Parker-Hannifin (PH) investor relations material

Executive summary

• Achieved record Q3 sales of $5.5 billion, with 6.5% organic growth and 10.6% reported growth year-over-year.

• Adjusted EPS reached $8.17, up 18% year-over-year, surpassing $8 for the first time in a single quarter.

• Orders increased 9% with a record backlog of $12.5 billion.

• Year-to-date cash flow from operations reached $2.6 billion, with free cash flow up 17% to $2.3 billion.

• Integration planning for the Filtration Group acquisition is underway.

Financial highlights

• Total sales up nearly 11% year-over-year; organic growth 6.5%, currency favorable at 2.5%, acquisitions added 1.5%.

• Adjusted segment operating margin reached 26.7%, up 40 basis points year-over-year.

• Adjusted EBITDA margin was 27.2%, up 20 basis points year-over-year.

• Adjusted net income surpassed $1 billion for the first time, representing a 19.1% return on sales.

• Quarterly dividend increased 11% to $2 per share, marking 70 consecutive years of dividend increases.

Outlook and guidance

• FY 2026 organic sales growth guidance raised to 5.5% at midpoint.

• Adjusted segment operating margin forecasted at 27.2% for FY 2026.

• Full-year adjusted EPS guidance raised to $31.20 at midpoint, a 14.2% increase.

• Free cash flow forecast raised to $3.3–$3.6 billion, or 16.2% of sales.

• Aerospace organic growth forecast increased to 12%; industrial growth expected at 2.5% for both North America and international.