0.4 % (1.8)% 1.5 % 3.1 % International busin
Slide 23: Adjusted Amounts Reconciliation Q4 Consolidated Statement of Income
Adjusted Amounts Reconciliation Q4 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 Amortization Business Insurance-Related As Reported of Acquired
Slide 24: Adjusted Amounts Reconciliation Full Year Consolidated Statement of Income
Adjusted Amounts Reconciliation Full Year Consolidated Statement of Income Parker Hannifin Corporation Consolidated Statement of Income - Adjusted Year-to-Date (Dollars in millions, except per share data) (Unaudited) Year-to-Date FY 2026 Amortization Business Insurance-Related As Reported of Acquire
Slide 25: Adjusted Amounts Reconciliation Q4 Segment Operating Income
Adjusted Amounts Reconciliation Q4 Segment Operating Income Parker Hannifin Corporation Segment Operating Income - Adjusted Quarter-to-Date (Dollars in millions) (Unaudited) Quarter-to-Date FY 2026 Amortization Business Insurance-Related As Reported of Acquired Realignment Costs to Acquisition- Char
Slide 26: Adjusted Amounts Reconciliation Full Year Segment Operating Income
Adjusted Amounts Reconciliation Full Year Segment Operating Income Parker Hannifin Corporation Segment Operating Income - Adjusted Year-to-Date (Dollars in millions) (Unaudited) Year-to-Date FY 2026 Amortization Business Insurance-Related As Reported of Acquired Realignment Costs to Acquisition- Cha
Slide 27: Reconciliation of EBITDA to Adjusted EBITDA
Reconciliation of EBITDA to Adjusted EBITDA Parker Hannifin Corporation Parker Hannifin Corporation EBITDA & Adjusted EBITDA EBITDA & Adjusted EBITDA (Dollars in millions) Three Months Ended (Dollars in millions) Twelve Months Ended (Unaudited) June 30, (Unaudited) June 30, 2026 % of Sales 2025 % of
Slide 28: Reconciliation of Net Debt to Adjusted EBITDA
Reconciliation of Net Debt to Adjusted EBITDA (Dollars in millions) Twelve Months Ended (Unaudited) June 30, 2026 2025 Notes payable and long-term debt payable within one year $ 1,754 $ 1,791 Long-term debt 6,766 7,494 Deferred debt issuance costs 45 54 Gross debt 8,565 9,339 Cash and cash equivalen
Slide 29: Reconciliation of Operating Cash Flow Margin, Free Cash Flow Margin and Conversion
Reconciliation of Operating Cash Flow Margin, Free Cash Flow Margin and Conversion (Unaudited) (Dollars in millions) Twelve Months Ended June 30, 2026 2025 Net Sales $ 21,499 $ 19,850 Net Income $ 3,649 $ 3,532 Cash Flow from Operations $ 4,364 $ 3,776 Capital Expenditures (459) (435) Free Cash Flow
Slide 30: Supplemental Sales Information
Supplemental Sales Information Global Technology Platforms (Unaudited) (Dollars in millions) Three Months Ended June 30, Twelve Months Ended June 30, Net Sales 2026 2025 2026 2025 Diversified Industrial: Motion Systems $ 944 860 $ 3,580 $ 3,341 Flow and Process Control 1,318 1,192 4,810 4,518 Filtra
Slide 31: Reconciliation of FY27 Q1 Guidance
Reconciliation of FY27 Q1 Guidance RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE (Unaudited) Fiscal Year 2027 Q1 RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH Forecasted earnings per diluted share ~$7.10 (Unaudited) Adju
Slide 32: Reconciliation of FY27 Guidance
Reconciliation of FY27 Guidance RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH (Unaudited) (Amounts in percentages) Fiscal Year 2027 Forecasted Net Currency Acquisitions Adjusted Forecasted Sales Net Sales Diversified Industrial North America Businesses 5.5% to 8.5% -- ~(0.5%) 5%