Core Viewpoint - Parker-Hannifin Corporation had a strong performance in 2025, with shares increasing by 38.2%, making it an attractive investment opportunity for industrial investors during pullbacks [1]. Financial Performance - The aerospace segment, which is the largest for Parker-Hannifin, experienced significant growth, contributing to margin expansion and multiple earnings beats [2]. - In fiscal 2025, the aerospace division grew by 13% and expanded operating margins by 300 basis points, offsetting a 3% decline in the general industrial segment [4]. - The first fiscal quarter of 2025 saw revenue growth accelerate to 3.7%, or 5% when accounting for divestitures, with adjusted earnings per share increasing by 16% [5]. Acquisitions and Strategy - Parker-Hannifin made two notable acquisitions in 2025: Curtis Instruments for $1 billion and Filtration Group for $9.25 billion, enhancing its presence in the electric vehicle and industrial filtration markets [6]. - The successful integration of Meggitt PLC, acquired for approximately $7.3 billion, contributed to the company's strong performance and cost synergies [4]. Market Position and Valuation - Parker-Hannifin is recognized as a high-performing company with a "Win 3.0" business excellence strategy, which has proven effective in a challenging macroeconomic environment [7]. - Currently, shares are trading at 33 times earnings, which is at the high end of the valuation range for the past decade, indicating that while the company may be fairly valued to over-valued, it remains a high-quality investment option [8].