Parker-Hannifin Corporation (NYSE: PH): Corporate Profile & Financials

Source: Parker-Hannifin Corporation Form 10-K Fiscal Year 2026

📋 Quick Facts / Company Snapshot: Parker-Hannifin (NYSE: PH)

1. Corporate Identity: Parker-Hannifin Overview & History

The Big Picture

Parker-Hannifin Corporation represents one of the world’s leading designers, manufacturers, and aftermarket service providers of motion and control technologies. The enterprise engineers highly differentiated solutions across interconnected disciplines to serve customers spanning aerospace, defense, in-plant and industrial equipment, transportation, off-highway machinery, energy infrastructure, and heating, ventilation, air conditioning, and refrigeration (HVAC/R).

The company conducts its operational strategy through an operating framework called The Win Strategy™ 3.0, which guides performance objectives centered around engaged people, customer experience, profitable growth, and financial discipline. Central to this approach is an organizational culture focused on safety, continuous improvement, team-based problem-solving, and a stated corporate purpose: Enabling Engineering Breakthroughs that Lead to a Better Tomorrow.

To implement this model at scale across dozens of specialized end markets, Parker utilizes a decentralized division and sales company structure. This methodology delegates operational accountability close to localized end users and distributors while leveraging central shared services, global supply chain networks, and uniform lean manufacturing programs.

The Founders & Their Legacy

Parker-Hannifin traces its foundational roots back to its incorporation in Ohio in 1938. Over several decades of continuous industrial development, the corporate framework has evolved from specialized mechanical components into an extensive multinational motion and control platform spanning 44 countries worldwide.

The enterprise has maintained an uninterrupted dividend payment history spanning 304 consecutive quarters, featuring annual increases for 70 consecutive fiscal years, demonstrating sustained long-term capital stability across differing macroeconomic and industrial cycles.

The Journey: History & Evolution

The modernization of Parker-Hannifin has been steered through ongoing operational restructuring, organic capital deployment, and strategic acquisitions and divestitures aimed at enhancing margin resilience and technology integration.

• Acquisition of LORD Corporation: Strengthened Parker’s proprietary capabilities in engineered materials, noise, vibration, and harshness (NVH) control, and aerospace structural adhesives.
• Acquisition of Meggitt plc: Transformed the Aerospace Systems Segment by expanding content across commercial transports, regional jets, and defense aviation platforms globally.
• Divestitures in Fiscal 2024 and 2025: Realigned the corporate focus by divesting non-core operations, including the MicroStrain sensing systems business, the Filter Resources business, the composites and fuel containment (CFC) business, and an auxiliary non-core filtration asset.
• Acquisition of Curtis Instruments, Inc.: Finalized on September 18, 2025, for approximately $1.0 billion net of cash acquired, integrating electric vehicle motor speed controllers, instrumentation, and power conversion devices into the Diversified Industrial Segment.
• Acquisition of Filtration Group Corporation: Closed on August 13, 2026, for a cash purchase price of $9.25 billion, bringing advanced proprietary filtration solutions across life sciences, industrial, and HVAC/R markets into the Diversified Industrial fold.
• Definitive Agreement for CIRCOR Aerospace: Entered into in May 2026 to acquire CIRCOR International’s commercial and defense aerospace business for approximately $2.55 billion in cash.

The Corporate Umbrella

Parker manages its enterprise through a decentralized framework grouped into two primary operating reportable segments: Diversified Industrial and Aerospace Systems. These two units aggregate five operational reporting units, with executive operational oversight directed by the Chief Operating Decision Maker (CODM), who is the Chief Executive Officer.

Each business group retains operational authority over dedicated product lines, customer relationships, and localized manufacturing, while coordinating centrally on supply chain procurement, regulatory governance, treasury execution, and digital transformation.

2. The Business Engine: Parker-Hannifin Business Model & Revenue Segments

The Core Divisions

Parker’s operations are divided into two distinct reportable segments. In fiscal year 2026, Diversified Industrial generated 67% of total consolidated net sales, while Aerospace Systems accounted for the remaining 33%.

The segment data illustrates structural expansion across both operational segments. The Diversified Industrial Segment generates revenue through three core technology platforms: Motion Systems ($3,580 million in 2026), Flow and Process Control ($4,810 million in 2026), and Filtration and Engineered Materials ($6,048 million in 2026).

The Aerospace Systems Segment derives revenue from four principal aviation customer channels: Commercial OEM ($2,330 million in 2026), Commercial Aftermarket ($2,523 million in 2026), Defense OEM ($1,271 million in 2026), and Defense Aftermarket ($937 million in 2026).

The Global Product Catalog

The company manufactures hundreds of thousands of individual part numbers, such that no single individual product accounted for more than 1% of consolidated net sales in fiscal 2026. The catalog spans eight core motion and control disciplines: hydraulics, pneumatics, electromechanical, filtration, fluid and gas handling, process control, engineered materials, and climate control.

Diversified Industrial Portfolio:

• Active and passive vibration control systems, acoustic dampening, and rubber-to-substrate adhesives.
• Industrial air, gas, liquid, process, and engine filtration solutions, alongside hydrogen and natural gas filters.
• Fluid conveyance components, high-pressure fittings, hose, tubing, cryogenic valves, and regulators.
• Electric and hydraulic pumps, motors, power take-offs, and electromechanical actuators.
• High-purity and high-temperature seals, elastomeric and metal gaskets, and electromagnetic interface (EMI) shielding.
• Refrigeration and HVAC controllers, electronic drives, and condition-monitoring diagnostic sensors.

Aerospace Systems Portfolio:

• Commercial and military flight control actuation and fly-by-wire subsystems.
• Fuel systems, fuel tank inerting solutions, sensors, and fuel metering valves.
• Hydraulic generation systems, engine pumps, motors, and electronic power conversion.
• Electric and hydraulic aircraft braking systems and wheels.
• Engine exhaust ducts, air distribution ducting, bleed air valves, and thermal management systems.
• Fire detection and suppression equipment, avionics cooling, and specialty aerospace seals.

The Names You Know

Parker markets its equipment under well-established proprietary corporate divisions, acquired trade names, and legacy brands integrated via acquisitions such as LORD, Meggitt, and Curtis Instruments. In the filtration domain, the company integrates newly acquired intellectual property from Filtration Group Corporation.

Mapping the Global Reach

Parker structures its commercial operations across four primary geographical regions: North America, EMEA (Europe, Middle East, and Africa), Asia Pacific, and Latin America. Net sales are attributed based on the location of the selling unit.

International operations generated approximately 36% of consolidated net sales in fiscal 2026, consistent with 36% recorded in fiscal 2025 and fiscal 2024. Outside of the United States, no individual nation represented more than 10% of total consolidated sales.

The Brick & Mortar Footprint

The corporate world headquarters is maintained in Cleveland, Ohio. As of June 30, 2026, the company operated approximately 323 manufacturing plants, supplemented by an extensive international network of regional sales offices and distribution hubs. None of these facilities are individually material to global consolidated operations.

• Manufacturing Distribution: Industrial facilities are situated across 35 states in the United States and within 43 other sovereign jurisdictions worldwide.
• Ownership Structure: The company owns the vast majority of its manufacturing plants, while leasing the bulk of its regional sales units, administrative centers, and distribution centers.
• Net Long-Lived Assets: Physical property, plant, and equipment net assets totaled $1,751 million within the United States and $1,269 million across foreign jurisdictions as of June 30, 2026.

3. The Financial Health: Parker-Hannifin (FY 2026) Audited Financial Statements

Earnings, Expenses & Profits: Parker-Hannifin Income Statement

Consolidated financial performance demonstrated revenue growth and operating margin improvement during the fiscal year ended June 30, 2026. Net sales advanced 8.3% on a reported basis, underpinned by 6.6% organic expansion.

Gross margin expanded by 80 basis points from 36.9% in fiscal 2025 to 37.7% in fiscal 2026. The improvement was driven primarily by higher sales volume across both segments and $84 million in refunds received following the Supreme Court’s decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA), which was credited directly to cost of sales in the fourth quarter. These gains were partially offset by higher raw material costs and unfavorable product mix.

Selling, general, and administrative (SG&A) expenses reached $3,468 million, representing 16.1% of net sales, an improvement from 16.4% in 2025. Absolute SG&A spending increased due to higher equity-based compensation, corporate acquisition costs, internal R&D allocations, and intangible amortization.

Assets, Debts & Equity: Parker-Hannifin Balance Sheet

The consolidated balance sheet reflects significant working capital stability, intangible value from prior aerospace and materials transactions, and conservative leverage management prior to closing the post-fiscal-year FGC transaction.

As of June 30, 2026, total debt—consisting of notes payable, commercial paper, finance leases, and senior notes—stood at $8,520 million, lower than $9,285 million at the close of fiscal 2025. The debt-to-debt-shareholders’ equity ratio closed the fiscal year at 0.36 to 1.0, well inside the restrictive credit facility covenant ceiling of 0.65 to 1.0.

The company maintains long-term credit ratings of A- from Fitch, A3 from Moody’s, and BBB+ from Standard & Poor’s. Unamortized debt issuance costs netted against long-term obligations were $45 million in 2026 compared to $54 million in 2025.

Cash Flow & Capital Allocation: Parker-Hannifin Cash Flow Statement

Cash flows generated from operations advanced by $588 million, enabling the funding of organic capital outlays, bolt-on acquisitions, debt repayment, share repurchases, and rising common stock dividend distributions.

Operating cash collection efficiency remained consistent. Days sales outstanding (DSO) relating to trade receivables registered at 50 days in 2026 compared to 51 days in 2025. Days supply of inventory on hand shifted upward to 86 days from 82 days in 2025 to support sustained industrial backlog fulfillment.

Funding the Future: R&D and Expansion Spending

Parker maintains capital allocation disciplines focused on high-return organic investments, technological differentiation, and production productivity.

• Research and Development Costs: Independent research and development outlays were $267 million in 2026, $240 million in 2025, and $253 million in 2024. Supplementary pre-production engineering costs incurred on development contracts added $43 million in 2026, $58 million in 2025, and $45 million in 2024.
• Capital Outlays: Capital expenditures consumed $459 million in 2026, compared to $435 million in 2025 and $400 million in 2024. Management established a capital expenditure target of 2.5% of sales for fiscal 2027, backed by a long-term normalized target of 2.0% of net sales.
• Business Realignment: Simplification programs and plant closures generated restructuring charges of $71 million in Diversified Industrial and $1 million in Aerospace Systems during 2026. Management projects approximately $90 million in business realignment costs and $25 million in acquisition integration charges during fiscal 2027.

4. The Corporate Family Tree: Parker-Hannifin Subsidiaries & Acquisitions

Subsidiaries, Associates, & Shared Ventures

The consolidated entity encompasses both domestic manufacturing companies and wholly owned foreign operating subsidiaries across Europe, the Americas, and the Asia-Pacific region.

Operating legal subsidiaries highlighted in the report include:

• Curtis Instruments, Inc.: A global provider of motor speed control technology, acquired on September 18, 2025, for $1.0 billion net of cash.
• Filtration Group Corporation: An industrial, life sciences, and HVAC/R filtration manufacturer, acquired on August 13, 2026, for $9.25 billion in cash.
• Meggitt plc: An international aerospace equipment manufacturer operating airframe, sensor, and braking divisions.
• Prosper Merger Sub Corp.: A merger vehicle utilized to effectuate the acquisition of Filtration Group Corporation.

Strategic Investments & Minority Stakes

Investments in joint ventures where Parker maintains 50% or less equity ownership without operating control are accounted for under the equity method. The carrying value of these equity method investments was $282 million as of June 30, 2026, and $280 million as of June 30, 2025, classified inside other long-term assets on the balance sheet.

• Equity JV Earnings: Equity in net income of joint ventures contributed $218 million in 2026, $178 million in 2025, and $152 million in 2024, recognized inside other expense (income), net.
• Cash Distributions Received: Cash dividends received from these joint ventures provided $216 million in 2026, $167 million in 2025, and $148 million in 2024.
• Joint Venture Trading: Product sales to and commercial services performed for equity joint ventures totaled $112 million, $96 million, and $74 million across fiscal years 2026, 2025, and 2024, respectively.
• Advanced Atomization Technologies: A disclosed operating joint venture platform managed within the Aerospace Systems Segment.

5. Power & Control: Parker-Hannifin Executive Leadership & Ownership

The Brain Trust: Board of Directors & Executive Leadership

Operational execution and strategic allocation are governed by an experienced group of corporate officers, the majority of whom possess extended tenure across Parker’s divisions.

• Jennifer A. Parmentier (Chairman of the Board and Chief Executive Officer): Corporate Officer since 2015; age 59. Appointed Chairman in January 2024 and CEO in January 2023. Previously served as Chief Operating Officer from August 2021 to 2023, VP and President of Motion Systems Group (2019–2021), VP and President of Engineered Materials Group (2015–2019), and General Manager of Hose Products and Sporlan Divisions. Director of Nordson Corporation.
• Todd M. Leombruno (Executive Vice President and Chief Financial Officer): Corporate Officer since 2017; age 56. Appointed CFO in January 2021. Previously served as Vice President and Controller (2017–2021), Controller of Engineered Materials Group (2015–2017), and Director of Investor Relations (2012–2014). Director of The Timken Company.
• Andrew D. Ross (President and Chief Operating Officer): Corporate Officer since 2012; age 59. Appointed President in January 2024 and COO in January 2023. Previously served as VP and President of Fluid Connectors Group (2015–2022) and VP and President of Engineered Materials Group (2012–2015). Director of Symbotic Inc.
• Mark J. Hart (Executive Vice President – Human Resources and External Affairs): Corporate Officer since 2016; age 61. Held executive human resource responsibilities since 2016 following his role as Vice President – Total Rewards (2013–2016).
• Joseph R. Leonti (Executive Vice President, General Counsel and Secretary): Corporate Officer since 2014; age 54. Advanced to Executive VP in August 2025, having served as VP, General Counsel and Secretary since July 2014, and Assistant Secretary / Associate General Counsel since 2008.
• Rachid Bendali (Vice President and President – Engineered Materials Group): Corporate Officer since 2022; age 49. Previously served as VP of Operations for Engineered Materials, General Manager of Noise, Vibration and Harshness Division, and Vice President at LORD Corporation.
• Berend Bracht (Vice President and President – Motion Systems Group): Corporate Officer since 2021; age 60. Formerly VP of Operations for Engineered Materials Group, CEO of Bendix Commercial Vehicle Systems LLC, and Americas CEO of Bosch Rexroth.
• Mark T. Czaja (Vice President – Chief Technology and Innovation Officer): Corporate Officer since 2021; age 64. Served as VP of Technology and Innovation for Motion Systems and Aerospace Groups, with engineering leadership at Parker dating back to 2000.
• Thomas C. Gentile (Vice President – Global Supply Chain): Corporate Officer since 2017; age 54. Formerly General Manager of the Process Filtration Division and VP of Supply Chain for the Filtration Group.
• Angela R. Ives (Vice President and Controller): Corporate Officer since 2021; age 53. Previously served as Assistant Controller, Group VP Controller for Instrumentation, and Division Controller for Electromechanical and Drives.
• Matthew A. Jacobson (Vice President and President – Filtration Group): Corporate Officer since 2025; age 47. Formerly VP of Operations and Supply Chain for Motion Systems, with earlier General Manager tenures in Hydraulic Pump and Accumulator divisions.
• Dinu J. Parel (Vice President – Chief Digital and Information Officer): Corporate Officer since 2018; age 45. Leads global cybersecurity, digital initiatives, and information systems; holds B.S. and M.S. degrees in Computer Engineering. Formerly Chief Information Officer at Dover Corporation.
• Jay P. Reidy (Vice President and President – Aerospace Group): Corporate Officer since 2024; age 43. Previously VP of Operations for Aerospace and General Manager of Gas Turbine Fuel Systems and Precision Fluidics divisions.
• Patrick M. Scott (Vice President and President – Fluid Connectors Group): Corporate Officer since 2024; age 48. Integration Leader for the Meggitt acquisition, former VP of Operations for Aerospace, and General Manager of Fluid Systems Connectors.

Who Owns the Stock?

The total authorized common equity of Parker-Hannifin comprises 600.0 million shares of common stock, $.50 par value, of which 181.0 million shares were issued and 126,047,469 common shares were outstanding as of July 31, 2026. The company also maintains 3.0 million authorized shares of serial preferred stock, $.50 par value, none of which have been issued.

Common shares held inside the company’s primary U.S. 401(k) retirement and Employee Stock Ownership Plan (ESOP) totaled 3.5 million shares at June 30, 2026, and 4.0 million shares at June 30, 2025.

As of June 30, 2026, the company held 55.0 million treasury shares carried at an aggregate cost of $9,189 million, compared to 54.4 million treasury shares at a cost of $7,495 million in 2025. During fiscal 2026, 1.2 million common shares were repurchased for $1.0 billion, leaving 18.8 million shares available under the Board of Directors’ updated 20.0 million share repurchase authorization.

6. Strategic Outlook: Parker-Hannifin Growth Catalysts & Key Risks

Competitive Advantages & Economic Moats

Management highlights several competitive advantages underpinning its operational performance:

• Proprietary Systems Breadth: Parker maintains an integrated product catalog addressing motion control technologies across eight core disciplines, enabling whole-system design integration that few specialized competitors match.
• Extensive Backlog and Revenue Visibility: Total backlog reached $12.8 billion as of June 30, 2026 ($4,332 million in Diversified Industrial and $8,498 million in Aerospace Systems), up from $11.0 billion in 2025. Approximately 70% of total backlog is scheduled for delivery within the next 12 months.
• High Customer Switching Costs & OEM Embeddedness: Once engineered into long-term commercial airframes, aerospace engines, or critical industrial assembly lines, components benefit from sustained, multi-decade aftermarket replacement and repair parts demand.
• Local-for-Local Supply Chain Strategy: Manufacturing products within the geographic territories in which they are sold dampens international freight volatility, currency conversion exposures, and regional customs frictions.

What Could Go Wrong? Key Challenges & Business Risks

The company discloses several material operational, commercial, regulatory, and financial risk factors:

• Debt Incurrence from Inorganics: Following fiscal year-end, the company borrowed $7.75 billion under its 364-Day and Three-Year Term Loan Credit Facilities to finance the acquisition of FGC. Combined with the planned $2.55 billion acquisition of CIRCOR Aerospace, these outlays elevate overall leverage, requiring dedicated operating cash flows to meet interest obligations and execute debt reduction.
• Supply Chain Concentration: Reliance on specialized third-party providers for rare earth elements, filtration media, aerospace super-alloys, and advanced micro-electronics introduces risk of component shortages, delay penalties, and price inflation.
• Tariffs and Global Trade Friction: While Parker recognized an $84 million cost reduction in 2026 via IEEPA tariff refunds, international operations remain exposed to trade frictions, particularly between the United States and China, potential alterations to the United States-Mexico-Canada Agreement, and evolving export controls under the International Traffic in Arms Regulations (ITAR).
• Environmental Liabilities and Remediation: Parker is designated as a potentially responsible party across various Superfund priority lists and historical operating sites. Total estimated remediation exposure ranges from $82 million to $292 million, with an accrual of $82 million recorded as of June 30, 2026.
• Integration and Realignment Complexities: The parallel assimilation of Curtis Instruments, Filtration Group Corporation, and CIRCOR Aerospace carries execution risks, including systems migration, key employee retention, corporate culture alignment, and potential goodwill impairment charges across its $11,109 million goodwill base.

The Next Chapter: Growth & Expansion Initiatives

Looking to fiscal 2027 and beyond, the company’s capital allocation centers on executing integration milestones across newly acquired filtration and power platforms, maintaining annual organic R&D outlays, and driving working capital optimization.

Strategic deployment priorities include:

• Refinancing Bridge Borrowings: Terminating short-term Credit Facility debt incurred for the $9.25 billion FGC transaction via an optimal combination of operational cash generation and long-term senior unsecured debt issuances.
• Completing the CIRCOR Aerospace Acquisition: Clearing regulatory clearances in the second half of calendar year 2026 to incorporate CIRCOR’s proprietary flight-critical motion and flow control devices into the Aerospace Systems Segment.
• Lean Realignment Programs: Deploying an estimated $90 million in business realignment capital and $25 million in integration funding during fiscal 2027 to capture planned operating synergies.
• Targeted Decarbonization: Progressing toward the corporate environmental objective of achieving near-total operational decarbonization (Scope 1 and Scope 2 emissions) by the year 2040.

The Verdict: Strategic Outlook & Conclusion

Parker-Hannifin closed fiscal 2026 with $21,499 million in consolidated net sales, $3,648 million in net earnings attributable to common shareholders, and an operating cash flow intake of $4,364 million. The company enters fiscal 2027 with a firm backlog of $12.8 billion, a balanced decentralized operating engine, and strategic acquisitions that position the enterprise to meet evolving global demands across industrial automation, electrification, and commercial aviation.

❓ Frequently Asked Questions: Parker-Hannifin Corporation

What was Parker-Hannifin Corporation’s revenue and net income in FY 2026?

In FY 2026, Parker-Hannifin Corporation (NYSE: PH) reported total revenue of $21.50 B ((▲ 8.3%) compared to $19.85 B in the prior fiscal year). Gross profit stood at $8.10 B (gross margin of 37.69 %). Operating profit was $4.56 B and bottom-line net income was $3.65 B.

Is Parker-Hannifin Corporation profitable and generating positive cash flow in FY 2026?

Yes, Parker-Hannifin Corporation was profitable in FY 2026, recording net profit of $3.65 B (PAT margin: 16.97 %). On a cash basis, the company generated $4.36 B in cash flow from operating activities and invested $459.00 M in capital expenditures, resulting in free cash flow of $3.90 B. Return on Equity (ROE) was 23.67 % and Cash ROE was 28.31 %.

How much debt, assets, and equity does Parker-Hannifin Corporation hold?

As of FY 2026, Parker-Hannifin Corporation held $30.88 B in total assets, $15.46 B in total liabilities, and $15.41 B in total stockholders’ equity. Total debt stood at $8.52 B (debt-to-equity ratio of 0.55x). Net working capital was $1.60 B with a current ratio of 1.26x.

Who is the CEO and CFO of Parker-Hannifin Corporation?

The Chief Executive Officer (CEO) of Parker-Hannifin Corporation is Jennifer A. Parmentier. The Chief Financial Officer (CFO) is Todd M. Leombruno.

Where is Parker-Hannifin Corporation headquartered and when was it founded?

Parker-Hannifin Corporation is headquartered in 6035 Parkland Boulevard, Cleveland, Ohio 44124-4141. The company traces its founding/incorporation to Ohio. Total disclosed workforce/headcount is Approximately 59,850 persons. Its official corporate website is investors.parker.com.

Note: Financial ratios, margins, year-over-year (YoY) growth rates, and percentage shares of revenue are calculated by FirmsWorld based on figures reported in the company’s official SEC filing.