Parker Reports Fiscal 2025 Fourth Quarter and Full Year Results
Parker Hannifin (NYSE:PH) reported outstanding Q4 and full-year fiscal 2025 results, with record performance across multiple metrics. Q4 sales reached $5.2 billion with 2% organic growth, while net income increased 18% to $923 million. Full-year sales were $19.9 billion with net income up 24% to $3.5 billion.
Key highlights include record adjusted EPS of $27.33 for FY25, up 7% YoY, and strong cash flow from operations of $3.8 billion. The company repurchased $1.6 billion of shares and announced the acquisition of Curtis Instruments to expand its electrification offering.
For FY26, Parker expects 2-5% sales growth with organic growth of approximately 3% at midpoint, and adjusted EPS guidance of $28.40-$29.40. The Aerospace segment remains the fastest-growing business with a record $7.4 billion backlog.
Parker Hannifin (NYSE:PH) ha riportato risultati eccezionali nel quarto trimestre e nell'intero anno fiscale 2025, con prestazioni record in diversi indicatori. Le vendite del quarto trimestre hanno raggiunto 5,2 miliardi di dollari con una crescita organica del 2%, mentre l'utile netto è aumentato del 18% a 923 milioni di dollari. Le vendite annuali sono state di 19,9 miliardi di dollari con un utile netto in crescita del 24% a 3,5 miliardi di dollari.
I punti chiave includono un utile per azione rettificato record di 27,33 dollari per l'anno fiscale 25, in aumento del 7% rispetto all'anno precedente, e un solido flusso di cassa operativo di 3,8 miliardi di dollari. La società ha riacquistato azioni per un valore di 1,6 miliardi di dollari e ha annunciato l'acquisizione di Curtis Instruments per ampliare la sua offerta nel settore dell'elettrificazione.
Per il 2026, Parker prevede una crescita delle vendite tra il 2 e il 5% con una crescita organica intorno al 3% a metà intervallo, e una guidance per l'utile per azione rettificato tra 28,40 e 29,40 dollari. Il segmento Aerospaziale rimane il business in più rapida crescita, con un portafoglio ordini record di 7,4 miliardi di dollari.
Parker Hannifin (NYSE:PH) reportó resultados excepcionales en el cuarto trimestre y en todo el año fiscal 2025, con un desempeño récord en múltiples métricas. Las ventas del cuarto trimestre alcanzaron los 5.2 mil millones de dólares con un crecimiento orgánico del 2%, mientras que el ingreso neto aumentó un 18% a 923 millones de dólares. Las ventas anuales fueron de 19.9 mil millones de dólares con un ingreso neto que creció un 24% hasta 3.5 mil millones de dólares.
Los aspectos más destacados incluyen un EPS ajustado récord de 27.33 dólares para el año fiscal 25, un aumento del 7% interanual, y un sólido flujo de caja operativo de 3.8 mil millones de dólares. La compañía recompró acciones por un valor de 1.6 mil millones de dólares y anunció la adquisición de Curtis Instruments para ampliar su oferta en electrificación.
Para el año fiscal 26, Parker espera un crecimiento en ventas del 2-5% con un crecimiento orgánico aproximado del 3% en el punto medio, y una guía de EPS ajustado entre 28.40 y 29.40 dólares. El segmento Aeroespacial sigue siendo el negocio de más rápido crecimiento con un récord de cartera de pedidos de 7.4 mil millones de dólares.
Parker Hannifin (NYSE:PH)은 2025 회계연도 4분기 및 연간 실적에서 여러 지표에서 기록적인 성과를 보고했습니다. 4분기 매출은 52억 달러에 2%의 유기적 성장률을 기록했으며, 순이익은 18% 증가한 9억 2,300만 달러에 달했습니다. 연간 매출은 199억 달러였으며 순이익은 24% 증가한 35억 달러를 기록했습니다.
주요 하이라이트로는 2025 회계연도 조정 주당순이익(EPS)이 전년 대비 7% 증가한 27.33 달러로 사상 최고치를 기록했으며, 영업 현금 흐름은 38억 달러로 강력했습니다. 회사는 16억 달러 규모의 자사주를 매입했으며, 전동화 사업 확장을 위해 Curtis Instruments 인수를 발표했습니다.
2026 회계연도에는 파커가 2-5% 매출 성장을 예상하며, 중간값 기준 약 3%의 유기적 성장을 기대하고 조정 EPS 가이던스를 28.40~29.40 달러로 제시했습니다. 항공우주 부문은 74억 달러의 사상 최대 수주 잔고를 보유하며 가장 빠르게 성장하는 사업 부문으로 남아 있습니다.
Parker Hannifin (NYSE:PH) a annoncé des résultats exceptionnels pour le quatrième trimestre et l'ensemble de l'exercice 2025, avec des performances records sur plusieurs indicateurs. Les ventes du quatrième trimestre ont atteint 5,2 milliards de dollars avec une croissance organique de 2 %, tandis que le bénéfice net a augmenté de 18 % pour atteindre 923 millions de dollars. Le chiffre d'affaires annuel s'est élevé à 19,9 milliards de dollars avec un bénéfice net en hausse de 24 % à 3,5 milliards de dollars.
Les points forts incluent un BPA ajusté record de 27,33 dollars pour l'exercice 25, en hausse de 7 % sur un an, ainsi qu'une forte trésorerie provenant des opérations de 3,8 milliards de dollars. La société a racheté pour 1,6 milliard de dollars d'actions et a annoncé l'acquisition de Curtis Instruments afin d'élargir son offre en électrification.
Pour l'exercice 26, Parker prévoit une croissance des ventes de 2 à 5 % avec une croissance organique d'environ 3 % au point médian, et une prévision de BPA ajusté comprise entre 28,40 et 29,40 dollars. Le segment Aérospatial reste l'activité à la croissance la plus rapide avec un carnet de commandes record de 7,4 milliards de dollars.
Parker Hannifin (NYSE:PH) meldete herausragende Ergebnisse für das vierte Quartal und das gesamte Geschäftsjahr 2025, mit Rekordleistungen in mehreren Kennzahlen. Der Umsatz im vierten Quartal erreichte 5,2 Milliarden US-Dollar bei einem organischen Wachstum von 2%, während der Nettogewinn um 18% auf 923 Millionen US-Dollar stieg. Der Jahresumsatz betrug 19,9 Milliarden US-Dollar mit einem Nettogewinnanstieg von 24% auf 3,5 Milliarden US-Dollar.
Zu den wichtigsten Highlights zählen ein Rekordwert beim bereinigten Gewinn je Aktie (EPS) von 27,33 US-Dollar für das Geschäftsjahr 25, ein Anstieg von 7% gegenüber dem Vorjahr, sowie ein starker operativer Cashflow von 3,8 Milliarden US-Dollar. Das Unternehmen hat Aktien im Wert von 1,6 Milliarden US-Dollar zurückgekauft und die Übernahme von Curtis Instruments angekündigt, um sein Angebot im Bereich Elektrifizierung zu erweitern.
Für das Geschäftsjahr 26 erwartet Parker ein Umsatzwachstum von 2-5% mit einem organischen Wachstum von etwa 3% in der Mitte der Spanne und gibt eine bereinigte EPS-Prognose von 28,40 bis 29,40 US-Dollar ab. Das Luftfahrtsegment bleibt das am schnellsten wachsende Geschäft mit einem Rekordauftragsbestand von 7,4 Milliarden US-Dollar.
- None.
- North America Diversified Industrial sales declined 6.9%
- International business order rates remained flat
- Organic sales growth limited to 1% for full year
Insights
Parker delivered record Q4 results with margin expansion and strong cash flow despite mixed organic growth, signaling portfolio transformation effectiveness.
Parker Hannifin delivered an outstanding fourth quarter that capped off a record fiscal year 2025, demonstrating the company's resilience amid varied market conditions. Q4 sales reached a record $5.2 billion with modest organic growth of 2%, while adjusted EPS climbed 14% to $7.69. What's most impressive is the significant margin expansion - adjusted segment operating margin improved 160 basis points to 26.9%, reflecting the effectiveness of the company's Win Strategy business system.
Looking at segment performance, there's a clear divergence: Aerospace Systems is the standout performer with 8.6% organic growth and record 29.0% adjusted operating margins. Meanwhile, the Diversified Industrial segments showed mixed results - North America saw a 1.4% organic sales decline despite achieving record margins, while International barely grew at 0.6% organically. The regional breakdown reveals further nuance, with 6% growth in Asia Pacific offset by a 3% decline in EMEA.
Parker's $3.8 billion in operating cash flow (19% of sales) demonstrates exceptional cash generation capabilities, enabling balanced capital deployment including $1.6 billion in share repurchases and a 10% dividend increase. The company's record $7.4 billion aerospace backlog and overall order rates trending positive at +5% support management's FY26 outlook projecting 2-5% sales growth and adjusted EPS of $28.40-$29.40.
The announced acquisition of Curtis Instruments strategically expands Parker's electrification portfolio, aligned with industry shifts toward electrification. With industrial order rates turning positive and aerospace continuing its momentum, Parker is demonstrating the benefits of its transformed portfolio, able to deliver margin expansion and earnings growth even in challenging macro environments.
Outstanding Q4 Contributes to Record Year; Forecasting Growth in FY26
CLEVELAND, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the quarter and fiscal year ended June 30, 2025, that included the following highlights (compared with the prior year period):
Fiscal 2025 Fourth Quarter Highlights:
- Sales were a record
$5.2 billion ; organic sales growth was2% - Net income was
$923 million , an increase of18% , or$992 million adjusted, an increase of12% - EPS were
$7.15 , an increase of19% , or a record$7.69 adjusted, an increase of14% - Segment operating margin was
23.9% , an increase of 170 bps, or26.9% adjusted, an increase of 160 bps - Repurchased
$851 million of shares - Announced agreement to acquire Curtis Instruments, Inc., expanding electrification offering
Fiscal 2025 Full Year Highlights:
- Sales were
$19.9 billion ; organic sales growth was1% - Net income was
$3.5 billion , an increase of24% , or$3.6 billion adjusted, an increase of7% - EPS were
$27.12 , an increase of24% , or a record$27.33 adjusted, an increase of7% - EBITDA margin was
27.3% , an increase of 210 bps, or26.4% adjusted, an increase of 80 bps - Segment operating margin was
23.0% , an increase of 150 bps, or a record26.1% adjusted, an increase of 120 bps - Cash flow from operations increased
12% to$3.8 billion , or19.0% of sales - Repurchased
$1.6 billion of shares
“Our outstanding performance contributed to a record year for safety, engagement, earnings per share, margins and cash flow,” said Jenny Parmentier, Chairman and Chief Executive Officer. “Delivering strong margin expansion and earnings growth in a dynamic macro environment is a testament to the resilience of our portfolio and the power of our business system, The Win Strategy™. We generated full year cash flow of
“Looking ahead to fiscal year 2026, we expect Aerospace to remain our fastest growing business and see a return to positive organic growth in our Industrial businesses. We remain committed to being great generators and deployers of cash to drive shareholder value and look forward to another excellent year powered by our people and our business system.”
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
Parker issued guidance for the fiscal year ending June 30, 2026. The company expects:
- Sales growth in fiscal 2026 of
2% to5% , with organic sales growth of approximately3% at the midpoint; previously completed divestitures of1% and favorable currency of1.5% - Total segment operating margin of
23.3% to23.7% , or26.3% to26.7% on an adjusted basis - EPS of
$24.68 t o$25.68 , or$28.40 t o$29.40 on an adjusted basis
Segment Results
Diversified Industrial Segment
| North America Businesses | |||||||||||||||
| $ in mm | FY25 Q4 | FY24 Q4 | Change | Organic Growth | |||||||||||
| Sales | $ | 2,075 | $ | 2,229 | -6.9 | % | -1.4 | % | |||||||
| Segment Operating Income | $ | 513 | $ | 505 | 1.6 | % | |||||||||
| Segment Operating Margin | 24.7 | % | 22.7 | % | 200 bps | ||||||||||
| Adjusted Segment Operating Income | $ | 555 | $ | 558 | -0.5 | % | |||||||||
| Adjusted Segment Operating Margin | 26.7 | % | 25.0 | % | 170 bps | ||||||||||
- Achieved record adjusted segment operating margin
- Gradual broad-based improvement across market verticals
- Order rates positive for third consecutive quarter
| International Businesses | |||||||||||||||
| $ in mm | FY25 Q4 | FY24 Q4 | Change | Organic Growth | |||||||||||
| Sales | $ | 1,492 | $ | 1,430 | 4.3 | % | 0.6 | % | |||||||
| Segment Operating Income | $ | 334 | $ | 312 | 7.1 | % | |||||||||
| Segment Operating Margin | 22.4 | % | 21.8 | % | 60 bps | ||||||||||
| Adjusted Segment Operating Income | $ | 369 | $ | 342 | 7.9 | % | |||||||||
| Adjusted Segment Operating Margin | 24.7 | % | 23.9 | % | 80 bps | ||||||||||
- Achieved record adjusted segment operating margin
- Organic growth turned positive in the quarter with
6% APAC; (3% ) EMEA;4% LA - Order rates flat on tougher prior year comparison
- Fiscal 2025 third quarter included large long-cycle orders
Aerospace Systems Segment
| $ in mm | FY25 Q4 | FY24 Q4 | Change | Organic Growth | |||||||||||
| Sales | $ | 1,676 | $ | 1,528 | 9.7 | % | 8.6 | % | |||||||
| Segment Operating Income | $ | 407 | $ | 332 | 22.6 | % | |||||||||
| Segment Operating Margin | 24.3 | % | 21.7 | % | 260 bps | ||||||||||
| Adjusted Segment Operating Income | $ | 486 | $ | 415 | 17.1 | % | |||||||||
| Adjusted Segment Operating Margin | 29.0 | % | 27.1 | % | 190 bps | ||||||||||
- Achieved record sales on continued aftermarket strength
- Delivered record adjusted segment operating margin
- Aerospace backlog increased to a record
$7.4 billion
Order Rates
| FY25 Q4 | |||
| Parker | +5 | % | |
| Diversified Industrial Segment - North America Businesses | +2 | % | |
| Diversified Industrial Segment - International Businesses | 0 | % | |
| Aerospace Systems Segment | +12 | % | |
- Parker order rates remain strong at
5% reflecting our transformed portfolio - Industrial Segment order rates remain positive in a dynamic environment
- Aerospace order rates up
12% driven by continued strength in both commercial and defense
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 fourth quarter and full year 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 June 30, 2025, 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, and exclude divestitures. 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 segment operating margin for Parker and by segment; (d) adjusted segment operating income for Parker and by segment; (e) organic sales growth; (f) EBITDA margin and (g) adjusted EBITDA margin. The adjusted net income, adjusted earnings per share, adjusted segment operating margin, adjusted segment operating income, organic sales growth, EBITDA margin and adjusted EBITDA margin 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. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Although adjusted net income, adjusted earnings per share, adjusted segment operating margin, adjusted segment operating income, organic sales growth, EBITDA margin and adjusted EBITDA margin 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, including the acquisition of 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 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.
| CONSOLIDATED STATEMENT OF INCOME | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| (Unaudited) | June 30, | June 30, | |||||||||||||
| (In millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Net sales | $ | 5,243 | $ | 5,187 | $ | 19,850 | $ | 19,930 | |||||||
| Cost of sales | 3,285 | 3,323 | 12,535 | 12,802 | |||||||||||
| Selling, general and administrative expenses | 839 | 818 | 3,255 | 3,315 | |||||||||||
| Interest expense | 99 | 119 | 409 | 506 | |||||||||||
| Other income, net | (51 | ) | (59 | ) | (456 | ) | (288 | ) | |||||||
| Income before income taxes | 1,071 | 986 | 4,107 | 3,595 | |||||||||||
| Income taxes | 148 | 201 | 575 | 750 | |||||||||||
| Net income | 923 | 785 | 3,532 | 2,845 | |||||||||||
| Less: Noncontrolling interests | — | — | 1 | 1 | |||||||||||
| Net income attributable to common shareholders | $ | 923 | $ | 785 | $ | 3,531 | $ | 2,844 | |||||||
| Earnings per share attributable to common shareholders: | |||||||||||||||
| Basic | $ | 7.25 | $ | 6.10 | $ | 27.52 | $ | 22.13 | |||||||
| Diluted | $ | 7.15 | $ | 6.01 | $ | 27.12 | $ | 21.84 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 127.2 | 128.6 | 128.3 | 128.5 | |||||||||||
| Diluted | 129.0 | 130.6 | 130.2 | 130.2 | |||||||||||
| Cash dividends per common share | $ | 1.80 | $ | 1.63 | $ | 6.69 | $ | 6.07 | |||||||
| BUSINESS SEGMENT INFORMATION | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| (Unaudited) | June 30, | June 30, | |||||||||||||
| (Dollars in millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Net sales | |||||||||||||||
| Diversified Industrial | $ | 3,567 | $ | 3,659 | $ | 13,665 | $ | 14,458 | |||||||
| Aerospace Systems | 1,676 | 1,528 | 6,185 | 5,472 | |||||||||||
| Total net sales | $ | 5,243 | $ | 5,187 | $ | 19,850 | $ | 19,930 | |||||||
| Segment operating income | |||||||||||||||
| Diversified Industrial | $ | 847 | $ | 817 | $ | 3,120 | $ | 3,176 | |||||||
| Aerospace Systems | 407 | 332 | 1,441 | 1,111 | |||||||||||
| Total segment operating income | 1,254 | 1,149 | 4,561 | 4,287 | |||||||||||
| Corporate general and administrative expenses | 65 | 56 | 214 | 218 | |||||||||||
| Income before interest expense and other expense (income), net | 1,189 | 1,093 | 4,347 | 4,069 | |||||||||||
| Interest expense | 99 | 119 | 409 | 506 | |||||||||||
| Other expense (income), net | 19 | (12 | ) | (169 | ) | (32 | ) | ||||||||
| Income before income taxes | $ | 1,071 | $ | 986 | $ | 4,107 | $ | 3,595 | |||||||
SUPPLEMENTAL FINANCIAL INFORMATION AND NON-GAAP RECONCILIATIONS
| ADJUSTED SEGMENT OPERATING INCOME AND ORGANIC SALES GROWTH RECONCILIATION | |||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||
| Diversified Industrial Segment | Aerospace Systems Segment | Diversified Industrial Segment | Aerospace Systems Segment | ||||||||||||||||||||||||||||
| (Unaudited) (Dollars in millions) | North America | Int'l | Total | Total | North America | Int'l | Total | Total | |||||||||||||||||||||||
| Net sales | $ | 2,075 | $ | 1,492 | $ | 3,567 | $ | 1,676 | $ | 5,243 | $ | 2,229 | $ | 1,430 | $ | 3,659 | $ | 1,528 | $ | 5,187 | |||||||||||
| Segment operating income | $ | 513 | $ | 334 | $ | 847 | $ | 407 | $ | 1,254 | $ | 505 | $ | 312 | $ | 817 | $ | 332 | $ | 1,149 | |||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||
| Amortization of acquired intangibles | 41 | 23 | 64 | 75 | 139 | 42 | 22 | 64 | 75 | 139 | |||||||||||||||||||||
| Business realignment charges | 2 | 12 | 14 | — | 14 | 10 | 8 | 18 | — | 18 | |||||||||||||||||||||
| Integration costs to achieve | (1 | ) | — | (1 | ) | 4 | 3 | 1 | — | 1 | 8 | 9 | |||||||||||||||||||
| Adjusted segment operating income | $ | 555 | $ | 369 | $ | 924 | $ | 486 | $ | 1,410 | $ | 558 | $ | 342 | $ | 900 | $ | 415 | $ | 1,315 | |||||||||||
| Segment operating margin | 24.7 | % | 22.4 | % | 23.7 | % | 24.3 | % | 23.9 | % | 22.7 | % | 21.8 | % | 22.3 | % | 21.7 | % | 22.2 | % | |||||||||||
| Adjusted segment operating margin | 26.7 | % | 24.7 | % | 25.9 | % | 29.0 | % | 26.9 | % | 25.0 | % | 23.9 | % | 24.6 | % | 27.1 | % | 25.3 | % | |||||||||||
| Reported sales growth | (6.9 | )% | 4.3 | % | (2.5 | )% | 9.7 | % | 1.1 | % | |||||||||||||||||||||
| Currency | (0.3 | )% | 3.7 | % | 1.3 | % | 1.1 | % | 1.2 | % | |||||||||||||||||||||
| Divestitures | (5.2 | )% | — | % | (3.1 | )% | — | % | (2.2 | )% | |||||||||||||||||||||
| Organic sales growth | (1.4 | )% | 0.6 | % | (0.7 | )% | 8.6 | % | 2.1 | % | |||||||||||||||||||||
| Twelve Months Ended June 30, 2025 | Twelve Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||
| Diversified Industrial Segment | Aerospace Systems Segment | Diversified Industrial Segment | Aerospace Systems Segment | ||||||||||||||||||||||||||||
| (Unaudited) (Dollars in millions) | North America | Int'l | Total | Total | North America | Int'l | Total | Total | |||||||||||||||||||||||
| Net sales | $ | 8,134 | $ | 5,531 | $ | 13,665 | $ | 6,185 | $ | 19,850 | $ | 8,801 | $ | 5,657 | $ | 14,458 | $ | 5,472 | $ | 19,930 | |||||||||||
| Segment operating income | $ | 1,891 | $ | 1,229 | $ | 3,120 | $ | 1,441 | $ | 4,561 | $ | 1,963 | $ | 1,213 | $ | 3,176 | $ | 1,111 | $ | 4,287 | |||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||
| Amortization of acquired intangibles | 165 | 88 | 253 | 300 | 553 | 176 | 90 | 266 | 312 | 578 | |||||||||||||||||||||
| Business realignment charges | 15 | 38 | 53 | — | 53 | 19 | 32 | 51 | — | 51 | |||||||||||||||||||||
| Integration costs to achieve | 2 | 1 | 3 | 19 | 22 | 3 | 1 | 4 | 34 | 38 | |||||||||||||||||||||
| Adjusted segment operating income | $ | 2,073 | $ | 1,356 | $ | 3,429 | $ | 1,760 | $ | 5,189 | $ | 2,161 | $ | 1,336 | $ | 3,497 | $ | 1,457 | $ | 4,954 | |||||||||||
| Segment operating margin | 23.2 | % | 22.2 | % | 22.8 | % | 23.3 | % | 23.0 | % | 22.3 | % | 21.4 | % | 22.0 | % | 20.3 | % | 21.5 | % | |||||||||||
| Adjusted segment operating margin | 25.5 | % | 24.5 | % | 25.1 | % | 28.5 | % | 26.1 | % | 24.6 | % | 23.6 | % | 24.2 | % | 26.6 | % | 24.9 | % | |||||||||||
| Reported sales growth | (7.6 | )% | (2.2 | )% | (5.5 | )% | 13.0 | % | (0.4 | )% | |||||||||||||||||||||
| Currency | (0.5 | )% | (0.3 | )% | (0.5 | )% | 0.4 | % | (0.2 | )% | |||||||||||||||||||||
| Divestitures | (3.4 | )% | — | % | (2.0 | )% | — | % | (1.5 | )% | |||||||||||||||||||||
| Organic sales growth | (3.7 | )% | (1.9 | )% | (3.0 | )% | 12.6 | % | 1.3 | % | |||||||||||||||||||||
| DIVERSIFIED INDUSTRIAL INTERNATIONAL BUSINESSES - ORGANIC SALES GROWTH SUPPLEMENT | |||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | Twelve Months Ended June 30, 2025 | ||||||||||||||||||||||||
| (Unaudited) | Europe | Asia Pacific | Latin America | Total | Europe | Asia Pacific | Latin America | Total | |||||||||||||||||
| Reported sales growth | 3.0 | % | 6.9 | % | — | % | 4.3 | % | (5.3 | )% | 2.3 | % | (2.2 | )% | (2.2 | )% | |||||||||
| Currency | 6.2 | % | 1.3 | % | (3.8 | )% | 3.7 | % | 1.3 | % | (1.1 | )% | (11.5 | )% | (0.3 | )% | |||||||||
| Organic sales growth | (3.2 | )% | 5.6 | % | 3.8 | % | 0.6 | % | (6.6 | )% | 3.4 | % | 9.3 | % | (1.9 | )% | |||||||||
| ADJUSTED NET INCOME1AND ADJUSTED DILUTED EARNINGS PER SHARE RECONCILIATION | |||||||||||||||||||||||||||
| Three Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||||||||||||||
| (Unaudited) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| (Dollars in millions, except per share amounts) | Net Income1 | Diluted EPS | Net Income1 | Diluted EPS | Net Income1 | Diluted EPS | Net Income1 | Diluted EPS | |||||||||||||||||||
| As reported | $ | 923 | $ | 7.15 | $ | 785 | $ | 6.01 | $ | 3,531 | $ | 27.12 | $ | 2,844 | $ | 21.84 | |||||||||||
| Adjustments: | |||||||||||||||||||||||||||
| Amortization of acquired intangibles | 139 | 1.08 | 139 | 1.07 | 553 | 4.25 | 578 | 4.43 | |||||||||||||||||||
| Business realignment charges | 16 | 0.12 | 18 | 0.13 | 56 | 0.43 | 54 | 0.40 | |||||||||||||||||||
| Integration costs to achieve | 3 | 0.03 | 9 | 0.07 | 22 | 0.17 | 38 | 0.30 | |||||||||||||||||||
| Gain on sale of buildings | (14 | ) | (0.10 | ) | — | — | (24 | ) | (0.18 | ) | — | — | |||||||||||||||
| Gain on divestitures | (2 | ) | (0.02 | ) | — | — | (252 | ) | (1.94 | ) | (26 | ) | (0.20 | ) | |||||||||||||
| Saegertown incident | — | — | — | — | 8 | 0.06 | — | — | |||||||||||||||||||
| Tax effect of adjustments2 | (38 | ) | (0.30 | ) | (40 | ) | (0.30 | ) | (120 | ) | (0.93 | ) | (148 | ) | (1.12 | ) | |||||||||||
| Discrete tax benefits3 | (35 | ) | (0.27 | ) | (27 | ) | (0.21 | ) | (215 | ) | (1.65 | ) | (27 | ) | (0.21 | ) | |||||||||||
| As adjusted | $ | 992 | $ | 7.69 | $ | 884 | $ | 6.77 | $ | 3,559 | $ | 27.33 | $ | 3,313 | $ | 25.44 | |||||||||||
| 1Represents net income attributable to common shareholders. | |||||||||||||||||||||||||||
| 2This 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. | |||||||||||||||||||||||||||
| 3Fiscal year 2025 relates to a deferred tax adjustment and release of a tax valuation allowance. Fiscal year 2024 reflects a Swiss tax law change which resulted in the recording of a deferred tax asset. | |||||||||||||||||||||||||||
| ADJUSTED EBITDA RECONCILIATION | |||||||||||||||
| (Unaudited) | Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||
| (Dollars in millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Net sales | $ | 5,243 | $ | 5,187 | $ | 19,850 | $ | 19,930 | |||||||
| Net income | $ | 923 | $ | 785 | $ | 3,532 | $ | 2,845 | |||||||
| Income taxes | 148 | 201 | 575 | 750 | |||||||||||
| Depreciation | 91 | 91 | 354 | 349 | |||||||||||
| Amortization | 139 | 139 | 553 | 578 | |||||||||||
| Interest expense | 99 | 119 | 409 | 506 | |||||||||||
| EBITDA | 1,400 | 1,335 | 5,423 | 5,028 | |||||||||||
| Adjustments: | |||||||||||||||
| Business realignment charges | 16 | 18 | 56 | 54 | |||||||||||
| Integration costs to achieve | 3 | 9 | 22 | 38 | |||||||||||
| Gain on sale of buildings | (14 | ) | — | (24 | ) | — | |||||||||
| Gain on divestitures | (2 | ) | — | (252 | ) | (26 | ) | ||||||||
| Saegertown incident | — | — | 8 | — | |||||||||||
| Adjusted EBITDA | $ | 1,403 | $ | 1,362 | $ | 5,233 | $ | 5,094 | |||||||
| EBITDA margin | 26.7 | % | 25.8 | % | 27.3 | % | 25.2 | % | |||||||
| Adjusted EBITDA margin | 26.8 | % | 26.3 | % | 26.4 | % | 25.6 | % | |||||||
| CONSOLIDATED BALANCE SHEET | |||||||
| (Unaudited) | June 30, | June 30, | |||||
| (Dollars in millions) | 2025 | 2024 | |||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 467 | $ | 422 | |||
| Trade accounts receivable, net | 2,910 | 2,866 | |||||
| Non-trade and notes receivable | 318 | 331 | |||||
| Inventories | 2,839 | 2,787 | |||||
| Prepaid expenses | 263 | 253 | |||||
| Other current assets | 153 | 140 | |||||
| Total current assets | 6,950 | 6,799 | |||||
| Property, plant and equipment, net | 2,937 | 2,876 | |||||
| Deferred income taxes | 270 | 93 | |||||
| Other assets | 1,269 | 1,207 | |||||
| Intangible assets, net | 7,374 | 7,816 | |||||
| Goodwill | 10,694 | 10,507 | |||||
| Total assets | $ | 29,494 | $ | 29,298 | |||
| Liabilities and equity | |||||||
| Current liabilities: | |||||||
| Notes payable and long-term debt payable within one year | $ | 1,791 | $ | 3,403 | |||
| Accounts payable, trade | 2,126 | 1,992 | |||||
| Accrued payrolls and other compensation | 587 | 581 | |||||
| Accrued domestic and foreign taxes | 382 | 355 | |||||
| Other accrued liabilities | 933 | 982 | |||||
| Total current liabilities | 5,819 | 7,313 | |||||
| Long-term debt | 7,494 | 7,157 | |||||
| Pensions and other postretirement benefits | 267 | 437 | |||||
| Deferred income taxes | 1,490 | 1,584 | |||||
| Other liabilities | 733 | 726 | |||||
| Shareholders' equity | 13,682 | 12,072 | |||||
| Noncontrolling interests | 9 | 9 | |||||
| Total liabilities and equity | $ | 29,494 | $ | 29,298 | |||
| CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
| Twelve Months Ended | |||||||
| (Unaudited) | June 30, | ||||||
| (Dollars in millions) | 2025 | 2024 | |||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 3,532 | $ | 2,845 | |||
| Depreciation and amortization | 907 | 927 | |||||
| Stock incentive plan compensation | 159 | 155 | |||||
| Gain on sale of businesses | (253 | ) | (24 | ) | |||
| (Gain) loss on property, plant and equipment and intangible assets | (20 | ) | 12 | ||||
| Net change in receivables, inventories and trade payables | 31 | (28 | ) | ||||
| Net change in other assets and liabilities | (336 | ) | (517 | ) | |||
| Other, net | (244 | ) | 14 | ||||
| Net cash provided by operating activities | 3,776 | 3,384 | |||||
| Cash flows from investing activities: | |||||||
| Capital expenditures | (435 | ) | (400 | ) | |||
| Proceeds from property, plant and equipment | 32 | 9 | |||||
| Proceeds from sale of businesses | 623 | 78 | |||||
| Other, net | 4 | 15 | |||||
| Net cash provided by (used in) investing activities | 224 | (298 | ) | ||||
| Cash flows from financing activities: | |||||||
| Net payments for common stock activity | (1,762 | ) | (328 | ) | |||
| Acquisition of noncontrolling interests | — | (3 | ) | ||||
| Net payments for debt | (1,354 | ) | (2,002 | ) | |||
| Dividends paid | (861 | ) | (782 | ) | |||
| Net cash used in financing activities | (3,977 | ) | (3,115 | ) | |||
| Effect of exchange rate changes on cash | 22 | (24 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 45 | (53 | ) | ||||
| Cash and cash equivalents at beginning of year | 422 | 475 | |||||
| Cash and cash equivalents at end of period | $ | 467 | $ | 422 | |||
| RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH | |
| (Unaudited) | |
| (Amounts in percentages) | Fiscal Year 2026 |
| Forecasted net sales | |
| Adjustments: | |
| Currency | ~(1.5)% |
| Divestitures | ~ |
| Adjusted forecasted net sales | |
| RECONCILIATION OF FORECASTED SEGMENT OPERATING MARGIN TO ADJUSTED FORECASTED SEGMENT OPERATING MARGIN | |
| (Unaudited) | |
| (Amounts in percentages) | Fiscal Year 2026 |
| Forecasted segment operating margin | |
| Adjustments: | |
| Business realignment charges | ~ |
| Amortization of acquired intangibles | ~ |
| Adjusted forecasted segment operating margin | |
| RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE | |
| (Unaudited) | |
| (Amounts in dollars) | Fiscal Year 2026 |
| Forecasted earnings per diluted share | |
| Adjustments: | |
| Business realignment charges | 0.54 |
| Amortization of acquired intangibles | 4.26 |
| Tax effect of adjustments1 | (1.08) |
| Adjusted forecasted earnings per diluted share | |
| 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 | |
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