10-QPeriod: Q1 FY2026

Parker-Hannifin Corp Quarterly Report for Q1 Ended Sep 30, 2025

Filed November 7, 2025For Securities:PH

Summary

Parker-Hannifin Corporation reported solid financial results for the third quarter of fiscal year 2025, demonstrating top-line growth and improved profitability. Net sales increased year-over-year, driven by strong performance in the Aerospace Systems segment, which offset a slight decline in the Diversified Industrial segment. The company also saw an expansion in gross profit margin and net income, indicating effective cost management and favorable product mix. A significant event during the quarter was the acquisition of Curtis Instruments, Inc. for approximately $1.0 billion, which is expected to complement Parker-Hannifin's existing capabilities and contribute to future growth. The company also continued its commitment to returning capital to shareholders through dividends and share repurchases, while maintaining a healthy balance sheet and strong liquidity position. Management remains optimistic about future growth opportunities and strategic initiatives.

Financial Highlights

52 data points
Beta

Revenue

$5.08B

37.5% Gross Margin

Net Income

$808.00M

15.9% Net Margin

EPS (Diluted)

$6.29

Total Assets

$30.68B

Cash & Equivalents

$473.00M

Free Cash Flow

$693.00M

Financial Statements
Beta
Revenue$5.08B
Cost of Revenue$3.18B
Gross Profit$1.91B
SG&A Expenses$873.00M
Operating Income$1.18B
Net Income$808.00M
EPS (Basic)$6.39
EPS (Diluted)$6.29
Shares Outstanding (Basic)126.50M
Shares Outstanding (Diluted)128.40M

Key Highlights

  • 1Net sales increased to $5.084 billion from $4.904 billion in the prior year's quarter, driven by robust performance in the Aerospace Systems segment.
  • 2Net income rose to $808 million, or $6.29 per diluted share, compared to $698 million, or $5.34 per diluted share, in the same period last year, indicating improved profitability.
  • 3The company completed the acquisition of Curtis Instruments, Inc. for approximately $1.0 billion, adding new capabilities in electric and hybrid vehicle technologies.
  • 4Gross profit margin improved to 37.5% from 36.8% year-over-year, reflecting favorable product mix and cost containment efforts.
  • 5Operating income for the Aerospace Systems segment saw a substantial increase to $411 million from $323 million, while the Diversified Industrial segment's operating income grew slightly to $821 million from $784 million.
  • 6Cash flow from operations remained strong, providing $782 million in the quarter, supporting investments and capital returns.
  • 7The company increased its revolving credit facility to $3.75 billion and its commercial paper authorization limit to $3.75 billion, enhancing liquidity and financial flexibility.

Frequently Asked Questions

The acquisition of Curtis Instruments, Inc. for approximately $1.0 billion was completed on September 18, 2025. It has been accounted for using the acquisition method, with assets and liabilities recognized at fair value. Preliminary estimates show significant intangible assets and goodwill recorded. For the reported quarter, Curtis contributed $11 million in net sales and had immaterial segment operating results. Acquisition-related transaction costs of $13 million were recognized in SG&A.

The Aerospace Systems segment was a key growth driver, with net sales increasing to $1.641 billion from $1.448 billion, and operating income rising to $411 million from $323 million. The Diversified Industrial segment experienced a slight decrease in net sales to $3.443 billion from $3.456 billion, but its operating income grew to $821 million from $784 million, benefiting from favorable product mix and cost containment.

Parker-Hannifin maintains a strong liquidity position, with cash provided by operating activities of $782 million for the quarter. The company recently increased its revolving credit facility to $3.75 billion and its commercial paper authorization limit to $3.75 billion, providing significant financial flexibility. They continue to prioritize investments in organic growth, dividends, strategic acquisitions, and share repurchases, while aiming to maintain an investment-grade credit profile.

The company faces various risks including changes in customer relationships and orders, supply chain disruptions, raw material cost increases, legal and regulatory developments, geopolitical risks, cybersecurity threats, and economic conditions such as inflation and interest rate fluctuations. The successful integration of acquisitions and the execution of business realignment activities are also key factors that could impact future performance.