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PARKER HANNIFIN CORPORATION Fiscal 2026 Fourth Quarter & Full Year Earnings Presentation August 6 , 2026 Parker ENGINEERING YOUR SUCCESS .
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2 Forward-looking statementscontainedin this and other written and oral reports are made based on known events and circumstancesat the time of release,and as such, are subject in the future to unforeseenuncertainties and risks. Often but not always,these statementsmay be identifiedfrom the use of forward-lookingterminologysuch as “anticipates,”“believes,”“may,” “should,” “could,” “expects,”“targets,” “is likely,” “will,” or the negative of these terms and similar expressions,and may also include statementsregardingfuture performance,orders, earningsprojections,events or developments. Parker cautionsreadersnot to place undue relianceon these statements. It is possiblethat the future performancemay differ materiallyfrom expectations,includingthose based on past performance. Amongother factors that may affect future performanceare: changesin businessrelationshipswith and orders by or from major customers,suppliersor distributors,includingdelays or cancellationsin shipments; disputes regardingcontractterms, changesin contractcosts and revenueestimatesfor new developmentprograms; changesin product mix; ability to identify acceptablestrategicacquisitiontargets; uncertaintiessurroundingtiming, successfulcompletionor integrationof acquisitionsand similar transactions,including the pending acquisitionsof Filtration Group Corporation("Filtration Group") and CIRCOR InternationalInc.'s Commercialand Defense Aerospace business ("CIRCOR Aerospace") and the integration of Curtis Instruments, Inc; ability to successfully divest businesses planned for divestiture and realize the anticipate dbenefits of such divestitures; the determinationand ability to successfully undertake business realignment activities and the expected costs, including cost savings, thereof; ability to implement successfully business and operating initiatives, including the timing, price and execution of share repurchasesand other capital initiatives; availability, cost increases of or other limitations on our access to raw materials, component products and/or commoditiesif associated costs cannot be recoveredin product pricing; ability to manage costs related to insuranceand employee retirementand health care benefits; legal and regulatorydevelopmentsand other governmentactions, including related to environmentalprotection,and associatedcompliancecosts; supply chain and labor disruptions,includingas a result of tariffs and labor shortages; threats associatedwith internationalconflicts,includinggeopoliticaltensions in the Middle East, and cybersecurity risks and risks associated with protecting our intellectual property; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; effects on market conditions,includingsales and pricing, resulting from global reactionsto U.S. trade policies; manufacturingactivity, air travel trends, currencyexchangerates, difficultiesentering new markets and economic conditionssuch as inflation, deflation, interest rates and credit availability; inability to obtain, or meet conditionsimposed for, required governmentaland regulatoryapprovals; changes in the tax laws in the United States and foreign jurisdictionsand judicial or regulatoryinterpretationsthereof; and large scale disasters,such as floods, earthquakes,hurricanes,industrialaccidentsand pandemics. Readersshould also considerforward- lookingstatementsin light of risk factors discussedin Parker’sAnnualReport on Form 10-K for the fiscal year ended June 30, 2025 and other periodicfilings made with the SEC. This presentationcontains references to non-GAAP financial information including adjusted net income, organic sales growth, adjusted earnings per share, adjusted segment operating margin for Parker and by segment, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, net debt to adjusted EBITDA, free cash flow, free cash flow margin, and free cash flow conversion. As used in this presentation,EBITDA is defined as earningsbefore interest, taxes, depreciationand amortization. AdjustedEBITDA is defined as EBITDA before businessrealignment,integrationcosts to achieve,acquisitionrelated expenses,and other one-time items. Free cash flow is defined as cash flow from operations less capital expenditures. Free cash flow conversion is defined as free cash flow divided by net income. Although the above listed measures are not measures of performance calculated in accordance with GAAP, we believe that they are useful to an investor in evaluating the company performance for the periods presented. Detailed reconciliationsof these non-GAAP financial measuresto the comparableGAAP financialmeasureshave been includedin the appendixto this presentation. The non-GAAP metrics includedin our 3-year target for FY29 and our 5-year targets for fiscal year 2031 could not be reconciledwithout unreasonableeffort and applicablereconciliationsare not includedin this presentation. Please visit investors.parker.com for more information. Forward-Looking Statements and Non-GAAP Financial Measures
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3 Record FY26 Performance Powered by The Win Strategy FY26 Highlights $21.5B Sales +8.3% Reported +6.6% Organic 1 27.3% Adjusted Segment Operating Margin 1 +120 bps 27.7% Adjusted EBITDA Margin1 +130 bps $4.4B CFOA 16% Growth 9% Reduction in Recordable Incident Rate 18% Adjusted EPS Growth 1 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations Note: FY26 As Reported: Segment Operating Margin of 24.5%, EBITDA Margin of 27.4%, Net Income of $3.6B, EPS of $28.48. • Record safety performance • Record sales of $21.5B, +6.6% organic growth1 • Record adjusted segment operating margin1 of 27.3% • Record adjusted earnings per share1 of $32.31 • Record CFOA of $4.4B • Surpassed FY29 adjusted segment margin target
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4 Completed September 2025 Announced May 2026Announced November 2025 Strategic Capital Deployment to Further Compound Growth Enhances electrification capabilities with complementary technologies Expands offering and aftermarket with proprietary filtration technologies Adds complementary flight critical aerospace and defense capabilities
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5 15% 17% 21% 25% 27% 30% FY15 FY20 FY23 FY27 FY29 FY31 Raising Adjusted Segment Operating Margin Target to 30% Extending Our Track Record of Achieving and Raising Targets Note: Segment Operating Margin % represent historical targets for FY15, FY20, FY23, FY27, and FY29. FY31 Segment Operating Margin % represents updated target. 15% and 17% are as reported. 21%, 25%, 27%, and 30% are adjusted. Adjusted numbers include certain non-GAAP adjustments and financial measures +300 bps From previous target Targets by Year FY31 Targets: • 4 to 6% organic growth • 30% adjusted segment operating margin • 17% free cash flow margin • 10%+ adjusted EPS growth
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6 6 Motion Systems 15% FY26 Proforma1 Sales by Tech Platform Rolling 12 Provides Stronger Correlation to Near-Term Organic Growth Order Rates Filtration & Engineered Materials Aerospace Systems Flow & Process Control Motion Systems 1. Includes Parker Hannifin FY26 sales by tech platform and Filtration Group Corporation CY25E and CIRCOR Aerospace CY26E sales disclosed at time of announcement. All Businesses Moving to Rolling 12-Month Comparisons Beginning in FY27 Profoundly Different Portfolio • Higher concentration of Aerospace & Defense • Longer cycle and more resilient end markets • Shaped by strategic positioning • Transformed by accretive acquisitions
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7 SUMMARY OF FISCAL 2026 4TH QUARTER HIGHLIGHTS
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8 FY26 Q4 Financial Summary 21% Adjusted EPS Growth $ Millions, except per share amounts FY26 Q4 FY26 Q4 FY25 Q4 YoY Change As Reported Adjusted¹ Adjusted¹ Adjusted¹ Sales $5,755 $5,755 $5,243 +10% Segment Operating Margin 26.5% 28.0% 26.9% +110 bps EBITDA Margin 29.1% 28.6% 26.8% +180 bps Net Income $1,091 $1,186 $992 +20% EPS $8.54 $9.27 $7.69 +21% 1. Sales figures As Reported. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. Note: FY25 Q4 As Reported: Segment Operating Margin of 23.9%, EBITDA Margin of 26.7%, Net Income of $923M, EPS of $7.15.
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9 FY26 Q4 Adjusted Earnings per Share Bridge 1. FY25 Q4 As Reported EPS of $7.15. FY26 Q4 As Reported EPS of $8.54. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. $0.25 $0.09 $0.02 ($0.07)$1.29 FY25 Q4 Adjusted EPS¹ Segment Operating Income Corporate & Other Share Count Interest Expense Income Tax FY26 Q4 Adjusted EPS¹ $7.69 $9.27
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10 FY26 Q4 Segment Performance Sales As Reported $ Organic %1 Segment Operating Margin As Reported Segment Operating Margin Adjusted1 Existing Order Rates2 Rolling 12 Order Rates3 Commentary Diversified Industrial North America Businesses $2,221M +4.9% Organic 27.3% 27.4% +70 bps YoY +16% Rolling 3 +9% • Organic sales growth of 5% as recovery broadens • Record adjusted segment operating margin • Sales improvement across all market verticals International Businesses $1,634M +6.5% Organic 24.2% 26.8% +210 bps YoY +24% Rolling 3 +10% • Record sales led by APAC • Record adjusted segment operating margin • Organic growth: 16% APAC, 1% EMEA, (3%) LA Aerospace Systems $1,900M +13.3% Organic 27.5% 29.8% +80 bps YoY +18% Rolling 12 +18% • Record sales: DD growth in all market segments • Record adjusted segment operating margin • Backlog increased to record $8.5B Parker $5,755M +8.0% Organic 26.5% 28.0% +110 bps YoY +19% Blended +12% • Record sales with 8% organic growth • Record adjusted segment operating margin • Backlog increased to a record $12.8B 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. 2. All comparisons are at constant currency exchange rates, with the prior year quarter restated to the current-year rates and exclude previously completed divestitures. Diversified Industrial orders are rolling 3-month average computations and Aerospace Systems are rolling 12-month average computations. 3. All comparisons are at constant currency exchange rates, with the prior year quarter restated to the current-year rates and exclude previously completed divestitures. All businesses are rolling 12-month average computations.
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11 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. 2. Includes discretionary and 10b5-1 share repurchases. Record FY26 Cash Flow Performance $1B Share Repurchases 2 Cash Flow Highlights FY26 Capital Deployment Actions: • $1.0B Share Repurchases • $0.9B Dividends Paid • $0.5B Capital Expenditures • $1.0B Acquisition of Curtis Instruments • $11.8B Announced Filtration Group & CIRCOR Aerospace Acquisitions $4.4B CFOA +16% Growth 20.3% Cash Flow from Operations Margin 18.2% Free Cash Flow Margin1 $3.9B Free Cash Flow 1 +17% Growth $3.3B $3.9B Free Cash Flow 1Cash Flow from Operations % to sales 16.8% 18.2% $3.8B $4.4B 19.0% 20.3% FY25 FY26 107% Free Cash Flow Conversion 1 FY25 FY26 FY25 FY26 Net Debt / Adjusted EBITDA TTM1 16.8% 1.4x 1.7x
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12 FY27 INITIAL GUIDANCE
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13 13 FY27 Organic Growth Forecast of 7% at the Midpoint FY27 Market Vertical Growth Guidance Key Market Verticals % of Sales1 Commentary Current FY27 Guidance Aerospace & Defense ~37% • Robust Commercial OEM, sustained Aftermarket growth • Global defense spending driving stronger growth +HSD In-Plant & Industrial ~20% • Customer demand improving, expect gradual acceleration on broadening recovery • Capital investment spending continues +MSD Transportation ~14% • Strong HD truck orders, customers increasing build rates • Automotive demand challenged by interest rates and affordability +MSD Off-Highway ~13% • Gradual acceleration in Construction driven by infrastructure spend • Softness continues in Ag on dynamic economic conditions +MSD Energy ~7% • Strong Power Gen growth on rising global demand for electricity • Oil & Gas growth expected flat +MSD HVAC/R ~4% • Commercial HVAC growth driven by infrastructure spending • Improvement in Residential HVAC with inventories normalizing +MSD 13 1. % of sales as of FY26
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14 Guidance Metric FY27 Full Year Full Year Assumptions FY27 Q1 Midpoint Reported Sales Growth 5.5% - 8.5% • Currency unfavorable ~0.5% • Previously completed acquisitions ~0.5% • Split: 1H: 48% | 2H: 52% ~9% Organic Sales Growth1 5.5% - 8.5% • 5% to 8% Industrial North America organic growth • 4% to 7% Industrial International organic growth • 7% to 10% Aerospace organic growth ~8% Adj. Operating Margin1 27.5% - 27.9% • 40 bps margin expansion • 30% to 35% incremental margin ~27.7% Adj. EPS 1 $34.25 - $35.25 • Tax rate: ~22.5% • Split: 1H: 47% | 2H: 53% ~$8.07 Free Cash Flow1 $3.4B - $3.9B • CapEx: ~2.5% of sales • ~100% FCF Conversion - - Initiating FY27 Guidance EPS Midpoint: $30.50 As Reported, $34.75 Adjusted 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations.
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15 FY27 Guidance Adjusted Earnings per Share Bridge $0.38 $0.07 ($0.14) $3.07 ($0.94) FY26 Adjusted EPS¹ Segment Operating Income Interest Expense Share Count Income Tax Corporate & Other FY27 Guidance Adjusted EPS¹ $32.31 $34.75 1. FY26 As Reported EPS of $28.48. FY27 Projected As Reported EPS midpoint of $30.50. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations.
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16 • Safety, Engagement, Ownership • Living up to Our Purpose • Top Quartile Performance • Great Generators & Deployers of Cash What Drives Parker
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17 FY27 Q1 Earnings Release November 5, 2026 UPCOMING EVENT CALENDAR FY27 Q2 Earnings Release February 4, 2027
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18 • FY27 Guidance Details • Historical Order Rate Comparison • Reconciliation of Organic Growth • Adjusted Amounts Reconciliation – Consolidated Statement of Income • Adjusted Amounts Reconciliation – Segment Operating Income • Reconciliation of EBITDA to Adjusted EBITDA • Reconciliation of Net Debt to Adjusted EBITDA • Reconciliation of Operating Cash Flow Margin and Free Cash Flow Margin and Conversion • Supplemental Sales Information • Reconciliation of FY27 Q1 Guidance • Reconciliation of FY27 Guidance Appendix
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19 FY27 Guidance Details Sales Growth vs. Prior Year As Reported Organic1 Diversified Industrial Segment North America Businesses 5.5% - 8.5% 5% - 8% International Businesses 3.5% - 6.5% 4% - 7% Aerospace Systems Segment 7% - 10% 7% - 10% Parker 5.5% - 8.5% 5.5% - 8.5% Segment Operating Margins As Reported Adjusted1 Diversified Industrial Segment North America Businesses 23.9% - 24.3% 26.5% - 26.9% International Businesses 23.5% - 23.9% 26.0% - 26.4% Aerospace Systems Segment 26.1% - 26.5% 30.0% - 30.4% Parker 24.5% - 24.9% 27.5% - 27.9% Earnings Per Share As Reported Adjusted1 EPS $30.00 - $31.00 $34.25 - $35.25 Detail of Pre-Tax Adjustments to: Segment Margins Below Segment Acquired Intangible Asset Amortization ~$580M — Business Realignment ~$95M — Integration Costs to Achieve ~$25M — Additional Items As Reported Corporate G&A ~$200M Interest Expense ~$340M Other (Income) Expense ~$100M T ax Rate ~22.5% Diluted Shares Outstanding ~127.8M 1. Includes certain non-GAAP adjustments and financial measures.
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20 Historical Order Rate Comparison Order Rates as Previously Disclosed1 FY25 FY26 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Diversified North America Rolling 3 (3%) 3% 3% 2% 3% 7% 7% 16% Diversified International Rolling 3 1% 4% 11% 0% 6% 6% 6% 24% Aerospace Rolling 12 7% 9% 14% 12% 15% 14% 14% 18% Parker Blended 1% 5% 9% 5% 8% 9% 9% 19% Updated Rolling 12-Month Order Rates2 FY25 FY26 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Diversified North America (5%) (3%) 0% 2% 3% 4% 5% 9% Diversified International (5%) (3%) 3% 3% 4% 5% 4% 10% Aerospace 7% 9% 14% 12% 15% 14% 14% 18% Parker (2%) 1% 5% 5% 7% 8% 8% 12% 1. Diversified Industrial order rates are on 3-month average computations; Aerospace order rates are on a rolling 12-month average 2. All order rate comparisons are on a rolling 12-month average
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21 Parker Hannifin Corporation Sales by Segment - Adjusted (Dollars in millions) (Unaudited) Quarter-to-Date As reported Currency Divestitures Acquisitions Organic Diversified Industrial: North America businesses 7.0 % 0.3 % 0.0 % 1.8 % 4.9 % International businesses EMEA 3.0 % 0.6 % 0.0 % 1.8 % 0.6 % Asia Pacific 19.6 % (0.2)% 0.0 % 3.9 % 15.9 % Latin America 3.0 % 5.6 % 0.0 % 0.0 % (2.6)% International businesses 9.5 % 0.5 % 0.0 % 2.5 % 6.5 % Total Diversified Industrial 8.1 % 0.4 % 0.0 % 2.1 % 5.6 % Aerospace Systems 13.4 % 0.1 % 0.0 % 0.0 % 13.3 % Total Parker Hannifin 9.8 % 0.3 % 0.0 % 1.5 % 8.0 % Reconciliation of Q4 Organic Growth
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22 Parker Hannifin Corporation Sales by Segment - Adjusted (Dollars in millions) (Unaudited) Year-to-Date As reported Currency Divestitures Acquisitions Organic Diversified Industrial: North America businesses 3.2 % 0.4 % (1.8)% 1.5 % 3.1 % International businesses EMEA 7.0 % 5.4 % 0.0 % 1.5 % 0.1 % Asia Pacific 13.6 % 0.4 % 0.0 % 3.0 % 10.2 % Latin America 0.7 % 4.0 % 0.0 % 0.0 % (3.3)% International businesses 9.3 % 3.4 % 0.0 % 2.0 % 3.9 % Total Diversified Industrial 5.7 % 1.7 % (1.1)% 1.7 % 3.4 % Aerospace Systems 14.2 % 0.8 % 0.0 % 0.0 % 13.4 % Total Parker Hannifin 8.3 % 1.2 % (0.7)% 1.2 % 6.6 % Reconciliation of Full Year Organic Growth
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23 Parker Hannifin Corporation Consolidated Statement of Income - Adjusted Quarter-to-Date (Dollars in millions, except per share data) (Unaudited) Quarter-to-Date FY 2026 Amortization Business Insurance-Related As Reported of Acquired Realignment Costs to Acquisition- Charges Adjusted June 30, 2026 % of Sales Intangibles Charges Achieve Related Expenses (Recoveries) Tariff Refunds Other1 June 30, 2026 % of Sales Net sales 5,755$ 100.0 % -$ -$ -$ -$ -$ -$ -$ 5,755$ 100.0 % Cost of sales 3,508 61.0 % 27 9 - - - (84) - 3,556 61.8 % Selling, general and admin. expenses 874 15.2 % 121 10 7 7 - - - 729 12.7 % Interest expense 95 1.7 % - - - - - - - 95 1.7 % Other expense (income), net (62) (1.1)% - - - - (3) - 28 (87) (1.5)% Income before income taxes 1,340 23.3 % (148) (19) (7) (7) 3 84 (28) 1,462 25.4 % Income taxes 248 4.3 % 33 4 2 1 - (19) 6 275 4.8 % Net income 1,092 19.0 % (115) (15) (5) (6) 3 65 (22) 1,187 20.6 % Less: Noncontrolling interests 1 0.0 % - - - - - - - 1 0.0 % Net income - common shareholders 1,091$ 19.0 % (115)$ (15)$ (5)$ (6)$ 3$ 65$ (22)$ 1,186$ 20.6 % Diluted earnings per share 8.54$ (0.90)$ (0.11)$ (0.04)$ (0.04)$ 0.02$ 0.51$ (0.17)$ 9.27$ Quarter-to-Date FY 2025 Amortization Business As Reported of Acquired Realignment Costs to Gain on Discrete Tax Adjusted June 30, 2025 % of Sales Intangibles Charges Achieve Divestitures Benefit Other1 June 30, 2025 % of Sales Net sales 5,243$ 100.0 % -$ -$ -$ -$ -$ -$ -$ 5,243$ 100.0 % Cost of sales 3,285 62.7 % 22 10 - - - - - 3,253 62.0 % Selling, general and admin. expenses 839 16.0 % 117 4 3 - - - - 715 13.6 % Interest expense 99 1.9 % - - - - - - - 99 1.9 % Other expense (income), net (51) (1.0)% - 2 - (2) - - (14) (37) (0.7)% Income before income taxes 1,071 20.4 % (139) (16) (3) 2 - - 14 1,213 23.1 % Income taxes 148 2.8 % 31 4 1 6 - 35 (4) 221 4.2 % Net income 923 17.6 % (108) (12) (2) 8 - 35 10 992 18.9 % Less: Noncontrolling interests - 0.0 % - - - - - - - - 0.0 % Net income - common shareholders 923$ 17.6 % (108)$ (12)$ (2)$ 8$ -$ 35$ 10$ 992$ 18.9 % Diluted earnings per share 7.15$ (0.84)$ (0.09)$ (0.02)$ 0.06$ -$ 0.27$ 0.08$ 7.69$ 1Other includes impairment charges and a pension buyout charge for $22 million and $6 million, respectively, in fiscal 2026. Prior year consists of gains on sales of buildings. Adjusted Amounts Reconciliation Q4 Consolidated Statement of Income
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24 Parker Hannifin Corporation Consolidated Statement of Income - Adjusted Year-to-Date (Dollars in millions, except per share data) (Unaudited) Year-to-Date FY 2026 Amortization Business Insurance-Related As Reported of Acquired Realignment Costs to Acquisition- Charges Adjusted June 30, 2026 % of Sales Intangibles Charges Achieve Related Expenses (Recoveries) Tariff Refunds Other1 June 30, 2026 % of Sales Net sales 21,499$ 100.0 % -$ -$ -$ -$ -$ -$ -$ 21,499$ 100.0 % Cost of sales 13,397 62.3 % 104 43 1 11 - (84) - 13,322 62.0 % Selling, general and admin. expenses 3,468 16.1 % 480 29 19 30 - - - 2,910 13.5 % Interest expense 401 1.9 % - - - - - - - 401 1.9 % Other expense (income), net (330) (1.5)% - - - - (23) - 28 (335) (1.6)% Income before income taxes 4,563 21.2 % (584) (72) (20) (41) 23 84 (28) 5,201 24.2 % Income taxes 914 4.3 % 134 17 5 9 (5) (19) 6 1,061 4.9 % Net income 3,649 17.0 % (450) (55) (15) (32) 18 65 (22) 4,140 19.3 % Less: Noncontrolling interests 1 0.0 % - - - - - - - 1 0.0 % Net income - common shareholders 3,648$ 17.0 % (450)$ (55)$ (15)$ (32)$ 18$ 65$ (22)$ 4,139$ 19.3 % Diluted earnings per share 28.48$ (3.51)$ (0.44)$ (0.12)$ (0.24)$ 0.14$ 0.51$ (0.17)$ 32.31$ Year-to-Date FY 2025 Amortization Business Insurance-Related As Reported of Acquired Realignment Costs to Gain on Charges Discrete Tax Adjusted June 30, 2025 % of Sales Intangibles Charges Achieve Divestitures (Recoveries) Benefits Other1 June 30, 2025 % of Sales Net sales 19,850$ 100.0 % -$ -$ -$ -$ -$ -$ -$ 19,850$ 100.0 % Cost of sales 12,535 63.1 % 88 31 - - - - - 12,416 62.5 % Selling, general and admin. Expenses 3,255 16.4 % 465 23 22 - - - - 2,745 13.8 % Interest expense 409 2.1 % - - - - - - - 409 2.1 % Other expense (income), net (456) (2.3)% - 2 - (252) 8 - (24) (190) (1.0)% Income before income taxes 4,107 20.7 % (553) (56) (22) 252 (8) - 24 4,470 22.5 % Income taxes 575 2.9 % 127 13 5 (21) 2 215 (6) 910 4.6 % Net income 3,532 17.8 % (426) (43) (17) 231 (6) 215 18 3,560 17.9 % Less: Noncontrolling interests 1 0.0 % - - - - - - - 1 0.0 % Net income - common shareholders 3,531$ 17.8 % (426)$ (43)$ (17)$ 231$ (6)$ 215$ 18$ 3,559$ 17.9 % Diluted earnings per share 27.12$ (3.27)$ (0.32)$ (0.13)$ 1.77$ (0.05)$ 1.65$ 0.14$ 27.33$ 1Other includes impairment charges and a pension buyout charge for $22 million and $6 million, respectively, in fiscal 2026. Prior year consists of gains on sales of buildings. Adjusted Amounts Reconciliation Full Year Consolidated Statement of Income
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25 Parker Hannifin Corporation Segment Operating Income - Adjusted Quarter-to-Date (Dollars in millions) (Unaudited) Quarter-to-Date FY 2026 Amortization Business Insurance-Related As Reported of Acquired Realignment Costs to Acquisition- Charges Adjusted June 30, 2026 % of Sales Intangibles Charges Achieve Related Expenses (Recoveries) Tariff Refunds Other June 30, 2026 % of Sales2 Diversified Industrial: North America businesses1 606$ 27.3% 49$ 2$ 5$ -$ -$ (53)$ -$ 609$ 27.4% International businesses1 396 24.2% 23 18 1 - - - - 438 26.8% Total Diversified Industrial1 1,002 26.0% 72 20 6 - - (53) - 1,047 27.2% Aerospace Systems1 522 27.5% 76 (1) 1 - - (31) - 567 29.8% Total segment operating income 1,524 26.5% (148) (19) (7) - - 84 - 1,614 28.0% Corporate administration 50 0.9% - - - - - - - 50 0.9% Income before interest and other 1,474 25.6% (148) (19) (7) - - 84 - 1,564 27.2% Interest expense 95 1.7% - - - - - - - 95 1.7% Other expense (income), net 39 0.7% - - - 7 (3) - 28 7 0.1% Income before income taxes 1,340$ 23.3% (148)$ (19)$ (7)$ (7)$ 3$ 84$ (28)$ 1,462$ 25.4% Quarter-to-Date FY 2025 Amortization Business As Reported of Acquired Realignment Costs to Gain on Adjusted June 30, 2025 % of Sales Intangibles Charges Achieve Divestitures Other June 30, 2025 % of Sales2 Diversified Industrial: North America businesses1 513$ 24.7% 41$ 2$ (1)$ -$ -$ -$ -$ 555$ 26.7% International businesses1 334 22.4% 23 12 - - - - - 369 24.7% Total Diversified Industrial1 847 23.7% 64 14 (1) - - - - 924 25.9% Aerospace Systems1 407 24.3% 75 - 4 - - - - 486 29.0% Total segment operating income 1,254 23.9% (139) (14) (3) - - - - 1,410 26.9% Corporate administration 65 1.2% - - - - - - - 65 1.2% Income before interest and other 1,189 22.7% (139) (14) (3) - - - - 1,345 25.7% Interest expense 99 1.9% - - - - - - - 99 1.9% Other expense (income), net 19 0.4% - 2 - (2) - - (14) 33 0.6% Income before income taxes 1,071$ 20.4% (139)$ (16)$ (3)$ 2$ -$ -$ 14$ 1,213$ 23.1% 1Segment operating income as a percent of sales is calculated on segment sales. 2Adjusted amounts as a percent of sales are calculated on as reported sales. Adjusted Amounts Reconciliation Q4 Segment Operating Income
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26 Parker Hannifin Corporation Segment Operating Income - Adjusted Year-to-Date (Dollars in millions) (Unaudited) Year-to-Date FY 2026 Amortization Business Insurance-Related As Reported of Acquired Realignment Costs to Acquisition- Charges Adjusted June 30, 2026 % of Sales Intangibles Charges Achieve Related Expenses (Recoveries) Tariff Refunds Other June 30, 2026 % of Sales2 Diversified Industrial: North America businesses1 2,041$ 24.3% 188$ 9$ 15$ 6$ -$ (53)$ -$ 2,206$ 26.3% International businesses1 1,399 23.1% 92 62 2 5 - - - 1,560 25.8% Total Diversified Industrial1 3,440 23.8% 280 71 17 11 - (53) - 3,766 26.1% Aerospace Systems1 1,833 26.0% 304 1 3 - - (31) - 2,110 29.9% Total segment operating income 5,273 24.5% (584) (72) (20) (11) - 84 - 5,876 27.3% Corporate administration 205 1.0% - - - - - - - 205 1.0% Income before interest and other 5,068 23.6% (584) (72) (20) (11) - 84 - 5,671 26.4% Interest expense 401 1.9% - - - - - - - 401 1.9% Other expense (income), net 104 0.5% - - - 30 (23) - 28 69 0.3% Income before income taxes 4,563$ 21.2% (584)$ (72)$ (20)$ (41)$ 23$ 84$ (28)$ 5,201$ 24.2% Year-to-Date FY 2025 Amortization Business Insurance-Related As Reported of Acquired Realignment Costs to Gain on Charges Adjusted June 30, 2025 % of Sales Intangibles Charges Achieve Divestitures (Recoveries) Other June 30, 2025 % of Sales2 Diversified Industrial: North America businesses1 1,891$ 23.2% 165$ 15$ 2$ -$ -$ -$ -$ 2,073$ 25.5% International businesses1 1,229 22.2% 88 38 1 - - - - 1,356 24.5% Total Diversified Industrial1 3,120 22.8% 253 53 3 - - - - 3,429 25.1% Aerospace Systems1 1,441 23.3% 300 - 19 - - - - 1,760 28.5% Total segment operating income 4,561 23.0% (553) (53) (22) - - - - 5,189 26.1% Corporate administration 214 1.1% - 1 - - - - - 213 1.1% Income before interest and other 4,347 21.9% (553) (54) (22) - - - - 4,976 25.1% Interest expense 409 2.1% - - - - - - - 409 2.1% Other expense (income), net (169) -0.9% - 2 - (252) 8 - (24) 97 0.5% Income before income taxes 4,107$ 20.7% (553)$ (56)$ (22)$ 252$ (8)$ -$ 24$ 4,470$ 22.5% 1Segment operating income as a percent of sales is calculated on segment sales. 2Adjusted amounts as a percent of sales are calculated on as reported sales. Adjusted Amounts Reconciliation Full Year Segment Operating Income
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27 Parker Hannifin Corporation EBITDA & Adjusted EBITDA (Dollars in millions) Twelve Months Ended (Unaudited) June 30, 2026 % of Sales 2025 % of Sales Net sales $ 21,499 100.0% $ 19,850 100.0% Net income $ 3,649 17.0% $ 3,532 17.8% Income taxes 914 4.3% 575 2.9% Depreciation 353 1.6% 354 1.8% Amortization 584 2.7% 553 2.8% Interest expense 401 1.9% 409 2.1% EBITDA 5,901 27.4% 5,423 27.3% Adjustments: Business realignment charges 72 0.3% 56 0.3% Costs to achieve 20 0.1% 22 0.1% Gain on divestitures - 0.0% (252) -1.3% Acquisition-related expenses 41 0.2% - 0.0% Insurance-related charges (recoveries) (23) -0.1% 8 0.0% Tariff refunds (84) -0.4% - 0.0% Other 28 0.1% (24) -0.1% EBITDA - Adjusted $ 5,955 27.7% $ 5,233 26.4% EBITDA margin 27.4 % 27.3 % EBITDA margin - Adjusted 27.7 % 26.4 % Parker Hannifin Corporation EBITDA & Adjusted EBITDA (Dollars in millions) Three Months Ended (Unaudited) June 30, 2026 % of Sales 2025 % of Sales Net sales $ 5,755 100.0% $ 5,243 100.0% Net income $ 1,092 19.0% $ 923 17.6% Income taxes 248 4.3% 148 2.8% Depreciation 89 1.5% 91 1.7% Amortization 148 2.6% 139 2.7% Interest expense 95 1.7% 99 1.9% EBITDA 1,672 29.1% 1,400 26.7% Adjustments: Business realignment charges 19 0.3% 16 0.3% Costs to achieve 7 0.1% 3 0.1% Gain on divestitures - 0.0% (2) 0.0% Acquisition-related expenses 7 0.1% - 0.0% Insurance-related charges (recoveries) (3) -0.1% - 0.0% Tariff refunds (84) -1.5% - 0.0% Other 28 0.5% (14) -0.3% EBITDA - Adjusted $ 1,646 28.6% $ 1,403 26.8% EBITDA margin 29.1 % 26.7 % EBITDA margin - Adjusted 28.6 % 26.8 % Reconciliation of EBITDA to Adjusted EBITDA
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28 (Dollars in millions) Twelve Months Ended (Unaudited) June 30, 2026 2025 Notes payable and long-term debt payable within one year $ 1,754 $ 1,791 Long-term debt 6,766 7,494 Deferred debt issuance costs 45 54 Gross debt 8,565 9,339 Cash and cash equivalents $ 501 $ 467 Marketable securities and other investments 4 4 Cash 505 471 Net debt (Gross debt less total cash) $ 8,060 $ 8,868 Net sales $ 21,499 $ 19,850 Net income $ 3,649 $ 3,532 Income taxes 914 575 Depreciation 353 354 Amortization 584 553 Interest expense 401 409 EBITDA 5,901 5,423 Adjustments: Business realignment charges 72 56 Costs to achieve 20 22 Gain on divestitures - (252) Acquisition-related expenses 41 - Insurance-related charges (recoveries) (23) 8 Tariff refunds (84) - Other 28 (24) EBITDA - Adjusted $ 5,955 $ 5,233 Net Debt / adjusted EBITDA TTM 1.4 1.7 Reconciliation of Net Debt to Adjusted EBITDA
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29 Reconciliation of Operating Cash Flow Margin, Free Cash Flow Margin and Conversion Twelve Months Ended June 30, 2026 2025 Net Sales $ 21,499 $ 19,850 Net Income $ 3,649 $ 3,532 Cash Flow from Operations $ 4,364 $ 3,776 Capital Expenditures (459) (435) Free Cash Flow $ 3,905 $ 3,341 Cash Flow from Operations Margin 20.3% 19.0% Free Cash Flow Margin 18.2% 16.8% Free Cash Flow Conversion (Free Cash Flow / Net Income) 107% 95% (Unaudited) (Dollars in millions)
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30 Supplemental Sales Information Global Technology Platforms (Unaudited) (Dollars in millions) Three Months Ended June 30, Net Sales 2026 2025 Diversified Industrial: Motion Systems $ 944 860 Flow and Process Control 1,318 1,192 Filtration and Engineered Materials 1,593 1,515 Aerospace Systems 1,900 1,676 Total $ 5,755 $ 5,243 Twelve Months Ended June 30, 2026 2025 $ 3,580 $ 3,341 4,810 4,518 6,048 5,806 7,061 6,185 $ 21,499 $ 19,850
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31 RECONCILIATION OF FORECASTED OPERATING MARGIN TO ADJUSTED OPERATING MARGIN (Unaudited) Fiscal Year 2027 Q1 (Amounts in percentages) Forecasted Segment Operating Margin Business Realignment Charges Costs to Achieve Acquisition-Related Intangible Asset Amortization Expense Adjusted Forecasted Segment Operating Margin* Parker ~24.8% ~0.3% ~0.1% ~2.5% ~27.7% Reconciliation of FY27 Q1 Guidance Fiscal Year 2027 Q1 Forecasted Net Sales Currency Acquisitions Adjusted Forecasted Net Sales Parker ~9% -- ~(1%) ~8% RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH (Unaudited) (Amounts in percentages) Fiscal Year 2027 Q1 Forecasted earnings per diluted share ~$7.10 Adjustments: Business realignment charges 0.12 Amortization of acquired intangibles 1.10 Costs to achieve 0.05 Tax effect of adjustments1 (0.30) Adjusted forecasted earnings per diluted share ~$8.07 RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE (Unaudited) 1. This line reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. * Totals may not foot due to rounding
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32 RECONCILIATION OF FORECASTED OPERATING MARGIN TO ADJUSTED OPERATING MARGIN (Unaudited) Fiscal Year 2027 (Amounts in percentages) Forecasted Segment Operating Margin Business Realignment Charges Costs to Achieve Acquisition-Related Intangible Asset Amortization Expense Adjusted Forecasted Segment Operating Margin* Diversified Industrial North America Businesses 23.9% to 24.3% ~0.3% ~0.2% ~2.1% 26.5% to 26.9% International Businesses 23.5% to 23.9% ~1.0% ~0.1% ~1.5% 26.0% to 26.4% Aerospace Systems 26.1% to 26.5% ~0.0% ~0.0% ~3.9% 30.0% to 30.4% Parker 24.5% to 24.9% ~0.4% ~0.1% ~2.5% 27.5% to 27.9% Reconciliation of FY27 Guidance Fiscal Year 2027 Forecasted Net Sales Currency Acquisitions Adjusted Forecasted Net Sales Diversified Industrial North America Businesses 5.5% to 8.5% -- ~(0.5%) 5% to 8% International Businesses 3.5% to 6.5% ~1% ~(0.5%) 4% to 7% Aerospace Systems 7% to 10% -- -- 7% to 10% Parker 5.5% to 8.5% ~0.5% ~(0.5%) 5.5% to 8.5% RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH (Unaudited) (Amounts in percentages) Fiscal Year 2027 Forecasted earnings per diluted share $30.00 to $31.00 Adjustments: Business realignment charges 0.74 Amortization of acquired intangibles 4.54 Costs to achieve 0.19 Tax effect of adjustments1 (1.22) Adjusted forecasted earnings per diluted share $34.25 to $35.25 RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE (Unaudited) 1. This line reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. * Totals may not foot due to rounding