Exhibit 99.1
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Parker Reports Fiscal 2025 First Quarter Results

Record sales, segment operating margin and earnings per share; EPS outlook increased

CLEVELAND, October 31, 2024 -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the quarter ended September 30, 2024, that included the following highlights (compared with the prior year quarter):
Fiscal 2025 First Quarter Highlights:
•Sales increased 1.2% to $4.9 billion; Organic sales growth was 1.4%
•Net income was $698 million, an increase of 7%, or $810 million adjusted, an increase of 4%
•EPS were $5.34, an increase of 7%, or $6.20 adjusted, an increase of 4%
•Segment operating margin was 22.6%, an increase of 130 bps, or a record 25.7% adjusted, an increase of 80 bps
•Cash flow from operations was 15.2% of sales, an increase of 14% to $744 million

“Through continued execution of The Win Strategy™, our global team produced outstanding results in the first quarter,” said Chairman and Chief Executive Officer, Jenny Parmentier. “We delivered records for sales, adjusted segment operating margin, adjusted earnings per share and year-to-date cash flow from operations. Our performance also reflects the strength of our transformed portfolio with our Aerospace Systems segment achieving exceptional results. Looking ahead to the full year, we anticipate near-term pressure in select industrial markets and accelerating growth in aerospace. Reflecting these conditions and our strong first quarter performance, we have raised our outlook for segment operating margin and earnings per share. We remain committed to our fiscal 2029 targets and continue to see a very promising future for Parker.”
This news release contains non-GAAP financial measures. Reconciliations of adjusted numbers and certain non-GAAP financial measures are included in the financial tables of this press release.
Outlook
Guidance for the fiscal year ending June 30, 2025 has been updated. Guidance now reflects divestiture activity in the Diversified Industrial Segment, North America Businesses expected to be completed during the second quarter of fiscal 2025. The company now expects:
•Total sales growth in fiscal 2025 of 0.5% to 3.5%, with organic sales growth of 1.5% to 4.5%; divestitures of (1.5%) and favorable currency of 0.5%
•Total segment operating margin to increase to approximately 22.6%, or approximately 25.7% on an adjusted basis
•EPS to increase to $22.78 to $23.48, or $26.35 to $27.05 on an adjusted basis



Segment Results
Diversified Industrial Segment
North America Businesses
$ in mmFY25 Q1FY24 Q1
Change
Organic Growth
Sales
$2,100 $2,230 -5.8 %-5.0 %
Segment Operating Income
$485 $506 -4.2 %
Segment Operating Margin
23.1 %22.7 %40  bps
Adjusted Segment Operating Income$532 $554 -4.1 %
Adjusted Segment Operating Margin
25.3 %24.9 %40  bps
•Achieved record adjusted segment operating margin
•HVAC returns to growth, while delays impact in-plant and energy markets
•Softness continues in transportation and off-highway markets
International Businesses
$ in mm
FY25 Q1FY24 Q1
Change
Organic Growth
Sales
$1,356 $1,389 -2.4 %-2.4 %
Segment Operating Income
$299 $301 -0.6 %
Segment Operating Margin
22.1 %21.7 %40  bps
Adjusted Segment Operating Income$327 $334 -2.2 %
Adjusted Segment Operating Margin
24.1 %24.1 %—  bps
•Achieved record adjusted segment operating margin
•Positive sales growth in Asia, offset by continued softness in Europe
Aerospace Systems Segment
$ in mm
FY25 Q1FY24 Q1
Change
Organic Growth
Sales
$1,448 $1,229 17.8 %17.2 %
Segment Operating Income
$323 $226 42.7 %
Segment Operating Margin
22.3 %18.4 %390  bps
Adjusted Segment Operating Income$403 $320 26.3 %
Adjusted Segment Operating Margin
27.9 %26.0 %190  bps
•Achieved record sales and adjusted segment operating margin
•Outstanding aftermarket sales growth in both commercial and defense markets
Order Rates
FY25 Q1
Parker
+1%
Diversified Industrial Segment - North America Businesses
-3%
Diversified Industrial Segment - International Businesses
+1%
Aerospace Systems Segment
+7%
•Company order rates continue to be positive
•International orders turned positive on Asia improvement
•Aerospace orders remained strong against a tough prior year comparison



About Parker Hannifin
Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Learn more at www.parker.com or @parkerhannifin.


Contacts:
Media:
Financial Analysts:
Aidan Gormley
Jeff Miller
216-896-3258
216-896-2708
aidan.gormley@parker.com
jeffrey.miller@parker.com

Notice of Webcast
Parker Hannifin's conference call and slide presentation to discuss its fiscal 2025 first quarter results are available to all interested parties via live webcast today at 11:00 a.m. ET, at investors.parker.com. A replay of the webcast will be available on the site approximately one hour after the completion of the call and will remain available for one year. To register for e-mail notification of future events please visit investors.parker.com.

Note on Orders The company reported orders for the quarter ending September 30, 2024, compared with the same quarter a year ago. All comparisons are at constant currency exchange rates, with the prior year quarter restated to the current-year rates. Diversified Industrial comparisons are on 3-month average computations and Aerospace Systems comparisons are on rolling 12-month average computations.

Note on Non-GAAP Financial Measures
This press release contains references to non-GAAP financial information including (a) adjusted net income; (b) adjusted earnings per share; (c) adjusted operating margin and segment operating margins; (d) adjusted operating income and segment operating income and (e) organic sales growth. The adjusted net income, adjusted earnings per share, adjusted operating margin, adjusted segment operating margin, adjusted operating income, adjusted segment operating income and organic sales measures are presented to allow investors and the company to meaningfully evaluate changes in net income, earnings per share and segment operating margins on a comparable basis from period to period. Although adjusted net income, adjusted earnings per share, adjusted operating margin and segment operating margins, adjusted operating income and segment operating income, and organic sales growth are not measures of performance calculated in accordance with GAAP, we believe that they are useful to an investor in evaluating the results of this quarter versus the prior period. Comparable descriptions of record adjusted results in this release refer only to the period from the first quarter of FY2011 to the periods presented in this release. This period coincides with recast historical financial results provided in association with our FY2014 change in segment reporting. A reconciliation of non-GAAP measures is included in the financial tables of this press release.

Forward-Looking Statements
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; 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 labor shortages; threats associated with international conflicts 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, 2024 and other periodic filings made with the SEC.


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Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2024
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)Three Months Ended September 30,
(Dollars in thousands, except per share amounts)20242023
Net sales$4,903,984 $4,847,488 
Cost of sales3,097,719 3,097,349 
Selling, general and administrative expenses848,789 873,691 
Interest expense113,091 134,468 
Other income, net(30,801)(78,455)
Income before income taxes875,186 820,435 
Income taxes176,658 169,363 
Net income698,528 651,072 
Less: Noncontrolling interests108 245 
Net income attributable to common shareholders$698,420 $650,827 
Earnings per share attributable to common shareholders:
Basic earnings per share$5.43 $5.07 
Diluted earnings per share$5.34 $4.99 
Average shares outstanding during period - Basic128,663,088128,472,550
Average shares outstanding during period - Diluted130,680,242130,363,441
CASH DIVIDENDS PER COMMON SHARE
(Unaudited)Three Months Ended September 30,
(Amounts in dollars)20242023
Cash dividends per common share$1.63 $1.48 
RECONCILIATION OF ORGANIC GROWTH
(Unaudited)Three Months Ended
As ReportedAdjusted
September 30, 2024CurrencyDivestituresSeptember 30, 2024
Diversified Industrial Segment(4.5)%(0.3)%(0.2)%(4.0)%
Aerospace Systems Segment17.8 %0.6 %— %17.2 %
Total1.2 %— %(0.2)%1.4 %

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS
(Unaudited)Three Months Ended September 30,
(Dollars in thousands)20242023
Net income attributable to common shareholders$698,420 $650,827 
Adjustments:
Acquired intangible asset amortization expense140,121 155,520 
Business realignment charges9,506 13,092 
Integration costs to achieve6,411 6,406 
Gain on sale of building(10,461)— 
Gain on divestiture— (13,260)
Tax effect of adjustments1
(34,211)(36,148)
Adjusted net income attributable to common shareholders$809,786 $776,437 


Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2024
RECONCILIATION OF EARNINGS PER DILUTED SHARE TO ADJUSTED EARNINGS PER DILUTED SHARE
(Unaudited)Three Months Ended September 30,
(Amounts in dollars)20242023
Earnings per diluted share$5.34 $4.99 
Adjustments:
Acquired intangible asset amortization expense1.07 1.19 
Business realignment charges0.07 0.10 
Integration costs to achieve0.05 0.05 
Gain on sale of building(0.08)— 
Gain on divestiture— (0.10)
Tax effect of adjustments1
(0.25)(0.27)
Adjusted earnings per diluted share$6.20 $5.96 
1This line item 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.

BUSINESS SEGMENT INFORMATION
(Unaudited)Three Months Ended September 30,
(Dollars in thousands)20242023
Net sales
Diversified Industrial$3,456,158 $3,618,528 
Aerospace Systems1,447,826 1,228,960 
Total net sales$4,903,984 $4,847,488 
Segment operating income
Diversified Industrial$783,546 $806,754 
Aerospace Systems322,986 226,260 
Total segment operating income1,106,532 1,033,014 
Corporate general and administrative expenses48,794 55,656 
Income before interest expense and other expense, net1,057,738 977,358 
Interest expense113,091 134,468 
Other expense, net69,461 22,455 
Income before income taxes$875,186 $820,435 


Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2024
RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS
(Unaudited)Three Months Ended September 30,
(Dollars in thousands)20242023
Diversified Industrial Segment sales$3,456,158 $3,618,528 
Diversified Industrial Segment operating income$783,546 $806,754 
Adjustments:
Acquired intangible asset amortization65,264 67,951 
Business realignment charges8,900 12,639 
Integration costs to achieve778 1,139 
Adjusted Diversified Industrial Segment operating income$858,488 $888,483 
Diversified Industrial Segment operating margin22.7 %22.3 %
Adjusted Diversified Industrial Segment operating margin24.8 %24.6 %
(Unaudited)Three Months Ended September 30,
(Dollars in thousands)20242023
Aerospace Systems Segment sales$1,447,826 $1,228,960 
Aerospace Systems Segment operating income$322,986 $226,260 
Adjustments:
Acquired intangible asset amortization74,857 87,569 
Business realignment charges8 453 
Integration costs to achieve5,633 5,267 
Adjusted Aerospace Systems Segment operating income$403,484 $319,549 
Aerospace Systems Segment operating margin22.3 %18.4 %
Adjusted Aerospace Systems Segment operating margin27.9 %26.0 %
RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS
(Unaudited)Three Months Ended September 30,
(Dollars in thousands)20242023
Total net sales$4,903,984 $4,847,488 
Total segment operating income$1,106,532 $1,033,014 
Adjustments:
Acquired intangible asset amortization140,121 155,520 
Business realignment charges8,908 13,092 
Integration costs to achieve6,411 6,406 
Adjusted total segment operating income$1,261,972 $1,208,032 
Total segment operating margin22.6 %21.3 %
Adjusted total segment operating margin25.7 %24.9 %



Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2024

CONSOLIDATED BALANCE SHEET
(Unaudited)September 30,June 30,
(Dollars in thousands)20242024
Assets
Current assets:
Cash and cash equivalents$371,068 $422,027 
Trade accounts receivable, net2,712,656 2,865,546 
Non-trade and notes receivable317,381 331,429 
Inventories2,872,250 2,786,800 
Prepaid expenses 249,148 252,618 
Other current assets511,198 140,204 
Total current assets7,033,701 6,798,624 
Property, plant and equipment, net2,839,542 2,875,668 
Deferred income taxes91,882 92,704 
Investments and other assets1,263,190 1,207,232 
Intangible assets, net7,747,233 7,816,181 
Goodwill10,625,287 10,507,433 
Total assets$29,600,835 $29,297,842 
Liabilities and equity
Current liabilities:
Notes payable and long-term debt payable within one year$3,515,613 $3,403,065 
Accounts payable, trade1,953,477 1,991,639 
Accrued payrolls and other compensation407,106 581,251 
Accrued domestic and foreign taxes457,761 354,659 
Other accrued liabilities1,004,073 982,695 
Total current liabilities7,338,030 7,313,309 
Long-term debt6,673,303 7,157,034 
Pensions and other postretirement benefits427,702 437,490 
Deferred income taxes1,544,503 1,583,923 
Other liabilities715,948 725,193 
Shareholders' equity12,891,900 12,071,972 
Noncontrolling interests9,449 8,921 
Total liabilities and equity$29,600,835 $29,297,842 

Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2024
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)Three Months Ended September 30,
(Dollars in thousands)20242023
Cash flows from operating activities:
Net income$698,528 $651,072 
Depreciation and amortization229,046 240,387 
Stock incentive plan compensation75,842 77,894 
Gain on sale of businesses(313)(13,260)
(Gain) loss on property, plant and equipment and intangible assets(8,422)1,333 
Net change in receivables, inventories and trade payables(40,430)(69,280)
Net change in other assets and liabilities(223,585)(185,691)
Other, net13,309 (52,496)
Net cash provided by operating activities743,975 649,959 
Cash flows from investing activities:
Capital expenditures(95,302)(97,746)
Proceeds from sale of property, plant and equipment13,271 710 
Proceeds from sale of businesses884 36,691 
Other, net(5,461)4,351 
Net cash used in investing activities(86,608)(55,994)
Cash flows from financing activities:
Net payments for common stock activity(92,089)(78,148)
Acquisition of noncontrolling interests— (2,883)
Net payments for debt(408,929)(346,411)
Dividends paid(209,937)(190,420)
Net cash used in financing activities(710,955)(617,862)
Effect of exchange rate changes on cash2,629 (2,359)
Net decrease in cash and cash equivalents(50,959)(26,256)
Cash and cash equivalents at beginning of year422,027 475,182 
Cash and cash equivalents at end of period$371,068 $448,926 




Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2024
RECONCILIATION OF FORECASTED ORGANIC GROWTH
(Unaudited)
(Amounts in percentages)Fiscal Year 2025
Forecasted net sales0.5% to 3.5%
Adjustments:
Currency(0.5)%
Divestitures1.5%
Adjusted forecasted net sales1.5% to 4.5%
RECONCILIATION OF FORECASTED SEGMENT OPERATING MARGIN TO ADJUSTED FORECASTED SEGMENT OPERATING MARGIN
(Unaudited)
(Amounts in percentages)Fiscal Year 2025
Forecasted segment operating margin~22.6%
Adjustments:
Business realignment charges0.2%
Costs to achieve0.1%
Acquisition-related intangible asset amortization expense2.7%
Adjusted forecasted segment operating margin~25.7%
RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE
(Unaudited)
(Amounts in dollars)Fiscal Year 2025
Forecasted earnings per diluted share$22.78 to $23.48
Adjustments:
Business realignment charges0.39
Costs to achieve0.11
Acquisition-related intangible asset amortization expense4.21
Gain on sale of building(0.08)
Tax effect of adjustments1
(1.07)
Adjusted forecasted earnings per diluted share$26.35 to $27.05
1This line item 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: Totals may not foot due to rounding





Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2024
SUPPLEMENTAL INFORMATION
BUSINESS SEGMENT INFORMATION
(Unaudited)Three Months Ended September 30,
(Dollars in thousands)20242023
Net sales
Diversified Industrial:
   North America businesses$2,100,324 $2,229,906 
   International businesses1,355,834 1,388,622 
Segment operating income
Diversified Industrial:
   North America businesses$484,563 $506,053 
   International businesses298,983 300,701 
RECONCILIATION OF ORGANIC GROWTH
(Unaudited)Three Months Ended
As ReportedAdjusted
September 30, 2024CurrencyDivestituresSeptember 30, 2024
Diversified Industrial Segment:
North America businesses(5.8)%(0.5)%(0.3)%(5.0)%
International businesses(2.4)%— %— %(2.4)%

Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2024
SUPPLEMENTAL INFORMATION
RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS
(Unaudited)Three Months Ended September 30,
(Dollars in thousands)20242023
Diversified Industrial Segment:
North America businesses sales$2,100,324 $2,229,906 
North America businesses operating income$484,563 $506,053 
Adjustments:
Acquired intangible asset amortization42,975 44,683 
Business realignment charges3,444 2,584 
Integration costs to achieve605 945 
Adjusted North America businesses operating income$531,587 $554,265 
North America businesses operating margin23.1 %22.7 %
Adjusted North America businesses operating margin25.3 %24.9 %
(Unaudited)Three Months Ended September 30,
(Dollars in thousands)20242023
Diversified Industrial Segment:
International businesses sales$1,355,834 $1,388,622 
International businesses operating income$298,983 $300,701 
Adjustments:
Acquired intangible asset amortization22,289 23,268 
Business realignment charges5,456 10,055 
Integration costs to achieve173 194 
Adjusted International businesses operating income$326,901 $334,218 
International businesses operating margin22.1 %21.7 %
Adjusted International businesses operating margin24.1 %24.1 %