"Parker delivered an outstanding year in fiscal 2024 on the dedication of our people, the strength and balance of our portfolio, and the value of our business system, the win strategy."
— Jennifer Parmentier
03Detailed Report
PH
Company PH
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 30, 2026
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Executive Summary
Parker-Hannifin delivered a record FY2024 driven by aerospace strength, a transformed portfolio, and meaningful deleveraging. The fourth quarter highlighted ongoing execution across all segments, with Aerospace delivering a new quarterly margin and a backog near record levels. Management underscored the win strategy and responsible portfolio optimization to drive longer-cycle, secular growth and higher margins going into FY2025 and beyond. The company maintains a disciplined approach to capital allocation, targeting 2.0x net debt to adjusted EBITDA while pursuing accretive M&A and opportunistic divestitures when they enhance growth, margins, and cash flow. The FY2025 guide contemplates a moderate top-line expansion (3% midpoint sales growth), robust Aerospace growth (8.5% organic), margin expansion (25.4% adjusted segment margin), and free cash flow >$3B, supported by synergies from Meggitt and ongoing operating improvements.
Key Performance Indicators
Revenue
Increasing
5.19B
QoQ: 2.22% | YoY: 1.78%
Gross Profit
Increasing
1.88B
36.15% margin
QoQ: 4.30% | YoY: 2.00%
Operating Income
Increasing
1.07B
QoQ: 6.55% | YoY: 1.04%
Net Income
Increasing
784.96M
QoQ: 8.04% | YoY: 10.72%
EPS
Increasing
6.10
QoQ: 7.96% | YoY: 10.51%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability in Q4 2024 reflected a near-record performance across the group. Key metrics and trends include:
- Revenue: $5.1868B in Q4 2024, up ~2% year over year; organic growth ~3% with slight negative impact from divestitures and currency headwinds (~1% headwind).
- Gross margin: 36.15% in Q4 2024 (0.3615), up modestly year over year; margin expansion driven by Aerospace strength and mix benefits from the diversified portfolio.
- operating income and margins: Q4 adjusted segment operating margin rose ~130 bps year over year to 25.3%; EBITDA margins 26.3% in Q4.
- Aerospace segment: record quarterly results with 27.1% operating margin in Q4, and 19% organic growth; orders continued to grow (+7% annual order rate) and backlog remained elevated (backlog of $10.9B shipping).
- Net income and EPS: Q4 adjusted net income of $884M; GAAP net income $784.9M; EPS $6.77 (diluted $6.01), representing meaningful year-over-year and sequential gains.
- Cash flow: FY2024 CFOA record at ~$3.4B (roughly 17% of sales) and free cash flow near $3.0B; management highlighted working-capital improvements and a $120M+ reduction in inventory; debt reduction of >$800M in Q4 and >$3.4B since Meggitt closing.
- Balance sheet: total debt ~$10.56B; net debt ~$10.14B; gross debt to adjusted EBITDA ~2.1x; net debt to adjusted EBITDA ~2.0x; cash and equivalents ~$0.42B; substantial goodwill and intangible assets reflecting the Meggitt integration.
- Guidance: FY2025 projected revenue growth 1.5%–4.5% (midpoint ~3%), organic growth 2%–5% (midpoint 3.5%), Aerospace ~8.5% organic growth, adjusted segment margin ~25.4% (midpoint), capex ~$230M corporate, interest ~$450M, tax rate ~23%, GAAP EPS ~$23 and adjusted EPS ~$26.65 (midpoint). Free cash flow guidance of $3.0–$3.3B with conversion >100%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
5.19B
1.78%
2.22%
Gross Profit
1.88B
2.00%
4.30%
Operating Income
1.07B
1.04%
6.55%
Net Income
784.96M
10.72%
8.04%
EPS
6.10
10.51%
7.96%
Key Financial Ratios
Gross Profit Margin
Fair
36.20%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
20.70%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
15.10%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.68%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
6.50%
Return on equity is acceptable but below top-tier companies
Current Ratio
Concern
0.93
Current ratio below safe levels, potential liquidity risk
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