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Parker-Hannifin Q3 Earnings Beat, Aerospace Systems Sales Up Y/Y

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Parker-Hannifin Corporation (PH - Free Report) reported third-quarter fiscal 2025 (ended March 2025) adjusted earnings (excluding 43 cents from non-recurring items) of $6.94 per share, which beat the Zacks Consensus Estimate of $6.73. The bottom line jumped 7% year over year.

Total sales of $4.96 billion missed the consensus estimate of $5 billion. The top line decreased 2% year over year. Organic sales grew 1%. Orders grew 9% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

PH’s Segmental Details

The Diversified Industrial segment’s sales totaled $3.25 billion, representing 68.3% of total sales. On a year-over-year basis, the segment’s sales decreased 7.6%.

Sales from Diversified Industrial North America totaled $2.03 billion, down 9% year over year. The Zacks Consensus Estimate was pegged at $2.05 billion. Diversified International sales were $1.36 billion, down 5.3% year over year. The consensus mark was pegged at $1.36 billion.

Orders for Diversified Industrial North America increased 3% year over year, while Diversified Industrial International orders increased 11% on a year-over-year basis.

The Aerospace Systems segment generated sales of $1.57 billion, which accounted for 31.7% of total sales. Sales jumped 11.6% year over year, thanks to aftermarket sales growth in both commercial and defense markets. The Zacks Consensus Estimate was pegged at $1.56 billion. Orders for the Aerospace Systems unit increased 14% on a year-over-year basis.

Parker-Hannifin Corporation Price, Consensus and EPS Surprise

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 $3.13 billion, down 4.6% year over year. Selling, general and administrative expenses decreased 3.9% from the prior year to $784.4 million.

Adjusted total segment operating income increased 5.7% year over year to $1.15 billion. Adjusted total segment operating margin increased 170 basis points year over year to 23.2%.

PH’s Balance Sheet & Cash Flow

Exiting the fiscal third quarter, Parker-Hannifin had cash and cash equivalents of $408.7 million compared with $422 million at the end of fiscal 2024. Long-term debt was $7.42 billion compared with $7.16 billion at the end of fiscal 2024.

In the first nine months of fiscal 2025, Parker-Hannifin generated net cash of $2.31 billion from operating activities compared with $2.15 billion in the year-ago period.

Capital spending totaled $304.2 million in the first nine months of the fiscal year compared with $283.3 million in the year-ago period.

Parker-Hannifin paid out cash dividends of $630.2 million, up 10.3% year over year.

PH’s Fiscal 2025 Guidance Issued

Parker-Hannifin has updated its fiscal 2025 guidance. The company now expects total sales to increase approximately 1% year over year compared with 2% decrease - 1% increase anticipated before. Organic sales are projected to increase approximately 1% compared with an increase of 2% expected earlier. Its adjusted operating margin is estimated to be approximately 25.9%.

Parker-Hannifin currently expects adjusted earnings to be in the band of $26.60-$26.80 per share compared with $26.40-$27.00 expected earlier. The Zacks Consensus Estimate for adjusted earnings is pegged at $26.74 per share.

PH’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

AZZ Inc. (AZZ - Free Report) came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.95. This compares with earnings of $0.93 per share a year ago.

AZZ reported revenues of $351.88 million, missing the consensus estimate by 3.77%. This compares with year-ago revenues of $366.5 million. 

Valmont Industries (VMI - Free Report) reported revenues of $969.31 million in the first quarter of 2025, declining 0.9% on a year-over-year basis. Earnings per share of $4.32 for the same period compare with $4.32 a year ago.

The reported revenues compare with the Zacks Consensus Estimate of $975.6 million. The company delivered an earnings surprise of 1.89%, with the consensus estimate being $4.24 per share.

Pentair plc (PNR - Free Report) came out with quarterly earnings of $1.11 per share in the first quarter of 2025, beating the Zacks Consensus Estimate of $1.01. This compares with earnings of $0.94 per share a year ago.

Pentair posted revenues of $1.01 billion for the quarter, surpassing the consensus estimate by 2.68%. This compares with year-ago revenues of $1.02 billion.

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