Parker Hannifin reports positive third quarter and increases dividend 10 percent

Cleveland, OH – Parker Hannifin Corporation reported results for the quarter ended March 31, 2025, that included the following highlights (compared with the prior year quarter):

Fiscal 2025 Third Quarter Highlights:
Sales were $5.0 billion; organic sales growth was 1%
Net income was $961 million, an increase of 32%, or $904 million adjusted, an increase of 6%
EPS were $7.37, an increase of 33%, or $6.94 adjusted, an increase of 7%
Segment operating margin was 23.2%, an increase of 170 bps, or 26.3% adjusted, an increase of 160 bps
YTD cash flow from operations increased 8% to $2.3 billion, or 15.8% of sales
Repurchased $650 million of shares in the quarter

“Our third quarter performance demonstrates the strength of our business and our global team’s ability to continue to deliver record results,” said Jenny Parmentier, Chairman and Chief Executive Officer. “All reported businesses showed substantial margin expansion and helped us surpass 26% adjusted segment operating margin for the first time. We also produced record earnings per share, generated record cash flow from operations, and repurchased $650 million of shares. We recently announced a 10% increase in our quarterly cash dividend and are committed to our strategy of actively deploying capital to drive shareholder value, including acquisitions and increased share repurchase activity, depending on market conditions.”

“The resiliency of our portfolio coupled with the power of our business system, The Win Strategy™, has enabled us to consistently deliver strong results through business cycles. With our decentralized structure and the agility of our global teams, we are confident in our ability to manage through macroeconomic uncertainty, including tariffs. We are fully committed to achieving our fiscal year 2029 financial targets.”

Guidance for the fiscal year ending June 30, 2025 has been updated. The company expects:
Sales growth in fiscal 2025 of approximately (1%), with organic sales growth of approximately 1%; divestitures of (1.5%) and unfavorable currency of (0.5%)
Total segment operating margin of approximately 22.7%, or approximately 25.9% on an adjusted basis
EPS of $25.92 to $26.12, or $26.60 to $26.80 on an adjusted basis, and includes the effect of announced tariffs fully offset by mitigation actions

Additionally, the company declared a quarterly cash dividend of $1.80 per share of common stock to shareholders of record as of May 9, 2025. The dividend is payable June 6, 2025. The dividend represents a 10% increase over the previous quarterly cash dividend of $1.63 per common share and will be the 300th consecutive quarterly dividend paid by the company.