PH · Earnings call · 2026Q2T · Full report
Aerospace Revenue and Backlog
Parker-Hannifin Corp · 2026-08-06 · Importance 65 · Surprise 40 · No source text
Aerospace fourth-quarter sales rose 13.4% organically to a record $1.9 billion, with adjusted operating margin reaching 29.8%. Aerospace orders increased 18%, with double-digit growth in commercial OEM, commercial aftermarket, and defense OEM, while Aerospace backlog increased 15% year over year to a record $8.5 billion. Fiscal 2027 guidance assumes a 52% OEM and 48% aftermarket mix compared with 51% and 49% in fiscal 2026, including mid-teens commercial OEM growth and mid-single-digit growth in commercial MRO, defense OEM, and defense MRO. Management expects Aerospace to sustain high-single-digit growth through fiscal 2031, supported by aircraft build-rate increases, older-aircraft repair demand, fleet upgrades, F-35 deliveries, and the pending CIRCOR aerospace and defense acquisition.
Key facts
- Aerospace backlog up 15% versus prior year to a record $8.5 billion
- FY '27 Aerospace organic growth expected 8.5% at the midpoint
- Management expects commercial OEM aerospace mid-teens growth in FY '27 and commercial MRO plus mid-single-digit growth
- Aerospace Q4 sales: $1.9 billion; organic growth 13.4% (fourth fiscal year in a row of double-digit organic growth)
- Management expects aerospace and defense fiscal year '27 organic growth: high single-digit
- Management expects defense OEM mid-single-digit growth and defense MRO plus mid-single-digit growth in FY '27
- We saw strong aerospace and defense in the industrial businesses.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | committed | +7.2% | FY '27 Aerospace organic growth expected 8.5% at the midpoint |
| revenue | positive | probable | — | Aerospace backlog up 15% versus prior year to a record $8.5 billion |
| revenue | positive | committed | — | Management expects commercial OEM aerospace mid-teens growth in FY '27 and commercial MRO plus mid-single-digit growth |
| revenue | positive | committed | — | Management expects commercial OEM aerospace mid-teens growth in FY '27 and commercial MRO plus mid-single-digit growth |
| revenue | positive | realized | — | Aerospace Q4 sales: $1.9 billion; organic growth 13.4% (fourth fiscal year in a row of double-digit organic growth) |
| revenue | positive | probable | — | Management expects aerospace and defense fiscal year '27 organic growth: high single-digit |
| revenue | positive | probable | — | Management expects defense OEM mid-single-digit growth and defense MRO plus mid-single-digit growth in FY '27 |