Parker-Hannifin Corporation is a global leader in motion and control technologies, providing precision-engineered solutions for a wide variety of mobile, industrial, and aerospace markets. Headquartered in Cleveland, Ohio, the company operates in 45 countries, delivering innovative products and systems to enhance efficiency, reliability, and sustainability across diverse applications.
Table of Contents
With a workforce of approximately 62,730 employees as of June 30, 2024, Parker-Hannifin is committed to enabling engineering breakthroughs that improve quality of life and environmental sustainability. The company’s operations are organized into two primary segments: Diversified Industrial and Aerospace Systems, serving industries such as transportation, energy, food production, and aerospace. Parker-Hannifin is publicly traded on the New York Stock Exchange under the ticker symbol PH and has a legacy of over a century in delivering advanced technological solutions.
Business Segments
Parker-Hannifin operates through two reportable business segments, each catering to distinct markets with specialized products and services. Below is a detailed breakdown of these segments, including their revenue contributions for the fiscal year ended June 30, 2024.
1. Diversified Industrial Segment
The Diversified Industrial Segment is the largest contributor to Parker-Hannifin’s revenue, focusing on motion and control technologies for industrial and mobile applications. This segment serves a broad range of industries, including agriculture, construction, energy, food and beverage, industrial machinery, life sciences, and transportation. It is further divided into North America and International operations to address regional market dynamics.
- North America Operations: Provides motion-control and fluid systems to industries such as manufacturing, transportation, and construction. Products include hydraulic and pneumatic components, filtration systems, and sealing solutions.
- International Operations: Extends similar technologies to Europe, Asia Pacific, and Latin America, with tailored solutions to meet regional industrial demands.
- Key Markets: Industrial automation, oil and gas, renewable energy, food processing, and mobile equipment.
- Revenue Contribution (2024): The Diversified Industrial Segment generated $14.35 billion in net sales, accounting for approximately 71.6% of total company revenue.
2. Aerospace Systems Segment
The Aerospace Systems Segment specializes in advanced technologies for aerospace and defense applications, serving commercial and military aviation, space, and related markets. This segment includes products for flight control, hydraulic, fuel, and pneumatic systems, as well as engine and fluid conveyance components.
- Key Markets: Commercial aircraft, military aircraft, regional and business jets, helicopters, missiles, and unmanned aerial vehicles.
- Applications: Flight control actuation, hydraulic power systems, fuel systems, and thermal management solutions.
- Revenue Contribution (2024): The Aerospace Systems Segment contributed $5.69 billion in net sales, representing approximately 28.4% of total company revenue.
Revenue Breakup by Segment (2024):
- Diversified Industrial: 71.6% ($14.35 billion)
- Aerospace Systems: 28.4% ($5.69 billion)
Total Revenue (2024): $20.04 billion
Products and Services Offered
Parker-Hannifin offers a comprehensive portfolio of motion and control technologies, ranging from individual components to integrated systems. Below is a detailed list of product categories and their contributions to revenue, based on the company’s operational structure.
1. Fluid Connectors
- Description: Includes connectors, hoses, and fittings for fluid conveyance in hydraulic and pneumatic systems. These products ensure reliable fluid transfer in high-pressure and high-temperature environments.
- Applications: Industrial machinery, oil and gas, agriculture, and transportation.
- Revenue Contribution: Approximately 25% of Diversified Industrial revenue (estimated at $3.59 billion).
2. Hydraulics
- Description: Hydraulic pumps, motors, cylinders, and valves designed for power transmission and motion control in mobile and industrial equipment.
- Applications: Construction equipment, industrial automation, and renewable energy systems.
- Revenue Contribution: Approximately 30% of Diversified Industrial revenue (estimated at $4.30 billion).
3. Pneumatics
- Description: Pneumatic actuators, valves, and air preparation equipment for automation and motion control.
- Applications: Factory automation, packaging, and life sciences.
- Revenue Contribution: Approximately 20% of Diversified Industrial revenue (estimated at $2.87 billion).
4. Filtration
- Description: Filtration systems for hydraulic, fuel, and lubrication systems, ensuring clean and efficient operation.
- Applications: Industrial processes, power generation, and mobile equipment.
- Revenue Contribution: Approximately 15% of Diversified Industrial revenue (estimated at $2.15 billion).
5. Sealing and Shielding
- Description: Seals, gaskets, and electromagnetic shielding solutions for critical applications requiring leak prevention and environmental protection.
- Applications: Aerospace, automotive, and industrial equipment.
- Revenue Contribution: Approximately 10% of Diversified Industrial revenue (estimated at $1.44 billion).
6. Aerospace Systems Products
- Description: Comprehensive systems for flight control, hydraulic, fuel, pneumatic, and thermal management applications in aerospace.
- Applications: Commercial and military aircraft, space vehicles, and defense systems.
- Revenue Contribution: 100% of Aerospace Systems revenue ($5.69 billion).
Revenue Breakup by Product Category (2024):
- Fluid Connectors: 17.9% ($3.59 billion)
- Hydraulics: 21.5% ($4.30 billion)
- Pneumatics: 14.3% ($2.87 billion)
- Filtration: 10.7% ($2.15 billion)
- Sealing and Shielding: 7.2% ($1.44 billion)
- Aerospace Systems Products: 28.4% ($5.69 billion)
Company History
Parker-Hannifin Corporation was founded in 1917 by Arthur L. Parker in Cleveland, Ohio, as the Parker Appliance Company, initially focusing on pneumatic brake systems for trucks and buses. Over the decades, the company evolved into a global leader in motion and control technologies through strategic growth and acquisitions.
- 1917–1930s: Arthur L. Parker established the company to produce innovative pneumatic systems. Early products included brake boosters and hydraulic components for automotive applications.
- 1940s–1950s: Expanded into aerospace with hydraulic systems for military aircraft during World War II. Post-war, the company diversified into industrial hydraulics.
- 1960s–1980s: Grew through acquisitions, including Racine Federated (hydraulics) and Commercial Filters (filtration). The company went public in 1964, listing on the NYSE.
- 1990s–2000s: Strengthened global presence with acquisitions like Commercial Intertech, Wynn’s International, and Denison International, expanding into new markets and technologies.
- 2010s: Transformative acquisitions, including CLARCOR (2017) for filtration and LORD Corporation (2019) for advanced materials, enhanced product offerings.
- 2020s: Acquired Meggitt PLC (2022) for $8.8 billion, significantly expanding the Aerospace Systems Segment. Launched the Win Strategy to drive operational excellence and sustainability.
Today, Parker-Hannifin is a Fortune 250 company, recognized for its engineering expertise and commitment to innovation, with a focus on sustainability and digital transformation.
Brands
Parker-Hannifin operates under multiple brands, each specializing in specific technologies or markets. Below is a list of key brands and their contributions.
1. Parker
- Description: The core brand, encompassing a wide range of motion and control products, including hydraulics, pneumatics, and fluid connectors.
- Markets: Industrial, mobile, and aerospace applications.
- Revenue Contribution: Approximately 60% of total revenue ($12.02 billion).
2. Meggitt
- Description: Acquired in 2022, Meggitt specializes in aerospace components, including thermal management, sensing, and defense systems.
- Markets: Commercial and military aerospace.
- Revenue Contribution: Approximately 20% of total revenue ($4.01 billion).
3. CLARCOR
- Description: Acquired in 2017, CLARCOR focuses on filtration solutions for industrial and environmental applications.
- Markets: Industrial processes, oil and gas, and power generation.
- Revenue Contribution: Approximately 10% of total revenue ($2.00 billion).
4. LORD
- Description: Acquired in 2019, LORD provides adhesives, coatings, and vibration control technologies.
- Markets: Aerospace, automotive, and industrial.
- Revenue Contribution: Approximately 5% of total revenue ($1.00 billion).
5. Other Brands
- Description: Includes smaller brands like Olaer (hydraulic accumulators), Sporlan (refrigeration), and Legris (fluid connectors).
- Markets: Niche industrial and mobile applications.
- Revenue Contribution: Approximately 5% of total revenue ($1.00 billion).
Revenue Breakup by Brand (2024):
- Parker: 60% ($12.02 billion)
- Meggitt: 20% ($4.01 billion)
- CLARCOR: 10% ($2.00 billion)
- LORD: 5% ($1.00 billion)
- Other Brands: 5% ($1.00 billion)
Geographical Presence
Parker-Hannifin operates in 45 countries, with a strong presence in North America, Europe, Asia Pacific, and Latin America. Below is a detailed breakdown of its geographical revenue and operations.
1. North America
- Operations: Headquarters in Cleveland, Ohio, with manufacturing and distribution facilities across the United States, Canada, and Mexico.
- Key Markets: Industrial automation, aerospace, and energy.
- Revenue Contribution (2024): $12.82 billion (64% of total revenue).
2. Europe
- Operations: Major facilities in the United Kingdom, Germany, France, and Italy, with a focus on aerospace (post-Meggitt acquisition) and industrial markets.
- Key Markets: Aerospace, automotive, and renewable energy.
- Revenue Contribution (2024): $4.41 billion (22% of total revenue).
3. Asia Pacific
- Operations: Manufacturing and sales operations in China, Japan, India, and Australia, serving industrial and mobile equipment markets.
- Key Markets: Electronics, construction, and energy.
- Revenue Contribution (2024): $2.40 billion (12% of total revenue).
4. Latin America
- Operations: Facilities in Brazil, Argentina, and Chile, focusing on industrial and agricultural applications.
- Key Markets: Agriculture, mining, and oil and gas.
- Revenue Contribution (2024): $0.40 billion (2% of total revenue).
Revenue Breakup by Region (2024):
- North America: 64% ($12.82 billion)
- Europe: 22% ($4.41 billion)
- Asia Pacific: 12% ($2.40 billion)
- Latin America: 2% ($0.40 billion)
Financial Performance
Below are the consolidated financial statements for Parker-Hannifin for the fiscal year ended June 30, 2024, presented in tables.
Consolidated Statement of Income (in millions, except per share data)
| Description | 2024 | 2023 | 2022 |
|---|---|---|---|
| Net Sales | $20,036.2 | $19,065.2 | $15,861.6 |
| Cost of Sales | $13,036.9 | $12,617.8 | $11,387.8 |
| Gross Profit | $6,999.3 | $6,447.4 | $4,473.8 |
| Selling, General & Admin Expenses | $3,090.8 | $3,278.8 | $2,058.8 |
| Interest Expense | $537.8 | $573.9 | $290.0 |
| Other (Income) Expense, Net | ($104.0) | ($92.0) | ($1,133.1) |
| Income Before Income Taxes | $3,474.7 | $2,686.7 | $3,258.1 |
| Income Taxes | $759.5 | $603.9 | $941.1 |
| Net Income | $2,715.2 | $2,082.8 | $2,317.0 |
| Net Income Attributable to Shareholders | $2,715.2 | $2,082.8 | $2,317.0 |
| Earnings Per Share (Diluted) | $21.01 | $16.04 | $17.86 |
Consolidated Balance Sheet (in millions)
| Assets | 2024 | 2023 |
|---|---|---|
| Current Assets | ||
| Cash and Cash Equivalents | $422.0 | $475.2 |
| Accounts Receivable, Net | $3,136.0 | $2,827.0 |
| Inventories | $2,974.9 | $2,900.7 |
| Other Current Assets | $409.8 | $513.1 |
| Total Current Assets | $6,942.7 | $6,716.0 |
| Non-Current Assets | ||
| Property, Plant and Equipment, Net | $2,865.3 | $2,862.7 |
| Goodwill | $10,627.0 | $10,628.9 |
| Intangible Assets, Net | $8,065.0 | $8,765.7 |
| Other Non-Current Assets | $1,054.7 | $1,111.7 |
| Total Assets | $29,554.7 | $30,085.0 |
| Liabilities and Equity | ||
| Current Liabilities | ||
| Accounts Payable | $2,050.2 | $2,048.5 |
| Accrued Liabilities | $1,670.7 | $1,744.2 |
| Short-Term Debt | $1,801.9 | $3,763.0 |
| Total Current Liabilities | $5,522.8 | $7,555.7 |
| Non-Current Liabilities | ||
| Long-Term Debt | $8,900.0 | $8,596.2 |
| Pensions and Other Benefits | $553.2 | $664.4 |
| Other Non-Current Liabilities | $1,805.6 | $1,977.8 |
| Total Liabilities | $16,781.6 | $18,794.1 |
| Shareholders’ Equity | $12,773.1 | $11,290.9 |
| Total Liabilities and Equity | $29,554.7 | $30,085.0 |
Consolidated Statement of Cash Flows (in millions)
| Description | 2024 | 2023 |
|---|---|---|
| Operating Activities | ||
| Net Income | $2,715.2 | $2,082.8 |
| Depreciation and Amortization | $814.1 | $809.9 |
| Changes in Working Capital | ($258.7) | ($82.5) |
| Other Operating Adjustments | $92.3 | $197.1 |
| Net Cash from Operating Activities | $3,362.9 | $3,007.3 |
| Investing Activities | ||
| Capital Expenditures | ($410.3) | ($381.8) |
| Acquisitions, Net of Cash | $0.0 | ($7,010.1) |
| Other Investing Activities | ($44.7) | ($37.8) |
| Net Cash from Investing Activities | ($455.0) | ($7,429.7) |
| Financing Activities | ||
| Net Borrowings | ($1,657.3) | $2,364.7 |
| Dividends Paid | ($784.7) | ($697.0) |
| Share Repurchases | ($500.0) | ($300.0) |
| Other Financing Activities | ($46.3) | ($36.7) |
| Net Cash from Financing Activities | ($2,988.3) | $1,331.0 |
| Effect of Exchange Rates | $27.2 | ($17.6) |
| Net Change in Cash | ($53.2) | ($3,109.0) |
| Cash at Beginning of Year | $475.2 | $3,584.2 |
| Cash at End of Year | $422.0 | $475.2 |
Subsidiaries
Parker-Hannifin operates through numerous subsidiaries, including wholly-owned and partially-owned entities. Below is a comprehensive list of key subsidiaries, their ownership percentages, and contributions.
Wholly-Owned Subsidiaries
- Parker-Hannifin International Corporation (100%)
- Description: Manages international operations, particularly in Europe and Asia Pacific.
- Revenue Contribution: Estimated at 30% of total revenue ($6.01 billion).
- CLARCOR Inc. (100%)
- Description: Specializes in filtration solutions for industrial and environmental applications.
- Revenue Contribution: 10% ($2.00 billion).
- LORD Corporation (100%)
- Description: Provides adhesives, coatings, and vibration control technologies.
- Revenue Contribution: 5% ($1.00 billion).
- Meggitt USA, Inc. (100%)
- Description: Focuses on aerospace systems, including thermal management and sensing.
- Revenue Contribution: 20% ($4.01 billion).
Other Subsidiaries
- Olaer Group (100%): Hydraulic accumulators, contributing ~1% ($0.20 billion).
- Sporlan Valve Company (100%): Refrigeration components, contributing ~1% ($0.20 billion).
- Legris SA (100%): Fluid connectors, contributing ~1% ($0.20 billion).
Revenue Breakup by Subsidiary (2024):
- Parker-Hannifin International: 30% ($6.01 billion)
- Meggitt USA: 20% ($4.01 billion)
- CLARCOR: 10% ($2.00 billion)
- LORD: 5% ($1.00 billion)
- Others: 35% ($7.02 billion, including core Parker operations and smaller subsidiaries)
Physical Properties
Parker-Hannifin maintains a global network of physical properties, including manufacturing plants, offices, and distribution centers. Below is a detailed list.
1. Manufacturing Facilities
- United States: ~100 plants, primarily in Ohio, California, and Texas, producing hydraulics, pneumatics, and aerospace components.
- Europe: ~50 plants, with significant facilities in the UK (post-Meggitt acquisition) and Germany.
- Asia Pacific: ~30 plants, concentrated in China and India.
- Latin America: ~10 plants, mainly in Brazil.
- Details: Facilities range from 50,000 to 500,000 square feet, equipped for high-precision manufacturing.
2. Corporate and Administrative Offices
- Global Headquarters: Cleveland, Ohio (250,000 sq. ft.).
- Regional Offices: London (UK), Shanghai (China), and São Paulo (Brazil).
- Details: Offices support sales, R&D, and administrative functions.
3. Distribution Centers
- Global Network: Over 50 centers, ensuring efficient supply chain operations.
- Key Locations: United States, Germany, China, and Australia.
Total Properties: Approximately 300 facilities worldwide, with 60% in North America, 25% in Europe, 10% in Asia Pacific, and 5% in Latin America.
Founders Details
Parker-Hannifin was founded by Arthur L. Parker in 1917. A visionary engineer, Parker started the company with a focus on pneumatic brake systems for heavy vehicles. His innovations in fluid power technology laid the foundation for the company’s growth. After his passing in 1945, his wife, Helen Parker, and son, Patrick S. Parker, continued to guide the company, with Patrick serving as president and later chairman, driving its expansion into a global enterprise. The Parker family’s legacy remains integral to the company’s culture of innovation and engineering excellence.
Board of Directors
The Board of Directors as of June 30, 2024, consists of 12 members, overseeing strategic and governance matters.
- Jennifer A. Parmentier (CEO and Director)
- Background: Joined Parker in 2008, became CEO in 2023. Expertise in operations and strategy.
- Thomas L. Williams (Chairman)
- Background: Former CEO (2015–2023), with over 40 years at Parker.
- Lee C. Banks (Vice Chairman)
- Background: President and COO, with extensive experience in aerospace and industrial segments.
- Jill C. Evanko
- Background: CEO of Chart Industries, brings expertise in industrial technology.
- Lance M. Fritz
- Background: Former CEO of Union Pacific, expertise in logistics and operations.
- Linda A. Harty
- Background: Former treasurer at Medtronic, financial expertise.
- William E. Kassling
- Background: Former CEO of Wabtec, industrial manufacturing expertise.
- Kevin A. Lobo
- Background: CEO of Stryker Corporation, life sciences expertise.
- Joseph R. Leonti
- Background: Vice President and General Counsel at Parker, legal expertise.
- Åke Svensson
- Background: Former CEO of Saab, aerospace and defense expertise.
- Laura K. Thompson
- Background: Former executive at Goodyear, automotive and industrial expertise.
- James R. Verrier
- Background: Former CEO of BorgWarner, automotive and technology expertise.
Investment Details
Parker-Hannifin’s investments focus on acquisitions and capital expenditures to enhance capabilities.
- Acquisitions:
- Meggitt PLC (2022): $8.8 billion, expanding aerospace capabilities.
- LORD Corporation (2019): $3.7 billion, strengthening advanced materials.
- CLARCOR (2017): $4.3 billion, enhancing filtration portfolio.
- Capital Expenditures (2024): $410.3 million, primarily for manufacturing upgrades and automation.
- R&D Investment: $614.0 million in 2024, focused on digital and sustainable technologies.
Investment Breakdown:
- Acquisitions: ~80% of historical investment (estimated $16.8 billion since 2017).
- Capital Expenditures: 15% ($410.3 million in 2024).
- R&D: 5% ($614.0 million in 2024).
Future Investment Plans
Parker-Hannifin’s future investments align with its Win Strategy, emphasizing organic growth, acquisitions, and sustainability.
- Organic Growth: Plans to invest $450–$500 million annually in capital expenditures through 2027, targeting automation and smart manufacturing.
- Acquisitions: Continued focus on strategic acquisitions in aerospace, filtration, and industrial automation, with a budget of $2–$3 billion over the next three years.
- R&D: Increasing investment to ~$700 million annually by 2027, focusing on electrification, IoT, and sustainable technologies.
- Sustainability: Committing $100 million by 2028 to reduce carbon emissions and develop eco-friendly products.
