Parker-Hannifin (PH) Barclays 43rd Annual Industrial Select Conference summary

Business Overview and Strategic Positioning

• Guiding to $21–$21.2 billion in sales for FY26, with a balanced split between aerospace and diversified industrial segments and a leading position in motion and control.

• Portfolio is focused on motion control, with significant exposure to aerospace, filtration/engineered materials, flow/process control, and motion systems.

• Largest end market is aerospace and defense at 35%, followed by in-plant/industrial equipment and transportation.

• Decentralized structure with 85 P&L owners and a global distribution network drives growth and customer success.

• Growth strategy targets faster-growing, longer-cycle markets and leverages deep customer partnerships.

Financial Performance and Guidance

• Achieved 6% revenue CAGR, 1,150 bps margin expansion, 16% EPS CAGR, and 10% cash flow CAGR over 10 years.

• Projects FY26 revenue of $21.2B, adjusted operating margin of 25.2%–27.2%, and adjusted EPS of $30.40–$31.00.

• Free cash flow forecasted to increase from $1.3B in FY16 to $3.4B in FY26.

• 60% of EPS growth from internal strategy, 40% from acquisitions like Clarcor, LORD, Exotic, Meggitt, and Curtiss.

• Provides detailed reconciliations for non-GAAP measures, including adjustments for acquisitions, realignment, and amortization.

Market Trends and Outlook

• Aerospace segment in its third year of double-digit organic growth, expected to continue.

• Industrial segment orders have turned positive after two years of negative growth; organic growth guide raised to 2.5%.

• North America and Asia-Pacific showing growth in in-plant equipment, while Europe remains weak.

• Backlog at record levels, with a shift toward longer-cycle orders, especially in aerospace and power generation.

• Automation investments are focused on tasks that are dirty, dull, dangerous, or difficult, both internally and for customers.