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Parker-Hannifin Corporation PH reported second-quarter fiscal 2025 (ended Dec. 31, 2024) adjusted earnings (excluding 72 cents from non-recurring items) of $6.53 per share, which beat the Zacks Consensus Estimate of $6.22. The bottom line jumped 6% year over year.
Total sales of $4.74 billion missed the consensus estimate of $4.80 billion. The top line increased 1.6% year over year. Strength across businesses and transformed portfolio drove the top line. Organic sales grew 0.7% year over year. Orders grew 5% year over year.
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PH’s Segmental Details
The Diversified Industrial segment’s sales totaled $3.25 billion, representing 68.6% of total sales. On a year-over-year basis, the segment’s sales decreased 7.5%.
Sales from Diversified Industrial North America totaled $1.93 billion, down 8.6% year over year. The Zacks Consensus Estimate was pegged at $1.96 billion. Diversified International sales were $1.33 billion, down 5.7% year over year. The consensus mark was pegged at $1.37 billion.
Orders for Diversified Industrial North America increased 3% year over year while Diversified Industrial International orders increased 4% on a year-over-year basis.
The Aerospace Systems segment generated sales of $1.49 billion, which accounted for 31.4% of total sales. Sales jumped 14% year over year, thanks to aftermarket sales growth in both commercial and defense markets. The Zacks Consensus Estimate was pegged at $1.44 billion. Orders for the Aerospace Systems unit increased 9% 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 $3.02 billion, down 2.6% year over year. Selling, general and administrative expenses decreased 3% from the prior year to $782.4 million.
Adjusted total segment operating income increased 3.3% year over year to $1.05 billion. Adjusted total segment operating margin increased 110 basis points year over year to 22.1%.
PH’s Balance Sheet & Cash Flow
Exiting the fiscal second quarter, Parker-Hannifin had cash and cash equivalents of $395.5 million compared with $422 million at the end of fiscal 2024. Long-term debt was $6.67 billion compared with $7.16 billion at the end of fiscal 2024.
In the first six months of fiscal 2025, Parker-Hannifin generated net cash of $1.68 billion from operating activities compared with $1.35 billion in the year-ago period.
Capital spending totaled $216.5 million in the first six months of the fiscal year compared with $204.1 million in the year-ago period.
Parker-Hannifin paid out cash dividends of $420.1 million, up 10.2% year over year.