Parker raises outlook after record first-quarter results

Cleveland, Ohio – Parker-Hannifin Corp. has raised its full-year outlook after reporting 'record sales' and higher earnings in the first quarter of its 2027 financial year.

For the three months ended 30 Sept, the US supplier reported an 18% year-on-year increase in sales to $6 billion (€5.4 billion), with organic sales rising 11.5%.

Net income increased 9% to $900 million, while adjusted net income rose 23% to $1.1 billion, Parker announced 5 Nov.

The growth was driven by “increased demand across all market verticals,” which resulted in double-digit organic sales growth and “record backlog levels," said chairman and CEO Jenny Parmentier.

Within the group's diversified industrial operations, North American sales increased 19.6% year-on-year to $2.45 billion, with organic growth of 9.4%.

Segment operating income rose 10.8% to $562 million, while adjusted operating income increased 22.1% to $674 million.

International industrial sales increased 22% year-on-year to $1.7 billion, supported by 11.6% organic growth.

The improvement was led by Asia Pacific, where organic sales rose 23%, while Europe, Middle East and Africa (EMEA) recorded 4% growth.

International segment operating income increased 30.6% to $410 million, with adjusted earnings rising 35% to $473 million.

Parker's aerospace systems business also reported higher sales, up 13.8% to $1.87 billion, supported by double-digit growth in OE and aftermarket demand.

The group said its total order backlog reached a record $13.7 billion.

Looking ahead, Parker raised its forecast for organic sales growth in the financial year ending 30 June 2027 to 7.5–10.5%, from 5.5–8.5% previously.

It also increased its adjusted segment operating margin forecast to 27.7–28.1%, from 27.5–27.9%, with the revised outlook incorporating its recently completed Filtration Group acquisition.