Parker Hannifin Corp. ( PH ) stock is trading higher on Thursday after it reported fiscal fourth-quarter 2025 sales of record $5.24 billion, exceeding analyst expectations of $5.10 billion.

Net income rose 18% year over year to $923 million, or $7.15 per diluted share, compared with $785 million, or $6.01 per share, a year ago. Adjusted earnings reached $992 million, or a record $7.69 per share, beating the consensus estimate of $7.11.

In the Diversified Industrial segment, North America sales declined 6.9% to $2.08 billion, while segment operating margin expanded 200 basis points to 24.7%, or 170 basis points to 26.7% on an adjusted basis.

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International sales grew 4.3% to $1.49 billion, with margins improving 60 basis points to 22.4%, or 80 basis points to 24.7% adjusted. Order rates rose 2% in North America and remained flat internationally.

Aerospace Systems revenue climbed 9.7% to $1.68 billion, driven by 8.6% organic growth. Segment operating income rose 23% to $407 million, while adjusted margin improved 190 basis points to a record 29.0%. The segment’s backlog grew to a record $7.4 billion, with order rates up 12% year over year.

For the full fiscal year, Parker reported revenue of $19.85 billion. Net income increased 24% to $3.53 billion, up from $2.84 billion in the prior year. Adjusted EPS was a record $27.33, rising 7% from $25.44. The full-year EBITDA margin reached 27.3%, or 26.4%, on an adjusted basis.

Cash flow from operations increased 12% to $3.8 billion, or 19.0% of sales. Parker repurchased $1.6 billion in shares during the year, including $851 million in the fourth quarter.

The company also raised its quarterly cash dividend by 10% and announced the acquisition of Curtis Instruments to expand its electrification capabilities.

Parker ended the fiscal year with $467 million in cash and cash equivalents and $9.29 billion in total debt, including $1.79 billion due within one year.

“Looking ahead to fiscal year 2026, we expect Aerospace to remain our fastest growing business and see a return to positive organic growth in our Industrial businesses. We remain committed to being great generators and deployers of cash to drive shareholder value and look forward to another excellent year powered by our people and our business system,” commented Chairman and CEO Jenny Parmentier.

Outlook

For fiscal 2026, the company expects sales growth of 2%-5%, including approximately 3% organic growth at the midpoint.

Segment operating margin is projected to range from 23.3% to 23.7%, or 26.3% to 26.7% on an adjusted basis.

EPS guidance is between $24.68 and $25.68 versus the consensus of $25.778, and $28.40 to $29.40 on an adjusted basis versus the consensus of $28.873.

Price Action: At last check Thursday, PH shares were trading higher by 3.18% to $719.29.

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