Parker-Hannifin (PH) Q4 2024 earnings summary

Executive summary

• Achieved record FY24 sales of $19.9B, up 4.5% reported and 2.3% organic, driven by portfolio transformation and exceptional aerospace performance, with all key financial commitments met or exceeded.

• Aerospace Systems segment delivered $5.5B in sales, with 17% organic growth and record margins, doubling since 2020.

• Adjusted EPS grew 18% year-over-year to $25.44, with adjusted segment margin expanding by 200 bps.

• Portfolio now more resilient and longer cycle, with 85% expected to be secular and aftermarket by 2029.

• Achieved significant debt reduction and net leverage target of 2.0x.

Financial highlights

• Q4 sales reached $5.2B, up nearly 2% year-over-year; organic sales up 3%.

• Adjusted segment operating margin improved 130 bps to 25.3%, a company record.

• Adjusted EBITDA margin rose 190 bps to 26.3%.

• Adjusted net income was $884M in Q4; adjusted EPS $6.77, up 11%.

• Record free cash flow of $3.0B for the year, with 105% conversion.

Outlook and guidance

• FY25 organic sales growth forecasted at 2%-5% (3.5% midpoint), with total sales of $20.2-$20.5B.

• Adjusted EPS guidance midpoint is $26.65, up 5% year-over-year.

• Aerospace expected to deliver high single-digit organic growth; gradual industrial recovery anticipated.

• Free cash flow expected at $3.15B (15.3% of sales), with >100% conversion.

• Company remains on track to achieve FY29 financial targets, including adjusted EPS >$35 and free cash flow >$18B (FY25–FY29 cumulative).