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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported): August 8, 2024

PARKER-HANNIFIN CORPORATION
(Exact Name of Registrant as Specified in Charter)
Ohio
1-4982 34-0451060
(State or other jurisdiction of
Incorporation or Organization)
(Commission File Number)
(I.R.S. Employer
Identification No.)
6035 Parkland Boulevard, Cleveland, Ohio
44124-4141
(Address of Principal Executive Offices)
(Zip Code)

Registrant's telephone number, including area code: (216) 896-3000

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol Name of Each Exchange on which Registered
Common Shares, $.50 par value PH New York Stock Exchange


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Item 2.02 Results of Operations and Financial Condition


On August 8, 2024, Parker-Hannifin Corporation issued a press release and presented a Webcast announcing results of operations for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report. A copy of the Webcast presentation is furnished as Exhibit 99.2 to this report.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits:


99.1 Press release issued by Parker-Hannifin Corporation, dated August 8, 2024.

99.2 Webcast presentation by Parker-Hannifin Corporation, dated August 8, 2024.

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.



PARKER-HANNIFIN CORPORATION
By: /s/ Todd M. Leombruno
Todd M. Leombruno
Executive Vice President and Chief Financial Officer
Date: August 8, 2024




EX-99.1 2 exhibit991q4fy24.htm EX-99.1 Document

Exhibit 99.1
blk_parkerlogo20150x50a.jpg

Parker Reports Fiscal 2024 Fourth Quarter and Full Year Results and Issues Guidance for Fiscal 2025

Strong Fourth Quarter Caps Record Year; Guidance and FY29 Targets Point to Bright Future

CLEVELAND, August 8, 2024 -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the quarter and year ended June 30, 2024, that included the following highlights (compared with the prior year period):
Fiscal 2024 Fourth Quarter Highlights:
•Sales increased 2% to a record $5.2 billion; Organic sales growth was 3%
•Net income was $785 million, or $884 million adjusted
•EPS were $6.01, an increase of 10%, or a record $6.77 adjusted, an increase of 11%
•EBITDA margin was 25.8%, an increase of 90 bps, or 26.3% adjusted, an increase of 190 bps
•Segment operating margin was 22.2%, an increase of 10 bps, or a record 25.3% adjusted, an increase of 130 bps
Fiscal 2024 Full Year Highlights:
•Sales increased 5% to a record $19.9 billion; Organic sales growth was 2%
•Net income was $2.8 billion, or $3.3 billion adjusted
•EPS were $21.84, an increase of 36%, or a record $25.44 adjusted, an increase of 18%
•EBITDA margin was 25.2%, an increase of 380 bps, or 25.6% adjusted, an increase of 200 bps
•Segment operating margin was 21.5%, an increase of 240 bps, or a record 24.9% adjusted, an increase of 200 bps
•Cash flow from operations increased 14% to $3.4 billion, or 17.0% of sales
“We delivered an exceptionally strong fourth quarter capping another year of record performance,” said Chairman and Chief Executive Officer, Jenny Parmentier. “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™.
“For the year, we delivered on our commitments with respect to safety and financial targets. We had record sales approaching $20 billion, record adjusted segment operating margin, which increased 200 basis points compared to the prior year, adjusted earnings per share growth of 18%, and record free cash flow of $3 billion. 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.”
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, 2025. The company expects:
•Total sales growth in fiscal 2025 of 1.5% - 4.5%, with organic sales growth of 2% to 5%
•Total segment operating margin of 22.1% to 22.5%, or 25.2% to 25.6% on an adjusted basis
•EPS of $22.65 to $23.35, or $26.30 to $27.00 on an adjusted basis



Segment Results
Diversified Industrial Segment
North America Businesses
$ in mm
FY24 Q4
FY23 Q4
Change
Organic Growth
Sales
$ 2,228  $ 2,301  -3.2  % -2.8  %
Segment Operating Income
$ 506  $ 491  3.0  %
Segment Operating Margin
22.7  % 21.3  % 140   bps
Adjusted Segment Operating Income $ 558  $ 541  3.2  %
Adjusted Segment Operating Margin
25.0  % 23.5  % 150   bps
•Achieved record segment operating margin on lower sales
•Softness continues in transportation and off-highway markets
International Businesses
$ in mm
FY24 Q4
FY23 Q4
Change
Organic Growth
Sales
$ 1,430  $ 1,512  -5.4  % -2.5  %
Segment Operating Income
$ 312  $ 309  0.7  %
Segment Operating Margin
21.8  % 20.5  % 130   bps
Adjusted Segment Operating Income $ 342  $ 352  -2.9  %
Adjusted Segment Operating Margin
23.9  % 23.3  % 60   bps
•Achieved record segment operating margin on lower sales
•Market softness continues in Europe
•Asia sales declined at a decreasing rate
Aerospace Systems Segment
$ in mm
FY24 Q4
FY23 Q4
Change
Organic Growth
Sales
$ 1,528  $ 1,283  19.2  % 19.1  %
Segment Operating Income
$ 332  $ 328  1.4  %
Segment Operating Margin
21.7  % 25.5  % -380   bps
Adjusted Segment Operating Income $ 415  $ 331  25.1  %
Adjusted Segment Operating Margin
27.1  % 25.8  % 130   bps
•Quarterly sales surpassed $1.5 billion for the first time
•Broad based strength across all commercial and defense markets
•Aftermarket strength drove record adjusted segment operating margin
Order Rates
FY24 Q4
Parker
+1%
Diversified Industrial Segment - North America Businesses
0%
Diversified Industrial Segment - International Businesses
-1%
Aerospace Systems Segment
+7%
•Company order rates improved sequentially
•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 2024 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, 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; (e) EBITDA margin; (f) adjusted EBITDA margin; (g) organic sales growth and (h) free cash flow. 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. This press release also contains references to EBITDA margin, adjusted EBITDA margin and free cash flow. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Free cash flow is defined as cash flow from operations less capital expenditures. Although adjusted net income, adjusted earnings per share, adjusted operating margin and segment operating margins, adjusted operating income and segment operating income, EBITDA margin, adjusted EBITDA margin, organic sales growth and free cash flow 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 and fiscal year versus the prior periods. 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, 2023 and other periodic filings made with the SEC.


###



Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2024
CONSOLIDATED STATEMENT OF INCOME
(Unaudited) Three Months Ended June 30, Twelve Months Ended June 30,
(Dollars in thousands, except per share amounts) 2024 2023 2024 2023
Net sales $ 5,186,815  $ 5,095,943  $ 19,929,606  $ 19,065,194 
Cost of sales 3,322,855  3,262,860  12,801,816  12,635,892 
Selling, general and administrative expenses 818,347  834,940  3,315,177  3,354,103 
Interest expense 119,266  157,176  506,495  573,894 
Other income, net (59,613) (62,228) (288,485) (178,359)
Income before income taxes 985,960  903,195  3,594,603  2,679,664 
Income taxes 200,887  194,117  749,667  596,128 
Net income 785,073  709,078  2,844,936  2,083,536 
Less: Noncontrolling interests 110  122  721  600 
Net income attributable to common shareholders $ 784,963  $ 708,956  $ 2,844,215  $ 2,082,936 
Earnings per share attributable to common shareholders:
Basic earnings per share $ 6.10  $ 5.52  $ 22.13  $ 16.23 
Diluted earnings per share $ 6.01  $ 5.44  $ 21.84  $ 16.04 
Average shares outstanding during period - Basic 128,627,781 128,440,007 128,507,352 128,367,842
Average shares outstanding during period - Diluted 130,643,758 130,222,542 130,239,737 129,822,085
CASH DIVIDENDS PER COMMON SHARE
(Unaudited) Three Months Ended June 30, Twelve Months Ended June 30,
(Amounts in dollars) 2024 2023 2024 2023
Cash dividends per common share $ 1.63  $ 1.48  $ 6.07  $ 5.47 
RECONCILIATION OF ORGANIC GROWTH
(Unaudited) Three Months Ended
As Reported Adjusted
June 30, 2024 Currency Divestitures Acquisitions June 30, 2024
Diversified Industrial Segment (4.1) % (1.2) % (0.2) % —  % (2.7) %
Aerospace Systems Segment 19.2  % 0.1  % —  % —  % 19.1  %
Total 1.8  % (0.8) % (0.2) % —  % 2.8  %
(Unaudited) Twelve Months Ended
As Reported Adjusted
June 30, 2024 Currency Divestitures Acquisitions June 30, 2024
Diversified Industrial Segment (1.7) % (0.2) % (0.2) % 0.8  % (2.1) %
Aerospace Systems Segment 25.5  % 0.4  % (0.9) % 8.8  % 17.2  %
Total 4.5  % (0.1) % (0.3) % 2.6  % 2.3  %




Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2024
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS
(Unaudited) Three Months Ended June 30, Twelve Months Ended June 30,
(Dollars in thousands) 2024 2023 2024 2023
Net income attributable to common shareholders $ 784,963  $ 708,956  $ 2,844,215  $ 2,082,936 
Adjustments:
Acquired intangible asset amortization expense 139,232  126,296  577,995  500,713 
Business realignment charges 17,542  9,226  53,456  26,706 
Integration costs to achieve 8,597  18,786  38,273  95,439 
Acquisition-related expenses —  2,754  —  166,294 
Loss on deal-contingent forward contracts —  —  —  389,992 
Net gain on divestitures —  —  (25,651) (362,003)
Amortization of inventory step-up to fair value —  (57,992) —  109,981 
Meggitt early debt retirement —  9,999  —  9,999 
Tax effect of adjustments1
(39,358) (26,613) (147,761) (222,379)
Discrete Tax Benefit2
(27,068) —  (27,068) — 
Adjusted net income attributable to common shareholders $ 883,908  $ 791,412  $ 3,313,459  $ 2,797,678 

RECONCILIATION OF EARNINGS PER DILUTED SHARE TO ADJUSTED EARNINGS PER DILUTED SHARE
(Unaudited) Three Months Ended June 30, Twelve Months Ended June 30,
(Amounts in dollars) 2024 2023 2024 2023
Earnings per diluted share $ 6.01  $ 5.44  $ 21.84  $ 16.04 
Adjustments:
Acquired intangible asset amortization expense 1.07  0.97  4.43  3.85 
Business realignment charges 0.13  0.07  0.40  0.20 
Integration costs to achieve 0.07  0.14  0.30  0.73 
Acquisition-related expenses —  0.02  —  1.29 
Loss on deal-contingent forward contracts —  —  —  3.00 
Net gain on divestitures —  —  (0.20) (2.78)
Amortization of inventory step-up to fair value —  (0.45) —  0.84 
Meggitt early debt retirement —  0.08  —  0.08 
Tax effect of adjustments1
(0.30) (0.19) (1.12) (1.70)
Discrete Tax Benefit2
(0.21) —  (0.21) — 
Adjusted earnings per diluted share $ 6.77  $ 6.08  $ 25.44  $ 21.55 
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.
2 A recent Swiss tax law change resulted in the recording of a deferred tax asset.



Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2024
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA
(Unaudited) Three Months Ended June 30, Twelve Months Ended June 30,
(Dollars in thousands) 2024 2023 2024 2023
Net sales $ 5,186,815  $ 5,095,943  $ 19,929,606  $ 19,065,194 
Net income $ 785,073  $ 709,078  $ 2,844,936  $ 2,083,536 
Income taxes 200,887  194,117  749,667  596,128 
Depreciation 91,436  82,767  349,136  317,416 
Amortization 139,232  126,296  577,995  500,713 
Interest expense 119,266  157,176  506,495  573,894 
EBITDA 1,335,894  1,269,434  5,028,229  4,071,687 
Adjustments:
Business realignment charges 17,542  9,226  53,456  26,706 
Integration costs to achieve 8,597  18,786  38,273  95,439 
Acquisition-related expenses —  2,754  —  166,294 
Loss on deal-contingent forward contracts —  —  —  389,992 
Net gain on divestitures —  —  (25,651) (362,003)
Amortization of inventory step-up to fair value —  (57,992) —  109,981 
Adjusted EBITDA $ 1,362,033  $ 1,242,208  $ 5,094,307  $ 4,498,096 
EBITDA margin 25.8  % 24.9  % 25.2  % 21.4  %
Adjusted EBITDA margin 26.3  % 24.4  % 25.6  % 23.6  %


BUSINESS SEGMENT INFORMATION
(Unaudited) Three Months Ended June 30, Twelve Months Ended June 30,
(Dollars in thousands) 2024 2023 2024 2023
Net sales
Diversified Industrial $ 3,658,502  $ 3,813,431  $ 14,457,146  $ 14,705,693 
Aerospace Systems 1,528,313  1,282,512  5,472,460  4,359,501 
Total net sales $ 5,186,815  $ 5,095,943  $ 19,929,606  $ 19,065,194 
Segment operating income
Diversified Industrial $ 817,085  $ 800,196  $ 3,176,384  $ 3,071,410 
Aerospace Systems 332,035  327,595  1,110,746  562,444 
Total segment operating income 1,149,120  1,127,791  4,287,130  3,633,854 
Corporate general and administrative expenses 55,972  83,336  218,312  229,677 
Income before interest expense and other (income) expense, net 1,093,148  1,044,455  4,068,818  3,404,177 
Interest expense 119,266  157,176  506,495  573,894 
Other (income) expense, net (12,078) (15,916) (32,280) 150,619 
Income before income taxes $ 985,960  $ 903,195  $ 3,594,603  $ 2,679,664 



Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2024
RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS
(Unaudited) Three Months Ended June 30, Twelve Months Ended June 30,
(Dollars in thousands) 2024 2023 2024 2023
Diversified Industrial Segment sales $ 3,658,502  $ 3,813,431  $ 14,457,146  $ 14,705,693 
Diversified Industrial Segment operating income $ 817,085  $ 800,196  $ 3,176,384  $ 3,071,410 
Adjustments:
Acquired intangible asset amortization 64,550  82,073  266,219  267,779 
Business realignment charges 17,198  9,177  50,075  23,641 
Integration costs to achieve 628  1,235  3,930  8,511 
Adjusted Diversified Industrial Segment operating income $ 899,461  $ 892,681  $ 3,496,608  $ 3,371,341 
Diversified Industrial Segment operating margin 22.3  % 21.0  % 22.0  % 20.9  %
Adjusted Diversified Industrial Segment operating margin 24.6  % 23.4  % 24.2  % 22.9  %
(Unaudited) Three Months Ended June 30, Twelve Months Ended June 30,
(Dollars in thousands) 2024 2023 2024 2023
Aerospace Systems Segment sales $ 1,528,313  $ 1,282,512  $ 5,472,460  $ 4,359,501 
Aerospace Systems Segment operating income $ 332,035  $ 327,595  $ 1,110,746  $ 562,444 
Adjustments:
Acquired intangible asset amortization 74,682  44,223  311,776  232,934 
Business realignment charges 49  319  3,065 
Integration costs to achieve 7,969  17,551  34,343  86,928 
Amortization of inventory step-up to fair value —  (57,992) —  109,981 
Adjusted Aerospace Systems Segment operating income $ 414,687  $ 331,426  $ 1,457,184  $ 995,352 
Aerospace Systems Segment operating margin 21.7  % 25.5  % 20.3  % 12.9  %
Adjusted Aerospace Systems Segment operating margin 27.1  % 25.8  % 26.6  % 22.8  %
(Unaudited) Three Months Ended June 30, Twelve Months Ended June 30,
(Dollars in thousands) 2024 2023 2024 2023
Total net sales $ 5,186,815  $ 5,095,943  $ 19,929,606  $ 19,065,194 
Total segment operating income $ 1,149,120  $ 1,127,791  $ 4,287,130  $ 3,633,854 
Adjustments:
Acquired intangible asset amortization 139,232  126,296  577,995  500,713 
Business realignment charges 17,199  9,226  50,394  26,706 
Integration costs to achieve 8,597  18,786  38,273  95,439 
Amortization of inventory step-up to fair value —  (57,992) —  109,981 
Adjusted total segment operating income $ 1,314,148  $ 1,224,107  $ 4,953,792  $ 4,366,693 
Total segment operating margin 22.2  % 22.1  % 21.5  % 19.1  %
Adjusted total segment operating margin 25.3  % 24.0  % 24.9  % 22.9  %





Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2024
CONSOLIDATED BALANCE SHEET
(Unaudited) June 30, June 30,
(Dollars in thousands) 2024 2023
Assets
Current assets:
Cash and cash equivalents $ 422,027  $ 475,182 
Trade accounts receivable, net 2,865,546  2,827,297 
Non-trade and notes receivable 331,429  309,167 
Inventories 2,786,800  2,907,879 
Prepaid expenses and other 392,822  314,704 
Total current assets 6,798,624  6,834,229 
Property, plant and equipment, net 2,875,668  2,865,030 
Deferred income taxes 92,704  81,429 
Investments and other assets 1,207,232  1,104,576 
Intangible assets, net 7,816,181  8,450,614 
Goodwill 10,507,433  10,628,594 
Total assets $ 29,297,842  $ 29,964,472 
Liabilities and equity
Current liabilities:
Notes payable and long-term debt payable within one year $ 3,403,065  $ 3,763,175 
Accounts payable, trade 1,991,639  2,050,934 
Accrued payrolls and other compensation 581,251  651,319 
Accrued domestic and foreign taxes 354,659  374,571 
Other accrued liabilities 982,695  895,371 
Total current liabilities 7,313,309  7,735,370 
Long-term debt 7,157,034  8,796,284 
Pensions and other postretirement benefits 437,490  551,510 
Deferred income taxes 1,583,923  1,649,674 
Other liabilities 725,193  893,355 
Shareholders' equity 12,071,972  10,326,888 
Noncontrolling interests 8,921  11,391 
Total liabilities and equity $ 29,297,842  $ 29,964,472 


Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2024
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited) Twelve Months Ended June 30,
(Dollars in thousands) 2024 2023
Cash flows from operating activities:
Net income $ 2,844,936  $ 2,083,536 
Depreciation and amortization 927,131  818,129 
Stock incentive plan compensation 155,175  142,720 
Gain on sale of businesses (23,979) (366,345)
Loss on property, plant and equipment and intangible assets 12,382  3,819 
Gain on marketable securities and other investments (5,708) (6,176)
Net change in receivables, inventories and trade payables (28,135) 128,000 
Net change in other assets and liabilities (516,854) 13,211 
Other, net 19,381  163,036 
Net cash provided by operating activities 3,384,329  2,979,930 
Cash flows from investing activities:
Acquisitions (net of cash of $89,704 in 2023) —  (7,146,110)
Capital expenditures (400,112) (380,747)
Proceeds from sale of property, plant and equipment 9,065  13,244 
Proceeds from sale of businesses 77,666  473,207 
Purchases of marketable securities and other investments (17,186) (37,791)
Maturities and sales of marketable securities and other investments 24,292  56,786 
Payments of deal-contingent forward contracts —  (1,405,418)
Other 7,687  250,017 
Net cash used in investing activities (298,588) (8,176,812)
Cash flows from financing activities:
Net payments for common stock activity (328,449) (293,847)
Acquisition of noncontrolling interests (2,883) — 
Net (payments for) proceeds from debt (2,001,519) 40,470 
Financing fees paid —  (13,605)
Dividends paid (782,048) (704,054)
Net cash used in financing activities (3,114,899) (971,036)
Effect of exchange rate changes on cash (23,997) (4,776)
Net decrease in cash, cash equivalents and restricted cash (53,155) (6,172,694)
Cash, cash equivalents and restricted cash at beginning of year 475,182  6,647,876 
Cash and cash equivalents at end of period $ 422,027  $ 475,182 

RECONCILIATION OF CASH FLOW FROM OPERATIONS TO FREE CASH FLOW
(Unaudited) Twelve Months Ended
(Dollars in thousands) June 30, 2024
As reported cash flow from operations $ 3,384,329 
Capital expenditures (400,112)
Free cash flow $ 2,984,217 




Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2024
RECONCILIATION OF FORECASTED ORGANIC GROWTH
(Unaudited)
(Amounts in percentages) Fiscal Year 2025
Forecasted net sales 1.5% to 4.5%
Adjustments:
Currency 0.5%
Divestitures —%
Adjusted forecasted net sales 2.0% to 5.0%
RECONCILIATION OF FORECASTED SEGMENT OPERATING MARGIN TO ADJUSTED FORECASTED SEGMENT OPERATING MARGIN
(Unaudited)
(Amounts in percentages) Fiscal Year 2025
Forecasted segment operating margin 22.1% to 22.5%
Adjustments:
Business realignment charges 0.2%
Costs to achieve 0.1%
Acquisition-related intangible asset amortization expense 2.7%
Adjusted forecasted segment operating margin 25.2% to 25.6%
Note: Totals may not foot due to rounding
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 $22.65 to $23.35
Adjustments:
Business realignment charges 0.38
Costs to achieve 0.11
Acquisition-related intangible asset amortization expense 4.25
Tax effect of adjustments1
(1.09)
Adjusted forecasted earnings per diluted share $26.30 to $27.00
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.






Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2024
SUPPLEMENTAL INFORMATION
BUSINESS SEGMENT INFORMATION
(Unaudited) Three Months Ended June 30, Twelve Months Ended June 30,
(Dollars in thousands) 2024 2023 2024 2023
Net sales
Diversified Industrial:
   North America businesses $ 2,228,449  $ 2,301,159  $ 8,800,036  $ 8,916,194 
   International businesses 1,430,053  1,512,272  5,657,110  5,789,499 
Segment operating income
Diversified Industrial:
   North America businesses $ 505,521  $ 490,823  $ 1,963,876  $ 1,853,079 
   International businesses 311,564  309,373  1,212,508  1,218,331 
RECONCILIATION OF ORGANIC GROWTH
(Unaudited) Three Months Ended
As Reported Adjusted
June 30, 2024 Currency Divestitures Acquisitions June 30, 2024
Diversified Industrial Segment:
North America businesses (3.2) % —  % (0.4) % —  % (2.8) %
International businesses (5.4) % (2.9) % —  % —  % (2.5) %
(Unaudited) Twelve Months Ended
As Reported Adjusted
June 30, 2024 Currency Divestitures Acquisitions June 30, 2024
Diversified Industrial Segment:
North America businesses (1.3) % 0.3  % (0.3) % 0.9  % (2.2) %
International businesses (2.3) % (1.0) % —  % 0.7  % (2.0) %






Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2024
SUPPLEMENTAL INFORMATION
RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS
(Unaudited) Three Months Ended June 30, Twelve Months Ended June 30,
(Dollars in thousands) 2024 2023 2024 2023
Diversified Industrial Segment:
North America businesses sales $ 2,228,449  $ 2,301,159  $ 8,800,036  $ 8,916,194 
North America businesses operating income $ 505,521  $ 490,823  $ 1,963,876  $ 1,853,079 
Adjustments:
Acquired intangible asset amortization 43,010  47,138  176,337  181,954 
Business realignment charges 8,857  1,792  17,749  4,024 
Integration costs to achieve 295  877  2,643  4,636 
Adjusted North America businesses operating income $ 557,683  $ 540,630  $ 2,160,605  $ 2,043,693 
North America businesses operating margin 22.7  % 21.3  % 22.3  % 20.8  %
Adjusted North America businesses operating margin 25.0  % 23.5  % 24.6  % 22.9  %
(Unaudited) Three Months Ended June 30, Twelve Months Ended June 30,
(Dollars in thousands) 2024 2023 2024 2023
Diversified Industrial Segment:
International businesses sales $ 1,430,053  $ 1,512,272  $ 5,657,110  $ 5,789,499 
International businesses operating income $ 311,564  $ 309,373  $ 1,212,508  $ 1,218,331 
Adjustments:
Acquired intangible asset amortization 21,540  34,935  89,882  85,825 
Business realignment charges 8,341  7,385  32,326  19,617 
Integration costs to achieve 333  358  1,287  3,875 
Adjusted International businesses operating income $ 341,778  $ 352,051  $ 1,336,003  $ 1,327,648 
International businesses operating margin 21.8  % 20.5  % 21.4  % 21.0  %
Adjusted International businesses operating margin 23.9  % 23.3  % 23.6  % 22.9  %



EX-99.2 3 earningscallpresentation.htm EX-99.2 earningscallpresentation
Parker Hannifin Corporation Fiscal 2024 Fourth Quarter & Full Year Earnings Presentation August 8, 2024 Exhibit 99.2


 
Forward-Looking Statements and Non-GAAP Financial Measures 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, 2023 and other periodic filings made with the SEC. This presentation contains references to non-GAAP financial information including organic sales, adjusted earnings per share, adjusted segment operating margin for Parker and by segment, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, Gross Debt to Adjusted EBITDA, 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 organic sales, adjusted earnings per share, adjusted segment operating margin for Parker and by segment, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, Gross Debt to Adjusted EBITDA, Net Debt to Adjusted EBITDA, free cash flow, free cash flow margin and free cash flow conversion 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. Please visit investors.parker.com for more information. 2


 
3 FY24 Highlights $19.9B Sales +4.5% Reported +2.3% Organic1 24.9% Adjusted Segment Margin1 +200 bps 25.6% Adjusted EBITDA Margin1 +200 bps $3.0B Free Cash Flow1 +15% Growth Outstanding Year, Delivered on Our Commitments  Top quartile safety performance  Strength of portfolio, highlighted by Aerospace  +200 bps adjusted segment operating margin1  18% adjusted EPS growth1  Record cash generation  Promising future ahead based on new FY29 targets Our People, Strategy & Portfolio Compound Performance 16% Reduction in Recordable Incidents 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. Note: FY24 As Reported: Segment Operating Margin of 21.5%, EBITDA Margin of 25.2%, Net Income of $2,844M, EPS of $21.84, Cash Flow from Operations: $3.4B 18% Adjusted EPS Growth1


 
FY24 Highlights:  Achieved $5.5B in sales for the first time, 17% organic growth1  Double digit sales growth across all market segments  Record adjusted segment operating margin1 with 380 bps of expansion  Celebrated our first full year with Meggitt Looking Ahead:  Positioned for growth with significant content on leading programs  Extensive portfolio and technology pedigree create value for customers  Large installed base drives aftermarket growth Record Year for Aerospace; Strength Continues 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. 4


 
Longer Cycle + Secular Trends Shorter Cycle Portfolio Transformation Expands Longer Cycle and Secular Revenue Mix Longer Cycle Shorter Cycle FY15 FY24 FY29 Illustration Longer Cycle + Secular Trends Shorter Cycle Industrial Aftermarket Industrial Aftermarket Industrial Aftermarket 5


 
Positioned for Growth Interconnected technologies enabling advancement of secular growth trends Compounding Performance The Win Strategy drives top quartile performance in all of our businesses Operational Excellence Manufacturing excellence creates growth and margin expansion opportunities FY29 Targets Confidence in long-term targets on strength of our people, strategy and culture Well Positioned for a Promising Future 6


 
What Drives Parker  Safety, Engagement, Ownership  Living up to Our Purpose  Top Quartile Performance  Great Generators & Deployers of Cash 7


 
Summary of Fiscal 2024 4th Quarter Highlights


 
FY24 Q4 Financial Summary 1. Sales figures As Reported. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. Note: FY23 Q4 As Reported: Segment Operating Margin of 22.1%, EBITDA Margin of 24.9%, Net Income of $709M, EPS of $5.44. 9 $ Millions, except per share amounts FY24 Q4 FY24 Q4 FY23 Q4 YoY Change As Reported Adjusted¹ Adjusted¹ Adjusted Sales $5,187 $5,187 $5,096 +1.8% Segment Operating Margin 22.2% 25.3% 24.0% +130 bps EBITDA Margin 25.8% 26.3% 24.4% +190 bps Net Income $785 $884 $791 +11.7% EPS $6.01 $6.77 $6.08 +11.3%


 
FY24 Q4 Adjusted Earnings per Share Bridge 1. FY23 Q4 As Reported EPS of $5.44. FY24 Q4 As Reported EPS of $6.01. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. 10 $5.16 $6.13 $4.74 $5.96 $6.08 $6.77


 
FY24 Q4 Segment Performance Sales As Reported $ Organic %1 Segment Operating Margin As Reported Segment Operating Margin Adjusted1 Order Rates2 Commentary Diversified Industrial North America Businesses $2,228M (2.8%) Organic 22.7% 25.0% +150 bps YoY 0% • Record adjusted segment operating margin • Continued softness in transportation and off- highway markets • Sequential improvement in order rates International Businesses $1,430M (2.5%) Organic 21.8% 23.9% +60 bps YoY (1%) • Margin expansion on lower sales • Continued softness in off-highway market • Positive order rates in Asia Aerospace Systems $1,528M +19.1% Organic 21.7% 27.1% +130 bps YoY +7% • Broad based strength across all markets • Aftermarket strength drove record adjusted segment operating margin • Orders remain strong against tough comp Parker $5,187M +2.8% Organic 22.2% 25.3% +130 bps YoY +1% • Record sales on Aerospace strength • Surpassed 25% adj. segment operating margin • Order rates inflect positive 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. 2. Diversified Industrial orders are on a 3-month average computation and Aerospace Systems are rolling 12-month average computations. 11


 
$2.6B $3.0B CFOA $3.0B $3.4B CFOA FY24 Cash Flow Performance 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. 12 Free Cash Flow1 13.6% 15.0% Cash Flow from Operations 15.6% 17.0% FY23 FY24 % to sales $3.4B Cash Flow from Operations +14% growth 17% Cash Flow from Operations Margin 15% Free Cash Flow Margin1 $3.0B Free Cash Flow1 +15% growth 105% Free Cash Flow Conversion1 Cash Flow Highlights FY24FY23


 
2.7x 2.0x Adj. EPS Achieved Leverage Reduction Targets 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. 13  Since Meggitt acquisition close: • ~$3.4B debt reduction  >$800M debt reduction during Q4  Achieved ~$2B debt paydown in FY24  Achieved 2.0x net leverage Net Debt / Adj. EBITDA1Gross Debt / Adj. EBITDA1 2.8x 2.1x Adj. EPSQ4 FY23 Q4 FY24 Q4 FY23 Q4 FY24


 
Outlook


 
Key Market Verticals % of Sales 33% 20% 15% 15% 8% 4% FY25 Growth Guidance HSD LSD (MSD) LSD LSD LSD Aerospace & Defense In-Plant & Industrial Equipment Off-Highway Transportation Energy HVAC/R FY25 Sales Growth Forecast by Key Market Verticals FY25 Organic: 2% - 5% 15


 
FY25 Initial Guidance EPS Midpoint: $23.00 As Reported, $26.65 Adjusted 1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations. 16 Guidance Metric FY25 Full Year Full Year Assumptions FY25 Q1 Midpoint Reported Sales 1.5% - 4.5%  Robust Aerospace demand continues  Split: 1H: 48% | 2H: 52% 1.0% Organic Sales Growth1 2% - 5%  Expect HSD Aerospace organic growth  Expect gradual Industrial recovery  Split: 1H: 2.5% | 2H: 4.5% 1.5% Adj. Operating Margin1 25.2% - 25.6%  50 bps margin expansion  ~40% incremental margin 25.2% Adj. EPS1 $26.30 - $27.00  Tax rate: ~23%  Split: 1H: 47% | 2H: 53% $6.05 Free Cash Flow1 $3.0B - $3.3B  CapEx: ~2% of sales  FCF Conversion >100% - -


 
FY25 Adjusted Earnings per Share Bridge 1. FY24 As Reported EPS of $21.84. FY25 As Reported midpoint guidance EPS of $23.00. Adjusted numbers include certain non-GAAP financial measures. See Appendix for additional details and reconciliations. 17 $25.44 $26.65


 
A Different Parker 1. Adjusted numbers include certain non-GAAP financial measures. See Appendix for additional details and reconciliations.  Performance acceleration from The Win StrategyTM  Longer cycle & more resilient portfolio  Growth from secular trends  Continue to be great generators and deployers of cash 18 Adjusted EPS1 $25.44 >$35 $10+ FY24 FY29 Target FY25 – FY29 Target Free Cash Flow1 $12B ~$18B FY20 – FY24 +50%


 
Celebrating 60 Years on the NYSE Closing Bell Ringing Ceremony August 14, 2024


 
Appendix  FY25 Guidance Details  Reconciliation of Organic Growth  Adjusted Amounts Reconciliation – Consolidated  Adjusted Amounts Reconciliation – Segment Operating Income  Reconciliation of EBITDA to Adjusted EBITDA  Reconciliation of Gross and Net Debt to Adjusted EBITDA  Reconciliation of Free Cash Flow Margin and Conversion  Supplemental Sales Information – Global Technology Platforms  Reconciliation of FY25 Guidance 20


 
FY25 Guidance Details Sales Growth vs. Prior Year As Reported Organic1 Diversified Industrial Segment North America Businesses 0.0% - 3.0% 0.5% - 3.5% International Businesses (1.5%) - 1.5% 0.0% - 3.0% Aerospace Systems Segment 7.0% - 10.0% 7.0% - 10.0% Parker 1.5% - 4.5% 2.0% - 5.0% Segment Operating Margins As Reported Adjusted1 Diversified Industrial Segment North America Businesses 22.6% - 23.0% 24.6% - 25.0% International Businesses 21.5% - 21.9% 23.7% - 24.1% Aerospace Systems Segment 22.1% - 22.5% 27.4% - 27.8% Parker 22.1% - 22.5% 25.2% - 25.6% Earnings Per Share As Reported Adjusted1 Midpoint $23.00 $26.65 Range $22.65 - $23.35 $26.30 - $27.00 1. Includes certain non-GAAP adjustments and financial measures. Detail of Pre-Tax Adjustments to: Segment Margins Below Segment Acquired Intangible Asset Amortization ~$550M — Business Realignment Charges ~$50M — Integration Costs to Achieve ~$15M — 21 Additional Items As Reported Corporate G&A ~$230M Interest Expense ~$450M Other (Income) Expense ~$5M Reported Tax Rate ~23% Diluted Shares Outstanding ~130.6M


 
Reconciliation of Organic Growth 22 (Dollars in thousands) (Unaudited) Quarter-to-Date As Reported Adjusted As Reported Net Sales June 30, 2024 June 30, 2024 June 30, 2023 Diversified Industrial 3,658,502$ 44,019$ 8,559$ 3,711,080$ 3,813,431$ Aerospace Systems 1,528,313 (515) - 1,527,798 1,282,512 Total Parker Hannifin 5,186,815$ 43,504$ 8,559$ 5,238,878$ 5,095,943$ As reported Currency Divestitures Organic Diversified Industrial (4.1)% (1.2)% (0.2)% (2.7)% Aerospace Systems 19.2 % 0.1 % 0.0 % 19.1 % Total Parker Hannifin 1.8 % (0.8)% (0.2)% 2.8 % Supplemental Information: As Reported Adjusted As Reported Net Sales June 30, 2024 June 30, 2024 June 30, 2023 Diversified Industrial: North America businesses 2,228,449$ (772)$ 8,559$ 2,236,236$ 2,301,159$ International businesses Europe 802,343 12,475 - 814,818 858,933 Asia Pacific 549,272 19,020 - 568,292 576,297 Latin America 78,438 13,296 - 91,734 77,042 International businesses 1,430,053$ 44,791$ -$ 1,474,844$ 1,512,272$ As reported Currency Divestitures Organic Diversified Industrial: North America businesses (3.2)% 0.0 % (0.4)% (2.8)% International businesses Europe (6.6)% (1.5)% 0.0 % (5.1)% Asia Pacific (4.7)% (3.3)% 0.0 % (1.4)% Latin America 1.8 % (17.3)% 0.0 % 19.1 % International businesses (5.4)% (2.9)% 0.0 % (2.5)% Currency Divestitures Currency Divestitures


 
Reconciliation of Organic Growth 23 (Dollars in thousands) (Unaudited) Year-to-Date As Reported Adjusted As Reported Net Sales June 30, 2024 Acquisitions June 30, 2024 June 30, 2023 Diversified Industrial 14,457,146$ 29,560$ 22,546$ (115,305)$ 14,393,947$ 14,705,693$ Aerospace Systems 5,472,460 (19,398) 39,826 (385,702) 5,107,186 4,359,501 Total Parker Hannifin 19,929,606$ 10,162$ 62,372$ (501,007)$ 19,501,133$ 19,065,194$ As reported Currency Divestitures Acquisitions Organic Diversified Industrial (1.7)% (0.2)% (0.2)% 0.8 % (2.1)% Aerospace Systems 25.5 % 0.4 % (0.9)% 8.8 % 17.2 % Total Parker Hannifin 4.5 % (0.1)% (0.3)% 2.6 % 2.3 % Supplemental Information: As Reported Adjusted As Reported Net Sales June 30, 2024 Acquisitions June 30, 2024 June 30, 2023 Diversified Industrial: North America businesses 8,800,036$ (24,859)$ 22,546$ (77,384)$ 8,720,339$ 8,916,194$ International businesses Europe 3,189,058 (39,150) - (33,935) 3,115,973 3,186,826 Asia Pacific 2,155,034 62,624 - (3,986) 2,213,672 2,300,743 Latin America 313,018 30,945 - - 343,963 301,930 International businesses 5,657,110$ 54,419$ -$ (37,921)$ 5,673,608$ 5,789,499$ As reported Currency Divestitures Acquisitions Organic Diversified Industrial: North America businesses (1.3)% 0.3 % (0.3)% 0.9 % (2.2)% International businesses Europe 0.1 % 1.2 % 0.0 % 1.1 % (2.2)% Asia Pacific (6.3)% (2.7)% 0.0 % 0.2 % (3.8)% Latin America 3.7 % (10.2)% 0.0 % 0.0 % 13.9 % International businesses (2.3)% (1.0)% 0.0 % 0.7 % (2.0)% Currency Divestitures Currency Divestitures


 
(Dollars in thousands, except per share data) (Unaudited) Quarter-to-Date FY 2024 Acquired Business Meggitt As Reported Intangible Asset Realignment Costs to Discrete Adjusted June 30, 2024 % of Sales Amortization Charges Achieve Tax Benefit June 30, 2024 % of Sales Net sales 5,186,815$ 100.0 % -$ -$ -$ -$ -$ -$ 5,186,815$ 100.0 % Cost of sales 3,322,855 64.1 % 27,052 11,120 1,387 - - - 3,283,296 63.3 % Selling, general and admin. expenses 818,347 15.8 % 112,180 6,079 7,210 - - - 692,878 13.4 % Interest expense 119,266 2.3 % - - - - - - 119,266 2.3 % Other (income) expense, net (59,613) (1.1)% - 343 - - - - (59,956) (1.2)% Income before income taxes 985,960 19.0 % (139,232) (17,542) (8,597) - - - 1,151,331 22.2 % Income taxes 200,887 3.9 % 33,137 4,175 2,046 27,068 - - 267,313 5.2 % Net income 785,073 15.1 % (106,095) (13,367) (6,551) 27,068 - - 884,018 17.0 % Less: Noncontrolling interests 110 0.0 % - - - - - - 110 0.0 % Net income - common shareholders 784,963$ 15.1 % (106,095)$ (13,367)$ (6,551)$ 27,068$ -$ -$ 883,908$ 17.0 % Diluted earnings per share 6.01$ (0.81)$ (0.11)$ (0.05)$ 0.21$ -$ -$ 6.77$ Quarter-to-Date FY 2023 Acquired Business Meggitt Acquisition Amortization Meggitt As Reported Intangible Asset Realignment Costs to Related of Inventory Early Debt Adjusted June 30, 2023 % of Sales Amortization Charges Achieve Expenses Step-Up to FV Retirement June 30, 2023 % of Sales Net sales 5,095,943$ 100.0 % -$ -$ -$ -$ -$ -$ 5,095,943$ 100.0 % Cost of sales 3,262,860 64.0 % 27,990 5,247 5,197 - (57,992) - 3,282,418 64.4 % Selling, general and admin. Expenses 834,940 16.4 % 98,306 3,979 13,589 2,754 - - 716,312 14.1 % Interest expense 157,176 3.1 % - - - - - 9,999 147,177 2.9 % Other (income) expense, net (62,228) (1.2)% - - - - - - (62,228) (1.2)% Income before income taxes 903,195 17.7 % (126,296) (9,226) (18,786) (2,754) 57,992 (9,999) 1,012,264 19.9 % Income taxes 194,117 3.8 % 30,816 2,251 4,584 672 (14,150) 2,440 220,730 4.3 % Net income 709,078 13.9 % (95,480) (6,975) (14,202) (2,082) 43,842 (7,559) 791,534 15.5 % Less: Noncontrolling interests 122 0.0 % - - - - - - 122 0.0 % Net income - common shareholders 708,956$ 13.9 % (95,480)$ (6,975)$ (14,202)$ (2,082)$ 43,842$ (7,559)$ 791,412$ 15.5 % Diluted earnings per share 5.44$ (0.73)$ (0.06)$ (0.11)$ (0.02)$ 0.34$ (0.06)$ 6.08$ Adjusted Amounts Reconciliation Consolidated Statement of Income 24 1. A recent Swiss tax law change resulted in the recording of a deferred tax asset. 1


 
(Dollars in thousands, except per share data) (Unaudited) Year-to-Date FY 2024 Acquired Business Meggitt As Reported Intangible Asset Realignment Costs to Gain on Discrete Adjusted June 30, 2024 % of Sales Amortization Charges Achieve Divestitures Tax Benefit June 30, 2024 % of Sales Net sales 19,929,606$ 100.0 % -$ -$ -$ -$ -$ -$ -$ -$ 19,929,606$ 100.0 % Cost of sales 12,801,816 64.2 % 108,671 29,585 4,259 - - - - - 12,659,301 63.5 % Selling, general and admin. expenses 3,315,177 16.6 % 469,324 20,809 34,014 - - - - - 2,791,030 14.0 % Interest expense 506,495 2.5 % - - - - - - - 506,495 2.5 % Other (income) expense, net (288,485) (1.4)% - 3,062 - (25,651) - - - - (265,896) (1.3)% Income before income taxes 3,594,603 18.0 % (577,995) (53,456) (38,273) 25,651 - - - - 4,238,676 21.3 % Income taxes 749,667 3.8 % 137,575 12,721 9,105 (11,640) 27,068 - - - 924,496 4.6 % Net income 2,844,936 14.3 % (440,420) (40,735) (29,168) 14,011 27,068 - - - 3,314,180 16.6 % Less: Noncontrolling interests 721 0.0 % - - - - - - - - 721 0.0 % Net income - common shareholders 2,844,215$ 14.3 % (440,420)$ (40,735)$ (29,168)$ 14,011$ 27,068$ -$ -$ -$ 3,313,459$ 16.6 % Diluted earnings per share 21.84$ (3.37)$ (0.32)$ (0.23)$ 0.11$ 0.21$ -$ -$ -$ 25.44$ Year-to-Date FY 2023 Acquired Business Meggitt Acquisition Loss on Amortization Meggitt As Reported Intangible Asset Realignment Costs to Related Deal-Contingent Net Gain on of Inventory Early Debt Adjusted June 30, 2023 % of Sales Amortization Charges Achieve Expenses Forward Contracts Divestitures Step-Up to FV Retirement June 30, 2023 % of Sales Net sales 19,065,194$ 100.0 % -$ -$ -$ -$ -$ -$ -$ -$ 19,065,194$ 100.0 % Cost of sales 12,635,892 66.3 % 99,619 15,993 12,552 - - - 109,981 - 12,397,747 65.0 % Selling, general and admin. Expenses 3,354,103 17.6 % 401,094 10,713 82,887 114,604 - - - - 2,744,805 14.4 % Interest expense 573,894 3.0 % - - - - - - - 9,999 563,895 3.0 % Other (income) expense, net (178,359) (0.9)% - - - 51,690 389,992 (362,003) - - (258,038) (1.4)% Income before income taxes 2,679,664 14.1 % (500,713) (26,706) (95,439) (166,294) (389,992) 362,003 (109,981) (9,999) 3,616,785 19.0 % Income taxes 596,128 3.1 % 120,844 6,453 23,043 39,447 94,713 (90,931) 26,370 2,440 818,507 4.3 % Net income 2,083,536 10.9 % (379,869) (20,253) (72,396) (126,847) (295,279) 271,072 (83,611) (7,559) 2,798,278 14.7 % Less: Noncontrolling interests 600 0.0 % - - - - - - - - 600 0.0 % Net income - common shareholders 2,082,936$ 10.9 % (379,869)$ (20,253)$ (72,396)$ (126,847)$ (295,279)$ 271,072$ (83,611)$ (7,559)$ 2,797,678$ 14.7 % Diluted earnings per share 16.04$ (2.92)$ (0.16)$ (0.56)$ (0.98)$ (2.27)$ 2.08$ (0.64)$ (0.06)$ 21.55$ Adjusted Amounts Reconciliation Consolidated Statement of Income 25 1 1. A recent Swiss tax law change resulted in the recording of a deferred tax asset.


 
Adjusted Amounts Reconciliation Segment Operating Income 1. Segment operating income as a percent of sales is calculated on segment sales. 2. Adjusted amounts as a percent of sales are calculated on as reported sales. 26 (Dollars in thousands) (Unaudited) Quarter-to-Date FY 2024 Acquired Business Meggitt As Reported Intangible Asset Realignment Costs to Adjusted June 30, 2024 % of Sales Amortization Charges Achieve June 30, 2024 % of Sales2 Diversified Industrial1 817,085$ 22.3% 64,550$ 17,198$ 628$ -$ -$ -$ 899,461$ 24.6% Aerospace Systems1 332,035 21.7% 74,682 1 7,969 - - - 414,687 27.1% Total segment operating income 1,149,120 22.2% (139,232) (17,199) (8,597) - - - 1,314,148 25.3% Corporate administration 55,972 1.1% - - - - - - 55,972 1.1% Income before interest and other 1,093,148 21.1% (139,232) (17,199) (8,597) - - - 1,258,176 24.3% Interest expense 119,266 2.3% - - - - - - 119,266 2.3% Other (income) expense (12,078) -0.2% - 343 - - - - (12,421) -0.2% Income before income taxes 985,960$ 19.0% (139,232)$ (17,542)$ (8,597)$ -$ -$ -$ 1,151,331$ 22.2% Supplemental Information: Diversified Industrial: North America businesses1 505,521$ 22.7% 43,010$ 8,857$ 295$ -$ -$ -$ 557,683$ 25.0% International businesses1 311,564 21.8% 21,540 8,341 333 - - - 341,778 23.9% Quarter-to-Date FY 2023 Acquired Business Meggitt Acquisition Amortization Meggitt As Reported Intangible Asset Realignment Cost to Related of Inventory Early Debt Adjusted June 30, 2023 % of Sales Amortization Charges Achieve Expenses Step-Up to FV Retirement June 30, 2023 % of Sales2 Diversified Industrial1 800,196$ 21.0% 82,073$ 9,177$ 1,235$ -$ -$ -$ 892,681$ 23.4% Aerospace Systems1 327,595 25.5% 44,223 49 17,551 - (57,992) - 331,426 25.8% Total segment operating income 1,127,791 22.1% (126,296) (9,226) (18,786) - 57,992 - 1,224,107 24.0% Corporate administration 83,336 1.6% - - - - - - 83,336 1.6% Income before interest and other 1,044,455 20.5% (126,296) (9,226) (18,786) - 57,992 - 1,140,771 22.4% Interest expense 157,176 3.1% - - - - - 9,999 147,177 2.9% Other (income) expense (15,916) -0.3% - - - 2,754 - - (18,670) -0.4% Income before income taxes 903,195$ 17.7% (126,296)$ (9,226)$ (18,786)$ (2,754)$ 57,992$ (9,999)$ 1,012,264$ 19.9% Supplemental Information: Diversified Industrial: North America businesses1 490,823$ 21.3% 47,138$ 1,792$ 877$ -$ -$ -$ 540,630$ 23.5% International businesses1 309,373 20.5% 34,935 7,385 358 - - - 352,051 23.3%


 
Adjusted Amounts Reconciliation Segment Operating Income 1. Segment operating income as a percent of sales is calculated on segment sales. 2. Adjusted amounts as a percent of sales are calculated on as reported sales. 27 (Dollars in thousands) (Unaudited) Year-to-Date FY 2024 Acquired Business Meggitt As Reported Intangible Asset Realignment Costs to Gain on Adjusted June 30, 2024 % of Sales Amortization Charges Achieve Divestitures June 30, 2024 % of Sales2 Diversified Industrial1 3,176,384$ 22.0% 266,219$ 50,075$ 3,930$ -$ -$ -$ -$ -$ 3,496,608$ 24.2% Aerospace Systems1 1,110,746 20.3% 311,776 319 34,343 - - - - - 1,457,184 26.6% Total segment operating income 4,287,130 21.5% (577,995) (50,394) (38,273) - - - - - 4,953,792 24.9% Corporate administration 218,312 1.1% - - - - - - - - 218,312 1.1% Income before interest and other 4,068,818 20.4% (577,995) (50,394) (38,273) - - - - - 4,735,480 23.8% Interest expense 506,495 2.5% - - - - - - - - 506,495 2.5% Other (income) expense (32,280) -0.2% - 3,062 - (25,651) - - - - (9,691) 0.0% Income before income taxes 3,594,603$ 18.0% (577,995)$ (53,456)$ (38,273)$ 25,651$ -$ -$ -$ -$ 4,238,676$ 21.3% Supplemental Information: Diversified Industrial: North America businesses1 1,963,876$ 22.3% 176,337$ 17,749$ 2,643$ -$ -$ -$ -$ -$ 2,160,605$ 24.6% International businesses1 1,212,508 21.4% 89,882 32,326 1,287 - - - - - 1,336,003 23.6% Year-to-Date FY 2023 Acquired Business Meggitt Acquisition Loss on Amortization Meggitt As Reported Intangible Asset Realignment Costs to Related Deal-Contingent Net Gain on of Inventory Early Debt Adjusted June 30, 2023 % of Sales Amortization Charges Achieve Expenses Forward Contracts Divestitures Step-Up to FV Retirement June 30, 2023 % of Sales2 Diversified Industrial1 3,071,410$ 20.9% 267,779$ 23,641$ 8,511$ -$ -$ -$ -$ -$ 3,371,341$ 22.9% Aerospace Systems1 562,444 12.9% 232,934 3,065 86,928 - - - 109,981 - 995,352 22.8% Total segment operating income 3,633,854 19.1% (500,713) (26,706) (95,439) - - - (109,981) - 4,366,693 22.9% Corporate administration 229,677 1.2% - - - - - - - - 229,677 1.2% Income before interest and other 3,404,177 17.9% (500,713) (26,706) (95,439) - - - (109,981) - 4,137,016 21.7% Interest expense 573,894 3.0% - - - - - - - 9,999 563,895 3.0% Other (income) expense 150,619 0.8% - - - 166,294 389,992 (362,003) - - (43,664) -0.2% Income before income taxes 2,679,664$ 14.1% (500,713)$ (26,706)$ (95,439)$ (166,294)$ (389,992)$ 362,003$ (109,981)$ (9,999)$ 3,616,785$ 19.0% Supplemental Information: Diversified Industrial: North America businesses1 1,853,079$ 20.8% 181,954$ 4,024$ 4,636$ -$ -$ -$ -$ -$ 2,043,693$ 22.9% International businesses1 1,218,331 21.0% 85,825 19,617 3,875 - - - - - 1,327,648 22.9%


 
Reconciliation of EBITDA to Adjusted EBITDA 28 (Dollars in thousands) Three Months Ended (Unaudited) June 30, 2024 % of Sales 2023 % of Sales Net sales $ 5,186,815 100.0% $ 5,095,943 100.0% Net income $ 785,073 15.1% $ 709,078 13.9% Income taxes 200,887 3.9% 194,117 3.8% Depreciation 91,436 1.8% 82,767 1.6% Amortization 139,232 2.7% 126,296 2.5% Interest expense 119,266 2.3% 157,176 3.1% EBITDA 1,335,894 25.8% 1,269,434 24.9% Adjustments: Business realignment charges 17,542 0.3% 9,226 0.2% Meggitt costs to achieve 8,597 0.2% 18,786 0.4% Acquisition-related expenses - 0.0% 2,754 0.1% Amortization of inventory step-up to FV - 0.0% (57,992) -1.1% EBITDA - Adjusted $ 1,362,033 26.3% $ 1,242,208 24.4% EBITDA margin 25.8 % 24.9 % EBITDA margin - Adjusted 26.3 % 24.4 % Twelve Months Ended June 30, 2024 % of Sales 2023 % of Sales Net sales $ 19,929,606 100.0% $ 19,065,194 100.0% Net income $ 2,844,936 14.3% $ 2,083,536 10.9% Income taxes 749,667 3.8% 596,128 3.1% Depreciation 349,136 1.8% 317,416 1.7% Amortization 577,995 2.9% 500,713 2.6% Interest expense 506,495 2.5% 573,894 3.0% EBITDA 5,028,229 25.2% 4,071,687 21.4% Adjustments: Business realignment charges 53,456 0.3% 26,706 0.1% Meggitt costs to achieve 38,273 0.2% 95,439 0.5% Acquisition-related expenses - 0.0% 166,294 0.9% Loss on deal-contingent forward contracts - 0.0% 389,992 2.0% Amortization of inventory step-up to FV - 0.0% 109,981 0.6% Net gain on divestitures (25,651) -0.1% (362,003) -1.9% EBITDA - Adjusted $ 5,094,307 25.6% $ 4,498,096 23.6% EBITDA margin 25.2 % 21.4 % EBITDA margin - Adjusted 25.6 % 23.6 %


 
Reconciliation of Gross and Net Debt / Adjusted EBITDA 29 (Unaudited) (Dollars in thousands) June 30, 2024 June 30, 2023 Notes payable and long-term debt payable within one year 3,403,065$ 3,763,175$ Long-term debt 7,157,034 8,796,284 Add: Deferred debt issuance costs 57,725 74,713 Total gross debt 10,617,824$ 12,634,172$ Cash and cash equivalents 422,027$ 475,182$ Marketable securities and other investments 3,390 8,390 Total cash 425,417$ 483,572$ Net debt (Gross debt less total cash) 10,192,407$ 12,150,600$ TTM Net Sales 19,929,606$ 19,065,194$ Net income 2,844,936$ 2,083,536$ Income tax 749,667 596,128 Depreciation 349,136 317,416 Amortization 577,995 500,713 Interest Expense 506,495 573,894 TTM EBITDA 5,028,229$ 4,071,687$ Adjustments: Business realignment charges 53,456 26,706 Costs to achieve 38,273 95,439 Acquisition-related costs 0 166,294 Loss on deal-contingent forward contracts 0 389,992 Gain on divestitures (25,651) (372,930) Amortization of inventory step-up to FV 0 109,981 Net loss on divestitures 0 10,927 TTM Adjusted EBITDA 5,094,307$ 4,498,096$ Gross Debt/TTM Adjusted EBITDA 2.1 2.8 Net Debt/TTM Adjusted EBITDA 2.0 2.7


 
Reconciliation of Free Cash Flow Margin and Conversion 30 (Unaudited) (Dollars in thousands) 2024 2023 Net Sales 19,929,606$ 19,065,194$ Net Income 2,844,936$ 2,083,536$ Cash Flow from Operations 3,384,329$ 2,979,930$ Capital Expenditures (400,112) (380,747) Free Cash Flow 2,984,217$ 2,599,183$ Cash Flow from Operations Margin 17.0% 15.6% Free Cash Flow Margin 15.0% 13.6% Free Cash Flow Conversion (Free Cash Flow / Net Income) 104.9% 124.7% Twelve Months Ended June 30, (Unaudited) (Dollars in millions) FY20 FY21 FY22 Net Sales $13,696 $14,348 $15,862 Cash Provided by Operating Activities $2,071 $2,575 $2,442 Capital Expenditures (233) (210) (230) Free Cash Flow $1,838 $2,365 $2,212 Free Cash Flow Margin 13.4% 16.5% 13.9% Reconciliation of Historical Free Cash Flow Margin Reconciliation of Free Cash Flow Margin and Conversion


 
Supplemental Sales Information Global Technology Platforms 31 (Unaudited) (Dollars in thousands) 2024 2023 2024 2023 Net sales Diversified Industrial: Motion Systems $ 903,108 $ 992,659 $ 3,706,055 $ 3,830,062 Flow and Process Control 1,183,258 1,263,428 4,672,741 4,939,356 Filtration and Engineered Materials 1,572,136 1,557,344 6,078,350 5,936,275 Aerospace Systems 1,528,313 1,282,512 5,472,460 4,359,501 Total $ 5,186,815 $ 5,095,943 $ 19,929,606 $ 19,065,194 Three Months Ended June 30, Twelve Months Ended June 30,


 
RECONCILIATION OF ORGANIC GROWTH (Unaudited) (Amounts in percentages) Q1 Fiscal Year 2025 Forecasted net sales ~1.0% Adjustments: Currency 0.3% Divestitures 0.2% Adjusted forecasted net sales ~1.5% RECONCILIATION OF FORECASTED EARNINGS PER SHARE (Unaudited) (Amounts in dollars) Q1 Fiscal Year 2025 Forecasted earnings per diluted share ~$5.13 Adjustments: Business realignment charges 0.10 Costs to achieve 0.03 Acquisition-related intangible asset amortization expense 1.07 Tax effect of adjustments1 (0.28) Adjusted forecasted earnings per diluted share ~$6.05 Reconciliation of Q1 FY25 Guidance 1. This 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. *Totals may not foot due to rounding 32 RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME (Unaudited) (Amounts in percentages) Q1 Fiscal Year 2025 Forecasted segment operating margin ~22.0% Adjustments: Business realignment charges 0.3% Costs to achieve 0.1% Acquisition-related intangible asset amortization expense 2.9% Adjusted forecasted segment operating margin ~25.2%


 
RECONCILIATION OF CASH FLOW FROM OPERATIONS TO FREE CASH FLOW (Unaudited) (Dollars in millions) Fiscal Year 2025 Cash flow from operations $3,400 to $3,700 Less: Capital Expenditures ~(400) Free cash flow $3,000 to $3,300 RECONCILIATION OF FORECASTED EARNINGS PER SHARE (Unaudited) (Amounts in dollars) Fiscal Year 2025 Forecasted earnings per diluted share $22.65 to $23.35 Adjustments: Business realignment charges 0.38 Costs to achieve 0.11 Acquisition-related intangible asset amortization expense 4.25 Tax effect of adjustments1 (1.09) Adjusted forecasted earnings per diluted share $26.30 to $27.00RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME (Unaudited) (Amounts in percentages) Fiscal Year 2025 Forecasted segment operating margin 22.1% to 22.5% Adjustments: Business realignment charges 0.2% Costs to achieve 0.1% Acquisition-related intangible asset amortization expense 2.7% Adjusted forecasted segment operating margin 25.2% to 25.6% Reconciliation of FY25 Guidance 1. This 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. *Totals may not foot due to rounding 33 RECONCILIATION OF ORGANIC GROWTH (Unaudited) (Amounts in percentages) Fiscal Year 2025 Forecasted net sales 1.5% to 4.5% Adjustments: Currency 0.5% Divestitures 0.0% Adjusted forecasted net sales 2.0% to 5.0%