Parker-Hannifin (PH) Company Report

On November 10, 2025, Parker-Hannifin entered into a merger agreement to acquire Filtration Group, a private filtration-technology provider, in an all-cash transaction valued at $9.25 billion, subject to a net working capital adjustment.
The purchase price will be financed with a combination of new debt and cash on hand, with Filtration Group merging into Parker’s wholly owned subsidiary at closing.
Completion is conditioned on regulatory approvals (including HSR Act clearances), absence of injunctions, a pre-closing divestiture of the Facet Filtration business, and other customary closing conditions; either party may terminate the agreement if closing does not occur by February 10, 2027, subject to certain extensions.

Nov 12, 2025, 11:06 AM

8-K

Parker Hannifin to acquire Filtration Group

M&A

Parker Hannifin signed a definitive agreement to acquire Filtration Group for $9.25 billion in cash, adding approximately $2 billion of recurring filtration sales at a 23.5% adjusted EBITDA margin.
The transaction values Filtration Group at 19.6x expected CY2025 adjusted EBITDA ( 13.4x post $220 million cost synergies) and includes $140 million of incremental cash benefits (NPV) over three years.
Planned funding through new debt and cash on hand will raise pro forma net debt/EBITDA to ~3.0x, with a commitment to deleverage to 2.0x within six quarters, leveraging Parker’s track record of rapid deleveraging.
Combining Filtration Group with Parker’s filtration business creates a ~$5 billion global industrial filtration platform, boosting aftermarket sales by 500 bps and expanding presence in life sciences, HVAC/refrigeration, industrial, and transportation markets.

Nov 11, 2025, 1:30 PM

Transcript

Parker Hannifin to acquire Filtration Group Corporation

M&A

Parker Hannifin signed a definitive agreement to acquire Filtration Group for $9.25 billion in cash, adding $2 billion of recurring filtration sales at a 23.5% adj. EBITDA margin (19.6× CY2025 EBITDA; 13.4× post-synergies).
The deal is expected to deliver $220 million of cost synergies over three years, plus $140 million in NPV cash benefits; it will be funded on a cash-free, debt-free basis with new debt and cash, driving pro forma net debt/adj. EBITDA to ~3× before targeting 2× leverage within six quarters.
Filtration Group boosts Parker’s filtration platform to ~$5 billion in annual revenue, extending its presence in life sciences, HVAC/refrigeration, in-plant/industrial, and transportation markets.
Transaction is projected to be EPS-accretive in year one, achieve synergized EBITDA margins in the mid-30% range, and deliver a high-single-digit ROIC by year five.

Nov 11, 2025, 1:30 PM

Transcript

Parker Hannifin announces acquisition of Filtration Group Corporation

M&A

Parker Hannifin will acquire Filtration Group Corporation for $9.25 billion on a cash-free, debt-free basis.
Filtration Group is projected to deliver $2 billion in sales in CY2025 at a 23.5% adjusted EBITDA margin.
The transaction is priced at 19.6x EV/CY25E adjusted EBITDA (13.4x including expected cost synergies).
$220 million of pre-tax cost synergies are expected by the end of year three, with closing anticipated within six to twelve months.

Nov 11, 2025, 1:30 PM

Presentation

Parker Hannifin to Acquire Filtration Group for $9.25 B

M&A

Parker Hannifin has signed a definitive agreement to acquire Filtration Group for $9.25 billion in cash, adding $2 billion of recurring filtration sales at a 23.5% Adjusted EBITDA margin; purchase price represents 19.6× CY2025 EBITDA (13.4× with synergies). The deal expects $220 million of cost synergies and $140 million of NPV cash benefits, financed with new debt and cash, resulting in pro forma net debt/EBITDA of ~3.0× and a target to return to 2.0× leverage within six quarters.
The combined filtration business will reach nearly $5 billion in annual revenue with an 85% aftermarket sales mix, enhancing Parker’s presence in life sciences, HVAC/refrigeration, in-plant industrial, and transportation markets. The transaction is accretive to EPS in the first year, targets mid-30% synergized EBITDA margins, and delivers a high-single-digit ROIC by year five.
This acquisition supports Parker’s strategic criteria to invest in high-quality, complementary technologies, leveraging its WIN business system to drive organic growth, profitability, and rapid deleveraging, continuing a track record of accretive M&A and portfolio transformation.

Nov 11, 2025, 1:30 PM

Transcript

Parker Hannifin to Acquire Filtration Group Corporation

M&A

Parker Hannifin entered a definitive agreement to acquire Filtration Group for a cash purchase price of $9.25 billion, representing 19.6x calendar year 2025 estimated adjusted EBITDA (13.4x including expected synergies).
Filtration Group forecasts $2.0 billion in CY2025 sales with an adjusted EBITDA margin of 23.5%, and generates approximately 85% of its revenue from aftermarket channels.
Parker expects to realize $220 million in pre-tax cost synergies by the end of year three post-close, with the transaction projected to be accretive to organic growth, synergized EBITDA margin, adjusted EPS, and cash flow.
The deal, to be financed with new debt and cash on hand, is anticipated to close within six to twelve months, subject to customary closing conditions and regulatory approvals.

Nov 11, 2025, 12:30 PM

Press Release

Parker-Hannifin acquires Filtration Group in $9.25B deal

M&A

Debt Issuance

Parker-Hannifin will acquire Filtration Group for $9.25 billion, expanding its filtration technologies into life sciences, healthcare, and air quality markets.
Fitch Ratings affirmed Parker-Hannifin’s long-term IDR at A- (stable outlook) and short-term rating at F1, projecting leverage to fall below 2.5x by FY 2028 through cost synergies and debt repayment.
The transaction, expected to close within six to twelve months, creates one of the largest global industrial filtration businesses with $2 billion of estimated 2025 sales and a 23.5% adjusted EBITDA margin.
The purchase price equals 19.6x calendar 2025 estimated adjusted EBITDA (13.4x including $220 million in cost synergies) and is expected to be accretive to organic growth, EBITDA margin, adjusted EPS, and cash flow.

Nov 10, 2025, 10:11 PM

Bloomberg

Parker Hannifin reports Q1 2026 results

Earnings

Guidance Update

Q1 net sales were $5.084 billion, up 3.7% year-over-year reported and 5.0% organic growth.
Adjusted diluted EPS was $7.22 versus $6.20 in Q1 2025.
Adjusted segment operating margin expanded to 27.4% from 25.7% a year ago.
Free cash flow totaled $693 million, with a free cash flow margin of 13.6%.
FY26 guidance reiterated organic sales growth of 2.5%–5.5% and adjusted EPS of $29.60–$30.40.

Nov 6, 2025, 4:00 PM

Presentation

Parker-Hannifin reports Q1 2026 results

Earnings

Guidance Update

Share Buyback

Parker-Hannifin delivered 4% sales growth (organic +5%) and record-adjusted EPS of $7.22, up 16% year-over-year.
Adjusted segment operating margin expanded 170 bps to 27.4%, with aerospace margins reaching a record 30%.
Operating cash flow was a record $782 million (15.4% of sales) and free cash flow was $693 million, with $475 million of discretionary share repurchases in the quarter.
Raised FY26 guidance: organic sales growth now 4% midpoint, adjusted EPS $30, segment margins 27%, and free cash flow $3.1–$3.5 billion.

Nov 6, 2025, 4:00 PM

Transcript

Parker-Hannifin reports Q1 2026 results

Earnings

Guidance Update

M&A

Parker-Hannifin delivered record Q1 sales of $5.1 billion, organic growth of 5%, 27.4% adjusted segment operating margin (+170 bps), 16% increase in adjusted EPS to $7.22, and generated $782 million of operating cash flow.
Orders grew 8% year-over-year and organic growth was +5% across all segments, marking the first positive diversified industrial organic growth in two years.
Diversified Industrial North America sales surpassed $2 billion with 2% organic growth (first positive result in seven quarters).
Closed the Curtis Instruments acquisition, adding $235 million to FY26 sales guidance (~1% of total sales) and projected to be EPS-accretive in the stub period.
Raised full-year FY26 guidance: reported sales growth to 7% (5.5% midpoint), organic growth to 4% (from 3%), adjusted segment operating margin to 27.0% (+90 bps), adjusted EPS to $30 (+10%), and free cash flow to $3.1–3.5 billion.

Nov 6, 2025, 4:00 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for Parker-Hannifin.

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