PARKER HANNIFIN CORPORATION Fiscal 2026 Second Quarter Earnings Presentation January 29, 2026 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," "bel ...

Financial Performance - Q1 FY26 - Sales reached $5.1 billion, with organic growth of 5%[6,7] - Adjusted Earnings Per Share (EPS) hit a record $7.22[7] - Cash from Operating Activities reached a record $782 million[7] - Adjusted Segment Operating Margin was 27.4%, an increase of 170 bps year-over-year[6,21] - Adjusted EBITDA Margin was 27.3%, an increase of 240 bps year-over-year[6,21] - Free Cash Flow was $693 million, a 7% increase[6,28] FY26 Guidance Update - Organic Sales Growth guidance increased from 3% to 4%[32] - Reported Sales Growth guidance updated to 4%-7%[33] - Adjusted EPS guidance raised to $29.60-$30.40[33] - Free Cash Flow guidance updated to $3.1 billion - $3.5 billion[33] Segment Performance - Q1 FY26 - North America Businesses sales were $2.044 billion with 2% organic growth and adjusted segment operating margin of 27%[25] - International Businesses sales were $1.399 billion with 1% organic growth and adjusted segment operating margin of 25%[25] - Aerospace Systems sales were $1.641 billion with 13% organic growth and adjusted segment operating margin of 30%[25]

Financial Performance - Q3 FY25 - Sales reached $5 billion, a decrease of 2% compared to Q3 FY24[6, 17] - Adjusted Segment Operating Margin was 26.3%, an increase of 160 bps year-over-year[6, 17] - Adjusted EBITDA Margin was 27%, an increase of 150 bps year-over-year[6, 17] - Adjusted EPS grew by 7%[6, 17] - Cash Flow from Operations reached $2.3 billion YTD, an 8% increase[6, 24] Segment Performance - Q3 FY25 - North America Businesses sales reached $2.031 billion with an adjusted operating margin of 25.2%[21] - International Businesses sales reached $1.358 billion with an adjusted operating margin of 25.1%[21] - Aerospace Systems sales reached $1.572 billion with an adjusted operating margin of 28.7%[21] - Aerospace Systems organic growth was 12%[21] FY25 Guidance Update - Organic sales growth is forecasted at approximately 1%[30, 31] - Adjusted operating margin is expected to be around 25.9%[31] - Adjusted EPS midpoint is maintained at $26.70[31] - Free cash flow is projected to be approximately $3.1 billion[31]