Parker-Hannifin (PH) Company Report

Parker-Hannifin’s orders rebounded in Q2, with aerospace organic growth in double digits for the fourth consecutive year and North American industrial orders up 7%, driven by both long- and short-cycle markets.
FY 2026 guidance set at 5% organic growth at the midpoint, within the 4–6% long-term framework, supported by robust aerospace demand and early signs of industrial recovery.
Achieved the 27% segment operating margin target three years ahead of schedule, propelled by aerospace performance, Meggitt synergies and operational excellence in industrial businesses.
Announced the planned $220 million synergy Filtration Group acquisition, with an established biweekly senior integration process to capture cost and market opportunities.
Maintains strong capital discipline, executing record share repurchases and committing to a 2.5% of sales CapEx program focused on productivity and safety.

Feb 19, 2026, 4:20 PM

Transcript

Parker-Hannifin outlines strategic outlook at Citi Global Industrial Tech & Mobility Conference

Guidance Update

M&A

Positive order trends: Aerospace orders achieved a fourth consecutive year of double-digit organic growth, while industrial orders turned positive—North America up 7%—leading to FY2026 organic growth guidance of 5% midpoint within a 4-6% long-term framework.
Tariff and cost management: Employs a total cost coverage approach—local-for-local manufacturing, dual sourcing, and disciplined pricing—to absorb tariff impacts with no expected margin or EPS degradation.
M&A and integration: Accelerated realization of Meggitt synergies and advancing the Filtration Group acquisition with $220 million of targeted synergies, driven by bi-weekly senior-level cross-functional integration teams.
Margin and financial targets: On track for 27–27.4% adjusted segment operating margin in FY2026 (three years ahead of plan) and reiterates FY2029 goals of 4–6% organic growth, 27% operating margin, 28% EBITDA margin, 10%+ EPS CAGR, and 17% free cash flow conversion.

Feb 19, 2026, 4:20 PM

Transcript

Parker-Hannifin outlines growth outlook and M&A strategy

Guidance Update

M&A

Revenue Acceleration/Inflection

Industrial orders in North America turned positive to +7%, driven by both longer-cycle and shorter-cycle markets; management emphasizes local-for-local manufacturing and dual sourcing to mitigate tariffs and input-cost inflation.
Aerospace segment delivers fourth consecutive year of double-digit organic growth, with aftermarket mix around 50% and record margins, underpinned by deeper customer partnerships and strengthened supply-chain capabilities.
For FY2026, Parker-Hannifin guides to 5% organic growth at midpoint (within its 4–6% target range) and reaffirms a 27% adjusted segment operating-margin, achieved three years ahead of schedule, while upholding FY2029 goals of 10%+ EPS CAGR and 17% free-cash-flow conversion.
The company advances its M&A agenda: Meggitt integration outpaces synergy targets via biweekly senior-level reviews, and the pending Filtration Group deal—expected to generate $220 million in synergies—will create one of the largest industrial filtration platforms.
Management sees a gradual industrial recovery with positive momentum in power generation, construction and distributorship restocking, alongside early organic-growth inflections in Asia Pacific and Europe following prolonged declines.

Feb 19, 2026, 4:20 PM

Transcript

Parker Hannifin guides $21 B sales and outlines growth strategy at Barclays conference

Guidance Update

M&A

Parker Hannifin is guiding to $21 billion in sales for fiscal 2026, with a balanced portfolio split—31% aerospace, 30% international and 40% North America—and nearly equal end-market exposure across its four technology platforms.
Over the past decade, the company delivered a 6% revenue CAGR, 1,150 bps of margin expansion, 16% EPS CAGR and 10% cash‐flow CAGR, driven 60% by its Win Strategy and 40% by five strategic acquisitions (Clarcor, LORD, Exotic, Meggitt, Curtiss).
Aerospace organic growth is in its third year of double‐digit increases, and Diversified Industrial orders have turned positive, prompting a raise in full-year industrial organic growth guidance to 2.5%.
M&A remains a core growth lever: Parker Hannifin expects to close its acquisition of Filtration Group later in the year and continues to target bolt-on businesses with superior growth profiles.

Feb 18, 2026, 4:00 PM

Transcript

Parker-Hannifin outlines FY2026 guidance and strategic update at Barclays conference

Guidance Update

M&A

Guidance for FY2026 sales of $21 billion, with end markets balanced across aerospace (31%) and diversified industrial segments (international ~30%, North America ~40%).
Industrial orders have turned positive, driving a raise in organic growth guidance to 2.5%, with strength in in-plant equipment, highway, mining and construction, while transportation remains soft.
Aerospace organic growth at double-digit for a third consecutive year, backed by record backlog and a 50/50 aftermarket-OEM mix, with no expected margin drag from OE production ramps.
Win Strategy delivers sustained margin expansion, with 10-year performance including 6% revenue CAGR, +1,150 bps margin expansion, 16% EPS CAGR and a CapEx increase to 2.5% of sales to support automation and capacity.
M&A momentum continues, integrating Curtis as planned and targeting the pending Filtration Group acquisition, following previous deals (CLARCOR, LORD, Exotic, Meggitt, Curtis) to add faster-growing businesses.

Feb 18, 2026, 4:00 PM

Transcript

Parker-Hannifin outlines fiscal 2026 sales guidance and growth outlook

Guidance Update

Revenue Acceleration/Inflection

M&A

Guides to $21 billion in sales for fiscal 2026 with end-market exposure split: aerospace & defense 35%, plant & industrial equipment 20%, transportation 15%, off-highway 13%.
Industrial orders have turned positive, driving a raised organic growth target of 2.5% (up from 1% to 2% earlier) for the year.
Over the past decade, the company delivered a 6% revenue CAGR, expanded margins by 1,150 bps, achieved a 16% EPS CAGR and grew cash flow at 10% CAGR under its decentralized “Win Strategy”.
Six bolt-on acquisitions (CLARCOR, LORD, Exotic, Meggitt, Curtis and others) have been integrated, with the pending Filtration Group deal set to boost filtration aftermarket exposure by 500 bps.

Feb 18, 2026, 4:00 PM

Transcript

Parker Hannifin reports record Q2 2026 results

Earnings

M&A

Guidance Update

Parker Hannifin posted record Q2 sales of $5.2 billion, delivered 6.6% organic growth, expanded adjusted segment operating margin by 150 bps to 27.1%, and generated $7.65 EPS (+17%) and $1.6 billion operating cash flow
The company agreed to acquire Filtration Group Corporation, expecting close in 6–12 months, adding $220 million in cost synergies and boosting filtration aftermarket sales by 500 bps
Full-year 2026 guidance was raised: EPS to $30.70, adjusted segment operating margin to 27.2%, and free cash flow to $3.2–3.6 billion; Q3 sales are guided to $5.4 billion with 5% organic growth and 27% margin
Aerospace Systems achieved record Q2 sales of $1.7 billion (+14.5%), 30.2% margin, and backlog reached $8 billion

Jan 29, 2026, 4:00 PM

Transcript

Parker Hannifin reports record Q2 2026 results

Earnings

Guidance Update

M&A

Record Q2 sales of $5.2 billion, with organic growth of 6.6% and $1.6 billion of operating cash flow.
Adjusted segment operating margin expanded 150 bps to 27.1%, and adjusted EPS rose 17% to $7.65.
YTD free cash flow of $1.5 billion (14.2% of sales), supporting commitment to >100% cash flow conversion.
Raised FY2026 guidance: organic sales growth to 4–6% (midpoint 5%), reported sales to 5.5–7.5%, adjusted EPS to $30.70, and free cash flow to $3.2–3.6 billion.
Announced acquisition of Filtration Group Corporation, targeting $220 million in cost synergies and expected to close in 6–12 months.

Jan 29, 2026, 4:00 PM

Transcript

Parker-Hannifin reports Q2 2026 results

Earnings

Guidance Update

M&A

Delivered record Q2 sales of $5.2 B (+9% reported; +6.6% organic), 27.1% adjusted segment operating margin (+150 bps), $7.65 adjusted EPS (+17%), and $1.6 B operating cash flow.
Achieved all-time high margins across segments: North America sales of ~$2 B (+2.5% organic; 25.4% margin) , International sales of $1.5 B (+4.6% organic; 26.0% margin) and Aerospace Systems sales of $1.7 B (+13.5% organic; 30.2% margin; $8 B backlog).
Raised full-year 2026 guidance: reported sales up 5.5%–7.5% (6.5% midpoint), organic growth 4%–6% (5% midpoint), adjusted segment operating margin 27.2%, adjusted EPS $30.70, and free cash flow $3.2 B–$3.6 B.
Announced acquisition of Filtration Group, planning to close in 6–12 months with integration underway and targeting $220 M of cost synergies by year three.

Jan 29, 2026, 4:00 PM

Transcript

Parker Hannifin reports Q2 FY2026 results

Earnings

M&A

Record Q2 FY26 sales of $5.2 billion, up 9% reported and 6.6% organic year-over-year
Adjusted segment operating margin of 27.1%, a 150 bps increase from Q2 FY25
Adjusted EPS of $7.65, up 17% from $6.53 in Q2 FY25
Adjusted EBITDA of $1.431 billion, representing a 27.7% margin, up 90 bps year-over-year
Announced acquisition of Filtration Group Corporation

Jan 29, 2026, 4:00 PM

Presentation

Earnings Transcripts

Quarterly earnings call transcripts for Parker-Hannifin.

Q2 2026

Jan 29, 2026

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Q1 2026

Nov 6, 2025

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Q4 2025

Aug 7, 2025

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Parker-Hannifin (PH)

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