The company remains focused on acquiring businesses to gain access to new customers, regions and product lines. In September 2022, it acquired Meggitt plc, a global leader in motion and control technologies. The acquisition expanded PH's presence in the UK, positioning it well to provide a broader suite of solutions for aircraft, and aero-engine components and systems. Acquisitions boosted the company's sales by 3.4% in the first nine months of fiscal 2024. Parker-Hannifin has been gaining from its unique W ...

CLEVELAND, May 16, 2024 (GLOBE NEWSWIRE) -- Parker Hannifin Corporation (NYSE:PH), the global leader in motion and control technologies, today hosted its 2024 investor meeting where members of the Office of the Chief Executive presented an update on the company's ongoing transformation, detailed how Parker is positioned for continued growth from secular trends, reinforced the importance of The Win StrategyTM in driving growth and margin expansion, and announced new five-year financial performance targets fo ...

CLEVELAND, May 16, 2024 (GLOBE NEWSWIRE) -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today hosted its 2024 investor meeting where members of the Office of the Chief Executive presented an update on the company's ongoing transformation, detailed how Parker is positioned for continued growth from secular trends, reinforced the importance of The Win StrategyTM in driving growth and margin expansion, and announced new five-year financial performance targets f ...

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, 2024 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 Incorporation o ...

Parker-Hannifin Corporation (NYSE:PH) Q3 2024 Earnings Conference Call May 2, 2024 11:00 AM ET Company Participants Jennifer Parmentier - Chairman and CEO Todd Leombruno - EVP and CFO Conference Call Participants Scott Davis - Melius Research Andrew Obin - Bank of America David Raso - Evercore ISI Joe Ritchie - Goldman Sachs Jamie Cook - Truist Securities Nathan Jones - Stifel Julian Mitchell - Barclays Mig Dobre - Baird Jeffrey Sprague - Vertical Research Partners Joe O'Dea - Wells Fargo Joe Giordano - TD ...

"We produced record results this quarter across nearly all key metrics, a reflection of the strength of our transformed portfolio and our global team's ability to drive operational improvements," said Chairman and Chief Executive Officer, Jenny Parmentier. "We delivered significant adjusted segment operating margin improvement with our Aerospace Systems Segment delivering another standout quarter. Our strong performance also led to record year-to-date operating cash flow." | For Release: | Immediately | Exh ...

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]