Parker Hannifin ends fiscal 2025 with record results and strong outlook for 2026

Cleveland, OH – Parker Hannifin Corporation reported a record-breaking fourth quarter and full fiscal year for 2025, highlighting the company’s operational strength and strategic focus.

In the final quarter of the fiscal year ending June 30, Parker posted $5.2 billion in sales, achieving its highest quarterly revenue to date. Organic sales grew by 2%, and net income rose 18% to $923 million. Adjusted earnings per share reached $7.69, a 14% increase from the previous year. The company also improved its segment operating margin to 26.9% on an adjusted basis.

For the full year, Parker reported $19.9 billion in sales and a 24% increase in net income, totaling $3.5 billion. Adjusted earnings per share for the year climbed to $27.33, up 7%. Operating cash flow rose 12% to $3.8 billion, accounting for 19% of total sales. The company returned $1.6 billion to shareholders through stock repurchases and a 10% increase in its quarterly dividend.

Chairman and CEO Jenny Parmentier attributed the strong performance to Parker’s Win Strategy™ and the dedication of its global workforce. She emphasized the company’s ability to expand margins and grow earnings despite a challenging macroeconomic environment. Parmentier also noted the strategic acquisition of Curtis Instruments, which enhances Parker’s capabilities in electrification.

Among its business segments, Aerospace Systems delivered standout results with a 9.7% increase in sales and a 22.6% rise in operating income. The segment’s backlog reached a record $7.4 billion, fueled by sustained demand in both commercial and defense markets. The Diversified Industrial segment showed mixed performance, with a slight decline in North American sales but modest growth internationally.

Looking ahead to fiscal 2026, Parker expects sales growth between 2% and 5%, with organic growth projected at 3% at the midpoint. Adjusted earnings per share are forecasted to range from $28.40 to $29.40. The company anticipates continued strength in its Aerospace division and a return to growth in its Industrial segment.

Parker’s long-term goals for fiscal 2029 include 4 to 6% organic growth, a 27% adjusted segment operating margin, and double-digit adjusted earnings per share growth, positioning the company among the top performers in the industrial sector.