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.


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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)2024202320242023
Net sales$5,186,815 $5,095,943 $19,929,606 $19,065,194 
Cost of sales3,322,855 3,262,860 12,801,816 12,635,892 
Selling, general and administrative expenses818,347 834,940 3,315,177 3,354,103 
Interest expense119,266 157,176 506,495 573,894 
Other income, net(59,613)(62,228)(288,485)(178,359)
Income before income taxes985,960 903,195 3,594,603 2,679,664 
Income taxes200,887 194,117 749,667 596,128 
Net income785,073 709,078 2,844,936 2,083,536 
Less: Noncontrolling interests110 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 - Basic128,627,781128,440,007128,507,352128,367,842
Average shares outstanding during period - Diluted130,643,758130,222,542130,239,737129,822,085
CASH DIVIDENDS PER COMMON SHARE
(Unaudited)Three Months Ended June 30,Twelve Months Ended June 30,
(Amounts in dollars)2024202320242023
Cash dividends per common share$1.63 $1.48 $6.07 $5.47 
RECONCILIATION OF ORGANIC GROWTH
(Unaudited)Three Months Ended
As ReportedAdjusted
June 30, 2024CurrencyDivestituresAcquisitionsJune 30, 2024
Diversified Industrial Segment(4.1)%(1.2)%(0.2)%— %(2.7)%
Aerospace Systems Segment19.2 %0.1 %— %— %19.1 %
Total1.8 %(0.8)%(0.2)%— %2.8 %
(Unaudited)Twelve Months Ended
As ReportedAdjusted
June 30, 2024CurrencyDivestituresAcquisitionsJune 30, 2024
Diversified Industrial Segment(1.7)%(0.2)%(0.2)%0.8 %(2.1)%
Aerospace Systems Segment25.5 %0.4 %(0.9)%8.8 %17.2 %
Total4.5 %(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)2024202320242023
Net income attributable to common shareholders$784,963 $708,956 $2,844,215 $2,082,936 
Adjustments:
Acquired intangible asset amortization expense139,232 126,296 577,995 500,713 
Business realignment charges17,542 9,226 53,456 26,706 
Integration costs to achieve8,597 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)2024202320242023
Earnings per diluted share$6.01 $5.44 $21.84 $16.04 
Adjustments:
Acquired intangible asset amortization expense1.07 0.97 4.43 3.85 
Business realignment charges0.13 0.07 0.40 0.20 
Integration costs to achieve0.07 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)2024202320242023
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 taxes200,887 194,117 749,667 596,128 
Depreciation 91,436 82,767 349,136 317,416 
Amortization139,232 126,296 577,995 500,713 
Interest expense119,266 157,176 506,495 573,894 
EBITDA1,335,894 1,269,434 5,028,229 4,071,687 
Adjustments:
Business realignment charges17,542 9,226 53,456 26,706 
Integration costs to achieve8,597 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 margin25.8 %24.9 %25.2 %21.4 %
Adjusted EBITDA margin26.3 %24.4 %25.6 %23.6 %


BUSINESS SEGMENT INFORMATION
(Unaudited)Three Months Ended June 30,Twelve Months Ended June 30,
(Dollars in thousands)2024202320242023
Net sales
Diversified Industrial$3,658,502 $3,813,431 $14,457,146 $14,705,693 
Aerospace Systems1,528,313 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 Systems332,035 327,595 1,110,746 562,444 
Total segment operating income1,149,120 1,127,791 4,287,130 3,633,854 
Corporate general and administrative expenses55,972 83,336 218,312 229,677 
Income before interest expense and other (income) expense, net1,093,148 1,044,455 4,068,818 3,404,177 
Interest expense119,266 157,176 506,495 573,894 
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)2024202320242023
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 amortization64,550 82,073 266,219 267,779 
Business realignment charges17,198 9,177 50,075 23,641 
Integration costs to achieve628 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 margin22.3 %21.0 %22.0 %20.9 %
Adjusted Diversified Industrial Segment operating margin24.6 %23.4 %24.2 %22.9 %
(Unaudited)Three Months Ended June 30,Twelve Months Ended June 30,
(Dollars in thousands)2024202320242023
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 amortization74,682 44,223 311,776 232,934 
Business realignment charges1 49 319 3,065 
Integration costs to achieve7,969 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 margin21.7 %25.5 %20.3 %12.9 %
Adjusted Aerospace Systems Segment operating margin27.1 %25.8 %26.6 %22.8 %
(Unaudited)Three Months Ended June 30,Twelve Months Ended June 30,
(Dollars in thousands)2024202320242023
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 amortization139,232 126,296 577,995 500,713 
Business realignment charges17,199 9,226 50,394 26,706 
Integration costs to achieve8,597 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 margin22.2 %22.1 %21.5 %19.1 %
Adjusted total segment operating margin25.3 %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)20242023
Assets
Current assets:
Cash and cash equivalents$422,027 $475,182 
Trade accounts receivable, net2,865,546 2,827,297 
Non-trade and notes receivable331,429 309,167 
Inventories2,786,800 2,907,879 
Prepaid expenses and other392,822 314,704 
Total current assets6,798,624 6,834,229 
Property, plant and equipment, net2,875,668 2,865,030 
Deferred income taxes92,704 81,429 
Investments and other assets1,207,232 1,104,576 
Intangible assets, net7,816,181 8,450,614 
Goodwill10,507,433 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, trade1,991,639 2,050,934 
Accrued payrolls and other compensation581,251 651,319 
Accrued domestic and foreign taxes354,659 374,571 
Other accrued liabilities982,695 895,371 
Total current liabilities7,313,309 7,735,370 
Long-term debt7,157,034 8,796,284 
Pensions and other postretirement benefits437,490 551,510 
Deferred income taxes1,583,923 1,649,674 
Other liabilities725,193 893,355 
Shareholders' equity12,071,972 10,326,888 
Noncontrolling interests8,921 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)20242023
Cash flows from operating activities:
Net income$2,844,936 $2,083,536 
Depreciation and amortization927,131 818,129 
Stock incentive plan compensation155,175 142,720 
Gain on sale of businesses(23,979)(366,345)
Loss on property, plant and equipment and intangible assets12,382 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, net19,381 163,036 
Net cash provided by operating activities3,384,329 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 equipment9,065 13,244 
Proceeds from sale of businesses77,666 473,207 
Purchases of marketable securities and other investments(17,186)(37,791)
Maturities and sales of marketable securities and other investments24,292 56,786 
Payments of deal-contingent forward contracts— (1,405,418)
Other7,687 250,017 
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 year475,182 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 sales1.5% to 4.5%
Adjustments:
Currency0.5%
Divestitures—%
Adjusted forecasted net sales2.0% 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 margin22.1% to 22.5%
Adjustments:
Business realignment charges0.2%
Costs to achieve0.1%
Acquisition-related intangible asset amortization expense2.7%
Adjusted forecasted segment operating margin25.2% 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 charges0.38
Costs to achieve0.11
Acquisition-related intangible asset amortization expense4.25
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)2024202320242023
Net sales
Diversified Industrial:
   North America businesses$2,228,449 $2,301,159 $8,800,036 $8,916,194 
   International businesses1,430,053 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 businesses311,564 309,373 1,212,508 1,218,331 
RECONCILIATION OF ORGANIC GROWTH
(Unaudited)Three Months Ended
As ReportedAdjusted
June 30, 2024CurrencyDivestituresAcquisitionsJune 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 ReportedAdjusted
June 30, 2024CurrencyDivestituresAcquisitionsJune 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)2024202320242023
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 amortization43,010 47,138 176,337 181,954 
Business realignment charges8,857 1,792 17,749 4,024 
Integration costs to achieve295 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 margin22.7 %21.3 %22.3 %20.8 %
Adjusted North America businesses operating margin25.0 %23.5 %24.6 %22.9 %
(Unaudited)Three Months Ended June 30,Twelve Months Ended June 30,
(Dollars in thousands)2024202320242023
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 amortization21,540 34,935 89,882 85,825 
Business realignment charges8,341 7,385 32,326 19,617 
Integration costs to achieve333 358 1,287 3,875 
Adjusted International businesses operating income$341,778 $352,051 $1,336,003 $1,327,648 
International businesses operating margin21.8 %20.5 %21.4 %21.0 %
Adjusted International businesses operating margin23.9 %23.3 %23.6 %22.9 %