Financial Performance - Net sales increased to $4,821 million in Q3 2023, up from $4,675 million in Q3 2022, driven by higher sales in the Aerospace Systems Segment[85] - Gross profit margin improved to 35.7% in Q3 2023, compared to 30.8% in Q3 2022, due to price increases, favorable product mix, and moderating material costs[85][87] - Net income rose to $682 million in Q3 2023, representing 14.1% of sales, up from $395 million (8.5% of sales) in Q3 2022[85] - Operating margin in North America increased to 21.9% in Q3 2023, up from 19.6% in Q3 2022, driven by price increases and cost containment[94][102] - Aerospace Systems Segment operating margin increased to 20.1% in the current-year quarter, up from 0.8% in the prior-year quarter[108] - Cash flows from operating activities increased by $276 million to $1,352 million in the first six months of fiscal 2024 compared to the same period in fiscal 2023[118] Sales and Revenue - The acquisition of Meggitt contributed approximately $501 million to net sales in the first six months of fiscal 2024[86] - Currency exchange rate changes increased net sales by $25 million in Q3 2023, with $16 million attributable to the Diversified Industrial Segment and $9 million to the Aerospace Systems Segment[85] - Diversified Industrial North America sales decreased 1.4% in Q3 2023, but increased 1.6% in the first six months of fiscal 2024, with currency exchange rate changes adding $7 million and $18 million, respectively[96] - Diversified Industrial International sales increased by 0.5% in the current-year quarter and 1.5% in the first six months of fiscal 2024, with currency exchange rates contributing $9 million and $34 million, respectively[98] - The Acquisition contributed approximately $38 million to sales in the first six months of fiscal 2024 for Diversified Industrial International[98] - Sales in the Asia Pacific region decreased in the current-year quarter and first six months of fiscal 2024, primarily due to lower end-user demand in semiconductor, construction equipment, and industrial machinery markets[100] - Aerospace Systems Segment sales increased by $386 million in the first six months of fiscal 2024 due to the Acquisition[109] Expenses and Costs - Selling, general and administrative expenses (SG&A) decreased to $807 million in Q3 2023, down from $815 million in Q3 2022, primarily due to lower research and development expenses[89] - Corporate general and administrative expenses remained flat at $50 million in the current-year quarter and $106 million in the first six months of fiscal 2024[115] - Capital expenditures increased to $204 million in fiscal 2024 from $186 million in fiscal 2023[121] - A 100 basis point increase in near-term interest rates would increase annual interest expense on variable rate debt by approximately $23 million[136] Tax and Dividends - The effective tax rate for Q3 2023 was 21.4%, down from 23.5% in Q3 2022, due to a net decrease in tax costs and an increase in discrete tax benefits[85][93] - The company declared a quarterly dividend of $1.48 per share on October 25, 2023, and January 25, 2024, marking 294 consecutive quarters of dividend payments[120] Inventory and Receivables - Days sales outstanding for trade accounts receivable was 50 days at December 31, 2023, compared to 51 days at June 30, 2023 and December 31, 2022[118] - Days supply of inventory on hand was 96 days at December 31, 2023, compared to 85 days at June 30, 2023 and 98 days at December 31, 2022[119] Acquisitions and Divestitures - The company repurchased 0.2 million common shares for $100 million during fiscal 2024, compared to 0.4 million shares for $100 million in fiscal 2023[121] - Net proceeds from the sale of the aircraft wheel and brake business were approximately $441 million in fiscal 2023[121] Financial Position and Liquidity - The company's foreign subsidiaries held $327 million in cash and cash equivalents as of December 31, 2023, down from $422 million as of June 30, 2023[122] - The company is authorized to sell up to $3.0 billion of short-term commercial paper notes, with $1.2 billion outstanding as of December 31, 2023[123] - The company has a $3.0 billion line of credit, with $1.8 billion available as of December 31, 2023[124] - The company's debt to debt-shareholders' equity ratio was 0.51 to 1.0 as of December 31, 2023, below the covenant limit of 0.65 to 1.0[127] - The company's long-term credit ratings as of December 31, 2023 were BBB+ (Fitch and S&P) and Baa1 (Moody's)[128] Backlog and Segment Performance - The backlog for the Diversified Industrial Segment stood at $4,429 million as of December 31, 2023, compared to $4,966 million in the prior year[94]

Call Start: 11:00 January 1, 0000 11:49 AM ET Parker-Hannifin Corporation (NYSE:PH) Q2 2024 Earnings Conference Call February 01, 2024 11:00 AM ET Company Participants Jennifer A. Parmentier - Chairman and Chief Executive Officer Todd M. Leombruno - Executive Vice President and Chief Financial Officer Conference Call Participants Joe Ritchie - Goldman Sachs Julian Mitchell - Barclays Bank Scott Davis - Melius Research Nicole DeBlase - Deutsche Bank Nathan Jones - Stifel Mircea Dobre - Baird Joe O’Dea - Well ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File number 1-4982 PARKER-HANNIFIN CORPORATION (Exact name of registrant as specified in its charter) | | | (State or other jurisdiction of Incorporati ...

Financial Data and Key Metrics - Organic growth remained positive at 2.3%, with a slight favorable currency impact of 1% in the quarter [4] - Adjusted segment operating margin increased by 220 basis points to 24.9%, and adjusted EBITDA margin increased by 150 basis points to 24.8% [4] - Sales in North America increased by 4.5%, generating $2.2 billion, with organic growth slightly positive at 0.5% [5] - Aerospace sales were $1.2 billion, a 65% increase YoY, with organic growth of 16% [8] - Operating margins in aerospace reached a record 26%, up 610 basis points, driven by strong aftermarket growth and rate increases [9] - Cash flow from operations increased by 42% YoY to $650 million, and free cash flow increased by 48% to $552 million [10] - Debt was reduced by $370 million in the quarter, with a total reduction of $1.8 billion since the Meggitt acquisition, improving leverage by 1.2 turns [11] Business Line Performance - Aerospace business now represents 30% of the company's portfolio, with strong growth driven by commercial and military sectors [2][3] - Aerospace orders increased by 24%, with double-digit growth across all market platforms [8][9] - The Meggitt acquisition has exceeded expectations, contributing significantly to the aerospace segment's performance [2][14] - All segments delivered adjusted operating margins above 24%, a first in the company's history [13] Market Performance - North America saw a 4.5% increase in sales volume, with $2.2 billion in sales, though organic growth was only 0.5% due to destocking and channel rebalancing [5][6] - International sales were $1.4 billion, a 2.5% increase YoY, but organic growth was negative 2% [16] - Asia Pacific, particularly China, showed softness, impacting overall international performance [16][35] Company Strategy and Industry Competition - The company is well-positioned for growth in clean technologies, with 2/3 of its portfolio supporting clean energy initiatives [1] - The Win Strategy continues to drive growth and financial performance, with a focus on expanding margins and achieving long-term goals [45][75] - The aerospace sector is a key growth differentiator, with strong secular trends in both commercial and military markets [3][76] - The company is committed to reducing leverage and has already reduced debt by $1.8 billion since the Meggitt acquisition [11][17] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving 4% to 6% organic growth over the cycle, driven by strong portfolio positioning and execution [1][4] - The aerospace sector is expected to continue its strong performance, with double-digit growth in aircraft deliveries and air traffic [3][8] - The company raised its full-year organic growth guidance for aerospace by 200 basis points to 10% [20] - Management highlighted the strong performance of the Meggitt acquisition and its contribution to the company's growth [14][74] Other Important Information - The company expects a tax rate of 23.5% for Q2 through Q4, with a full-year tax rate of 23% [29] - Adjusted EPS for the full year is expected to be $23, with a range of $0.40 plus or minus [29] - The company is forecasting mid-teens cash flow from operations and expects to maintain a free cash flow conversion rate of over 100% [17] Q&A Session Summary Question: Guidance and EPS Decline - Andrew Obin questioned the sequential decline in EPS, noting it seemed more significant than historical trends [49] - Management clarified that the decline is due to seasonality and volume, with no abnormal one-time items expected in Q2 [34] Question: North American Orders and Inventory - Lee Banks discussed inventory balancing in North America, noting that destocking and channel rebalancing are ongoing and expected to continue into 2024 [28][33] - Management expressed confidence in North American end markets, despite some softness in certain sectors [33][37] Question: Aerospace Performance and Guidance Raise - Mig Dobre asked about the aerospace guidance raise and the impact of aftermarket growth [111] - Management confirmed that aftermarket growth was a significant driver of the aerospace segment's strong performance and the guidance raise [111][112] Question: Industrial Backlog and Order Trends - Mircea Dobre inquired about the elevated industrial backlog and whether it was due to supply chain issues or changes in customer ordering behavior [107] - Management attributed the backlog to the transformation of the portfolio, which has shifted towards longer-cycle business, and noted that backlog coverage remains strong despite declining orders [108][110] Question: Cost Containment and Restructuring - Brett Linzey asked about cost-containment measures in response to market choppiness and destocking [157] - Management highlighted the company's decentralized approach to cost control, with $70 million in restructuring costs planned for the year [158][164] Question: Meggitt Synergies and ROI - Nathan Jones questioned whether the outperformance of the Meggitt acquisition could lead to double-digit ROI in year 5 [171] - Management expressed satisfaction with Meggitt's performance but noted it is still early days, with a focus on executing the 3-year synergy plan [172]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 1-4982 PARKER-HANNIFIN CORPORATION (Exact name of registrant as specified in its charter) Ohio 34-0451060 (State or other jurisdiction of (I.R.S. Employer ...

Parker Hannifin Corporation (NYSE:PH) Q4 2023 Results Conference Call August 3, 2023 11:00 AM ET Company Participants Jenny Parmentier - CEO Todd Leombruno - CFO Lee Banks - Vice Chairman and President Conference Call Participants Julian Mitchell - Barclays Joe Ritchie - Goldman Sachs Andrew Obin - Bank of America Nathan Jones - Stifel Jeff Sprague - Vertical Research Partners David Raso - Evercore ISI Josh Pokrzywinski - Morgan Stanley Joe O’Dea - Wells Fargo Jamie Cook - Credit Suisse Jeffrey Hammond - Ke ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File number 1-4982 PARKER-HANNIFIN CORPORATION (Exact name of registrant as specified in its charter) Ohio 34-0451060 (State or other jurisdiction of (I.R. ...

Fiscal 2023 Third Quarter Earnings Presentation LISTED May 4, 2023 Non-GAAP Financial Measures Among other factors which may affect future performance are: the impact of the global outbreak of COVID-19 and governmental and other actions taken in response; changes in business relationships with and purchases by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms or significant changes in financial condition, changes in contract ...

Parker-Hannifin Corporation (NYSE:PH) Q3 2023 Earnings Conference Call May 4, 2023 11:00 AM ET Company Participants Todd Leombruno - Executive Vice President & Chief Financial Officer Jennifer Parmentier - Chief Executive Officer Lee Banks - Vice Chairman & President Conference Call Participants Joe Ritchie - Goldman Sachs Andrew Obin - Bank of America Scott Davis - Melius Research Mig Dobre - Baird Julian Mitchell - Barclays Jamie Cook - Credit Suisse Nathan Jones - Stifel Nigel Coe - Wolfe Research Jeffre ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File number 1-4982 PARKER-HANNIFIN CORPORATION (Exact name of registrant as specified in its charter) Ohio 34-0451060 (State or other jurisdiction of (I ...