Parker posts record €4.5bn second quarter sales, raises full-year outlook

Cleveland, Ohio – Parker Hannifin Corp. has reported record sales and earnings growth in the second quarter of its 2026 financial year, which started 1 July 2025.

In a 29 Jan quarterly report, the group said the gains was driven by strong organic growth across all business segments and continued margin expansion, prompting it to raise its full-year outlook.

For the quarter ended 31 Dec 2025, Parker’s sales rose 9% year-on-year to a ‘record’ $5.2 billion (€4.4 billion), with organic sales up 6.6%, said the supplier of motion and control components.

Segment operating margin increased by 180 basis points to 23.9%, or 27.1% on an adjusted basis.

However, ‘net income’ came in at $845 million, down 11% year-on-year due to a one-time $223 million after-tax divestment gain recorded in the prior-year quarter.

On an adjusted basis, Parker said net income rose 15% to $980 million.

Parker’s “transformed portfolio” and operating model continued to deliver strong results, supported by “robust aerospace demand” and a gradual recovery in industrial markets, according to CEO Jenny Parmentier.

Within the diversified industrial segment, North American sales rose 3% year-on-year to $2.0 billion, with organic growth of 2.5%.

International industrial sales increased 11.8% to $1.5 billion, driven by "strong performance" in Asia and a return to organic growth in EMEA.

Meanwhile, the aerospace systems segment posted the strongest growth, with sales rising 14.5% year-on-year to $1.7 billion, supported by 26% growth in commercial OEM activity and 17% aftermarket growth.

Group-wide order rates increased 9% during the quarter, with growth across all reported businesses.

Total backlog, Parker said, climbed to a record $11.7 billion.

On the back of the second-quarter performance, robust aerospace demand, and continued gradual recovery in its industrial markets, Parker said it is raising its guidance for the financial year.

The US group now expects sales growth of between 5.5% and 7.5% for the year ending 30 June, with segment operating margin expected at 23.7–24.1%.