Parker(US:PH)2026-01-29 12:59Financial Performance - Record sales of $5.2 billion for the fiscal year ending June 30, 2026, representing a 9% increase year-over-year, with organic sales growth of 6.6%[3] - Adjusted earnings per share (EPS) increased by 17% to a record $7.65, while reported EPS decreased by 9% to $6.60 due to a one-time gain from divestitures in the prior year[3] - Adjusted net income rose by 15% to $980 million, while net income decreased by 11% to $845 million compared to the same quarter last year[3] - Total net income for Parker Hannifin Corporation was $845 million in Q4 2025, with diluted EPS of $6.60, compared to $949 million and $7.25 in Q4 2024[22] - Net income for the six months ended December 31, 2025, was $1,653 million, slightly up from $1,647 million in 2024, indicating a growth of 0.4%[26] Segment Performance - Segment operating margin improved to 23.9%, an increase of 180 basis points, with adjusted segment operating margin rising to 27.1%, an increase of 150 basis points[3] - Aerospace Systems Segment achieved record sales of $1.706 billion, a 14.5% increase, driven by 26% growth in commercial OEM and 17% in aftermarket[7] - International businesses reported sales of $1.482 billion, an 11.8% increase, with a segment operating margin of 23.5%, up 210 basis points[6] - Net sales for the Diversified Industrial Segment reached $3,468 million in Q4 2025, a 6.6% increase from $3,253 million in Q4 2024[20] - Adjusted segment operating income for the same segment was $889 million, up from $793 million year-over-year, reflecting a 12.1% increase[20] - Reported sales growth for the Aerospace segment was 11.8% in Q4 2025, with net sales of $1,482 million compared to $1,325 million in Q4 2024[20] - The adjusted segment operating margin for the Diversified Industrial Segment improved to 25.6% in Q4 2025 from 24.4% in Q4 2024[20] - The Aerospace segment's organic sales growth was 4.6% in Q4 2025, compared to 13.5% in Q4 2024[20] Guidance and Forecast - Guidance for fiscal year 2026 has been increased, with sales growth projected between 5.5% to 7.5% and adjusted EPS guidance raised to a range of $30.40 to $31.00[4] - The forecasted net sales growth for Fiscal Year 2026 is projected to be between 5.5% and 7.5%, with adjustments for currency and acquisitions reducing organic growth to 4.0% to 6.0%[27] - The forecasted segment operating margin for Fiscal Year 2026 is estimated to be between 23.7% and 24.1%, with adjusted margins expected to rise to 27.0% to 27.4% after accounting for various charges[28] - Forecasted earnings per diluted share for Fiscal Year 2026 are projected to be between $26.26 and $26.86, with adjusted earnings expected to range from $30.40 to $31.00 after considering specific adjustments[29] Cash Flow and Investments - Net cash provided by operating activities for the six months ended December 31, 2025, was $1,644 million, a decrease from $1,679 million in 2024[26] - Cash used in investing activities totaled $(1,146) million, significantly down from a net cash provided of $412 million in the previous year[26] - Payments for common shares amounted to $(667) million, compared to $(192) million in the prior year, indicating an increase in share repurchase activity[26] - The company reported a net decrease in cash and cash equivalents of $40 million, ending the period with $427 million in cash[26] - The company made acquisitions totaling $(1,013) million during the period, reflecting a strategic move towards growth through consolidation[26] - The effect of exchange rate changes on cash was a decrease of $(9) million, contributing to the overall cash flow dynamics[26] Orders and Backlog - Order rates increased by 9% across all reported businesses, with a record backlog of $11.7 billion[10] - Strong performance in Asia with 9% organic growth, and EMEA returning to positive growth at 2%[6]