Parker-Hannifin Corp PH stock gained after reporting mixed second-quarter results and updating its 2025 outlook.

The company reported year-over-year sales decline to $4.742 billion and 1% organic growth, missing the consensus of $4.80 billion. Adjusted EPS for the quarter was $6.53, above the consensus of $6.23.

Orders were up 5% year-over-year, with Diversified Industrial North American businesses up 3% and Diversified Industrial International businesses up 4%. Orders in the Aerospace Systems segment increased 9% year-over-year.

Segment Sales: Diversified Industrial North America $1.928 billion (-8.6% Y/Y), Diversified Industrial International $1.325 billion (-5.7% Y/Y), and Aerospace Systems $1.49 billion (+14% Y/Y).

The total adjusted segment operating margin for the quarter was 25.6%, up 110 bps YoY.

"We delivered record segment operating margin across all businesses, record earnings per share and year-to-date cash flow from operations…We are encouraged to see industrial orders turn positive mainly in our longer-cycle businesses," commented Jenny Parmentier, Chairman and Chief Executive Officer.

Parker-Hannifin’s year-to-date cash flow from operations was 17.4% of sales, increasing 24% YoY to $1.7 billion. It held $395.51 million in cash and equivalents as of quarter-end.

"Looking ahead, we have updated our outlook for fiscal year 2025 to reflect stronger Aerospace growth, currency headwinds and a continued delay in the expected industrial recovery. Our strong cash generation creates capital deployment optionality, and we remain committed to our strategy of actively deploying capital to drive shareholder value," added Parmentier.

2025 Outlook updated: Parker now expects sales growth of (2%) to 1% (prior 0.5% – 3.5%), with organic sales growth of 2% (prior 1.5% – 4.5%).

The company updated its adjusted EPS guidance to $26.40 to $27.00 (prior $26.35 to $27.05) versus the $26.78 consensus.

Parker expects a total segment operating margin of approximately 22.7%, or approximately 25.8% on an adjusted basis (prior approximately 22.6%, or approximately 25.7%, on an adjusted basis).

Price Action: Parker-Hannifin shares are trading higher by 5.58% at $702.96 at the last check Thursday.