Parker Hannifin sales up 9.8% for fiscal Q4
Parker Hannifin Corp., a global supplier of motion and control technologies, reported fourth quarter sales increased 9.8% to a record $5.8 billion; organic sales increased 8.0%.
For the full fiscall year, the company's sales increased 8.3% to a record $21.5 billion; organic sales increased 6.6%.
Fourth quarter net income was $1.1 billion, an increase of 18%, or $1.2 billion adjusted, an increase of 20%
Fiscal year net income was $3.6 billion, an increase of 3%, or $4.1 billion adjusted, an increase of 16%.
The company completed its acquisition of Curtis Instruments Inc. and announced agreements to acquire Filtration Group Corp. and CIRCOR's Commercial and Defense Aerospace Business.
“On behalf of the entire leadership team, thank you to our global team members for their outstanding contributions in fiscal year 2026,” said Chairman and Chief Executive Officer Jenny Parmentier, “We had our safest year ever, continued enhancing our portfolio of interconnected technologies through strategic acquisitions, and demonstrated operational excellence to deliver record results. We also returned value to shareholders with balanced capital deployment through share repurchases and a dividend increase of 11%.
“We are forecasting fiscal 2027 to be a record year for Parker supported by a broadening recovery in industrial markets and positive organic growth across all market verticals," she continued. "Our proven ability to execute The Win Strategy and successfully integrate accretive acquisitions gives us the confidence to raise our adjusted segment operating margin target by 300 basis points to 30% by fiscal 2031, after surpassing our previous margin target of 27% this year. In addition, we remain committed to achieving 4 to 6% organic growth, 17% free cash flow margin and greater than 10% adjusted earnings per share growth by fiscal 2031. We are proud of what Parker achieved in fiscal 2026, and we are even more excited about the opportunities ahead.”
Fiscal 2027 Outlook
The company has issued guidance for the fiscal year ending June 30, 2027 and noted that it excludes the pending acquisitions of Filtration Group Corporation and CIRCOR's Commercial and Defense Aerospace Business. In fiscal 2027, the company expects:
- Reported sales growth of 5.5% to 8.5%
- Organic sales growth of 5.5% to 8.5%; previously completed acquisitions of 0.5%, and unfavorable currency of 0.5%
- Segment operating margin of 24.5% to 24.9%, or 27.5% to 27.9% on an adjusted basis
- EPS of $30.00 to $31.00, or $34.25 to $35.25 on an adjusted basis
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