Parker-Hannifin Corporation PH reported first-quarter fiscal 2025 (ended Sept. 30, 2024) adjusted earnings (excluding 86 cents from non-recurring items) of $6.20 per share, which beat the Zacks Consensus Estimate of $6.13. The bottom line jumped 4% year over year.

Total sales of $4.9 billion missed the consensus estimate of $4.91 billion. The top line increased 1.2% year over year. Strength across businesses and transformed portfolio drove the top line. Organic sales grew 1.4% year over year. Orders grew 1% year over year.

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Segmental Details

The Diversified Industrial segment’s sales totaled $3.5 billion, representing 70.5% of total sales. On a year-over-year basis, the segment’s sales decreased 4.5%.

Sales from Diversified Industrial North America totaled $2.1 billion, down 5.8% year over year. The Zacks Consensus Estimate was pegged at $2.20 billion. Diversified International sales were $1.4 billion, down 2.4% year over year. The consensus mark was pegged at $1.34 billion.

Orders for Diversified Industrial North America declined 3% year over year, while Diversified Industrial International orders increased 1% on a year-over-year basis.

The Aerospace Systems segment generated sales of $1.4 billion, which accounted for 29.5% of total sales. Sales jumped 17.8% year over year, thanks to aftermarket sales growth in both commercial and defense markets. The Zacks Consensus Estimate was pegged at $1.36 billion. Orders for the Aerospace Systems unit increased 7% on a year-over-year basis.

Parker-Hannifin Corporation Price, Consensus and EPS Surprise

Parker-Hannifin Corporation price-consensus-eps-surprise-chart | Parker-Hannifin Corporation Quote

PH’s Margin Profile

Parker-Hannifin’s cost of sales was $3.10 billion, flat year over year. Selling, general and administrative expenses decreased 2.9% from the prior year to $848.8 million.

Adjusted total segment operating income increased 4.5% year over year to $1.3 billion. Adjusted total segment operating margin increased 80 basis points year over year to 25.7%.

PH’s Balance Sheet & Cash Flow

Exiting the fiscal first quarter, Parker-Hannifin had cash and cash equivalents of $371.1 million compared with $422 million at the end of fiscal 2024. Long-term debt was $6.7 billion compared with $7.16 billion at the end of fiscal 2024.

In the first three months of fiscal 2025, Parker-Hannifin generated net cash of $744 million from operating activities compared with $650 million in the year-ago period.

Capital spending totaled $95.3 million in the first three months of the fiscal year compared with $97.7 million in the year-ago period.

Parker-Hannifin paid out cash dividends of $209.9 million, up 10.3% year over year.