Parker-Hannifin Corp. (PH)

Parker-Hannifin was incorporated in Ohio in 1938 and designs, manufactures and provides aftermarket support for highly engineered motion and control solutions. The filing describes the company as a global leader in motion and control technologies. Its customers sit in aerospace and defense, in-plant and industrial equipment, transportation, off-highway, energy, and HVAC and refrigeration markets, and it serves several hundred thousand original equipment manufacturer and distribution customer locations. It runs a decentralised operating structure and a business system it calls The Win Strategy, whose four goals are Engaged People, Customer Experience, Profitable Growth and Financial Performance.

Two segments

Of $21.5 billion in net sales for fiscal year 2026, Diversified Industrial products accounted for 67% and Aerospace Systems products for 33%. Diversified Industrial is an aggregation of several business units selling engineered products both to OEMs and to distributors who serve aftermarket replacement markets, across aerospace and defense, off-highway, in-plant and industrial equipment, energy, transportation, and HVAC and refrigeration. Aerospace Systems sells airframe and engine components and systems to OEMs, and aftermarket parts and maintenance directly to end users, mainly in commercial aerospace and defense; its platforms are commercial transport, regional transport, defense fixed wing, helicopters, business jets and energy. The company offers hundreds of thousands of individual part numbers, and no single product contributed more than one percent of total net sales in the year ended 30 June 2026.

The industrial range

Motion control runs to electric and hydraulic pumps, motors and valves, electromechanical and hydraulic actuators, electronics, drives and controllers, pneumatic actuators, regulators and valves, and power take offs. Sealing and materials run from elastomeric, fabric reinforced, metal and precision cut seals to high temperature and high purity sealing, coatings, structural adhesives, rubber to substrate adhesives and electromagnetic interface shielding. Filtration covers engine, industrial air and gas, process, and hydrogen and natural gas filters, alongside fluid condition monitoring, sensors and diagnostics. The remainder is fluid handling and climate: fluid conveyance hose and tubing, high pressure and high purity connectors, fittings, valves and regulators, cryogenic valves and fittings, miniature pumps and valves, thermal management, HVAC/R controls and monitoring, and active and passive vibration control. Products are both standard and custom engineered to OEM specifications, and they reach the buyer primarily through field sales employees and independent distributors located throughout the world.

The aerospace range

Aerospace products are used in commercial and defense airframe and engine programs and include flight control systems, hydraulic valves and actuators, electromechanical actuators, hydraulic pumps and motors, electric and hydraulic braking systems, electric power, avionics, sensors, pneumatics, seals, fluid conveyance, thermal management, fuel systems and components, fuel tank inerting systems, engine exhaust systems and components, and fire detection and suppression. These are sold through regional sales organisations directly to OEMs and end users throughout the world.

Competition and backlog

The filing states that the company sells through divisions operating in 44 countries and has hundreds of competitors, that the degree of competition varies widely by product line, end market and geography, and that no single competitor competes with it across every product it makes. In the industrial segment it competes on product quality, customer experience, manufacturing and distribution capability, aftermarket support and price, against named rivals including Bosch Rexroth AG, Danaher Corporation, Danfoss A/S, Donaldson Company, SMC Corporation, Swagelok Company, Trelleborg AB, Festo SE and Gates Corporation. In aerospace the named rivals include Crane Co., Eaton Corporation plc, Honeywell Aerospace, Moog, RTX Corporation, Safran S.A., Senior plc, Woodward and Triumph Group. Backlog, which counts written firm orders with a schedule agreed with the customer, was $12.8 billion at 30 June 2026 against $11.0 billion a year earlier, and approximately 70% of it is scheduled for delivery in the succeeding twelve months. Because of the breadth and global scope of the business, it is generally not seasonal.

People and inputs

At 30 June 2026 the company employed approximately 59,850 people, whom it calls team members, of whom approximately 30,830 were employed by foreign subsidiaries. Electric power is the primary energy source for both segments, and the cost is managed through aggregation in deregulated markets and contracts with established pricing on portions of the energy load. The principal raw materials are steel, brass, copper, aluminum, nickel, rubber, thermoplastic materials and chemicals. The company reports that it has reduced its recordable incident rate by over 50% since fiscal year 2019, and that every manufacturing location has a chartered safety High Performance Team.

From Parker-Hannifin's annual report on Form 10-K for the year ended 30 June 2026. The filing