10-KPeriod: FY2026

Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2026

Filed August 21, 2026For Securities:PH

Summary

Parker-Hannifin Corporation's 2026 Form 10-K highlights a year of robust growth and strategic expansion, underscored by an 8.3% increase in net sales to $21.5 billion, driven by strong organic growth in both its Diversified Industrial and Aerospace Systems segments. The company's commitment to its "Win Strategy 3.0" continues to shape its operations, focusing on engaged people, customer experience, and profitable growth. The report details significant strategic acquisitions, including Curtis Instruments and the completion of Filtration Group Corporation (FGC), alongside the pending acquisition of CIRCOR Aerospace, demonstrating a clear intent to expand its market reach and technological capabilities. Financially, the company maintained a strong liquidity position and continued its history of returning capital to shareholders through dividends and share repurchases, while also managing its debt effectively with a focus on maintaining an investment-grade credit profile.

Key Highlights

  • 1Net sales increased by 8.3% to $21.5 billion in fiscal year 2026, driven by strong organic growth across both the Diversified Industrial and Aerospace Systems segments.
  • 2The company completed significant acquisitions, including Curtis Instruments and Filtration Group Corporation (FGC), and announced a definitive agreement to acquire CIRCOR Aerospace, indicating a proactive growth strategy.
  • 3The backlog grew to $12.8 billion as of June 30, 2026, with approximately 70% scheduled for delivery within the next twelve months, signaling strong future revenue potential.
  • 4Gross profit margin improved to 37.7% from 36.9% in the prior year, reflecting benefits from higher sales volumes and pricing actions, partially offset by material costs.
  • 5Aerospace Systems segment operating margin saw a significant increase to 26.0% from 23.3%, driven by higher sales volume and cost containment initiatives.
  • 6Parker-Hannifin continued its commitment to shareholder returns, with a current annual dividend rate of $8.00 per common share and ongoing share repurchase programs.
  • 7The company maintained a strong liquidity position, with $501 million in cash and cash equivalents and ample availability under its revolving credit agreement and commercial paper program, sufficient to meet its liquidity needs for the foreseeable future.

Frequently Asked Questions

Revenue growth in fiscal year 2026 was primarily driven by an 8.3% increase in net sales, totaling $21.5 billion. This growth was predominantly fueled by organic sales growth of 6.6% across both the Diversified Industrial and Aerospace Systems segments. Strategic acquisitions, net of divestitures, also contributed positively to sales.

Parker-Hannifin is actively pursuing a growth strategy through strategic acquisitions. In fiscal year 2026, the company completed the acquisitions of Curtis Instruments and Filtration Group Corporation (FGC). Additionally, it announced a definitive agreement to acquire CIRCOR Aerospace. These acquisitions are aimed at strengthening its portfolio and expanding its market presence in key sectors.

Parker-Hannifin reported a strong financial position with $501 million in cash and cash equivalents as of June 30, 2026. The company has sufficient liquidity through its operating cash flows, commercial paper program, and access to capital markets to meet its obligations for the next twelve months and beyond. Its credit facilities provide substantial borrowing capacity, and the company remains in compliance with all debt covenants, aiming to maintain an investment-grade credit profile.

Profitability has seen positive trends, with the gross profit margin improving to 37.7% due to higher sales volume and effective pricing strategies. The Aerospace Systems segment, in particular, demonstrated strong performance with an operating margin increase to 26.0%, driven by higher volumes and cost containment. While material costs and unfavorable product mix presented some headwinds, the overall operational performance contributed positively to financial results.