NYSE$PH

Parker-Hannifin Corp · Q2 2025 earnings

Q2 2025 earnings · · Before market open · Investor relations

Briefing

Reported record segment operating margin, EPS, and YTD cash flow from operations.

Parker-Hannifin reported strong Q2 2025 results, with record segment operating margin, earnings per share, and year-to-date cash flow from operations. The company reduced debt by $1.1 billion and updated its fiscal year 2025 outlook to reflect stronger Aerospace growth.

  • Sales were $4.7 billion; organic sales growth was 1%.
  • Net income was $949 million, an increase of 39%, or $853 million adjusted, an increase of 6%.
  • EPS were $7.25, an increase of 39%, or $6.53 adjusted, an increase of 6%.
  • Segment operating margin was 22.1%, an increase of 100 bps, or 25.6% adjusted, an increase of 110 bps.

Headline financials

Total Revenue

$4.74B

Previous: $4.82B-1.6%
EPS (adj)

$6.53

Previous: $5.23+24.9%
Total Segment Operating Margin

22.1%

Previous: 21.1%+4.7%
Adjusted Total Segment Operating Margin

25.6%

Previous: 24.5%+4.5%
Diversified Industrial Segment Operating Margin

21.8%

No prior period
Adjusted Diversified Industrial Segment Operating Margin

24.4%

No prior period
Aerospace Systems Segment Operating Margin

22.7%

No prior period
Adjusted Aerospace Systems Segment Operating Margin

28.2%

No prior period
DI North America Operating Margin

22.1%

No prior period
Adj. DI North America Operating Margin

24.6%

No prior period
DI International Operating Margin

21.4%

No prior period
Adj. DI International Operating Margin

24.1%

No prior period
Capital Expenditures

-$216M

Previous: -$204M-6.1%
Net Income

$949M

Previous: $682M+39.1%
Operating Income

$1.05B

Previous: $966M+8.6%
Gross Profit

$1.72B

Previous: $1.72B+0.1%
Stock-Based Comp

$30.6M

Previous: $30.2M+1.5%

Revenue & EPS history

Parker-Hannifin · Revenue · Quarterly

$4.74B

Q2 2025-1.6%vs Q2 2024
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Parker-Hannifin · $1.23B total across 1 segment · Q1 2024

  • Aerospace Systems
    $1.23B+64.7%

Forward guidance

Guidance for the fiscal year ending June 30, 2025 has been updated. The company expects sales growth of (2%) to 1%, with organic sales growth of approximately 2%, divestitures of (1.5%) and unfavorable currency of (1.0%). Total segment operating margin of approximately 22.7%, or approximately 25.8% on an adjusted basis. EPS of $24.46 to $25.06, or $26.40 to $27.00 on an adjusted basis

Tailwinds

  • Sales growth in fiscal 2025 of (2%) to 1%
  • Organic sales growth of approximately 2%
  • Total segment operating margin of approximately 22.7%
  • Adjusted total segment operating margin approximately 25.8%
  • EPS of $24.46 to $25.06, or $26.40 to $27.00 on an adjusted basis

Headwinds

  • Divestitures of (1.5%)
  • Unfavorable currency of (1.0%)
  • Changes in business relationships with and orders by or from major customers, suppliers or distributors, including delays or cancellations in shipments
  • Disputes regarding contract terms, changes in contract costs and revenue estimates for new development programs
  • Changes in product mix

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

+1.1%

Avg return

Earnings day

+2.8%

Avg return

5 days after

+4.0%

Avg return

30 days after

55%

39 / 71 earnings

Positive

+11.2%

Q4 2024

Best reaction

-7.0%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.1%-7.9%-10.9%
Q2 2026+3.6%+5.2%+10.1%
Q1 2026+7.7%+10.8%+13.7%
Q3 2025+0.8%+1.5%+9.9%
Q2 2025+5.7%+3.6%+0.4%
Q1 2025+1.7%+4.7%+12.6%
Q4 2024+11.2%+11.5%+11.5%
Q3 2024-1.2%+1.3%-2.1%
Q2 2024+9.9%+10.1%+15.8%
Q1 2024+8.3%+9.9%+18.8%
Q4 2023+2.0%+4.7%+4.1%
Q3 2023+3.1%+4.9%+5.4%
Q2 2023+6.5%+6.2%+9.5%
Q1 2023+5.4%+5.5%+4.9%
Q4 2022+1.0%-0.1%-8.7%
Q3 2022-6.6%-8.5%-4.7%
Q2 2022-5.2%-4.7%-11.2%
Q1 2022+7.1%+8.4%+0.4%
Q4 2021-1.6%-1.5%-4.4%
Q3 2021-1.6%-1.6%-3.4%
Q2 2021+3.0%+1.6%+10.6%
Q1 2021+9.0%+19.8%+26.5%
Q4 2020+6.5%+12.3%+11.7%
Q3 2020-2.4%-2.1%+14.7%
Q2 2020-1.7%+3.6%-7.2%
Q1 2020+1.0%+2.4%+2.5%
Q4 2019-3.5%-4.6%-5.3%
Q3 2019-0.1%-3.7%-15.4%
Q2 2019-0.4%+0.7%+6.7%
Q1 2019+6.6%+10.2%+13.5%
Q4 2018+4.1%+5.1%+6.0%
Q3 2018-2.3%-0.2%+5.3%
Q2 2018-5.4%-7.2%-12.8%
Q1 2018+1.9%+1.9%+2.8%
Q4 2017-0.0%-1.6%-0.9%
Q3 2017-2.3%-3.1%-3.2%
Q2 2017+3.3%+1.7%+8.0%
Q1 2017-1.6%-0.8%+10.8%
Q4 2016+6.4%+7.2%+8.6%
Q3 2016+3.1%
Q2 2016+4.1%
Q1 2016+1.3%
Q4 2015-0.2%
Q3 2015-4.2%
Q2 2015-4.6%
Q1 2015+5.7%
Q4 2014-4.5%
Q3 2014+3.4%
Q2 2014-6.4%
Q1 2014+7.7%
Q4 2013-2.8%
Q3 2013-0.7%
Q2 2013+2.1%
Q1 2013-0.2%
Q4 2012-1.5%
Q3 2012+1.8%
Q2 2012+3.4%
Q1 2012-7.0%
Q4 2011+7.6%
Q3 2011-1.5%
Q2 2011-0.4%
Q1 2011-0.1%
Q4 2010+1.7%
Q4 2008+1.7%
Q3 2010-5.1%
Q3 2009-5.1%
Q2 2010-4.1%
Q2 2009-4.1%
Q4 2009+1.8%
Q1 2010+1.8%
Q1 2009+1.8%

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