Adjusted operating income increased approximately 10% to $195 million with margin up 50 basis points to 17.9%, reflecting a 26% incremental margin.
Capital allocation included $57 million invested in growth and $169 million returned to shareholders via dividends and $127 million in share repurchases.
Gross profit dollars increased approximately 6% to $406 million with gross profit margin steady at 37.3%, down 30 basis points versus prior year.
Reported diluted EPS was $2.56; adjusted EPS increased 11% to $2.60, including $0.03 from favorable foreign exchange and $0.06 from share repurchases.
Savings actions and cost management offset lower volumes and an $8.5 million LIFO charge; year-to-date LIFO charges total approximately $10 million.
Second quarter sales increased 6.6% to $1.089 billion, driven by 5.2% higher price, 3% benefit from acquisitions, and 70 basis points from favorable foreign exchange translation, partially offset by 2.3% lower volumes.
Segment performance: Americas Welding sales up 7% with adjusted EBIT margin at 18.6%, International Welding sales down 2.5% with margin improving to 12.7%, and Harris Products Group sales up 19% with record margin of 19.4%.
SG&A expenses increased 1% primarily from acquisitions, with savings actions offsetting incremental employee costs including reinstated merit increases.
Year-to-date cash flow generation strong with over 100% free cash flow conversion and adjusted ROIC at 21.7%.
Aftermarket operations accounted for approximately 63% of total gross profit with parts, service, and collision center revenues reaching $636.3 million, a 1.4% increase year-over-year.
Board of Directors approved a $0.19 per share cash dividend, a 1% increase over the prior quarterly dividend and the ninth increase since July 2018.
Medium-duty Class 4-7 commercial vehicle sales increased 1% year-over-year with 3,626 units sold in the U.S. and 177 units in Canada.
New Class 8 truck sales in the U.S. were 3,178 units, a 20% year-over-year decrease primarily due to timing of large fleet deliveries in the prior year.
Repurchased $83.9 million of common stock during the quarter and paid $14.5 million in cash dividends.
Rush Truck Leasing achieved record revenues of $93.1 million, up 6.3% year-over-year.
Second quarter revenues were $1.9 billion with net income of $72.4 million or $0.90 per diluted share.
Technician turnover reached a 12-month low and aftermarket revenues reached their highest level in the past 12 months.
Used commercial vehicle sales were flat year-over-year at 1,715 units.
Adjusted EBITDA margin increased by 80 basis points to 26.4%, and adjusted EPS grew by 7%.
Adjusted net income for Q4 was $992 million with an 18.9% return on sales, and adjusted EPS was $7.69, up 14%.
Backlog finished at a record $11 billion, driven by strong Aerospace orders and backlog growth.
Fiscal year 2025 was a record year for Parker Hannifin with sales reaching $19.9 billion and adjusted segment operating margin expanding to 26.1%, up 120 basis points from prior year.
Fourth quarter 2025 saw record sales growth of 1%, organic growth of 2%, and adjusted segment operating margin of 26.9%, up 160 basis points year-over-year.
Record cash flow from operations was $3.8 billion, free cash flow was $3.3 billion, with conversion at 109%, both up 12% from prior year.
Dafinchi