Parker-Hannifin Trims Outlook, But CEO Says Firm Ready To Handle Tariff Uncertainty
Parker-Hannifin Corp (NYSE:PH) reported mixed third-quarter results and revised its 2025 outlook on Thursday.
The company's sales of $4.96 billion and 1% organic growth were slightly below the consensus of $4.99 billion.
Adjusted EPS for the quarter was $6.94, beating the consensus of $6.72.
Orders were up 9% year-over-year (Y/Y), with Diversified Industrial North American businesses up 3% Y/Y and Diversified Industrial International businesses up 11% Y/Y. Orders in the Aerospace Systems segment increased by 14% Y/Y in the quarter.
Segment Sales: Diversified Industrial North America $2.031 billion (-9.0% Y/Y), Diversified Industrial International $1.358 billion (-5.3% Y/Y), and Aerospace Systems $1.572 billion (+11.6% Y/Y).
The total adjusted segment operating margin for the quarter was 26.3%, up 160 bps Y/Y.
"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.", commented Jenny Parmentier, Chairman and Chief Executive Officer.
Parker-Hannifin's year-to-date cash flow from operations stood at $2.31 billion. It held $408.7 million in cash and equivalents as of quarter-end.
2025 Outlook updated: Parker now expects sales growth of (1%), with organic sales growth of 1% and unfavorable currency of (0.5%).
The company narrows its adjusted EPS guidance to $26.60-$26.80 (prior $26.40 to $27.00), compared to the $26.73 consensus.
Parker expects a total segment operating margin of approximately 22.7%, or approximately 25.9%, on an adjusted basis.
Dividend: On April 24, the Board of Directors declared a quarterly cash dividend of $1.80 per share for shareholders of record on May 9, 2025, payable on June 6, 2025.
This dividend represents a 10% increase over the previous quarterly dividend of $1.63 per share.
Investors can gain exposure to the stock via Tema ETF Trust Tema American Reshoring ETF (NYSE:RSHO) and ETF Opportunities Trust Brendan Wood TopGun Index ETF (BATS:BWTG).
Price Action: Parker-Hannifin shares are closed at $610.12 on Thursday.
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