Record Financial Performance: Parker Hannifin reported a record fiscal year 2025, with sales of $19.9 billion and adjusted segment operating margins of 26.1%, up 120 basis points year-over-year. Adjusted EBITDA margin also reached a record of 26.4%, reflecting strong operating execution and cost controls.

Strong Cash Flow Generation: The company achieved record cash flow from operations of $3.8 billion, representing 19% of sales, and free cash flow also hit a record of $3.3 billion (16.8% of sales), with conversion at 109% after adjusting for nonoperating items. This performance supports ongoing capital deployment strategies, including significant share buybacks totaling $1.6 billion in FY '25.

Fiscal Year 2026 Guidance: For FY '26, Parker expects reported sales growth of 2% to 5% (approximately $20.6 billion), with organic growth projected at 1.5% to 4.5% (3% midpoint). The guidance reflects expectations for high-single-digit growth in Aerospace but challenges in the Industrial segment due to a gradual recovery pace. Adjusted EPS guidance is projected at $28.90, showing a 6% increase YoY.