01—Abstract
Summary
Summary of the 10-Q filed January 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Parker-Hannifin Corporation (PH) reported solid financial results for the six months ended December 31, 2025.
Net sales increased to $10.26 billiona 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 billionb, 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.
02—Key points
Key Highlights
- Net 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.
- Diluted earnings per share (EPS) for the six-month period rose to $12.89, up from $12.60 in the prior year, indicating improved profitability.
- The company announced a major acquisition of Filtration Group Corporation for approximately $9.25 billion, signaling a strategic expansion.
- The acquisition of Curtis Instruments, Inc. for approximately $1 billion was completed on September 18, 2025, bolstering capabilities in electric and hybrid vehicle technologies.
- Operating 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.
- The company amended its revolving credit agreement to increase the total line of credit to $3.75 billion, enhancing its financial flexibility.
- Shareholders' 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.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Parker-Hannifin Corp kept $0.16.
- Revenue$5.17B100.0%
- Cost of revenue−$3.24B62.7%
- Gross profit$1.93B37.3%
- Operating costs−$749.0M14.5%
- Operating income$1.18B22.8%
- Interest, other & tax−$337.0M6.5%
- Net income$845.0M16.3%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed January 30, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $5.17B$4.74B | +9.1% |
| Cost of Revenue | $3.24B$3.02B | +7.3% |
| Gross Profit | $1.93B$1.72B | +12.2% |
| SG&A Expenses | $837.00M$782.00M | +7.0% |
| Operating Income | $1.18B$992.00M | +19.2% |
| Net Income | $845.00M$949.00M | −11.0% |
| EPS (Basic) | $6.69$7.37 | −9.2% |
| EPS (Diluted) | $6.60$7.25 | −9.0% |
| Shares Outstanding (Basic) | 126.20M128.80M | −2.0% |
| Shares Outstanding (Diluted) | 128.10M130.80M | −2.1% |
05—Questions
Frequently Asked Questions
What is the company's outlook following the significant acquisitions?
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.
How did the company's revenue performance change in the reported period?
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.
What is the company's financial health and liquidity position?
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.
How are the segment results trending?
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.
06—Continue