Parker Hannifin Corporation Reports Fiscal 2024 Fourth Quarter and Annual Financial Results
Intellectia.AI Updated: 1970-01-01
Parker Hannifin Corporation Reports Fiscal 2024 Fourth Quarter and Annual Financial Results
Cleveland, August 08, 2024 (GLOBE NEWSWIRE) — Parker Hannifin Corporation (NYSE: PH), a global leader in motion and control technologies, has reported its financial results for the quarter and year ended June 30, 2024.
Key Financial Metrics
| Metric | Q4 FY2023 | Q4 FY2024 | % Change YoY | FY 2023 | FY 2024 | % Change YoY |
|---|---|---|---|---|---|---|
| Total Revenue | $5.1 billion | $5.2 billion | +2% | $18.9 billion | $19.9 billion | +5% |
| Organic Sales Growth | N/A | +3% | N/A | N/A | +2% | N/A |
| Net Income | $844 million | $785 million | -7% | $2.74 billion | $2.8 billion | +2.2% |
| Adjusted Net Income | $884 million | $791 million | -10.5% | $2.91 billion | $3.3 billion | +13.4% |
| EPS | $5.40 | $6.01 | +10% | $16.06 | $21.84 | +36% |
| Adjusted EPS | $6.10 | $6.77 | +11% | $18.50 | $25.44 | +37% |
| EBITDA Margin | 24.9% | 25.8% | +90 bps | 24.4% | 25.2% | +80 bps |
| Adjusted EBITDA Margin | 26.4% | 26.3% | -10 bps | 25.3% | 25.6% | +30 bps |
| Segment Operating Margin | 22.1% | 22.2% | +10 bps | 21.1% | 21.5% | +40 bps |
| Adjusted Segment Operating Margin | 24.0% | 25.3% | +130 bps | 22.3% | 24.9% | +260 bps |
Interpretation: Parker Hannifin has demonstrated a steady performance with notable highlights such as a 2% increase in fourth-quarter sales and a 5% growth in annual revenue, achieving record-breaking results. Despite a slight decline in net income for Q4 YoY, the company saw a remarkable increase in adjusted EPS. Their EBITDA and segment margins indicate a strong operational efficiency, underscoring their robust business strategy.
Segment Revenue Performance
| Segment | Q4 FY2023 | Q4 FY2024 | % Change YoY | FY 2023 | FY 2024 | % Change YoY |
|---|---|---|---|---|---|---|
| Aerospace Systems | N/A | $1.5 billion+ | N/A | N/A | N/A | N/A |
Interpretation: The Aerospace Systems segment achieved a milestone by surpassing $1.5 billion in quarterly sales for the first time, showing broad-based strength across both commercial and defense markets. This growth in Aerospace driven by aftermarket strength has contributed significantly to the company's overall financial health.
Executive Comments
Jenny Parmentier, Chairman, and CEO of Parker Hannifin, expressed, "We delivered an exceptionally strong fourth quarter capping another year of record performance. Our ability to drive outstanding results reflects the dedication and commitment of our people, the strength and balance of our portfolio, and the power of our business system, The Win Strategy™."
She further added, "Parker has a very bright future ahead as indicated by our strong outlook for fiscal year 2025, which puts us on track to achieve our financial targets for fiscal year 2029."
Forward Guidance
Parker Hannifin has issued guidance for the fiscal year ending June 30, 2025:
- Total sales growth projected between 1.5% and 4.5% with organic sales growth of 2% to 5%.
- Total segment operating margin expected to range from 22.1% to 22.5%, or 25.2% to 25.6% on an adjusted basis.
- EPS projected between $22.65 and $23.35, or $26.30 and $27.00 on an adjusted basis.
Stock Price Movement
Following the earnings release, Parker Hannifin Corporation saw a positive market reaction with a 9.27% increase in its stock price after the announcement.
Overall, Parker Hannifin has showcased a strong financial performance with record-breaking achievements, reflecting its robust business strategy and promising future outlook.
