Parker Hannifin Corporation (PH) Q1 2026 Financial Results Summary

2025-11-06 · Stocks · QuoteReporter

Parker Hannifin Corporation (PH) Q1 2026 Financial Results Summary

Parker Hannifin Corporation released its financial report on November 6, 2025, for the first quarter ended September 30, 2025. The report showcased strong growth in sales, net income, and operating margins, contributing to an optimistic outlook for the fiscal year.

Fiscal 2026 First Quarter Highlights

• Sales:
• Reached a record of $5.1 billion.

• Achieved 5% organic sales growth compared to the same quarter last year.

• Net Income:

• Reported at $808 million, reflecting an increase of 16%.

• Adjusted net income was $927 million, up 14% year-over-year.

• Earnings Per Share (EPS):

• Diluted EPS rose to $6.29, representing an 18% increase.

• Adjusted EPS reached $7.22, an increase of 16% compared to the same quarter last year.

• Operating Margin:

• Segment operating margin was 24.2%, an improvement of 160 basis points (bps) from the previous year.

• Adjusted segment operating margin stood at 27.4%, up 170 bps.

• Cash Flow:

• Cash flow from operations was $782 million, accounting for 15.4% of total sales.

• Share Repurchase:

• The company repurchased $475 million of its shares.

Segment Results

Diversified Industrial Segment

• North America:
• Sales of $2.044 billion, down 2.7% compared to FY25 Q1, but with 2.1% organic growth.

• Segment operating income grew 4.5% to $507 million, with an operating margin of 24.8%, increasing 170 bps.

• International:

• Sales of $1.399 billion, up 3.2% year-over-year, with 1.0% organic growth.
• Segment operating income increased 5.0% to $314 million, resulting in an operating margin of 22.4%, a rise of 30 bps.

Aerospace Systems Segment

• Sales reached $1.641 billion, marking a 13.3% increase over the previous year, with organic growth at 12.8%.
• Segment operating income surged 27.2% to $411 million, with an operating margin of 25.0%, up 270 bps.

Order Rates and Backlog

• Overall order rates increased 8% across all reported businesses.
• Diversified Industrial Segment North America reported a 3% increase in order rates.
• International order rates improved by 6%.
• Aerospace Systems Segment order rates surged 15%.
• Total company backlog reached a record high of $11.3 billion.

Fiscal Year 2026 Guidance

With the strong performance in Q1, Parker Hannifin revised its guidance for the fiscal year ending June 30, 2026:
– Total Sales Growth: Forecasted in the range of 4.0% to 7.0%.
– Organic Sales Growth: Expected to be approximately 4% at the midpoint.
– Segment Operating Margin Outlook: Increased to a range of 23.6% to 24.0%, or 26.8% to 27.2% on an adjusted basis.
– EPS Guidance: Now projected between $25.53 to $26.33, and on an adjusted basis $29.60 to $30.40.

Other Financial Information

• Dividends: The company declared a cash dividend of $1.80 per share, which is an increase from $1.63 per share the same quarter last year.
• Balance Sheet: Total assets stood at $30.677 billion with total liabilities of $16.811 billion, indicating a strong financial position.

Conclusion

Parker Hannifin’s Q1 results reflect robust business dynamics and improved profitability metrics, positioning the company for strong growth in the coming fiscal year. With organic sales growth in its industrial and aerospace segments, combined with effective cost management strategies, Parker Hannifin appears well-equipped to meet its objectives for FY26.

CONSOLIDATED STATEMENTS OF INCOME

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CONSOLIDATED BALANCE SHEETS

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