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Parker-Hannifin Corporation PH reported third-quarter fiscal 2025 (ended March 2025) adjusted earnings (excluding 43 cents from non-recurring items) of $6.94 per share, which beat the Zacks Consensus Estimate of $6.73. The bottom line jumped 7% year over year.
Total sales of $4.96 billion missed the consensus estimate of $5 billion. The top line decreased 2% year over year. Organic sales grew 1%. Orders grew 9% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
PH’s Segmental Details
The Diversified Industrial segment’s sales totaled $3.25 billion, representing 68.3% of total sales. On a year-over-year basis, the segment’s sales decreased 7.6%.
Sales from Diversified Industrial North America totaled $2.03 billion, down 9% year over year. The Zacks Consensus Estimate was pegged at $2.05 billion. Diversified International sales were $1.36 billion, down 5.3% year over year. The consensus mark was pegged at $1.36 billion.
Orders for Diversified Industrial North America increased 3% year over year, while Diversified Industrial International orders increased 11% on a year-over-year basis.
The Aerospace Systems segment generated sales of $1.57 billion, which accounted for 31.7% of total sales. Sales jumped 11.6% year over year, thanks to aftermarket sales growth in both commercial and defense markets. The Zacks Consensus Estimate was pegged at $1.56 billion. Orders for the Aerospace Systems unit increased 14% on a year-over-year basis.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Parker-Hannifin Corporation price-consensus-eps-surprise-chart | Parker-Hannifin Corporation Quote
PH’s Margin Profile
Parker-Hannifin’s cost of sales was $3.13 billion, down 4.6% year over year. Selling, general and administrative expenses decreased 3.9% from the prior year to $784.4 million.
Adjusted total segment operating income increased 5.7% year over year to $1.15 billion. Adjusted total segment operating margin increased 170 basis points year over year to 23.2%.
PH’s Balance Sheet & Cash Flow
Exiting the fiscal third quarter, Parker-Hannifin had cash and cash equivalents of $408.7 million compared with $422 million at the end of fiscal 2024. Long-term debt was $7.42 billion compared with $7.16 billion at the end of fiscal 2024.
In the first nine months of fiscal 2025, Parker-Hannifin generated net cash of $2.31 billion from operating activities compared with $2.15 billion in the year-ago period.
Capital spending totaled $304.2 million in the first nine months of the fiscal year compared with $283.3 million in the year-ago period.
Parker-Hannifin paid out cash dividends of $630.2 million, up 10.3% year over year.