Parker-Hannifin Corporation

Parker Hannifin makes motion and control technologies used in factories, mobile machinery, aircraft and other industrial systems. Products include hydraulic and pneumatic equipment, filtration systems, seals and aerospace controls. It trades on the New York Stock Exchange under PH.

The company reports two segments: Diversified Industrial and Aerospace Systems. Industrial results are also presented by North American and international operations.

Latest financial results

Segment margins use combined segment sales of $6.019 billion, before $27 million of customer tariff returns recorded at corporate. Segment operating profit excludes corporate expenses. Adjusted earnings also exclude acquired-intangible amortization, acquisition and integration expenses, realignment costs, net tariff costs and applicable tax effects. Free cash flow is operating cash flow less capital spending.

Demand and earlier forecasts

Quarterly organic sales growth was 11.5%: 9.4% in North American industrial operations, 11.6% internationally and 13.9% in Aerospace Systems. Organic growth removes acquisition and currency effects and the customer-tariff-return effect. It includes pricing.

For fiscal 2027, ending June 30, Parker forecasts 7.5% to 10.5% organic sales growth, up from August's 5.5% to 8.5%. Reported growth is now expected to be 16% to 19%, compared with 5.5% to 8.5% previously. The current forecast includes Filtration Group, while the original August forecast excluded it.

Adjusted annual earnings guidance increased to $36.45 to $37.25 a share from $34.25 to $35.25. Parker attributes $1.70 of the midpoint upgrade to existing segment operations and $0.50 to net Filtration Group earnings, offset by $0.10 in corporate, interest and other expenses.

Reported annual earnings guidance declined to $29.65 to $30.45 from $30 to $31. Adjusted segment-margin guidance increased to 27.7% to 28.1% from 27.5% to 27.9%. Annual free-cash-flow guidance is $3.5 billion to $4.0 billion; the current presentation shows a previous range of $3.4 billion to $3.9 billion.

Completed purchases and pending CIRCOR deal

Parker completed the global Filtration Group acquisition on August 13, 2026, for approximately $9.1 billion net of acquired cash. It joined Diversified Industrial and contributed $281 million in sales through September. Purchase accounting remained preliminary. Parker forecasts about $1.85 billion of Filtration Group sales for fiscal 2027.

It completed the approximately $1.0 billion Curtis Instruments acquisition, net of acquired cash, on September 18, 2025. Curtis supplies motor controllers and related technologies for electric and hybrid machinery. Its purchase accounting was finalized in September 2026.

The approximately $2.55 billion cash purchase of CIRCOR's commercial and defense aerospace business remains pending, with closing expected during calendar 2026. Parker had not drawn its separate $2 billion delayed-draw financing facility at September 30.

Cash and acquisition financing

Cash and cash equivalents were $711 million at September 30. Current and long-term debt totaled $17.478 billion at balance-sheet carrying value, including $2.8 billion of commercial paper.

The $5 billion revolving credit facility was undrawn, but commercial paper reduced its available capacity to $2.2 billion. That facility matures in September 2031. The separate CIRCOR facility is distinct from this available revolving capacity.

Parker borrowed $7.75 billion in August to help fund Filtration Group. It repaid and terminated the $5.25 billion short-term bridge in September using new bond proceeds and cash. The remaining $2.5 billion acquisition term loan matures in August 2029.

Quarterly operating cash flow was $752 million and capital spending was $109 million. The full-year forecast is $4.125 billion to $4.625 billion of operating cash flow and about $625 million of capital spending, producing the $3.5 billion to $4.0 billion free-cash-flow range.