Parker Hannifin Corp (NYSE:PH)
$ 647.59 +6.09 (+0.95%) Market Cap: 82.75 Bil Enterprise Value: 91.72 Bil PE Ratio: 24.94 PB Ratio: 6.18 GF Score: 83/100

Q2 2025 Parker-Hannifin Corp Earnings Call Transcript

Jan 30, 2025 / 04:00PM GMT
Release Date Price: $703.89 (+5.72%)

Key Points

Positve
  • Parker Hannifin Corp (PH) achieved a record second-quarter adjusted segment operating margin of 25.6%, driven by the consistent execution of the Win Strategy.
  • The company reported record earnings per share and year-to-date cash flow from operations, which allowed for a substantial debt reduction of $1.1 billion.
  • Aerospace orders showed continued strength, with a 14% increase in sales driven by a 20% growth in the aftermarket sector.
  • The company raised its Aerospace and Defense sales forecast to 11% for FY25, reflecting strong aftermarket performance and gradual OEM rate increases.
  • Parker Hannifin Corp (PH) demonstrated strong margin expansion across all business segments, with a Q2 record adjusted EBITDA margin of 26.8%.
Negative
  • Overall sales were down 1.6% compared to the previous year, primarily due to divestitures and unfavorable currency impacts.
  • The industrial sector faced continued pressure, with North America experiencing a negative 5% organic growth and international markets seeing a negative 3% growth.
  • The expected industrial recovery has been delayed, with ongoing challenges in transportation and off-highway markets.
  • Currency headwinds are expected to be a 1% negative impact for the full year, adding to the challenges faced by the company.
  • The off-highway sector is projected to decline in the mid-teens due to OEM destocking and production cuts, with continued weakness in the agricultural market.
Operator

If anyone should require operator assistance, please press star zero on your telephone keypad as a reminderGreetings and welcome to the Parker Hannifin Corporation fiscal 2025 second-quarter earnings conference call and webcast. (Operator Instructions) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host Todd Leombruno, Chief Financial Officer. Thank you. You may begin. this conference is being recorded. It is now my pleasure to introduce your host, Todd Leombruno Chief Financial Officer. Thank you. You may begin.

Todd Leombruno
Parker-Hannifin Corp - Chief Financial Officer, Executive Vice President

Thank you, Shelly. We appreciate it so much. Welcome to Parker's fiscal year 2025 second quarter earnings release webcast. This is Todd Leombruno, Chief Financial Officer speaking and with me today is Jenny Parmentier, our Chairman and Chief Executive Officer. We appreciate your interest in Parker and thank you for joining us today.

On slide two, we will address our disclosures on forward-looking

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