Parker Hannfin concludes fiscal year with record fourth-quarter sales
Parker Hannifin Corp., a global maker of motion and control technologies, reported sales were a record $5.2 billion for its fiscal fourth quarter of 2025.
The company's net income for the quarter was $923 million, an increase of 18%, or $992 million adjusted, an increase of 12%.
Fiscal 2025 Full Year Highlights:
- Sales were $19.9 billion; organic sales growth was 1%
- Net income was $3.5 billion, an increase of 24%, or $3.6 billion adjusted, an increase of 7%
- EPS were $27.12, an increase of 24%, or a record $27.33 adjusted, an increase of 7%
- EBITDA margin was 27.3%, an increase of 210 bps, or 26.4% adjusted, an increase of 80 bps
- Segment operating margin was 23.0%, an increase of 150 bps, or a record 26.1% adjusted, an increase of 120 bps
- Cash flow from operations increased 12% to $3.8 billion, or 19.0% of sales
- Repurchased $1.6 billion of shares
“Our outstanding performance contributed to a record year for safety, engagement, earnings per share, margins and cash flow,” said Chairman and Chief Executive Officer Jenny Parmentier. “Delivering strong margin expansion and earnings growth in a dynamic macro environment is a testament to the resilience of our portfolio and the power of our business system, The Win Strategy. We generated full year cash flow of $3.8 billion and through balanced capital deployment, increased our quarterly cash dividend by 10 percent, repurchased $1.6 billion of shares, and announced an agreement to acquire Curtis Instruments to expand our electrification offering. Thanks to our global team for another record year and the continued transformation of Parker.
“Looking ahead to fiscal year 2026, we expect Aerospace to remain our fastest growing business and see a return to positive organic growth in our Industrial businesses. We remain committed to being great generators and deployers of cash to drive shareholder value and look forward to another excellent year powered by our people and our business system.”
Outlook
Parker issued guidance for the fiscal year ending June 30, 2026. The company expects:
Sales growth in fiscal 2026 of 2% to 5%, with organic sales growth of approximately 3% at the midpoint; previously completed divestitures of 1% and favorable currency of 1.5%
Total segment operating margin of 23.3% to 23.7%, or 26.3% to 26.7% on an adjusted basis
EPS of $24.68 to $25.68, or $28.40 to $29.40 on an adjusted basis.
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