Parker-Hannifin Reports Q1 Results, Sees Mixed Outlook With Industrial Pressure But Aerospace Gains

Parker-Hannifin Corp PH reported first-quarter 2025 sales growth of 1.2% year over year to $4.9 billion and over 1.4% organic growth.

The company beat the consensus of $4.899 billion.

Here’s a breakdown of the results:

• Orders were up 1% year over year, with Diversified Industrial North American businesses down 3% and Diversified Industrial International businesses down +1%.

• Orders in the Aerospace Systems segment increased 7% year over year.

• Adjusted EPS improved to $6.20 from $5.96 a year ago, beating the consensus of $6.14.

• Segment Sales: Diversified Industrial North America $2.10 billion (-5.8% Y/Y), Diversified Industrial International $1.356 billion (-2.4% Y/Y), and Aerospace Systems $1.448 billion (+17.8% Y/Y).

• The total adjusted segment operating margin for the quarter was 25.7%, up from 24.9% a year ago.

See Also: Eaton Q3 Earnings: Revenue Miss, EPS Beat, Raised Guidance On Continued ‘Strong Demand’

Parker-Hannifin's Cash flow from operations was 15.2% of sales, an increase of 14% YoY to $743.975 million. It held cash and equivalents of $371 million as of September end.

"We delivered records for sales, adjusted segment operating margin, adjusted earnings per share, and year-to-date cash flow from operations. Our performance also reflects the strength of our transformed portfolio with our Aerospace Systems segment achieving exceptional results. Looking ahead to the full year, we anticipate near-term pressure in select industrial markets and accelerating growth in aerospace," commented Chairman and Chief Executive Officer Jenny Parmentier.

"Reflecting these conditions and our strong first quarter performance, we have raised our outlook for segment operating margin and earnings per share. We remain committed to our fiscal 2029 targets and continue to see a very promising future for Parker," added Parmentier.

The company updated its Guidance to reflects divestiture activity in the Diversified Industrial Segment, North America Businesses expected to be completed during the second quarter.

2025 Outlook updated: Parker now expects sales growth of 0.5%-3.5% (prior 1.5% – 4.5%), with organic sales growth of 1.5%-4.5% (prior 2%-5%).

The company raised its expects adjusted EPS guidance to $26.35 to $27.05 (prior  $26.30 – $27.00 versus the $26.76 consensus.

Parker expects a total segment operating margin of approximately 22.6%, or approximately 25.7%, on an adjusted basis (prior 22.1% – 22.5%, or 25.2% – 25.6%, on an adjusted basis).

Price Action: Parker-Hannifin shares are trading lower by 1.11% at $617.35 at the last check Thursday.

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