On August 8, 2024, Parker Hannifin Corp (PH, Financial) released its 8-K filing for the fiscal fourth quarter and full year ended June 30, 2024. The company, a global leader in motion and control technologies, operates through two segments: diversified industrial and aerospace systems.
Quarterly Performance Highlights
Parker Hannifin Corp (PH, Financial) reported a 2% increase in sales to a record $5.2 billion for the fourth quarter, with organic sales growth of 3%. Net income for the quarter was $785 million, or $6.01 per share, surpassing the analyst estimate of $5.19 per share. Adjusted earnings per share (EPS) were $6.77, reflecting an 11% increase.
The company's EBITDA margin improved to 25.8%, up 90 basis points (bps), or 26.3% adjusted, up 190 bps. Segment operating margin was 22.2%, an increase of 10 bps, or 25.3% adjusted, an increase of 130 bps.
Annual Performance Highlights
For the full fiscal year, Parker Hannifin Corp (PH, Financial) achieved a 5% increase in sales to a record $19.9 billion, with organic sales growth of 2%. Net income for the year was $2.8 billion, or $21.84 per share, exceeding the annual estimate of $20.94 per share. Adjusted EPS reached a record $25.44, an 18% increase.
The company's EBITDA margin for the year was 25.2%, up 380 bps, or 25.6% adjusted, up 200 bps. Segment operating margin was 21.5%, an increase of 240 bps, or 24.9% adjusted, an increase of 200 bps. Cash flow from operations increased 14% to $3.4 billion, representing 17.0% of sales.
"We delivered an exceptionally strong fourth quarter capping another year of record performance," said Chairman and Chief Executive Officer, Jenny Parmentier. "Our ability to drive outstanding results reflects the dedication and commitment of our people, the strength and balance of our portfolio, and the power of our business system, The Win Strategyâ„¢."
Segment Performance
The diversified industrial segment, which includes engineered materials, filtration, fluid connectors, instrumentation, and motion systems, faced mixed results. North America sales decreased by 3.2% to $2.23 billion, while international sales declined by 5.4% to $1.43 billion. Despite lower sales, the segment achieved record operating margins due to cost management and operational efficiencies.
The aerospace systems segment reported a robust 19.2% increase in sales to $1.53 billion, driven by strong performance across commercial and defense markets. The segment's adjusted operating margin improved to 27.1%, up 130 bps.
Financial Metrics and Analysis
Key financial metrics from the income statement include net sales of $5.2 billion for Q4 and $19.9 billion for the full year. The balance sheet highlights include a reduction in interest expense to $119 million for Q4 and $506 million for the full year. Cash dividends per common share increased to $1.63 for Q4 and $6.07 for the full year.
| Metric | Q4 2024 | Q4 2023 | Change |
|---|---|---|---|
| Net Sales | $5.2B | $5.10B | +2% |
| Net Income | $785M | $709M | +10.7% |
| EPS | $6.01 | $5.44 | +10.5% |
Outlook and Guidance
Parker Hannifin Corp (PH, Financial) issued guidance for fiscal year 2025, expecting total sales growth of 1.5% to 4.5%, with organic sales growth of 2% to 5%. The company anticipates an EPS range of $22.65 to $23.35, or $26.30 to $27.00 on an adjusted basis. The total segment operating margin is projected to be between 22.1% and 22.5%, or 25.2% to 25.6% on an adjusted basis.
For more detailed financial information and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Parker Hannifin Corp for further details.
