Question · Q1 2026
Nicole DiBlasi with Deutsche Bank asked about the impressive aerospace margin performance in Q1, questioning if the forecasted step down for the rest of the year was due to the mix of spare shipments. She also inquired if the incremental margin stepping up to 40% could be a new norm for Parker, given the previous long-term target of 35%.
Answer
Chairman and CEO Jennifer Parmentier confirmed that the difficulty in forecasting spares is the biggest reason for the anticipated step down in aerospace margins from the Q1 record, noting Q2 margins are still forecasted at a strong 29.1%. Executive Vice President and CFO Todd Leombruno expressed satisfaction with the 40% incrementals but stated that while impressive, the company still models 30-35% for its teams, as it varies with the cycle, and is not ready to change that guidance yet.
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