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November 5, 2026 PARKER HANNIFIN CORPORATION Fiscal 2027 First Quarter Earnings Presentation
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2 Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. Often but not always, these statements may be identified from the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “should,” “could,” “expects,” “targets,” “is likely,” “will,” or the negative of these terms and similar expressions, and may also include statements regarding future performance, orders, earnings projections, events or developments. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance may differ materially from expectations, including those based on past performance. Among other factors that may affect future performance are: changes in business relationships with and orders by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms, changes in contract costs and revenue estimates for new development programs; changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions, including the pending acquisition of CIRCOR International Inc.'s Commercial and Defense Aerospace business, and the integration of Filtration Group Corporation ("Filtration Group") and Curtis Instruments, Inc.; ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination and 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 repurchases and other capital initiatives; availability, cost increases of or other limitations on our access to raw materials, component products and/or commodities if associated costs cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; legal and regulatory developments and other government actions, including related to environmental protection, and associated compliance costs; supply chain and labor disruptions, including as a result of tariffs and labor shortages; threats associated with international conflicts, including geopolitical tensions 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, including sales and pricing, resulting from global reactions to U.S. trade policies; manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and economic conditions such as inflation, deflation, interest rates and credit availability; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; changes in the tax laws in the United States and foreign jurisdictions and judicial or regulatory interpretations thereof; and large scale disasters, such as floods, earthquakes, hurricanes, industrial accidents and pandemics. Readers should also consider forward-looking statements in light of risk factors discussed in Parker’s Annual Report on Form 10-K for the fiscal year ended June 30, 2026 and other periodic filings made with the SEC. This presentation contains 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 earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before business realignment, integration costs to achieve, acquisition related 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 reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures have been included in the appendix to this presentation. The non-GAAP metric included in our forward-looking target for Filtration Group Acquisition Adjusted EBITDA Margin by FY30 could not be reconciled without unreasonable effort and the applicable reconciliation is not included in this presentation. Please visit investors.parker.com for more information. Forward-Looking Statements and Non-GAAP Financial Measures
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3 A Great Start to Fiscal Year 2027 FY27 Q1 Highlights $6B Sales +18% Reported +11.5% Organic1 28.6% Adjusted Segment Operating Margin 1 +120 bps 9% Reduction in Recordable Incident Rate 23% Adjusted EPS Growth 1 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. Note: FY27 Q1 As Reported: Segment Operating Margin of 24.4%, EPS of $6.92. • Top quartile safety performance • Record sales of $6B, +11.5% organic growth1 • Record adjusted segment operating margin1 of 28.6% • Record adjusted earnings per share1 of $8.90 • Completed Filtration Group acquisition and integration process underway
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4 Strong and Broad Based Demand Drives Record Backlog Level $10.5B $11.0B $11.0B $11.3B $11.7B $12.5B $12.8B $13.7B FY25 Q2 FY25 Q3 FY25 Q4 FY26 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY27 Q1 Backlog Rolling 12 Orders 1% 5% 5% 7% 8% 8% 12% 13%
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5 Parker Welcomes Filtration Group Corporation - Day 1 Events Malaysia United Kingdom IndiaChina United States
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6 In-Plant & Industrial Transportation ~20% of sales ~17% of sales Life Sciences HVAC/R ~28% of sales ~23% of sales • Complementary and proprietary filtration technologies for critical applications • Expands presence in Life Sciences, HVAC/R, and In-Plant and Industrial • Serving high value, performance critical applications • Increasing Parker Filtration aftermarket sales by 500 bps Acquisition of Filtration Group Creating one of the Largest Industrial Filtration Businesses in the World Sales by Region International 40% Americas 60% Source: Filtration Group Corporation. Based on CY25E sales as previously announced on November 11, 2025. OEM 15% Aftermarket 85% Sales Mix
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7 7 Targeting greater than 30% adjusted EBITDA margin with cost synergies Filtration Group: Clear Path to Margin Expansion Leveraging our Proven Integration Playbook and Operational Excellence $40M $110M $180M $220M FY27 FY28 FY29 FY30 Cumulative Expected Cost Synergies
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8 Why We Win Strong Competitive Advantages Application Engineering Innovative Products Interconnected Technologies Distribution Network Serving global aftermarket & small to mid-sized OEMs Enables comprehensive solutions for customers Deep customer partnership to uncover unmet needs Technical expertise creates competitive advantage Decentralized structure, strategic positioning & operational excellence Parker’s Business System
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9 SUMMARY OF FISCAL 2027 1ST QUARTER HIGHLIGHTS
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10 FY27 Q1 Financial Summary 23% Adjusted EPS Growth $ Millions, except per share amounts FY27 Q1 FY27 Q1 FY26 Q1 YoY Change As Reported Adjusted¹ Adjusted¹ Adjusted¹ Sales $5,992 $5,992 $5,084 +18% Segment Operating Margin 24.4% 28.6% 27.4% +120 bps EBITDA Margin 26.2% 28.5% 27.3% +120 bps Net Income $884 $1,138 $927 +23% EPS $6.92 $8.90 $7.22 +23% 1. Sales figures As Reported. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. Note: FY26 Q1 As Reported: Segment Operating Margin of 24.2%, EBITDA Margin of 27.0%, Net Income of $808M, EPS of $6.29.
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11 FY27 Q1 Adjusted Earnings per Share Bridge 1. FY26 Q1 As Reported EPS of $6.29. FY27 Q1 As Reported EPS of $6.92. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. $0.08 $0.05 ($0.27) ($0.12) $1.94 FY26 Q1 Adjusted EPS¹ Segment Operating Income Share Count Income Tax Interest Expense Corporate & Other FY27 Q1 Adjusted EPS¹ $7.22 $8.90 $1.98 $0.04 $0.01 ($0.08)
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12 FY27 Q1 Segment Performance Sales As Reported $ Organic %1 Segment Operating Margin As Reported Segment Operating Margin Adjusted1 Rolling 12 Order Rates2 Commentary Diversified Industrial North America Businesses $2,445M +9.4% Organic 23.0% 27.6% +60 bps YoY +11% • Record sales with growth across all market verticals • Organic sales growth of 9% • Record adjusted segment operating margin of 27.6% International Businesses $1,707M +11.6% Organic 24.0% 27.7% +270 bps YoY +14% • Record sales led by APAC • Organic growth: 23% APAC, 4% EMEA, (1%) LA • Record adjusted segment operating margin of 27.7% Aerospace Systems $1,867M +13.9% Organic 26.6% 30.7% +70 bps YoY +14% • Record sales with double -digit OEM & Aftermarket growth • Record adjusted segment operating margin of 30.7% • Strong orders drive backlog to new record Total Segment $6,019M +11.5% Organic 24.4% 28.6% +120 bps YoY +13% • Record sales with 11.5% organic growth • Record adjusted segment operating margin of 28.6% • Double-digit order rates across all businesses 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. All businesses are on rolling 12-month average computations.
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13 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. FY27 Q1 Cash Flow Performance 2.7x Net Debt to Adjusted EBITDA TTM 1 Cash Flow Highlights $752M Cash Flow from Operations 12.6% Cash Flow from Operations Margin 10.7% Free Cash Flow Margin1 $643M Free Cash Flow 1 $693M $643M Free Cash Flow 1Cash Flow from Operations % to sales $782M $752M 13.6% 10.7% 15.4% 12.6% FY26 FY27FY27FY26
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14 FY27 GUIDANCE
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15 Increasing Midpoint Organic Growth Guidance from 7% to 9% Key Market Verticals % of Sales1 Commentary Previous FY27 Guidance2 Current FY27 Guidance2 Aerospace & Defense ~37% • Commercial aftermarket orders accelerate, OEM rates continue • Global defense spending driving stronger growth +HSD ~10% In-Plant & Industrial ~20% • Positive demand in short cycle markets • Acceleration continues on broadening recovery +MSD +HSD Transportation ~14% • HD truck orders and build rate strength continues • Automotive demand remains challenged +MSD +HSD Off-Highway ~13% • Sustained growth in non-residential construction • Positive sentiment in mining as commodity prices drive demand +MSD +MSD Energy ~7% • Robust long-cycle Power Gen demand • Oil & Gas growth expected flat +MSD +MSD HVAC/R ~4% • Strong growth in commercial HVAC • Commercial Refrigeration demand continues +MSD +MSD 1. % of sales as of FY26 2. Organic growth guidance refers to guidance at the midpoint. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations.
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16 FY27 Guidance Raising Sales, Adjusted Margin, Adjusted EPS, and Free Cash Flow 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. Guidance Metric Previous FY27 Full Year Updated FY27 Full Year Full Year Assumptions FY27 Q2 Midpoint Reported Sales Growth 5.5% - 8.5% 16.0% - 19.0% • Acquisitions ~9%; Currency ~(0.5%) • Includes $1.85B Filtration Group sales • Split: 1H: 48% | 2H: 52% ~19.5% Organic Sales Growth1 5.5% - 8.5% 7.5% - 10.5% • ~10% Aerospace organic growth • ~8% Industrial North America organic growth • ~9.5% Industrial International organic growth ~10% Adj. Segment Operating Margin1 27.5% - 27.9% 27.7% - 28.1% • Raising margin guidance 20 bps • 60 bps margin expansion vs prior year ~27.6% Adj. EPS 1 $34.25 - $35.25 $36.45 - $37.25 • $36.85 Adj. EPS Midpoint • Tax rate: ~22.5% • Split: 1H: 48% | 2H: 52% ~$8.82 Free Cash Flow1 $3.4B - $3.9B $3.5B - $4.0B • CapEx: ~2.5% of sales • ~100% FCF Conversion - -
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17 Raising FY27 Adjusted EPS Guidance Stronger Organic Growth, Higher Adj. Segment Margin, and Accretion from Filtration Group Acquisition 1. FY27G Previous As Reported EPS of $30.50 at the midpoint. FY27G Updated As Reported EPS of $30.05 at the midpoint. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. $0.50 ($0.10)$1.70 $34.75 $36.85 FY27G Previous Adj. EPS1 Legacy Segment Operating Income Net Filtration Group Accretion Corporate, Interest, and Other Expense FY27G Updated Adj. EPS1
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PARKER’S 2027 INVESTOR MEETING Save the Date: May 13, 2027 | New York City
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19 • Safety, Engagement, Ownership • Living up to Our Purpose • Top Quartile Performance • Great Generators & Deployers of Cash What Drives Parker
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20 FY27 Q2 Earnings Release February 4, 2027 UPCOMING CALENDAR FY27 Q3 Earnings Release May 6, 2027 2027 Investor Meeting May 13, 2027
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21 • FY27 Guidance Details • Reconciliation of Q1 Organic Growth • Adjusted Amounts Reconciliation – Q1 Consolidated Statement of Income • Adjusted Amounts Reconciliation – Q1 Segment Operating Income • Reconciliation of EBITDA to Adjusted EBITDA • Reconciliation of Net Debt to Adjusted EBITDA TTM • Reconciliation of Operating Cash Flow Margin and Free Cash Flow Margin • Supplemental Sales Information • Reconciliation of FY27 Q2 Guidance • Reconciliation of Current FY27 Guidance • Reconciliation of Previous FY27 Guidance (from Aug 6, 2026) Appendix
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22 FY27 Guidance Details Sales Growth vs. Prior Year As Reported Organic1 Diversified Industrial Segment North America Businesses 20% - 23% 6.5% - 9.5% International Businesses 20% - 23% 8% - 11% Aerospace Systems Segment 8.5% - 11.5% 8.5% - 11.5% Parker 16% - 19% 7.5% - 10.5% Segment Operating Margins As Reported Adjusted1 Diversified Industrial Segment North America Businesses 22.2% - 22.6% 26.6% - 27.0% International Businesses 22.7% - 23.1% 26.6% - 27.0% Aerospace Systems Segment 26.4% - 26.8% 30.2% - 30.6% Parker 23.6% - 24.0% 27.7% - 28.1% Earnings Per Share As Reported Adjusted1 EPS $29.65 - $30.45 $36.45 - $37.25 Detail of Pre-Tax Adjustments to: Segment Margins Below Segment2 Acquired Intangible Asset Amortization ~$865M — Business Realignment ~$95M — Integration Costs to Achieve ~$60M — Acquisition Related Expenses ~$25M ~$55M T ariff Refunds, Net — ~$21M Additional Items As Reported Corporate G&A ~$210M Interest Expense ~$690M Other (Income) Expense ~$90M T ax Rate ~22.5% Diluted Shares Outstanding ~127.8M 1. Includes certain non-GAAP adjustments and financial measures. 2. Expenses incurred to date.
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23 Reconciliation of Q1 Organic Growth PARKER HANNIFIN ORGANIC SALES GROWTH FY27 Q1 In millions (unaudited) Reported Less: Currency & Other Less: Acquisitions Organic Quarter-to-Date: Diversified Industrial: North America 19.6 % 0.1 % 10.1 % 9.4 % EMEA 15.4 % (1.2)% 12.6 % 4.0 % Asia Pacific 33.4 % 1.6 % 8.4 % 23.4 % Latin America 1.9 % 3.2 % - (1.3)% Total International 22.0 % 0.2 % 10.2 % 11.6 % Total Diversified Industrial 20.6 % 0.2 % 10.1 % 10.3 % Aerospace Systems 13.8 % (0.1)% - 13.9 % Total1 17.9 % (0.5)% 6.9 % 11.5 % Sales Growth 1 Total reported net sales include Corporate, which is not presented separately. Corporate net sales reflect a reduction of $27 million related to customer tariff returns, which are excluded from organic growth and reflected in the Currency & Other column. The Other component of that column consists entirely of customer tariff returns and represents approximately 0.5% of net sales for the quarter and year-to-date period. PARKER HANNIFIN ORGANIC SALES GROWTH FY27 Q1 In millions (unaudited) Reported Less: Currency & Other Less: Acquisitions Organic Quarter-to-Date: Diversified Industrial: North America 19.6 % 0.1 % 10.1 % 9.4 % EMEA 15.4 % (1.2)% 12.6 % 4.0 % Asia Pacific 33.4 % 1.6 % 8.4 % 23.4 % Latin America 1.9 % 3.2 % - (1.3)% Total International 22.0 % 0.2 % 10.2 % 11.6 % Total Diversified Industrial 20.6 % 0.2 % 10.1 % 10.3 % Aerospace Systems 13.8 % (0.1)% - 13.9 % Total1 17.9 % (0.5)% 6.9 % 11.5 % Sales Growth 1 Total reported net sales include Corporate, which is not presented separately. Corporate net sales reflect a reduction of $27 million related to customer tariff returns, which are excluded from organic growth and reflected in the Currency & Other column. The Other component of that column consists entirely of customer tariff returns and represents approximately 0.5% of net sales for the quarter and year-to-date period. PARKER HANNIFIN ORGANIC SALES GROWTH FY27 Q1 In millions (unaudited) Reported Less: Currency & Other Less: Acquisitions Organic Quarter-to-Date: Diversified Industrial: North America 19.6 % 0.1 % 10.1 % 9.4 % EMEA 15.4 % (1.2)% 12.6 % 4.0 % Asia Pacific 33.4 % 1.6 % 8.4 % 23.4 % Latin America 1.9 % 3.2 % - (1.3)% Total International 22.0 % 0.2 % 10.2 % 11.6 % Total Diversified Industrial 20.6 % 0.2 % 10.1 % 10.3 % Aerospace Systems 13.8 % (0.1)% - 13.9 % Total1 17.9 % (0.5)% 6.9 % 11.5 % Sales Growth 1 Total reported net sales include Corporate, which is not presented separately. Corporate net sales reflect a reduction of $27 million related to customer tariff returns, which are excluded from organic growth and reflected in the Currency & Other column. The Other component of that column consists entirely of customer tariff returns and represents approximately 0.5% of net sales for the quarter and year-to-date period. PARKER HANNIFIN ORGANIC SALES GROWTH FY27 Q1 In millions (unaudited) Reported Less: Currency & Other Less: Acquisitions Organic Quarter-to-Date: Diversified Industrial: North America 19.6 % 0.1 % 10.1 % 9.4 % EMEA 15.4 % (1.2)% 12.6 % 4.0 % Asia Pacific 33.4 % 1.6 % 8.4 % 23.4 % Latin America 1.9 % 3.2 % - (1.3)% Total International 22.0 % 0.2 % 10.2 % 11.6 % Total Diversified Industrial 20.6 % 0.2 % 10.1 % 10.3 % Aerospace Systems 13.8 % (0.1)% - 13.9 % Total1 17.9 % (0.5)% 6.9 % 11.5 % Sales Growth 1 Total reported net sales include Corporate, which is not presented separately. Corporate net sales reflect a reduction of $27 million related to customer tariff returns, which are excluded from organic growth and reflected in the Currency & Other column. The Other component of that column consists entirely of customer tariff returns and represents approximately 0.5% of net sales for the quarter and year-to-date period.
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24 Parker Hannifin Corporation Consolidated Statement of Income - Adjusted Quarter-to-Date (Dollars in millions, except per share data) (Unaudited) Quarter-to-Date FY 2027 Amortization Business As Reported of Acquired Realignment Costs to Acquisition- Adjusted September 30, 2026 % of Sales Intangibles Charges Achieve Related Expenses1 Tariff Refunds, Net September 30, 2026 % of Sales Net sales 5,992$ 100.0 % -$ -$ -$ -$ (27) 6,019$ 100.0 % Cost of sales 3,731 62.3 % 30 7 - 23 6 3,677 61.1 % Selling, general and admin. expenses 1,065 17.8 % 159 10 23 55 - 818 13.6 % Interest expense 146 2.4 % - - - - - 146 2.4 % Other expense (income), net (87) (1.5)% - - - - - (87) (1.4)% Income before income taxes 1,137 19.0 % (189) (17) (23) (78) (21) 1,465 24.3 % Income taxes 253 4.2 % 43 4 5 17 5 327 5.4 % Net income 884$ 14.8 % (146)$ (13)$ (18)$ (61)$ (16)$ 1,138$ 18.9 % Diluted earnings per share 6.92$ (1.14)$ (0.10)$ (0.14)$ (0.47)$ (0.13)$ 8.90$ Quarter-to-Date FY 2026 Amortization Business Insurance-Related As Reported of Acquired Realignment Costs to Acquisition- Charges Adjusted September 30, 2025 % of Sales Intangibles Charges Achieve Related Expenses1 (Recoveries) September 30, 2025 % of Sales Net sales 5,084$ 100.0 % -$ -$ -$ -$ -$ 5,084$ 100.0 % Cost of sales 3,177 62.5 % 22 9 - 1 - 3,145 61.9 % Selling, general and admin. expenses 873 17.2 % 118 6 6 13 - 730 14.4 % Interest expense 101 2.0 % - - - - - 101 2.0 % Other expense (income), net (107) (2.1)% - - - - (20) (87) (1.7)% Income before income taxes 1,040 20.5 % (140) (15) (6) (14) 20 1,195 23.5 % Income taxes 232 4.6 % 33 4 1 3 (5) 268 5.3 % Net income 808$ 15.9 % (107)$ (11)$ (5)$ (11)$ 15$ 927$ 18.2 % Diluted earnings per share 6.29$ (0.83)$ (0.09)$ (0.04)$ (0.09)$ 0.12$ 7.22$ 1Acquisition-related expenses include transaction costs and charges related to the fair value step up of acquired inventory. Adjusted Amounts Reconciliation Q1 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 2027 Amortization Business As Reported of Acquired Realignment Costs to Acquisition- Adjusted September 30, 2026 % of Sales Intangibles Charges Achieve Related Expenses Tariff Refunds, Net September 30, 2026 % of Sales Diversified Industrial: North America businesses1 562$ 23.0% 75$ 3$ 21$ 13$ -$ 674$ 27.6% International businesses1 410 24.0% 38 14 1 10 - 473 27.7% Total Diversified Industrial1 972 23.4% 113 17 22 23 - 1,147 27.6% Aerospace Systems1 497 26.6% 76 - 1 - - 574 30.7% Total segment operating income 1,469 24.4% (189) (17) (23) (23) - 1,721 28.6% Corporate administration 58 1.0% - - - - - 58 1.0% Income before interest and other 1,411 23.5% (189) (17) (23) (23) - 1,663 27.6% Interest expense 146 2.4% - - - - - 146 2.4% Other, net 128 2.1% - - - 55 21 52 0.9% Income before income taxes 1,137$ 19.0% (189)$ (17)$ (23)$ (78)$ (21)$ 1,465$ 24.3% Quarter-to-Date FY 2026 Amortization Business Insurance-Related As Reported of Acquired Realignment Costs to Acquisition- Charges Adjusted September 30, 2025 % of Sales Intangibles Charges Achieve Related Expenses (Recoveries) September 30, 2025 % of Sales Diversified Industrial: North America businesses1 507$ 24.8% 42$ 1$ 1$ 1$ -$ 552$ 27.0% International businesses1 314 22.4% 22 13 1 - - 350 25.0% Total Diversified Industrial1 821 23.8% 64 14 2 1 - 902 26.2% Aerospace Systems1 411 25.0% 76 1 4 - - 492 30.0% Total segment operating income 1,232 24.2% (140) (15) (6) (1) - 1,394 27.4% Corporate administration 49 1.0% - - - - - 49 1.0% Income before interest and other 1,183 23.3% (140) (15) (6) (1) - 1,345 26.5% Interest expense 101 2.0% - - - - - 101 2.0% Other, net 42 0.8% - - - 13 (20) 49 1.0% Income before income taxes 1,040$ 20.5% (140)$ (15)$ (6)$ (14)$ 20$ 1,195$ 23.5% 1Segment operating income as a percent of sales is calculated on segment sales. Adjusted Amounts Reconciliation Q1 Segment Operating Income
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26 Parker Hannifin Corporation EBITDA & Adjusted EBITDA (Dollars in millions) Three Months Ended (Unaudited) September 30, 2026 % of Sales 2025 % of Sales Net sales $ 5,992 100.0% $ 5,084 100.0% Net income $ 884 14.8% $ 808 15.9% Income taxes 253 4.2% 232 4.6% Depreciation 97 1.6% 92 1.8% Amortization 189 3.2% 140 2.8% Interest expense 146 2.4% 101 2.0% EBITDA 1,569 26.2% 1,373 27.0% Adjustments: Business realignment charges 17 0.3% 15 0.3% Costs to achieve 23 0.4% 6 0.1% Acquisition-related expenses 78 1.3% 14 0.3% Tariff refunds, net 21 0.4% - 0.0% Insurance-related charges (recoveries) - 0.0% (20) -0.4% EBITDA - Adjusted $ 1,708 28.5% $ 1,388 27.3% EBITDA margin 26.2 % 27.0 % EBITDA margin - Adjusted 28.5 % 27.3 % Reconciliation of EBITDA to Adjusted EBITDA
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27 (Dollars in millions) Three Months Ended (Unaudited) September 30, 2026 Notes payable and current portion of long-term debt $ 4,744 Long-term debt 12,734 Deferred debt issuance costs 81 Gross debt 17,559 Cash and cash equivalents $ 711 Marketable securities and other investments 5 Cash 716 Net debt (Gross debt less total cash) $ 16,843 (Dollars in millions) Twelve Months Ended (Unaudited) September 30, 2026 Net income $ 3,725 Income taxes 935 Depreciation 358 Amortization 633 Interest expense 446 EBITDA 6,097 Adjustments: Business realignment charges 74 Costs to achieve 37 Acquisition-related expenses 105 Tariff refunds, net (63) Insurance-related charges (recoveries) (3) Other 28 EBITDA - Adjusted $ 6,275 Net Debt / adjusted EBITDA TTM 2.7 Reconciliation of Net Debt to Adjusted EBITDA TTM
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28 Reconciliation of Operating Cash Flow Margin and Free Cash Flow Margin Three Months Ended September 30, 2026 2025 Net Sales $ 5,992 $ 5,084 Cash Flow from Operations $ 752 $ 782 Capital Expenditures (109) (89) Free Cash Flow $ 643 $ 693 Cash Flow from Operations Margin 12.6% 15.4% Free Cash Flow Margin 10.7% 13.6% (Unaudited) (Dollars in millions)
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29 Supplemental Sales Information Global Technology Platforms (Unaudited) (Dollars in millions) Three Months Ended September 30, Net Sales 2026 2025 Diversified Industrial: Motion Systems $ 926 $ 824 Flow and Process Control 1,335 1,158 Filtration and Engineered Materials 1,891 1,461 Aerospace Systems 1,867 1,641 Corporate (27) -- Total $ 5,992 $ 5,084
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30 RECONCILIATION OF FORECASTED OPERATING MARGIN TO ADJUSTED OPERATING MARGIN (Unaudited) Fiscal Year 2027 Q2 (Amounts in percentages) Forecasted Segment Operating Margin Acquisition-Related Intangible Asset Amortization Expense Business Realignment Charges Costs to Achieve Adjusted Forecasted Segment Operating Margin* Parker ~23.4% ~3.6% ~0.4% ~0.2% ~27.6% Reconciliation of FY27 Q2 Guidance Fiscal Year 2027 Q2 Forecasted Net Sales Currency Acquisitions Adjusted Forecasted Net Sales Parker ~19.5% -- ~(9.5%) ~10% RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH (Unaudited) (Amounts in percentages) Fiscal Year 2027 Q2 Forecasted earnings per diluted share ~$7.23 Adjustments: Amortization of acquired intangibles 1.77 Business realignment charges 0.20 Costs to achieve 0.09 Tax effect of adjustments1 (0.47) Adjusted forecasted earnings per diluted share ~$8.82 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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31 RECONCILIATION OF FORECASTED OPERATING MARGIN TO ADJUSTED OPERATING MARGIN (Unaudited) Fiscal Year 2027 (Amounts in percentages) Forecasted Segment Operating Margin Acquisition-Related Intangible Asset Amortization Expense Business Realignment Charges Costs to Achieve Acquisition Related Expenses Adjusted Forecasted Segment Operating Margin* Diversified Industrial North America Businesses 22.2% to 22.6% ~3.6% ~0.2% ~0.5% ~0.1% 26.6% to 27.0% International Businesses 22.7% to 23.1% ~2.8% ~1.0% ~0.0% ~0.1% 26.6% to 27.0% Aerospace Systems 26.4% to 26.8% ~3.9% ~0.0% ~0.0% ~0.0% 30.2% to 30.6% Parker 23.6% to 24.0% ~3.4% ~0.4% ~0.2% ~0.1% 27.7% to 28.1% RECONCILIATION OF FORECASTED CASH FLOW FROM OPERATIONS TO FREE CASH FLOW (Unaudited) (Dollars in millions) Fiscal Year 2027 Cash flow from operations $4,125 to $4,625 Less: Capital Expenditures ~(625) Free cash flow $3,500 to $4,000 Reconciliation of Current FY27 Guidance Fiscal Year 2027 Forecasted Net Sales Currency & Other Acquisitions Adjusted Forecasted Net Sales Diversified Industrial North America Businesses 20% to 23% -- ~(13.5%) 6.5% to 9.5% International Businesses 20% to 23% ~0.5% ~(12.5%) 8% to 11% Aerospace Systems 8.5% to 11.5% -- -- 8.5% to 11.5% Parker 16.0% to 19.0% ~0.5% ~(9.0%) 7.5% to 10.5% RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH (Unaudited) (Amounts in percentages) Fiscal Year 2027 Forecasted earnings per diluted share $29.65 to $30.45 Adjustments: Amortization of acquired intangibles 6.77 Business realignment charges 0.74 Costs to achieve 0.47 Acquisition related expenses 0.63 Tariff refunds, net 0.16 Tax effect of adjustments1 (1.97) Adjusted forecasted earnings per diluted share $36.45 to $37.25 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
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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 Previous FY27 Guidance (from Aug 6, 2026) 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. Note: FY27 initial guidance on Aug 6, 2026, did not include Filtration Group Corporation. * Totals may not foot due to rounding