Filtration, fluid connection and motion control products manufacturer Parker Hannifin reported its fiscal 2025 fourth quarter and full year results on Aug. 7, which indicated a strong April-June period that was powered by its Aerospace unit.

In 4Q, Parker posted total sales of $5.24 billion — a company 4Q record — that were up 1% year-over-year overall and up 2% organically. Adjusted operating margin of 26.9% rose 160 basis points year-over-year, adjusted EBITDA margin of 26.8% increased 50 bps and adjusted net profit of $992 million improved 12%. Total order rates increased 5% year-over-year.

By business segment in 4Q:

Diversified Industrial – North America sales of $2.08 billion fell 6.9% year-over-year (-1.4% organic), while operating profit of $513 million on 24.7% margin improved from the $505 million/22.7% of a year earlier. North America order rates increased 2% year-over-year. International sales of $1.49 billion increased 4.3% year-over-year (+0.6% organic), while operating profit of $334 on 22.4% margin topped the $312 and 21.8% of a year earlier. International order rates were flat year-over-year.

Aerospace Systems sales of $1.68 billion increased 9.7% year-over-year (+8.6% organic), while operating profit of $407 million on 24.3% margin topped the $332 million/21.7% of a year earlier. Order rates jumped 12% year-over-year.

For the full year, Parker’s 2025 total sales of $19.85 billion were essentially flat, down 0.4% vs. 2024, with organic sales up approximately 1%. Adjusted operation margin of 26.1% improved 120 bps, and adjusted EBITDA margin of 26.4% improved 80 bps.

“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,” Parker Chairman and CEO Jenny Parmentier said in the company’s financial report. “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.”

In issuing its fiscal 2026 outlook, Parker expects annual sales growth of 2-5%, with organic sales up about 3% at the midpoint, along with operating margin of 23.3-23.7% (26.3-26.7% adjusted).

Parker ended 4Q and the fiscal year by announcing its pending $1 billion acquisition of Curtis Instruments — which develops and produces motor speed controllers, instrumentation, power conversion and input devices that align with Parker’s capabilities in electric vehicle motors, hydraulics and electrification. Curtis projects sales of approximately $320 million for its 2025 fiscal year. That deal is expected to close by the end of December.

Earlier in 4Q, Parker announced a new leader for its Filtration division during May.