Parker Hannifin : Presentation FY 2024

Published: 2024-08-08 07:39:33 ET PH

Parker Hannifin Corporation

Fiscal 2024 Fourth Quarter &

Full Year Earnings Presentation

August 8, 2024

Our People, Strategy & Portfolio Compound Performance

Outstanding Year, Delivered on Our Commitments

FY24 Highlights

▪ Top quartile safety performance

▪

Strength of portfolio, highlighted by Aerospace

▪

+200 bps adjusted segment operating margin1

16%

Reduction in

Recordable

Incidents

$19.9B

Sales

+4.5% Reported

+2.3% Organic1

▪

18% adjusted EPS growth1

▪

Record cash generation

24.9%

Adjusted Segment

Margin1 +200 bps

25.6%

Adjusted EBITDA

Margin1 +200 bps

▪ Promising future ahead based on new FY29 targets

18%

Adjusted

EPS Growth1

$3.0B

Free Cash Flow1

+15% Growth

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, Cas h Flow from Operations: $3.4B

3

Record Year for Aerospace; Strength Continues

FY24 Highlights:

Looking Ahead:

1. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations.

4

Portfolio Transformation Expands

Longer Cycle and Secular Revenue Mix

FY15

FY24

FY29 Illustration

Shorter

Longer

Shorter

Longer Cycle +

Shorter

Longer Cycle +

Cycle

Cycle

Cycle

Secular Trends

Cycle

Secular Trends

Industrial Aftermarket

Industrial Aftermarket

Industrial Aftermarket

5

Well Positioned for a Promising Future

Positioned

Compounding

Operational

FY29

for Growth

Performance

Excellence

Targets

Interconnected technologies

The Win Strategy drives top

Manufacturing excellence

Confidence in long-term

enabling advancement of

quartile performance in all of

creates growth and margin

targets on strength of our

secular growth trends

our businesses

expansion opportunities

people, strategy and culture

6

What Drives Parker

7

Summary of Fiscal 2024

4th Quarter Highlights

FY24 Q4 Financial Summary

$ 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%

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

FY24 Q4 Adjusted Earnings per Share Bridge

$0.17

$0.54

$0.16

($0.12)

($0.04)

($0.02)

$6.77 13

$6.08

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

Disclaimer

Parker Hannifin Corporation published this content on 08 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 August 2024 11:38:46 UTC.