Parker-Hannifin Q4 Earnings Beat, Aerospace Systems Sales Up Y/Y

Parker-Hannifin Corporation PH reported fourth-quarter fiscal 2025 (ended June 2025) adjusted earnings (excluding 54 cents from non-recurring items) of $7.69 per share, which beat the Zacks Consensus Estimate of $7.08. The bottom line jumped 14% year over year.

Total sales of $5.24 billion beat the consensus estimate of $5.10 billion. The top line increased 1.1% year over year. Organic sales grew 2.1%. Orders increased 5% year over year.

In fiscal 2025, PH reported net revenues of $19.9 billion, which decreased 0.4% year over year. The company’s adjusted earnings were $27.33 per share, up 7% year over year.

PH’s Segmental Details

The Diversified Industrial segment’s sales totaled $3.57 billion, representing 68% of total sales. On a year-over-year basis, the segment’s sales decreased 2.5%.

Sales from Diversified Industrial North America totaled $2.08 billion, down 6.9% year over year. The Zacks Consensus Estimate was pegged at $2.05 billion. Diversified International sales were $1.49 billion, up 4.3% year over year. The consensus mark was pegged at $1.41 billion.

Orders for Diversified Industrial North America increased 2% year over year, while Diversified Industrial International orders were flat on a year-over-year basis.

The Aerospace Systems segment generated sales of $1.68 billion, which accounted for 32% of total sales. Sales jumped 9.7% year over year, thanks to aftermarket sales growth in both commercial and defense markets. The Zacks Consensus Estimate was pegged at $1.64 billion. Orders for the Aerospace Systems unit increased 12% on a year-over-year basis.

PH’s Margin Profile

Parker-Hannifin’s cost of sales was $3.29 billion, down 1.1% year over year. Selling, general and administrative expenses increased 2.6% from the prior year to $839 million.

Adjusted total segment operating income increased 7.2% year over year to $1.41 billion. Adjusted total segment operating margin increased 160 basis points year over year to 26.9%.

PH’s Balance Sheet & Cash Flow

Exiting the fiscal fourth quarter, Parker-Hannifin had cash and cash equivalents of $467 million compared with $422 million at the end of fiscal 2024. Long-term debt was $7.49 billion compared with $7.16 billion at the end of fiscal 2024.

In fiscal 2025, Parker-Hannifin generated net cash of $3.78 billion from operating activities compared with $3.38 billion in the year-ago period.

Capital spending totaled $435 million in the fiscal year compared with $400 million in the year-ago period.

Parker-Hannifin paid out cash dividends of $861 million, up 10.1% year over year.

PH’s Fiscal 2026 Guidance Issued

Parker-Hannifin has issued its fiscal 2026 guidance. The company now expects total sales to increase 2-5% year over year. Organic sales are projected to increase 1.5-4.5%. Its adjusted operating margin is estimated to be 26.3-26.7%.

Parker-Hannifin currently expects adjusted earnings to be in the band of $28.40-$29.40 per share.

PH’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

Dover Corporation DOV reported earnings of $2.44 per share in second-quarter 2025, beating the Zacks Consensus Estimate of $2.39. This compares with earnings of $2.36 per share a year ago.

Dover posted revenues of $2.05 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $2.18 billion.

Teck Resources Limited TECK came out with earnings of $0.27 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $0.2. This compares with earnings of $0.58 per share a year ago.

Teck Resources posted revenues of $1.46 billion in the quarter, missing the Zacks Consensus Estimate by 8.7%. This compares with year-ago revenues of $2.83 billion. 

Packaging Corporation of America PKG reported earnings of $2.48 per share, beating the Zacks Consensus Estimate of $2.44. This compares with earnings of $2.2 per share a year ago.

Packaging Corp. posted revenues of $2.17 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.5%. This compares with year-ago revenues of $2.08 billion.

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This article originally published on Zacks Investment Research (zacks.com).

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