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- **Record Q2 Performance**: $5.2 billion sales, 6.6% organic growth, and 27.1% adjusted margin, with EPS up 17%.
- **Acquisition Momentum**: Filtration Group deal to add $220M synergies and expand aftermarket reach.
- **Guidance Uptick**: FY '26 EPS raised to $30.70 midpoint, driven by Aerospace (11% growth) and Off-Highway recovery.
- **Cash Flow Strength**: $1.6B cash flow from ops, 100%+ free cash flow conversion, and disciplined capital allocation.

**【CEO Summary Section】**
- Recorded Q2 sales of $5.2 billion, with 6.6% organic growth and 150 basis points of margin expansion, resulting in 27.1% adjusted segment operating margin.
- Announced acquisition of Filtration Group Corporation, expected to close in 6-12 months, adding $220 million in cost synergies and enhancing aftermarket presence.
- Raised FY '26 organic sales growth guidance to 5% midpoint, driven by Aerospace (11% growth) and Off-Highway (positive low single-digit growth).

**【CFO Financial Commentary】**
- Q2 adjusted EPS of $7.65, up 17% YoY, with $1.6 billion cash flow from operations and $1.5 billion free cash flow.
- Full-year guidance updated to $30.70 EPS (midpoint), 5.5%-7.5% reported sales growth, and 27.2% adjusted segment operating margin.
- Emphasized strong cash flow conversion (>100%) and disciplined capital allocation, including $415 million interest expense and $85 million other expenses.

**【Q&A Key Highlights】**
- **Market Trends**: Europe turned to positive organic growth in Q2; Asia Pac remains strong, while North America faces selective CapEx but benefits from Aerospace and Off-Highway recovery.
- **Margins**: Industrial businesses achieved 52% incrementals in Q2, with guidance for 40% full-year incrementals, driven by operational excellence and pricing discipline.
- **Filtration Group**: Synergies target $220 million by year 3; no modeled revenue synergies, but potential upside from combined customer relationships and distribution networks.
- **Tariffs**: No material impact on margins, with focus on managing volatility and maintaining record performance.

Parker-Hannifin Corporation (PH) Q2 2026 Earnings Call Transcript

- **Record Q1 Performance**: $5.1B revenue (+5% organic), 27.4% segment margin, and $7.22 EPS (16% growth).
- **Aerospace Dominance**: 9.5% organic growth, 30% margin, and record backlog.
- **Guidance Uptick**: FY26 organic growth raised to 4%, with HVAC/refrigeration at mid-single digits.
- **Cash Flow Strength**: $693M Q1 free cash flow, $3.1-3.5B FY26 target.
- **Curtis Synergies**: $235M in sales, 50-50 NA/International split, and filtration tech wins.


**【CEO Summary Section】**
- Q1 2026 revenue reached $5.1 billion, a 5% organic growth driven by Aerospace and Defense, with North America Industrial posting 2% organic growth (vs. prior guidance of -1%).
- Adjusted segment operating margin expanded 170bps to 27.4%, with Aerospace hitting a record 30% margin due to strong aftermarket and OE demand.
- Completed acquisition of Curtis Instruments, adding $235M in annualized sales and enhancing filtration and energy solutions.
- Raised FY26 organic growth guidance to 4% (midpoint), with Aerospace forecast at 9.5% and HVAC/refrigeration at mid-single digits.

**【CFO Financial Commentary】**
- Adjusted EPS grew 16% to $7.22, driven by $132M increase in segment operating income and $475M in share buybacks.
- Free cash flow reached $693M (13.6% of sales), with FY26 guidance raised to $3.1-3.5B.
- Interest expense increased by $30M due to Curtis acquisition, but tax rate remained stable at 22.5%.
- Q2 2026 EPS guidance is $7.10, reflecting typical seasonal softness in Aerospace OE.

**【Q&A Highlights】**
- **North America Industrial Recovery**: 2% organic growth in Q1, driven by aerospace and defense, with gradual improvement in construction and filtration wins.
- **Aerospace Margin Resilience**: 30% Q1 margin (vs. 29.5% FY26 target) due to spares, with 29.1% Q2 guidance despite 51% OE mix.
- **M&A Strategy**: Curtis integration on track, with 50-50 split between NA and International sales, and potential for higher-margin synergies.
- **Tariff Impact**: Teams maintain pricing discipline, recovering costs without margin expansion, but selective CapEx delays persist.
- **Energy Growth**: Power gen backlog supports 27.4% segment margin, with gas turbine aftermarket offsetting oil/gas weakness.


Parker-Hannifin Corporation (PH) Q1 2026 Earnings Call Transcript

- **Record FY25 Performance**: $19.9B sales, 26.1% adjusted margin, $3.8B CFOA, and $11B backlog.
- **FY26 Guidance**: 2-5% sales growth, 6% EPS growth to $28.90, and $3-4B free cash flow.
- **Aerospace Dominance**: 8% organic growth forecast, 29% segment margin, and $7.4B backlog.
- **Curtis Acquisition**: EPS accretive in FY26 with $50M synergies; expands electrification portfolio.
- **Industrial Recovery**: 1% FY26 growth, 26.5% adjusted margin, and distributor optimism despite macro challenges.

**【CEO Summary Section】**
- Fiscal 2025 was a record year with $19.9 billion in sales, 26.1% adjusted segment operating margin (up 120bps), and $3.8 billion in cash flow from operations.
- Aerospace segment achieved 13% organic growth and 190bps margin expansion, driven by aftermarket strength and a balanced 51/49 split between aftermarket and OEM.
- Industrial segment delivered 25.1% adjusted margin (up 90bps) and a 700bps margin expansion since FY19, with 85% of portfolio now longer-cycle, secular, or aftermarket.
- Announced acquisition of Curtis Instruments to expand electrification capabilities, expected to close by end-2025.

**【CFO Financial Commentary】**
- Q4 FY25: $992 million adjusted net income, $7.69 EPS (14% YoY growth), 26.9% adjusted segment margin (up 160bps), and $3.8 billion CFOA (19% of sales).
- FY26 Guidance: $20.6 billion sales (2-5% growth), 26.5% adjusted segment margin (up 40bps), and $28.90 EPS (6% growth). Aerospace expected to drive 8% organic growth, while Industrial North America and International each grow 1%.
- Free cash flow projected at $3-4 billion, with 2.5% CapEx for automation and capacity expansion.

**【Q&A Highlights】**
- **Q1 FY26 Guidance**: EPS of $6.51 (5% YoY growth) despite 1% organic sales decline, driven by 40bps margin expansion and cost control.
- **Industrial Recovery**: Distributor sentiment positive, but delays in project execution due to tariffs and interest rates. Guidance assumes gradual recovery with 1% FY26 growth.
- **Curtis Acquisition**: Expected to be EPS accretive in FY26, with $50 million synergies over 3 years. Margins initially dilutive but on path to accretion.
- **Tariffs Management**: Teams successfully offset costs through pricing, dual sourcing, and local-for-local manufacturing.
- **Aerospace Momentum**: 8% FY26 organic growth driven by commercial transport rate increases, defense spending, and aftermarket demand.


Parker-Hannifin (PH)-7 Aug 25-2025 Q4 Earnings call transcript

- **Record Margins & Cash Flow**: 26.3% segment margin and $2.3B cash flow highlight operational excellence.
- **Order Growth Signal**: +9% orders point to 2026 industrial recovery, with aerospace backlog at $7.3B.
- **Tariff Resilience**: $375M tariff impact fully mitigated through pricing and supply chain agility.
- **Dividend & Buybacks**: 10% dividend hike and $650M share repurchases reinforce capital return commitment.
- **Aerospace Dominance**: 12% organic growth and 28.7% margin underscore aerospace as key growth driver.

**【CEO Summary Section】**
- **Record Financial Performance**: Achieved 26.3% adjusted segment operating margin and 27% EBITDA margin, with $2.3B year-to-date cash flow from operations.
- **Order Momentum**: Parker order rates increased to +9%, driven by long-cycle strength in aerospace and industrial sectors.
- **Win Strategy Execution**: Tools like Kaizen, 80/20 simplification, and dual sourcing enabled margin expansion despite 2% revenue decline.
- **Tariff Mitigation**: $375M annualized tariff impact fully offset through pricing, supply chain adjustments, and cost controls.

**【CFO Financial Commentary】**
- **Revenue & EPS Growth**: Sales down 2% (organic +1%), adjusted EPS up 7% to $6.94, with 160bps margin expansion.
- **Segment Performance**: Aerospace delivered 12% organic growth and 28.7% margin, while industrial businesses expanded margins despite volume headwinds.
- **Cash Flow Strength**: Free cash flow of $2B (13.7% of sales) supported 10% dividend increase and $650M share buybacks.

**【Market Vertical Updates】**
- **Aerospace & Defense**: FY2025 organic growth raised to 12% (from 11%), driven by aftermarket strength and defense recovery.
- **Industrial**: North America -4% organic growth (vs. prior -3%), International -2.5% (vs. -3%), with HVAC/R upshifted to high-single digits.
- **Energy**: Lower oil prices and capital discipline reduce growth to -low single digits.

**【Q&A Highlights】**
- **2026 Outlook**: Industrial organic growth expected to turn positive, supported by +9% Q3 orders and $7.3B aerospace backlog.
- **Tariff Strategy**: Pricing (50%), supply chain (30%), and cost actions (20%) fully offset tariffs; no footprint changes needed.
- **M&A Pipeline**: Active pipeline across all sizes; focus on strategic fits in filtration, semicon, and aerospace.
- **Europe Recovery**: Defense stimulus and infrastructure spending may drive long-term growth, but near-term industrial softness persists.

Parker-Hannifin (PH)-1 May 25-2025 Q3 Earnings call transcript

- **Record Margins & Growth**: Q2 adjusted segment margin 25.6%, aerospace sales +14% organically, all businesses hit records.
- **Win Strategy Payoff**: 110bps margin expansion via lean tools; example division cut defects by 52%.
- **Strong Cash Flow**: $1.5B free cash flow YTD, debt reduced $1.1B, debt/EBITDA 1.7x.
- **Aerospace Dominance**: FY25 aerospace growth raised to 11%, defense aftermarket +25%, MRO to high teens.
- **Industrial Caution**: FY25 industrial growth -2.5% (NA), flat intl., but orders positive in longer-cycle markets.


**【CEO Summary Section】**
- **Record Q2 Performance**: Adjusted segment operating margin reached 25.6%, with all businesses achieving record margins. Aerospace sales grew 14% organically, driven by 20%+ aftermarket growth.
- **Win Strategy Success**: 110bps margin expansion through Parker Lean System, Kaizen initiatives, and Simplify design tools. Example division in Filtration Group reduced rejected parts by 52% using zero-defect tools.
- **Market Outlook**: FY25 organic growth forecast at 2%, with aerospace raised to 11% (from 10%) and HVAC to mid-single digits. Industrial recovery delayed, but orders turned positive in longer-cycle businesses.

**【CFO Financial Highlights】**
- **Q2 Financials**: Adjusted EPS $6.53 (6% YoY), adjusted EBITDA margin 26.8%, and free cash flow $1.5B year-to-date. Debt reduced by $1.1B in Q2, bringing gross debt/EBITDA to 1.7x.
- **FY25 Guidance**: Organic growth 2% (midpoint), adjusted segment margin 25.8% (up 90bps YoY). Aerospace EPS contribution increased due to 11% growth vs. prior 10%.
- **Currency Impact**: 1% headwind for FY25, offset by strong cash flow and debt reduction.

**【Q&A Key Takeaways】**
- **Industrial Recovery**: Orders positive in longer-cycle businesses (HVAC, semicon), but distribution recovery delayed. FY25 North America industrial organic growth -2.5% (midpoint), International flat.
- **M&A Strategy**: Robust pipeline with focus on accretive, high-margin targets. Local-for-local model mitigates tariff risks.
- **Aerospace Momentum**: Defense aftermarket up 25%, commercial MRO growth to high teens. Q4 aerospace sales face tough comp (19% YoY last year), but FY25 guidance maintained at 11% growth.


Parker-Hannifin (PH)-30 Jan 25-2025 Q2 Earnings call transcript

Parker-Hannifin (PH)-31 Oct 24-2025 Q1 Earnings call transcript

Parker-Hannifin (PH)-8 Aug 24-2024 Q4 Earnings call transcript

Parker-Hannifin (PH)-2 May 24-2024 Q3 Earnings call transcript

Parker-Hannifin (PH)-1 Feb 24-2024 Q2 Earnings call transcript

- **Record Q1 Performance**: $4.8B sales (+15% YoY), $5.96 EPS, and 24.9% operating margin highlight execution of portfolio transformation.
- **Aerospace Growth Engine**: +65% sales, 26% margin, and 45% aftermarket mix drive FY '24 aerospace guidance to +10% organic growth.
- **Cash & Debt Discipline**: $552M free cash flow, 2.5x net debt/EBITDA, and $2B+ FY '24 debt paydown signal financial strength.
- **Win Strategy Resilience**: 40% incremental margins, 220bps margin expansion, and 85% long-cycle portfolio by FY '27 position for secular growth.

**【Management Remarks】**
- Parker Hannifin reported record Q1 sales of $4.8 billion, up 15% YoY, driven by aerospace and industrial growth.
- Organic growth of 2.3% reflects portfolio transformation into longer-cycle markets (85% by FY '27).
- Adjusted segment operating margin reached 24.9%, up 220bps YoY, with all segments exceeding 24%.

**【CEO Summary Section】**
- **Aerospace Dominance**: Aerospace sales grew 65% YoY to $1.2B, with 16% organic growth and 26% operating margin (up 610bps). Aftermarket now 45% of aerospace revenue (+800bps YoY).
- **Portfolio Shift**: Backlog coverage doubled to 54% since FY '16, with 2x growth in industrial backlog and resilient aerospace orders (+24% YoY).
- **Win Strategy Execution**: 40% incremental margins, 220bps margin expansion, and $776M net income ($5.96 EPS) reflect disciplined cost management and synergies from Meggitt acquisition.

**【CFO Financial Commentary】**
- **Cash Flow Strength**: $650M cash flow from ops (13.4% of sales) and $552M free cash flow (11.4% of sales), up 48% YoY.
- **Debt Reduction**: Reduced gross debt by $1.8B since Meggitt close, net debt/EBITDA to 2.5x, with $2B+ paydown guidance for FY '24.
- **Guidance Update**: FY '24 organic growth midpoint 1.5% (aerospace +10%), adjusted EPS $19.13 (midpoint), and 70bps margin expansion.

**【Q&A Highlights】**
- **North America Orders**: Q1 orders -4% YoY (vs -8% last quarter), with destocking in industrial but strong aerospace (+24% orders). Backlog resilience despite 5Q of negative industrial orders.
- **International Challenges**: Europe and Asia-Pacific (-8% organic) face China softness, while EMEA (+2%) and Latin America (+8%) offset.
- **Meggitt Synergies**: $75M FY '24 target (total $300M by FY '25), with 1-year anniversary performance exceeding expectations.
- **Lee Banks Retirement**: 32-year career marked by 7% CAGR, 292% TSR, and portfolio transformation. Succession plans ensure continuity under CEO Jennifer Parmentier.

Actual																	2.92	2.55	3.07	3.44	4.11	4.38	4.26	4.46	4.83	5.16	4.74	4.76	5.93	6.08	5.96	6.15	6.51	6.77	6.2	6.53	6.94	7.69	7.22	7.65
Forecast																	2.2421	1.5066	2.3331	2.5988	3.7767	4.3243	3.6915	3.9181	4.6528	4.6784	4.1842	4.4605	5.0165	5.4846	5.324	5.2696	6.1154	6.2216	6.1422	6.2539	6.7201	7.1029	6.6234	7.1643
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+30.24%	+69.26%	+31.58%	+32.37%	+8.83%	+1.29%	+15.40%	+13.83%	+3.81%	+10.29%	+13.28%	+6.71%	+18.21%	+10.86%	+11.95%	+16.71%	+6.45%	+8.81%	+0.94%	+4.41%	+3.27%	+8.27%	+9.01%	+6.78%

Actual	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	3.70B	3.16B	3.23B	3.41B	3.75B	3.96B	3.76B	3.82B	4.09B	4.19B	4.23B	4.67B	5.06B	5.10B	4.85B	4.82B	5.07B	5.19B	4.90B	4.74B	4.96B	5.24B	5.08B	5.17B
Forecast	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	3.57B	2.87B	2.98B	3.21B	3.73B	3.93B	3.63B	3.71B	4.06B	4.06B	3.95B	4.44B	4.78B	5.01B	4.88B	4.82B	5.07B	5.08B	4.90B	4.81B	4.99B	5.12B	4.94B	5.07B
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+3.80%	+10.28%	+8.53%	+6.13%	+0.49%	+0.76%	+3.54%	+3.03%	+0.55%	+3.03%	+7.15%	+5.24%	+5.90%	+1.66%	-0.60%	+0.06%	+0.18%	+2.06%	+0.08%	-1.47%	-0.55%	+2.50%	+2.86%	+1.97%

PH

PH fundamentals

PH Q2 2026 Earnings

Earnings Call

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PH

PH fundamentals

PH Q2 2026 Earnings

Earnings Call

PH Earnings Call Summary for Q2/202611:00 AM on Jan 29, 2026

PH Earnings Call Summary for Q1/202611:00 AM on Nov 6, 2025

PH Earnings Call Summary for Q4/202511:00 AM on Aug 7, 2025

PH Earnings Call Summary for Q3/202511:00 AM on May 1, 2025

PH Earnings Call Summary for Q2/202511:00 AM on Jan 30, 2025

You can ask Aime