Parker Hannifin : Non-Gaap Non-GAAP Disclosures FY26 Q1 Q1 2026

‌Appendix

• FY26 Guidance Details

• Reconciliation of Q1 Organic Growth

• Adjusted Amounts Reconciliation - Q1 Consolidated Statement of Income

• Adjusted Amounts Reconciliation - Q1 Segment Operating Income

• Reconciliation of EBITDA to Adjusted EBITDA

• Reconciliation of Operating Cash Flow Margin and Free Cash Flow Margin

• Supplemental Sales Information

• Reconciliation of FY26 Q2 Guidance

• Current Reconciliation of FY26 Guidance

• Previous Reconciliation of FY26 Guidance (from August 7, 2025)

  
  
  

  18

  ‌FY26 Guidance Details

  Sales Growth vs. Prior Year	As Reported	Organic1
  Diversified Industrial Segment
  North America Businesses	0.5% - 3.5%	0.5% - 3.5%
  International Businesses	4.5% - 7.5%	(0.5%) - 2.5%
  Aerospace Systems Segment	8.5% - 11.5%	8.0% - 11.0%
  Parker	4.0% - 7.0%	2.5% - 5.5%

  Additional Items	As Reported
  Corporate G&A	~$200M
  Interest Expense	~$420M
  Other (Income) Expense	~$90M
  Tax Rate	~22.5%
  Diluted Shares Outstanding	~128.4M

  Segment Operating Margins	As Reported	Adjusted1
  Diversified Industrial Segment
  North America Businesses	23.7% - 24.1%	26.3% - 26.7%
  International Businesses	22.0% - 22.4%	24.8% - 25.2%
  Aerospace Systems Segment	24.7% - 25.1%	29.3% - 29.7%
  Parker	23.6% - 24.0%	26.8% - 27.2%

  Detail of Pre-Tax Adjustments to:	Segment Margins	Below Segment2
  Acquired Intangible Asset Amortization	~$584M	-
  Business Realignment & Other	~$70M	-
  Integration Costs to Achieve	~$15M	-
  Acquisition Related Expenses	~$12M	~$13M
  Gain on Insurance Recoveries	-	~($20M)

  Earnings Per Share	As Reported	Adjusted1
  Range	$25.53 - $26.33	$29.60 - $30.40

  
  
  

  1. Includes certain non-GAAP adjustments and financial measures.

  2. Expenses incurred to date. 19

‌Reconciliation of Q1 Organic Growth

Quarter-to-Date

‌Adjusted Amounts Reconciliation

Q1 Consolidated Statement of Income

Parker Hannifin Corporation

Consolidated Statement of Income - Adjusted Quarter-to-Date

(Dollars in millions, except per share data)

(Unaudited)						Quarter-to-Date FY 2026
		As Reported		Acquired Intangible Asset		Business Realignment Costs to Acquisition						Gain on Insurance		Adjusted
		September 30, 2025	% of Sales	Amortization		Charges Achieve Related Expenses						Recoveries		September 30, 2025	% of Sales
Net sales	$	5,084	100.0 %	$ -	$	- $ - $ -					$	-	$	5,084	100.0 %
Cost of sales		3,177	62.5 %	22		9 - 1						-		3,145	61.9 %
Selling, general and admin. expenses		873	17.2 %	118		6 6 13						-		730	14.4 %
Interest expense		101	2.0 %	-		- - -						-		101	2.0 %
Other (income) expense, net		(107)	(2.1)%	-		- - -						(20)		(87)	(1.7)%
Income before income taxes		1,040	20.5 %	(140)		(15) (6) (14)						20		1,195	23.5 %
Income taxes		232	4.6 %	33		4 1 3						(5)		268	5.3 %
Net income		808	15.9 %	(107)		(11) (5) (11)						15		927	18.2 %
Less: Noncontrolling interests		-	0.0 %	-		- - -						-		-	0.0 %
Net income - common shareholders	$	808	15.9 %	$ (107)	$	(11) $ (5) $ (11)					$	15	$	927	18.2 %
Diluted earnings per share	$	6.29		$ (0.83)	$	(0.09) $ (0.04) $ (0.09)					$	0.12	$	7.22
						Quarter-to-Date FY 2025
		As Reported		Acquired Intangible Asset		Business Realignment		Meggitt Costs to		Gain on		Adjusted
		September 30, 2024	% of Sales	Amortization		Charges		Achieve		Sale of Building		September 30, 2024	% of Sales
Net sales	$	4,904	100.0 %	$ -	$	-	$		-	$ -	$	4,904	100.0 %
Cost of sales		3,098	63.2 %	23		5			-	-		3,070	62.6 %
Selling, general and admin. Expenses		849	17.3 %	117		4			6	-		722	14.7 %
Interest expense		113	2.3 %	-		-			-	-		113	2.3 %
Other (income) expense, net		(31)	(0.6)%	-		1			-	(10)		(22)	(0.4)%
Income before income taxes		875	17.8 %	(140)		(10)			(6)	10		1,021	20.8 %
Income taxes		177	3.6 %	33		2			1	(2)		211	4.3 %
Net income		698	14.2 %	(107)		(8)			(5)	8		810	16.5 %
Less: Noncontrolling interests		-	0.0 %	-		-			-	-		-	0.0 %
Net income - common shareholders	$	698	14.2 %	$ (107)	$	(8)	$		(5)	$ 8	$	810	16.5 %
Diluted earnings per share	$	5.34		$ (0.82)	$	(0.06)	$		(0.04)	$ 0.06	$	6.20

‌Adjusted Amounts Reconciliation Q1 Segment Operating Income

Parker Hannifin Corporation Segment Operating Income - Adjusted Quarter-to-Date

(Dollars in millions) (Unaudited) Quarter-to-Date FY 2026

	Acquired	Business
As Reported	Intangible Asset	Realignment	Costs to	Acquisition	Gain on Insurance	Adjusted

September 30, 2025 % of Sales Amortization Charges Achieve Related Expenses Recoveries September 30, 2025 % of Sales2

Diversified Industrial:

North America businesses1$

507

24.8% $

42 $ 1 $ 1 $

1 $ - $

552

27.0%

International businesses1 314 22.4% 22 13 1 - - 350 25.0% Total Diversified Industrial1821 23.8% 64 14 2 1 - 902 26.2% Aerospace Systems1 411 25.0% 76 1 4 - - 492 30.0%

Total segment operating income 1,232 24.2% (140) (15) (6) (1) - 1,394 27.4%

Corporate administration 49 1.0% - - - - - 49 1.0%

Income before interest and other	1,183	23.3%	(140)	(15)	(6)	(1)	-	1,345	26.4%
Interest expense	101	2.0%	-	-	-	-	-	101	2.0%
Other (income) expense	42 0.8%		- - - 13 (20) 49 1.0%
Income before income taxes	$ 1,040 20.5%		$ (140) $ (15) $ (6) $ (14) $ 20 $ 1,195 23.5%

Quarter-to-Date FY 2025

	Acquired	Business	Meggitt
As Reported	Intangible Asset	Realignment	Costs to	Gain on	Adjusted

September 30, 2024 % of Sales Amortization Charges Achieve Sale of Building September 30, 2024 % of Sales2

Diversified Industrial:

North America businesses1$

485

23.1% $

43 $ 3 $ 1 $ -

$ 532

25.3%

International businesses1 299 22.1% 22 6 - - 327 24.1% Total Diversified Industrial1784 22.7% 65 9 1 - 859 24.8% Aerospace Systems1 323 22.3% 75 - 5 - 403 27.9%

Total segment operating income 1,107 22.6% (140) (9) (6) - 1,262 25.7%

Corporate administration 49 1.0% - - - - 49 1.0%

Income before interest and other	1,058	21.6%	(140)	(9)	(6)	-	1,213	24.7%
Interest expense	113	2.3%	-	-	-	-	113	2.3%
Other (income) expense	70 1.4%		- 1 - (10) 79 1.6%
Income before income taxes	$ 875 17.8%		$ (140) $ (10) $ (6) $ 10 $ 1,021 20.8%

1Segment operating income as a percent of sales is calculated on segment sales.

2Adjusted amounts as a percent of sales are calculated on as reported sales. 22

‌Reconciliation of EBITDA to Adjusted EBITDA

Parker Hannifin Corporation EBITDA & Adjusted EBITDA (Dollars in millions) Three Months Ended (Unaudited) September 30, 2025 % of Sales 2024 % of Sales

Net sales	$ 5,084		100.0%		$ 4,904	100.0%
Net income	$ 808		15.9%		$ 698	14.2%
Income taxes	232		4.6%		177	3.6%
Depreciation	92		1.8%		89	1.8%
Amortization	140		2.8%		140	2.9%
Interest expense	101		2.0%		113	2.3%
EBITDA	1,373		27.0%		1,217	24.8%
Adjustments:
Business realignment charges	15		0.3%		10	0.2%
Costs to achieve	6		0.1%		6	0.1%
Acquisition related expenses	14		0.3%		-	0.0%
Gain on sale of building	-		0.0%		(10)	-0.2%
Gain on insurance recoveries	(20)		-0.4%		-	0.0%
EBITDA - Adjusted	$ 1,388		27.3%		$ 1,223	24.9%
EBITDA margin	27.0 %				24.8 %
EBITDA margin - Adjusted	27.3 %				24.9 %

‌Reconciliation of Operating Cash Flow Margin and Free Cash Flow Margin

(Unaudited)
(Dollars in millions)	Three Months Ended September 30,
	2025		2024
Net Sales	$5,084		$4,904
Cash Flow from Operations	$782		$744
Capital Expenditures	($89)		($95)
Free Cash Flow	$693		$649
Cash Flow from Operations Margin	15.4%		15.2%
Free Cash Flow Margin	13.6%		13.2%

‌Supplemental Sales Information

Global Technology Platforms

(Unaudited) (Dollars in millions)	Three Months Ended September 30,
Net Sales	2025		2024
Diversified Industrial:
Motion Systems	$ 824		$ 849
Flow and Process Control	1,158		1,126
Filtration and Engineered Materials	1,461		1,481
Aerospace Systems	1,641		1,448
Total	$ 5,084		$ 4,904

RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE
(Unaudited)
(Amounts in percentages)	Fiscal Year 2026 Q2
Forecasted earnings per diluted share	~$6.01
Adjustments:
Business realignment charges	0.15
Amortization of acquired intangibles	1.15
Acquisition related expenses	0.06
Costs to achieve	0.03
Tax effect of adjustments1	(0.30)
Adjusted forecasted earnings per diluted share	~$7.10

‌Reconciliation of FY26 Q2 Guidance

RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH
(Unaudited)
(Amounts in percentages)			Fiscal Year 2026 Q2
	Forecasted Net Sales	Currency	Acquisitions	Divestitures	Adjusted Forecasted Net Sales
Parker	~6.5%	~(2.0%)	~(1.5%)	~1.0%	~4.0%

RECONCILIATION OF FORECASTED OPERATING MARGIN TO ADJUSTED OPERATING MARGIN

(Unaudited)				Fiscal Year 2026 Q2
(Amounts in percentages)
	Forecasted Segment Operating	Business Realignment	Costs to	Acquisition-Related Intangible Asset	Acquisition	Adjusted Forecasted Segment Operating
	Margin	Charges	Achieve	Amortization Expense	Related Expenses	Margin*
Parker	~23.1%	~0.4%	~0.1%	~2.9%	~0.1%	~26.6%

RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH
(Unaudited)
(Amounts in percentages)			Fiscal Year 2026
	Forecasted Net Sales	Currency	Acquisitions	Divestitures	Adjusted Forecasted Net Sales
Diversified Industrial
North America Businesses	0.5% to 3.5%	~(0.0)%	~(1.5%)	~1.5%	0.5% to 3.5%
International Businesses	4.5% to 7.5%	~(3.0%)	~(2.0%)	--	(0.5%) to 2.5%
Aerospace Systems	8.5% to 11.5%	~(0.5%)	--	--	8.0% to 11.0%
Parker	4.0% to 7.0%	~(1.5%)	~(1.0%)	~1.0%	2.5% to 5.5%

‌Current Reconciliation of FY26 Guidance

RECONCILIATION OF FORECASTED OPERATING MARGIN TO ADJUSTED OPERATING MARGIN

RECONCILIATION OF FORECASTED CASH FLOW FROM OPERATIONS TO FREE CASH FLOW

(Unaudited)

(Dollars in millions) Fiscal Year 2026

Cash flow from operations $3,625 to $4,025

Less: Capital Expenditures ~(525)

RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE
(Unaudited)
(Amounts in percentages)	Fiscal Year 2026
Forecasted earnings per diluted share	$25.53 to $26.33
Adjustments:
Business realignment charges	0.54
Amortization of acquired intangibles	4.55
Acquisition related expenses	0.19
Costs to achieve	0.13
Gain on insurance recoveries	(0.16)
Tax effect of adjustments1	(1.18)
Adjusted forecasted earnings per diluted share	$29.60 to $30.40

Free cash flow $3,100 to $3,500

(Unaudited)				Fiscal Year 2026
(Amounts in percentages)
	Forecasted Segment Operating	Business Realignment	Costs to	Acquisition-Related Intangible Asset	Acquisition	Adjusted Forecasted Segment Operating
	Margin	Charges	Achieve	Amortization Expense	Related Expenses	Margin*
Diversified Industrial
North America Businesses	23.7% to 24.1%	~0.1%	~0.1%	~2.3%	~0.1%	26.3% to 26.7%
International Businesses	22.0% to 22.4%	~1.0%	~0.1%	~1.6%	~0.1%	24.8% to 25.2%
Aerospace Systems	24.7% to 25.1%	~0.0%	~0.1%	~4.4%	~0.0%	29.3% to 29.7%
Parker	23.6% to 24.0%	~0.3%	~0.1%	~2.8%	~0.1%	26.8% to 27.2%

‌Previous Reconciliation of FY26 Guidance (from Aug 7, 2025)

RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH&

(Unaudited) Fiscal Year 2026

(Amounts in percentages)

Adjusted Forecasted

RECONCILIATION OF FORECASTED EARNINGS PER SHARE

(Unaudited)

(Amounts in dollars) Fiscal Year 2026

Forecasted earnings per diluted share $24.68 to $25.68

	Forecasted Net Sales		Divestitures		Currency		Net Sales
Diversified Industrial								Adjustments:
North America Businesses	(2.0%) to 1.0%		~2.0%		(~0.5%)		(0.5%) to 2.5%	Business realignment charges	0.54
International Businesses	3.0% to 6.0%		-		(~3.5%)		(0.5%) to 2.5%	Acquisition-related intangible asset amortization expense	4.26

Aerospace Systems	7.0% to 10.0%		-		(~0.5%)		6.5% to 9.5%
Parker	2.0% to 5.0%		~1.0%		(~1.5%)		1.5% to 4.5%

Tax effect of adjustments1 (1.08)

Adjusted forecasted earnings per diluted share $28.40 to $29.40

RECONCILIATION OF FORECASTED OPERATING MARGIN TO ADJUSTED OPERATING MARGIN

(Unaudited) Fiscal Year 2026

(Amounts in percentages)

RECONCILIATION OF FORECASTED CASH FLOW FROM OPERATIONS TO FREE CASH FLOW

(Unaudited)

(Dollars in millions) Fiscal Year 2026

Forecasted Segment

Business Realignment

Acquisition-Related Intangible Asset

Adjusted Forecasted Segment Operating

Cash flow from operations $3,515 to $3,915

Less: Capital Expenditures ~(515)

	Operating Margin		Charges		Amortization Expense		Margin Free cash flow $3,000 to $3,400
Diversified Industrial North America Businesses	23.6% to 24.0%		~0.1%		~2.0%		25.6% to 26.0%
International Businesses Aerospace Systems	22.0% to 22.4% 24.2% to 24.6%		~1.0% ~0.1%		~1.5% ~4.5%		24.6% to 25.0% 28.7% to 29.1%
Parker	23.3% to 23.7%		~0.3%		~2.7%		26.3% to 26.7%

1. This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.

Note: FY26 initial guidance on Aug 7, 2025, did not include Curtis Instruments 28