With a market cap of $126.4 billion, Parker-Hannifin Corporation (PH) is a global manufacturer of motion and control technologies serving aerospace and defense, industrial, transportation, energy, and HVAC and refrigeration markets across North America, Europe, Asia Pacific, and Latin America. It operates through its Diversified Industrial and Aerospace Systems segments, delivering a broad portfolio of advanced systems and components to OEMs, distributors, and direct customers worldwide. Shares of the Cl ...

Company Announcement - Parker Hannifin Corporation is scheduled to present at the Barclays 43 Industrial Select Conference in Miami Beach, Florida on February 18, 2026 at 11:00 a.m. Eastern time [1] - A live webcast of the presentation will be accessible on Parker's investor information website and will be archived on the site [1] Company Profile - Parker Hannifin is a Fortune 250 global leader in motion and control technologies, with over a century of experience enabling engineering breakthroughs [2] - The company has increased its annual dividend per share paid to shareholders for 69 consecutive fiscal years, ranking among the top five longest-running dividend-increase records in the S&P 500 index [2]

Core Insights - Parker Hannifin Corporation has released its fiscal year 2025 Sustainability Report, themed "Purpose in Motion," emphasizing the company's commitment to enabling engineering breakthroughs for a better tomorrow [1][3]. Group 1: Safety Initiatives - The company has achieved a 52% reduction in recordable incidents compared to the FY19 baseline, with 81% of all sites reporting zero recordable incidents in FY25, ranking in the top quartile of the industrial sector [6]. - Over 37,000 team members participated in High Performance Teams, enhancing shared learning and leadership development [6]. Group 2: Clean Technologies - Parker collaborates with customers to create lighter, more efficient solutions, focusing on electrification, clean energy systems, and alternative fuels [6]. - The report highlights Parker's market-driven approach to innovation and sustainable product development [6]. Group 3: Carbon Emissions Reduction - Since FY19, Parker has initiated over 1,300 projects aimed at reducing its energy footprint, resulting in a 36% reduction in Scope 1 and Scope 2 emissions from FY19 to FY24 [6]. Group 4: Supplier Engagement - The company has introduced a new Supplier Engagement Target program aligned with SBTi, focusing on enhancing emissions data, reporting, and capacity among key suppliers [6]. Group 5: Community Investment - In FY25, Parker and the Parker Foundation contributed over $13 million in charitable donations, with team members performing approximately 23,000 hours of community service [6].

Core Insights - U.S. equity markets reached new all-time highs in Q4 2025, with the S&P 500 Index increasing by 2.66% and the Bloomberg U.S. Aggregate Bond Index rising by 1.10% [1] - Value stocks outperformed growth stocks, and the U.S. economy demonstrated resilience, with artificial intelligence being a significant theme as over 300 S&P 500 companies mentioned "AI" in earnings calls [1] - The Composite returned 1.45% pure gross of fees (0.95% net of fees), underperforming the Russell 1000 Value Index's 3.8% gain and the S&P 500 Index's 2.66% gain [1] Company Performance - Parker-Hannifin Corporation (NYSE:PH) was highlighted as a top contributor to the Value Equity Strategy's performance in Q4 2025, with a one-month return of 6.16% and a 52-week gain of 39.99% [2] - As of February 3, 2026, Parker-Hannifin's stock closed at $964.33 per share, with a market capitalization of $121.714 billion [2] - The company benefits from strength in its aerospace business, driven by demand for original equipment and aftermarket services, leading to organic growth and margin expansion [3] - The integration of Meggitt, acquired in 2022, has enhanced Parker-Hannifin's aerospace and defense capabilities, increasing exposure to higher-margin aftermarket revenue [3] - Management has improved the company's balance sheet, with net debt-to-EBITDA trending lower, supporting a more resilient earnings profile [3] - Parker-Hannifin's diverse portfolio positions it to capitalize on trends such as factory automation, electrification of industrial equipment, and modernization across aerospace platforms [3] - The execution of the Win Strategy focuses on operational excellence, pricing discipline, and strong cash flow generation, which is expected to improve profitability and free cash flow over time [3]

Core Insights - Parker-Hannifin Corporation reported better-than-expected second-quarter financial results and raised its FY26 guidance [1][2] Financial Performance - Adjusted EPS for the second quarter was $7.65, surpassing the analyst estimate of $7.17 [1] - Net sales reached $5.174 billion, exceeding the estimate of $5.066 billion, with a year-over-year sales increase of 9% and organic sales growth of 6.6% [1] Guidance Updates - For fiscal 2026, GAAP EPS guidance was raised to a range of $26.26 to $26.86 from a previous range of $25.53 to $26.33, compared to a $26.46 estimate [2] - Adjusted EPS guidance was increased to $30.40 to $31.00 from $29.60 to $30.40, against a $30.33 estimate [2] - Sales guidance was raised to a range of $20.942 billion to $21.339 billion from $20.644 billion to $21.239 billion, compared to a $21.106 billion estimate [3] Market Reaction - Following the earnings announcement, Parker-Hannifin shares fell by 1.6% to trade at $933.42 [3] Analyst Ratings - Stifel analyst Nathan Jones maintained a Hold rating and raised the price target from $941 to $965 [4] - Wells Fargo analyst Joseph O'Dea maintained an Overweight rating and increased the price target from $1,000 to $1,050 [4] - Barclays analyst Julian Mitchell also maintained an Overweight rating, boosting the price target from $990 to $1,020 [4]

Core Insights - Parker-Hannifin Corporation reported better-than-expected second-quarter financial results and raised its FY26 guidance [1][2] Financial Performance - Adjusted EPS for the second quarter was $7.65, surpassing the analyst estimate of $7.17 [1] - Net sales reached $5.174 billion, exceeding the estimate of $5.066 billion, with a year-over-year sales increase of 9% and organic sales growth of 6.6% [1] Guidance Updates - For fiscal 2026, GAAP EPS guidance was raised to a range of $26.26 to $26.86 from a previous range of $25.53 to $26.33, compared to a $26.46 estimate [2] - Adjusted EPS guidance was increased to $30.40 to $31.00 from $29.60 to $30.40, against a $30.33 estimate [2] - Sales guidance was raised to a range of $20.942 billion to $21.339 billion from $20.644 billion to $21.239 billion, compared to a $21.106 billion estimate [3] Market Reaction - Following the earnings announcement, Parker-Hannifin shares fell by 1.6% to trade at $933.42 [3] Analyst Ratings - Stifel analyst Nathan Jones maintained a Hold rating and raised the price target from $941 to $965 [4] - Wells Fargo analyst Joseph O'Dea maintained an Overweight rating and increased the price target from $1,000 to $1,050 [4] - Barclays analyst Julian Mitchell also maintained an Overweight rating, boosting the price target from $990 to $1,020 [4]

On profitability, Leombruno said adjusted EBITDA margin was 27.7%, up 90 basis points from the prior year, while net income was $980 million, representing return on sales of 18.9%. Adjusted EPS was $7.65, up 17% year over year, which he called a record.CFO Todd Leombruno added that the quarter produced new records for sales, adjusted segment operating margin, EBITDA, net income, and earnings per share. He said sales increased 9% year over year, with organic growth “nearly 7%,” currency a 2% tailwind, acquis ...

Core Insights - Parker Hannifin Corporation reported record sales of $5.2 billion for the quarter ended December 31, 2025, with an organic sales growth of 6.6% and a segment operating margin increase of 180 basis points [4][2] - The company achieved a 17% growth in adjusted earnings per share (EPS), reaching a record $7.65, despite a decrease in net income due to a prior year one-time gain from divestitures [4][2] - The outlook for fiscal year 2026 has been increased, with reported sales growth projected between 5.5% to 7.5% and adjusted EPS guidance raised to a range of $30.40 to $31.00 [5][2] Financial Performance - Net sales increased by 9% to $5.2 billion, with adjusted segment operating margin at 23.9%, an increase of 180 basis points [4][2] - Adjusted net income rose by 15% to $980 million, while net income decreased by 11% to $845 million compared to the same quarter last year [4][2] - The company reported an adjusted segment operating income of $889 million, with a margin of 25.4% [4][2] Segment Analysis - The Diversified Industrial Segment in North America reported sales of $1.986 billion, a 3% increase, with an adjusted segment operating margin of 25.4% [3][4] - International businesses saw a sales increase of 11.8% to $1.482 billion, with an adjusted segment operating margin of 26.0% [7][4] - The Aerospace Systems Segment achieved sales of $1.706 billion, a 14.5% increase, with a segment operating margin of 26.0% [8][4] Order Rates and Backlog - Order rates increased by 9%, with the Aerospace Systems Segment experiencing a 14% increase in orders [9][12] - The company reported a robust backlog of $11.7 billion, indicating strong future demand [14][13] - The backlog in the aerospace and defense sector contributed significantly to the overall order growth [12][13] Strategic Initiatives - Parker Hannifin announced a definitive agreement to acquire Filtration Group Corporation, which will enhance its aftermarket business and expand its presence in life sciences and HVAC/R markets [2][4] - The company continues to focus on organic growth driven by sectors such as in-plant & industrial, off-highway, and aerospace & defense [6][12]

Core Viewpoint - Parker-Hannifin Corporation is facing softer sales trends and inventory levels, but is making strategic moves to strengthen its market position through acquisitions [2][3] Group 1: Financial Performance and Market Trends - Stifel analyst Nathan Jones reiterated a Hold rating on Parker-Hannifin with a price target of $869, citing a distributor survey indicating softer Q2 results and lower sales trends [2] - Distributors highlighted tariffs, local economic conditions, and inflation as significant factors affecting demand, although fewer expect a recession within the next year [2] Group 2: Strategic Acquisition - Parker announced plans to acquire Filtration Group for $9.25 billion, aimed at enhancing its aftermarket business, which is crucial for steady revenue streams [3][6] - Filtration Group generates about 85% of its revenue from the aftermarket and is projected to achieve approximately $2 billion in sales by 2025 [4] Group 3: Industry Dynamics - There is a growing investor interest in filtration and water-related businesses due to increasing demand for cleaner air and water, which aligns with Parker's strategic focus [5] - Parker plans to fund the acquisition through a combination of new debt and cash, with the transaction expected to close within six to twelve months, pending regulatory approvals [6]

Core Viewpoint - Parker Hannifin Corporation will release its fiscal 2026 second quarter earnings on January 29, 2026, and will hold a conference call to discuss the results and answer questions from investors and analysts [1]. Company Overview - Parker Hannifin is a Fortune 250 global leader in motion and control technologies, with over a century of experience in enabling engineering breakthroughs [2]. - The company has a strong track record of increasing its annual dividend per share for 69 consecutive fiscal years, ranking among the top five longest-running dividend-increase records in the S&P 500 index [2]. Investor Communication - The earnings conference call will take place at 11:00 a.m. Eastern time and will be webcast on Parker's investor website, with an accompanying slide presentation [1]. - The webcast will be archived and available for replay later on the same day [1].