How did Parker Hannifin's revenue and expenses trend in Q2 2025?
5/7/2025 06:28pm
Parker Hannifin's revenue and expenses for Q2 2025 are not currently available. However, based on the available data, the company's financial performance in Q3 2025 can be summarized as follows:
1. **Revenue Trend**: Parker Hannifin's revenue for Q3 2025 was $5 billion, which represents a decrease of 1.4% year-over-year. This decline was primarily due to lower sales in the Diversified Industrial Segment, particularly in North America, offset by higher sales in the Aerospace Systems Segment.
2. **Expense Trend**: The company's gross profit margin increased to 36.9% in Q3 2025, up from the previous year, due to higher margins in both segments resulting from price increases, favorable product mix, and cost containment. Operating income increased due to higher sales volume and favorable aftermarket mix in the Aerospace Systems Segment, as well as benefits from cost containment initiatives. Net income increased by 32% from the prior year quarter, or 6% adjusted, reflecting the company's effective cost management and operational efficiency.
3. **Comparative Analysis**: Parker Hannifin's revenue for Q3 2025 beat analysts' expectations by $10 million, while the non-GAAP EPS of $6.94 exceeded expectations by $0.22. The company's diversified industrial segment experienced a decline in sales, particularly in North America, due to softness in transportation, off-highway, and energy markets. However, the segment achieved a record adjusted operating margin. The international businesses saw a mixed performance with positive order rates in APAC and Latin America but a decline in EMEA. The aerospace systems segment reported record sales and adjusted operating margins, driven by continued aftermarket strength and a record aerospace backlog of $7.3 billion.
In conclusion, Parker Hannifin's revenue showed a slight decline, while expenses were effectively managed, resulting in improved margins and profitability in Q3 2025.