PART I [ITEM 1. FINANCIAL STATEMENTS](index=2&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements for the three and nine months ended March 31, 2025, and 2024, including the Income Statement, Comprehensive Income, Balance Sheet, and Cash Flows, along with detailed notes on revenue, divestitures, debt, and segment performance, reporting net income of **$2.61 billion** on net sales of **$14.61 billion** for the nine months ended March 31, 2025 [Consolidated Statement of Income](index=2&type=section&id=Consolidated%20Statement%20of%20Income) For Q3 2025, net sales slightly decreased to **$4.96 billion** from **$5.07 billion** year-over-year, while net income attributable to common shareholders significantly increased to **$960.9 million** from **$726.6 million**, primarily due to a substantial reduction in income tax expense, with diluted EPS rising to **$7.37** from **$5.56** Consolidated Statement of Income Highlights (in thousands, except per share) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $4,960,349 | $5,074,356 | $14,606,926 | $14,742,791 | | Income before income taxes | $994,814 | $920,043 | $3,035,857 | $2,608,643 | | Income taxes | $33,628 | $193,309 | $427,494 | $548,780 | | Net income attributable to common shareholders | $960,866 | $726,574 | $2,607,828 | $2,059,252 | | Diluted EPS | $7.37 | $5.56 | $19.97 | $15.82 | [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2025, total assets were **$28.92 billion**, a slight decrease from **$29.30 billion** at June 30, 2024, primarily driven by a reduction in total liabilities from **$17.22 billion** to **$15.52 billion**, largely due to lower notes payable and long-term debt, while total shareholders' equity increased to **$13.39 billion** from **$12.07 billion** Balance Sheet Summary (in thousands) | Metric | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total current assets | $6,777,140 | $6,798,624 | | Goodwill | $10,461,946 | $10,507,433 | | Total assets | $28,917,808 | $29,297,842 | | Total current liabilities | $5,614,466 | $7,313,309 | | Long-term debt | $7,421,370 | $7,157,034 | | Total liabilities | $15,517,983 | $17,216,949 | | Total shareholders' equity | $13,390,974 | $12,071,972 | [Consolidated Statement of Cash Flows](index=5&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the nine months ended March 31, 2025, net cash provided by operating activities increased to **$2.31 billion** from **$2.15 billion** in the prior year, driven by higher net income, while investing activities provided **$344.7 million** in cash, a significant shift from a **$194.3 million** use of cash in the prior year, mainly due to **$622.7 million** in proceeds from the sale of businesses, and financing activities used **$2.68 billion**, primarily for debt repayment and share repurchases Cash Flow Summary (Nine Months Ended March 31, in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,308,761 | $2,147,077 | | Net cash provided by (used in) investing activities | $344,670 | $(194,301) | | Net cash used in financing activities | $(2,681,045) | $(2,005,528) | | Net decrease in cash and cash equivalents | $(13,292) | $(69,698) | - Proceeds from the sale of businesses were a major source of cash from investing activities, totaling **$622.7 million** in the first nine months of fiscal 2025, compared to **$75.6 million** in the prior year[12](index=12&type=chunk) - The company used **$859.9 million** for common share repurchases and **$630.2 million** for dividend payments in the first nine months of fiscal 2025[12](index=12&type=chunk) [Notes to Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, revenue breakdown, divestitures, debt management, and segment performance, highlighting the divestiture of the CFC business for a **$238 million** pre-tax gain, the issuance of **€700 million** in new senior notes, and a significant discrete tax benefit of **$180 million** from a valuation allowance release, with backlog standing at **$11.0 billion** as of March 31, 2025 Revenue by Segment (Nine Months Ended March 31, in thousands) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Diversified Industrial | $10,097,723 | $10,798,644 | | Aerospace Systems | $4,509,203 | $3,944,147 | - In November 2024, the company divested its composites and fuel containment (CFC) business for net proceeds of **$555 million**, resulting in a pre-tax gain of **$238 million**[26](index=26&type=chunk) - Total backlog was **$11.0 billion** at March 31, 2025, with approximately **72%** expected to be recognized as revenue within the next 12 months[24](index=24&type=chunk) - During Q3 2025, the company recorded a **$180 million** discrete tax benefit due to a valuation allowance release following the simplification of its foreign legal entity structure[59](index=59&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=19&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses a slight decrease in consolidated net sales for the first nine months of fiscal 2025, driven by lower sales in the Diversified Industrial segment, partially offset by strong growth in the Aerospace Systems segment, while net income and margins improved due to price increases, favorable product mix, cost containment, and a significantly lower effective tax rate, highlighting strong cash flow generation, strategic divestitures, and continued capital return to shareholders through dividends and buybacks [Consolidated Results of Operations](index=21&type=section&id=Consolidated%20Results%20of%20Operations) For Q3 2025, net sales decreased **2.2%** to **$4.96 billion**, impacted by lower Diversified Industrial sales, currency headwinds (**$57 million**), and divestitures (**$105 million**), while gross profit margin improved to **36.9%** from **35.4%** year-over-year due to pricing, mix, and cost controls, and the effective tax rate dropped to **3.4%** from **21.0%** due to a **$180 million** discrete tax benefit, boosting net income to **19.4%** of sales - Net sales for the first nine months of FY2025 decreased slightly, impacted by currency exchange rates (**$-105 million**) and divestiture activity (**$-180 million**)[91](index=91&type=chunk) - Gross profit margin increased in Q3 and the first nine months of FY2025, primarily due to price increases, favorable product mix, and cost containment[92](index=92&type=chunk) - The Q3 effective tax rate was **3.4%**, significantly lower than **21.0%** in the prior year, mainly due to a large discrete tax benefit from the release of a foreign valuation allowance[90](index=90&type=chunk)[96](index=96&type=chunk) - A fire at the Saegertown, PA facility in February 2025 is not expected to have a material impact on financial results, with an **$8 million** deductible recorded in Q3[87](index=87&type=chunk)[88](index=88&type=chunk) [Diversified Industrial Segment](index=23&type=section&id=Diversified%20Industrial%20Segment) Diversified Industrial segment sales fell **7.6%** in Q3 2025 to **$3.39 billion**, with organic sales declining **3.2%** excluding divestitures and currency impacts, as North American businesses saw a **3.5%** organic decline due to weaker demand in industrial, off-highway, and transportation markets, and international organic sales fell **2.8%**, yet the segment's operating margin improved to **23.0%** from **21.8%** year-over-year, driven by favorable mix, pricing, and cost controls Diversified Industrial Segment Sales Change (Q3 2025 vs Q3 2024) | Metric | North America | International | Total Segment | | :--- | :--- | :--- | :--- | | As reported | (9.0)% | (5.3)% | (7.6)% | | Divestitures | (4.7)% | - | (2.9)% | | Currency | (0.8)% | (2.5)% | (1.5)% | | **Organic (Non-GAAP)** | **(3.5)%** | **(2.8)%** | **(3.2)%** | - Segment operating margin increased to **23.0%** in Q3 2025 from **21.8%** in Q3 2024, benefiting from favorable product mix, price increases, and cost containment[101](index=101&type=chunk)[108](index=108&type=chunk) - Backlog decreased from **$4.36 billion** in the prior year to **$3.75 billion**, with **95%** of the decrease attributed to the CFC business divestiture[101](index=101&type=chunk)[111](index=111&type=chunk) [Aerospace Systems Segment](index=25&type=section&id=Aerospace%20Systems%20Segment) The Aerospace Systems segment delivered strong performance in Q3 2025, with sales increasing **11.6%** to **$1.57 billion** from **$1.41 billion** year-over-year, driven by higher volumes in both commercial and defense aftermarket, as well as the OEM market, while operating margin expanded significantly to **23.7%** from **20.5%** in the prior-year quarter, attributed to higher sales volume, favorable aftermarket mix, and cost control initiatives, and backlog grew to **$7.29 billion** from **$6.47 billion** a year ago Aerospace Systems Segment Performance (in millions) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $1,572 | $1,409 | $4,509 | $3,944 | | Operating income | $373 | $289 | $1,034 | $779 | | Operating margin | 23.7% | 20.5% | 22.9% | 19.7% | - Sales growth was primarily driven by higher volume in the commercial and defense aftermarket, with contributions from the OEM market as well[115](index=115&type=chunk) - Backlog increased to **$7.29 billion** as of March 31, 2025, up from **$6.47 billion** in the prior year and **$6.7 billion** at June 30, 2024, mainly due to strong orders in defense and commercial OEM[114](index=114&type=chunk)[118](index=118&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position, with operating cash flow increasing to **$2.31 billion** for the first nine months of fiscal 2025, with key uses of cash including **$750 million** for share repurchases and significant debt repayments, including the remaining **$490 million** of a term loan, and the company issued **€700 million** in new notes to refinance maturing debt, remaining in compliance with all debt covenants as of March 31, 2025, with a debt-to-debt-shareholders' equity ratio of **0.41 to 1.0**, well below the **0.65 to 1.0** limit - Operating cash flow for the first nine months of FY2025 was **$2.31 billion**, an increase of **$162 million** from the prior year, due to higher earnings and strong working capital management[123](index=123&type=chunk) - The company repurchased **1.2 million** common shares for **$750 million** in the first nine months of FY2025[125](index=125&type=chunk) - Significant debt activity included repaying the remaining **$490 million** Term Loan Facility, repaying **$500 million** of medium-term notes, and issuing **€700 million** of new Senior Notes to refinance maturing debt[125](index=125&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - The company declared a quarterly dividend of **$1.80 per share**, marking the **69th** consecutive fiscal year of increased annual dividends[127](index=127&type=chunk) - The company maintains investment-grade credit ratings of **A (Fitch)**, **A3 (Moody's)**, and **BBB+ (S&P)**[136](index=136&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=30&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is exposed to market risks from foreign currency fluctuations and interest rate changes, managing foreign currency risk through derivative instruments like forward contracts and cross-currency swaps, as well as net investment hedges, and mitigating interest rate risk from variable-rate debt, primarily commercial paper, by aiming for a **60/40** fixed-to-variable debt mix - The company uses derivative instruments (forward contracts, cross-currency swaps) and non-derivative instruments (foreign currency debt) to hedge foreign currency transaction and translation risks[144](index=144&type=chunk) - A hypothetical **100 basis point (1%)** increase in near-term interest rates would increase annual interest expense on variable-rate debt by approximately **$18 million**[146](index=146&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=31&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025, with no material changes to the company's internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of the end of the period[147](index=147&type=chunk) - No changes in internal control over financial reporting occurred during the third quarter of fiscal 2025 that materially affected, or are reasonably likely to materially affect, internal controls[148](index=148&type=chunk) PART II - OTHER INFORMATION [ITEM 1. Legal Proceedings.](index=32&type=section&id=ITEM%201.%20Legal%20Proceedings.) The company discloses its involvement in various environmental matters from time to time and will report any such matters that are reasonably expected to result in monetary sanctions of **$1.0 million** or more - The company reports environmental legal matters when monetary sanctions are expected to exceed **$1.0 million**[150](index=150&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds.](index=32&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) During the third quarter of fiscal 2025, the company repurchased a total of **1,044,147** of its common shares under its publicly announced share repurchase program, with approximately **6.1 million** shares remaining authorized for future repurchase as of March 31, 2025 Issuer Purchases of Equity Securities (Q3 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | January 2025 | 25,700 | $654.80 | | February 2025 | 22,600 | $683.98 | | March 2025 | 995,847 | $620.29 | | **Total** | **1,044,147** | **N/A** | - As of March 31, 2025, **6,104,602** shares may yet be purchased under the existing share repurchase program, which has no expiration date[151](index=151&type=chunk) [ITEM 5. Other Information](index=32&type=section&id=ITEM%205.%20Other%20Information) The company reports that none of its directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the fiscal quarter ended March 31, 2025 - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading plan during the quarter ended March 31, 2025[152](index=152&type=chunk) [ITEM 6. Exhibits.](index=33&type=section&id=ITEM%206.%20Exhibits.) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO as required by the Sarbanes-Oxley Act, and the Inline XBRL data files

Core Insights - Parker-Hannifin Corporation reported adjusted earnings of $6.94 per share for Q3 fiscal 2025, exceeding the Zacks Consensus Estimate of $6.73, with a year-over-year increase of 7% [1] - Total sales were $4.96 billion, falling short of the consensus estimate of $5 billion, and representing a 2% decrease year-over-year, while organic sales grew by 1% [1] - Orders increased by 9% year-over-year, indicating a positive trend in demand [1] Segmental Performance - The Diversified Industrial segment generated sales of $3.25 billion, accounting for 68.3% of total sales, but saw a year-over-year decline of 7.6% [2] - Sales from Diversified Industrial North America were $2.03 billion, down 9% year-over-year, while Diversified International sales were $1.36 billion, down 5.3% year-over-year [2] - Orders for Diversified Industrial North America increased by 3% year-over-year, and orders for Diversified Industrial International rose by 11% [3] Aerospace Systems Performance - The Aerospace Systems segment achieved sales of $1.57 billion, representing 31.7% of total sales, with an 11.6% year-over-year increase driven by aftermarket sales growth in both commercial and defense markets [4] - Orders for the Aerospace Systems unit increased by 14% year-over-year [4] Financial Metrics - Cost of sales was $3.13 billion, down 4.6% year-over-year, and selling, general, and administrative expenses decreased by 3.9% to $784.4 million [5] - Adjusted total segment operating income rose by 5.7% year-over-year to $1.15 billion, with an adjusted total segment operating margin of 23.2%, up 170 basis points year-over-year [5] Balance Sheet and Cash Flow - As of the end of Q3 fiscal 2025, cash and cash equivalents were $408.7 million, down from $422 million at the end of fiscal 2024, while long-term debt increased to $7.42 billion from $7.16 billion [6] - In the first nine months of fiscal 2025, net cash generated from operating activities was $2.31 billion, compared to $2.15 billion in the previous year [6] Capital Expenditures and Dividends - Capital spending for the first nine months totaled $304.2 million, up from $283.3 million in the prior year [7] - Cash dividends paid out amounted to $630.2 million, reflecting a year-over-year increase of 10.3% [7] Fiscal 2025 Guidance - The company updated its fiscal 2025 guidance, now expecting total sales to increase approximately 1% year-over-year, compared to a previous forecast of a 2% decrease to 1% increase [8] - Organic sales are projected to increase approximately 1%, down from an earlier expectation of 2% [8] - Adjusted operating margin is estimated to be around 25.9% [8] Earnings Expectations - Parker-Hannifin anticipates adjusted earnings to be in the range of $26.60-$26.80 per share, slightly revised from the previous expectation of $26.40-$27.00 [9][10]

Financial Data and Key Metrics Changes - Record adjusted segment operating margin of 26.3%, surpassing 26% for the first time [8][16] - Record adjusted EBITDA margin of 27% [9][16] - Year-to-date cash flow from operations reached $2.3 billion, an increase of 8% year-over-year [27] - Adjusted earnings per share (EPS) increased by 7% to $6.94, despite a 2% decline in sales [17][18] Business Line Data and Key Metrics Changes - Aerospace segment achieved record sales of $1.6 billion, up 12% year-over-year, driven by aftermarket strength [25][26] - Industrial North American sales were $2 billion, with organic growth down 3% [22] - International businesses saw order rates improve to 11%, with Asia Pacific up 2% and Latin America robust at 8% [24][25] Market Data and Key Metrics Changes - North American order rates remained positive at 3%, marking the second consecutive quarter of positive order entry [23] - EMEA region faced challenges with a 7% decline, while Latin America showed strong growth [24] - Aerospace orders increased by 14%, contributing to a backlog of $7.3 billion [26][46] Company Strategy and Development Direction - The company emphasizes a decentralized structure and the use of the Win Strategy to drive performance and margin expansion [10][12] - Focus on acquisitions to enhance interconnected technologies and maintain a competitive edge in the motion and control industry [11][75] - Commitment to mitigating tariff impacts through pricing, supply chain actions, and cost reduction strategies [14][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive industrial growth in FY 2026, supported by long-cycle orders [44][106] - The company anticipates continued strength in aerospace and defense markets, with a focus on aftermarket growth [29][55] - Management acknowledged ongoing macroeconomic uncertainties but remains optimistic about future performance [106][107] Other Important Information - The board approved a 10% increase in the quarterly dividend, extending the record of increasing annual dividends for 69 years [27] - Share repurchases totaled $650 million for the quarter, with year-to-date repurchases at $750 million [28] Q&A Session Summary Question: Can you elaborate on the longer cycle orders and their conversion to revenues? - Management indicated that longer cycle orders are expected to contribute positively to revenues in FY 2026, with strong order rates in aerospace and HVAC [44][46] Question: What are the risks associated with tariffs and cost management? - Management is confident in fully mitigating tariff impacts through pricing actions, supply chain strategies, and ongoing cost reductions [47][48] Question: How sustainable is the growth in Latin America? - Latin America continues to show robust growth, driven by filtration and motion systems activities [133] Question: What is the outlook for European defense budgets? - Management noted potential positive sentiment regarding future defense spending in Europe, despite current market softness [92][93] Question: How is the company managing operational improvements? - The company is leveraging enhanced demand and capacity tools to improve operational efficiency, even in a challenging volume environment [71][72]

Financial Data and Key Metrics Changes - Record adjusted segment operating margin of 26.3%, surpassing 26% for the first time [6][15] - Record adjusted EBITDA margin of 27%, an increase of 150 basis points [15] - Net income at 9.4% with an 18.2% return on sales, both records [16] - Adjusted earnings per share (EPS) increased by 7% to $6.94 despite a 2% decline in sales [16][25] - Year-to-date cash flow from operations reached $2.3 billion, up 8% year-over-year [25] Business Line Data and Key Metrics Changes - Aerospace segment sales reached a record $1.6 billion, up 12% year-over-year, driven by aftermarket strength [23] - Industrial North American sales were $2 billion, with organic growth down 3% [20] - International businesses saw order rates improve to 11%, with Asia Pacific up 2% and Latin America robust at +8% [22] - Adjusted segment operating margins for international businesses expanded by 160 basis points to 25.1% [23] Market Data and Key Metrics Changes - Orders increased by 9% overall, with North America showing positive order entry results for two consecutive quarters [19][20] - EMEA region faced challenges with a 7% decline, while Latin America remained strong [22] - Tariffs accounted for approximately 3% of cost of goods sold, equating to $375 million annually, fully offset by mitigation actions [13][35] Company Strategy and Development Direction - The company emphasizes a decentralized structure and the use of the Win Strategy to drive performance and margin expansion [8][10] - Focus on maintaining a strong position in the motion and control industry through acquisitions and a resilient portfolio [9] - Commitment to being a strong generator and deployer of cash, with a focus on shareholder value [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in mitigating tariff impacts and maintaining margin expansion despite macroeconomic uncertainties [13][35] - The outlook for FY 2025 includes a forecast of approximately -1% reported sales growth, with organic growth expected at +1% [31] - Management remains optimistic about positive industrial growth in FY 2026, driven by longer cycle orders [42][100] Other Important Information - The company approved a 10% increase in quarterly dividends, extending a record of increasing annual dividends for 69 years [25] - Share repurchases totaled $650 million in the quarter, with year-to-date repurchases at $750 million [25] Q&A Session Summary Question: Orders and their conversion to revenues - Management indicated that positive industrial growth is expected in FY 2026, with long cycle orders contributing to this outlook [42] Question: Risks related to costs and tariffs - Management is confident in fully mitigating tariff impacts through pricing, supply chain actions, and ongoing cost reductions [45] Question: Strength in aerospace margins - Management noted strong aftermarket performance and confidence in continued margin expansion despite potential headwinds from OEM recovery [50][54] Question: Disconnect between industrial orders and sales - Management explained that the connection between orders and shipments has extended due to the transformation of the portfolio, with longer cycle businesses affecting this dynamic [61] Question: European market outlook - Management acknowledged broad-based softness in European end markets but noted positive sentiment regarding proposed stimulus and future defense spending [88] Question: Corporate G&A cost containment - Management indicated that cost containment measures are expected to remain in place, with no significant rollback anticipated [127]

Core Insights - Parker-Hannifin reported revenue of $4.96 billion for the quarter ended March 2025, a decrease of 2.3% year-over-year, with an EPS of $6.94, up from $6.51 in the previous year [1] - The revenue fell short of the Zacks Consensus Estimate of $5 billion by 0.80%, while the EPS exceeded the consensus estimate of $6.73 by 3.12% [1] Financial Performance Metrics - Total revenue change for Parker-Hannifin was reported at -2.2%, slightly better than the estimated -2.6% [4] - North America’s Diversified Industrial segment saw a revenue decline of 9%, compared to an estimated decline of 8.7% [4] - International Diversified Industrial segment reported a revenue decrease of 5.3%, aligning with the estimated decline of 5.7% [4] - Aerospace Systems segment experienced a revenue increase of 11.6%, surpassing the estimated growth of 10.2% [4] - Aerospace Systems net sales were $1.57 billion, slightly above the average estimate of $1.56 billion, reflecting a year-over-year increase of 11.6% [4] - Diversified Industrial - International net sales were $1.36 billion, matching the average estimate, but showing a year-over-year decline of 5.3% [4] - North America’s Diversified Industrial net sales were $2.03 billion, below the estimated $2.05 billion, representing a 9% decline year-over-year [4] Segment Operating Income - Adjusted segment operating income for North America’s Diversified Industrial was $512.53 million, slightly below the average estimate of $517.40 million [4] - Aerospace Systems adjusted segment operating income was reported at $450.68 million, exceeding the average estimate of $434.73 million [4] - Adjusted segment operating income for International Diversified Industrial was $340.50 million, above the average estimate of $326.30 million [4] Stock Performance - Parker-Hannifin shares returned -3.8% over the past month, compared to a -0.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Parker-Hannifin reported quarterly earnings of $6.94 per share, exceeding the Zacks Consensus Estimate of $6.73 per share, and showing an increase from $6.51 per share a year ago, representing an earnings surprise of 3.12% [1] - The company posted revenues of $4.96 billion for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 0.80% and a decrease from $5.07 billion year-over-year [2] - The stock has lost approximately 4.9% since the beginning of the year, slightly outperforming the S&P 500's decline of 5.3% [3] Earnings Outlook - The future performance of Parker-Hannifin's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $7.33 on revenues of $5.24 billion, and for the current fiscal year, it is $26.74 on revenues of $19.88 billion [7] Industry Context - The Manufacturing - General Industrial industry, to which Parker-Hannifin belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8] - The correlation between near-term stock movements and earnings estimate revisions suggests that tracking these revisions can provide insights into stock performance [5]

Exhibit 99.1 Parker Reports Fiscal 2025 Third Quarter Results Record margins, EPS and YTD cash flow from operations CLEVELAND, May 1, 2025 -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the quarter ended March 31, 2025, that included the following highlights (compared with the prior year quarter): Fiscal 2025 Third Quarter Highlights: "Our third quarter performance demonstrates the strength of our business and our global team's abi ...

Fiscal 2025 Third Quarter Earnings Presentation May 1, 2025 PARKER HANNIFIN CORPORATION 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 not always, these statements may be identified from the use of forward-looking terminology such as "anticipates," "believes, ...

Record margins, EPS and YTD cash flow from operationsCLEVELAND, May 01, 2025 (GLOBE NEWSWIRE) -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the quarter ended March 31, 2025, that included the following highlights (compared with the prior year quarter): Fiscal 2025 Third Quarter Highlights: Sales were $5.0 billion; organic sales growth was 1%Net income was $961 million, an increase of 32%, or $904 million adjusted, an increase of 6 ...

Core Viewpoint - Parker-Hannifin Corporation is expected to report third-quarter fiscal 2025 results on May 1, with revenue estimates at $5 billion, reflecting a 1.5% decline year-over-year, while earnings per share are projected at $6.73, indicating a 3.4% increase from the previous year [1][3]. Financial Performance Expectations - The Zacks Consensus Estimate for the Aerospace Systems segment's quarterly revenues is $1.56 billion, representing a 10.7% growth from the year-ago figure, driven by strong demand in commercial and military markets [4]. - The Diversified Industrial North America segment's revenues are estimated at $2.05 billion, indicating an 8.2% decline year-over-year, while the International segment's revenues are pegged at $1.36 billion, reflecting a 5.2% decrease [7]. Strategic Developments - The acquisition of Meggitt has enhanced Parker-Hannifin's presence in the UK, allowing for a broader range of solutions in aircraft and aero-engine components, which is expected to positively impact the Aerospace Systems segment [4]. - The company's Win Strategy, focusing on innovation and strategic positioning, is anticipated to support margins in the fiscal third quarter [5]. Market Conditions - The Aerospace Systems segment is expected to benefit from healthy demand in the general aviation market and increased defense spending, while the Diversified Industrial segment faces challenges due to softness in the construction and agricultural sectors, as well as lower demand in the transportation market [3][6]. Earnings Prediction - Parker-Hannifin has an Earnings ESP of +1.01%, with the Most Accurate Estimate at $6.80 per share, suggesting a favorable outlook for an earnings beat [9].