Parker-Hannifin (PH) Bank of America Global Industrials Conference 2026 summary

Business Overview and Strategic Positioning

• Operates across Aerospace Systems (31–35%), Diversified Industrial International (30%), and Diversified Industrial North America (40%), holding a top position in the motion and control industry.

• Four technology platforms: Motion Systems, Flow and Process Control, Aerospace, Filtration and Engineered Materials.

• Two-thirds of sales come from customers purchasing four or more technology platforms, emphasizing interconnected solutions.

• Win Strategy guides operational excellence and underpins performance.

• Decentralized structure with 85 general managers enables agility and customer focus.

Financial Performance and Guidance

• Achieved 6% revenue CAGR, with revenue projected to grow from $11.4B in FY16 to $21.2B in FY26.

• Adjusted operating margin expected to expand from 15.7% in FY16 to 27.2% in FY26, with adjusted EPS rising from $6.99 to $30.70.

• Free cash flow forecasted to increase from $1.3B in FY16 to $3.4B in FY26, a 10% CAGR.

• 60% of EPS growth from legacy businesses, 40% from acquisitions (LORD, CLARCOR, Exotic, Meggitt, Curtis).

• FY26 guidance includes adjusted EPS of $30.40–$31.00 and adjusted operating margin of 27.0%–27.4%.

M&A, Capital Allocation, and Strategic Initiatives

• Robust, ongoing acquisition pipeline; recent deals include Curtis and pending Filtration Group.

• Curtis acquisition fills a low-voltage motor controller gap, accretive to EPS but initially dilutive to margins.

• Filtration Group expected to close in 6–12 months, targeting 11% synergies, to be integrated into existing divisions.

• EPS growth compounded over time through both organic growth and acquisitions.

• Focus on business realignment, cost management, and operational excellence to drive top quartile performance.