10-QPeriod: Q2 FY2026

Parker-Hannifin Corp Quarterly Report for Q2 Ended Dec 31, 2025

Filed January 30, 2026For Securities:PH

Summary

Parker-Hannifin Corporation (PH) reported solid financial results for the six months ended December 31, 2025. Net sales increased to $10.26 billion from $9.65 billion in the prior year period, driven by growth in both the Diversified Industrial and Aerospace Systems segments. Diluted earnings per share were $12.89, a slight increase from $12.60 in the prior year. The company's financial position remains robust, supported by strong operating cash flows and a healthy balance sheet, though net debt increased due to strategic acquisitions. The company announced a significant agreement to acquire Filtration Group Corporation for approximately $9.25 billion, which is expected to close within six to twelve months. This strategic move, along with the recent acquisition of Curtis Instruments for $1 billion, signals a strong focus on portfolio enhancement and growth. Despite the planned increase in debt to finance these acquisitions, Parker-Hannifin maintained its investment-grade credit ratings and anticipates remaining compliant with its debt covenants, reflecting confidence in its ability to manage financial obligations.

Financial Highlights

53 data points
Beta

Revenue

$5.17B

37.3% Gross Margin

Net Income

$845.00M

16.3% Net Margin

EPS (Diluted)

$6.60

Total Assets

$30.51B

Cash & Equivalents

$427.00M

Free Cash Flow

$768.00M

Financial Statements
Beta
Revenue$5.17B
Cost of Revenue$3.24B
Gross Profit$1.93B
SG&A Expenses$837.00M
Operating Income$1.18B
Net Income$845.00M
EPS (Basic)$6.69
EPS (Diluted)$6.60
Shares Outstanding (Basic)126.20M
Shares Outstanding (Diluted)128.10M

Key Highlights

  • 1Net sales increased by 6.3% to $10.26 billion for the six months ended December 31, 2025, compared to $9.65 billion for the same period last year, driven by growth in both operating segments.
  • 2Diluted earnings per share (EPS) for the six-month period rose to $12.89, up from $12.60 in the prior year, indicating improved profitability.
  • 3The company announced a major acquisition of Filtration Group Corporation for approximately $9.25 billion, signaling a strategic expansion.
  • 4The acquisition of Curtis Instruments, Inc. for approximately $1 billion was completed on September 18, 2025, bolstering capabilities in electric and hybrid vehicle technologies.
  • 5Operating income increased to $2.47 billion for the six months ended December 31, 2025, from $2.16 billion in the prior year, demonstrating strong operational performance.
  • 6The company amended its revolving credit agreement to increase the total line of credit to $3.75 billion, enhancing its financial flexibility.
  • 7Shareholders' equity increased to $14.32 billion as of December 31, 2025, from $13.69 billion as of June 30, 2025, reflecting retained earnings and capital contributions.

Frequently Asked Questions

Parker-Hannifin is pursuing a strategy of strategic acquisitions to enhance its portfolio and drive growth. The pending acquisition of Filtration Group for $9.25 billion, following the recent acquisition of Curtis Instruments for $1 billion, indicates a strong commitment to expanding its market presence and technological capabilities. While these acquisitions will increase leverage, the company anticipates continued strong performance driven by synergies and market demand.

Net sales increased to $10.26 billion for the six months ended December 31, 2025, up from $9.65 billion in the prior year, representing a 6.3% increase. This growth was observed across both the Diversified Industrial and Aerospace Systems segments, with favorable impacts from currency exchange rates and the acquisition of Curtis Instruments contributing to the overall increase. Divestiture activity in the prior year also impacted year-over-year comparisons.

Parker-Hannifin maintains a strong financial position, evidenced by an increase in shareholders' equity to $14.32 billion. Operating cash flow generation remains robust, although it decreased slightly year-over-year due to higher working capital requirements. The company has enhanced its credit facilities to $3.75 billion, providing ample liquidity. Despite planned debt financing for acquisitions, the company expects to maintain its investment-grade credit profile and compliance with debt covenants.

Both the Diversified Industrial and Aerospace Systems segments showed positive revenue growth. The Diversified Industrial Segment saw increased sales driven by North America and International businesses, with improved operating margins due to favorable product mix and cost containment. The Aerospace Systems Segment experienced higher sales volume, particularly in commercial OEM and aftermarket, leading to improved operating margins.