Parker Reports Fiscal 2025 Third Quarter Results

Core Insights - Parker Hannifin Corporation reported record earnings per share (EPS) of $7.37, a 33% increase year-over-year, and a net income of $961 million, up 32% [4][16] - The company achieved a record adjusted segment operating margin of 26.3%, reflecting a 160 basis points increase compared to the previous year [4][24] - Year-to-date cash flow from operations increased by 8% to $2.3 billion, representing 15.8% of sales [4][28] Financial Performance - Total sales for the quarter were $5.0 billion, with organic sales growth of 1% [4][30] - The Diversified Industrial Segment reported sales of $3.39 billion, down 7.6% year-over-year, while the Aerospace Systems Segment saw sales increase by 11.6% to $1.57 billion [23][8] - The company repurchased $650 million of shares during the quarter and announced a 10% increase in its quarterly cash dividend [2][4] Segment Analysis - North America Businesses within the Diversified Industrial Segment experienced a 9% decline in sales, while the International Businesses saw a 5.3% decrease [3][7] - The Aerospace Systems Segment achieved a record sales figure driven by strength in aftermarket services, with a backlog increasing to $7.3 billion [8][10] - Orders across all segments remained positive, with a 9% increase in overall order rates, including a 14% increase in Aerospace orders [9][10] Outlook - The company updated its guidance for the fiscal year ending June 30, 2025, expecting total sales growth of approximately -1% with organic sales growth of about 1% [5][30] - Forecasted segment operating margin is expected to be around 22.7%, with an adjusted forecasted margin of approximately 25.9% [31][32] - EPS guidance for the fiscal year is projected between $25.92 and $26.12, with adjusted EPS expected to be between $26.60 and $26.80 [32][33]