Motion and control technologies manufacturer Parker Hannifin reported its 2025 first quarter financial results on Oct. 31, which showed company record sales and a subsequent raised outlook for operating margin.

The Halethorpe, MD-based company posted 1Q total sales of $4.9 billion, up 1.2% year-over-year with an organic growth increase of 1.4%.

The company’s 1Q net profit of $698 million increased 7% year-over-year but was down from 4Q’s $785 million. Segment operating margin of 22.6% increased 130 basis points year-over-year and increased 40 bps sequentially.

“We delivered records for sales, adjusted segment operating margin, adjusted earnings per share and year-to-date cash flow from operations,” Parker Hannifin Chairman and CEO Jenny Parmentier said in the company’s financial release. Our performance also reflects the strength of our transformed portfolio with our Aerospace Systems segment achieving exceptional results. Looking ahead to the full year, we anticipate near-term pressure in select industrial markets and accelerating growth in aerospace.”

In late July, Parker Hannifin announced the sale of its North American Composites unit to private equity firm SK Capital Partners.

By Parker Hannifin Segment

• North America businesses (diversified industrial segment) logged sales of $2.1 billion, down 5.8% from the year prior, and down from the $2.2 billion reported in 4Q24. Meanwhile, organic growth also declined 5% year-over-year. Operating profit of $485 million, on a 23.1% margin decreased 4.2% year-over-year — $506 million on a 22.7% margin. The company said its North America segment was impacted by continuing softness in transportation and off-highway markets, but HVAC growth returned.
• International business (diversified industrial segment) reported sales of $1.3 billion, down 2.4% year-over-year, while organic growth also decreased 2.4%. Operating profit of $299 million on a 22.1% margin decreased 0.6% year-over-year, while the margin decreased 40 basis points. Parker Hannifin said its international segment was impacted by positive sales growth in Asia, offset by continued softness in Europe.
• Aerospace systems segment sales of $1.4 billion increased 17.8% year-over-year, while organic growth increased 17.2%. Operating profit of $323 million, on a 22.3% margin increased 42.7% and 390 bps, respectively from the prior year — $1.2 billion on an 18.4% margin. The company said its aerospace segment achieved record sales, with aftermarket sales growth in both commercial and defense systems.

2025 Outlook

Parker Hannifin updated the company’s outlook following its strong first quarter performance:

• Total sales growth of 0.5% to 3.5%
• Organic sales growth of 1.5% to 4.5%
• Total segment operating margin to increase to approximately 22.6%

The company reported its 2024 full-year and fourth quarter financial results on Aug. 8. Parker Hannifin posted record full-year sales of $19.9 billion, a 5% increase year-over-year. Organic sales growth increased 2% from the prior year and net profit was $2.8 billion.