Parker-Hannifin Corp Stock

Parker-Hannifin Corporation (Parker) operates as a worldwide diversified manufacturer of motion and control technologies and systems, providing precision engineered solutions for a wide variety of mobile, industrial and aerospace markets.

The company’s manufacturing, service, sales, distribution and administrative facilities are located in 39 states within the United States and in 43 other countries. The company sells its products as original and replacement equipment through sales and distribution centers worldwide. The company markets its products through direct-sales employees, independent distributors, and sales representatives. The company supplies products to approximately 548,000 customers in virtually every significant manufacturing, transportation and processing industry.

Segments

The company operates through two reporting segments: Diversified Industrial and Aerospace Systems. During 2023, the company’s technologies and systems were used in the products of these two reporting segments.

Markets

The company’s technologies and systems are used across industries and in various applications. The approximately 548,000 customers who purchase Parker products are found in almost every significant manufacturing, transportation and processing industry.

Diversified Industrial Segment

The company’s Diversified Industrial Segment sells products to both original equipment manufacturers (‘OEMs’) and distributors who serve the replacement markets in manufacturing, packaging, processing, transportation, mobile construction, refrigeration and air conditioning, agricultural and military machinery and equipment industries. The major markets served by the company’s Diversified Industrial Segment are listed below by group:

Engineered Materials Group: Aerospace, agriculture, chemical processing, construction, defense, information technology, life sciences, microelectronics, oil and gas, power generation, renewable energy, telecommunications, transportation, and truck and bus.

Filtration Group: Aerospace and defense, agriculture, clean and renewable energy, construction, food and beverage, heating, ventilation and air conditioning (HVAC), industrial plant and equipment, life sciences, marine, mining, oil and gas, power generation, medium and heavy duty truck, and water purification.

Fluid Connectors Group: Aerial lift, agriculture, clean and renewable energy, construction, food and beverage, forestry, heating, ventilation, air conditioning and refrigeration (HVACR), industrial machinery, life sciences; and material handling: microelectronics, military, mining, oil and gas, chemical, petrochemical, refining, renewable energy, and transportation.

Motion Systems Group: Mobile: agriculture, construction, marine, material handling, military, transportation, truck and bus, and turf; and industrial: distribution, general machinery, machine tool, metal forming, mining, oil and gas, power generation, and semiconductor.

Aerospace Systems Segment

The company’s Aerospace Systems Segment sells products primarily in the commercial and military aerospace markets to both OEMs and to end users for spares, maintenance, repair and overhaul. The major markets for products of the aerospace systems segment are listed below: aftermarket services, business and general aviation, commercial transport aircraft, engines, helicopters, military aircraft, and regional transport aircraft.

Principal Products and Methods of Distribution

The company offers hundreds of thousands of individual part numbers. Listed below are some of the company’s principal products.

Diversified Industrial Segment

The company’s Diversified Industrial Segment products consist of a broad range of motion-control and fluid systems and components, which are described below by group:

Engineered Materials Group: Includes sealing, shielding, thermal products and systems, adhesives, coatings and noise vibration and harshness solutions, including: active vibration control systems, bearings and dampers, coatings, composites, dynamic seals, elastomeric mounts and isolators, elastomeric o-rings, electromagnetic interference shielding, extrusion and fabricated seals, fabric reinforced seals, fuel cell sealing systems, and high-temperature metal seals, homogeneous and inserted elastomeric shapes, medical products fabrication and assembly, metal and plastic composite bonded seals, precision-cut seals, rubber-to-substrate adhesives, specialty chemicals, structural adhesives, thermal management, and wireless sensing systems.

Filtration Group: Includes filters, systems and diagnostics solutions to ensure purity in critical process chemicals and to remove contaminants from fuel, air, oil, water and other liquids and gases, including: aerospace filters and systems, air pollution control and dust collection systems and filters, compressed air and gas treatment solutions, engine fuel, oil, air and closed crankcase ventilation filtration systems, filtration and purification systems, fluid condition monitoring systems, gas turbine air inlet filters, heating, ventilation and air conditioning filters, and hydrogen and alternative energy filters; and hydraulic and lubrication filters and systems, industrial and analytical gas generators, membrane, fiber, and sintered metal filters, natural gas filters, process liquid, air and gas filters, sterile air filters, thermal management, and water purification filters and systems.

Fluid Connectors Group: Includes high quality fluid conveyance and flow control solutions that are critical to a wide range of applications involving fluid and gas handling, process control, and climate controls: analytical instruments, ball and check valves, compressed natural gas dispensers, cryogenic valves, diagnostic and sensors, diesel exhaust treatment systems, elastomeric, thermoplastic, and industrial hose and couplings, electronic valves, filter driers, fluid system and control fittings, meters valves, regulators, and manifold valves, and fluoropolymer chemical delivery fittings, valves, and pumps; and high pressure fittings, valves, and regulators, high purity gas delivery fittings, valves, and regulators, HVACR controls and monitoring, low pressure fittings and adapters, miniature valves and pumps, natural gas on-board fuel systems, PTFE hose and tubing, pressure regulating valves, quick couplings, solenoid valves, tube fittings and adapters, and tubing and plastic fittings.

Motion Systems Group: Includes hydraulic, pneumatic, and electromechanical components and systems for builders and users of mobile and industrial machinery and equipment, including: hydraulic actuation: accumulators, coolers, cylinders, electrohydraulic actuators, helical actuators, and rotary actuators; hydraulic pumps and motors: drive controlled pumps, electrohydraulic pumps (‘ePumps’), fan drives, gerotor pumps and motors, integrated hydrostatic transmissions, piston pumps and motors, power take-offs (‘PTO’), screw pumps, and vane pumps and motors; hydraulic and electro hydraulic systems: cartridge valves, industrial hydraulic valves, mobile hydraulic valves, and ePTO's; pneumatics: air preparation (FRL) and dryers, grippers, IO link controllers, pneumatic cylinders, and pneumatic valves; and electronics: clusters, controllers and human machine interfaces (‘HMI’), drives (AC/DC Servo), electric actuators and positioners, electric motors and gearheads, electronic displays and HMI, IoT, joysticks, sensors, and software.

Diversified Industrial Segment products include standard products, as well as custom products, which are engineered and produced to OEM specifications for application to particular end products. Standard and custom products are also used in the replacement of original products. The company markets the company’s Diversified Industrial Segment products primarily through field sales employees and independent distributors located throughout the world.

During 2023, the company consolidated the Instrumentation Group with the Fluid Connectors Group. The consolidated group continues to service the major markets and offers the principal products provided by the former Instrumentation Group and Former Fluid Connectors Group. The combined group is designed to leverage the strength of Parker's fluid and gas handling, process control and climate control technologies into a single organization that can better address the emerging needs of customers across common end markets and applications.

Aerospace Systems Segment

The company’s Aerospace Systems Segment products are used in commercial and military airframe and engine programs and include: actuation systems and components, avionics, electric power components, engine build-up ducting, engine exhaust nozzles and assemblies, engine systems and components, fire detection and suppression systems and components, fluid conveyance systems and components, fluid metering, delivery and atomization devices, fuel systems and components, fuel tank inerting systems, hydraulic systems and components, lubrication components, pneumatic control components, sensors, thermal management, and wheels, brakes and brake control systems.

The company market the company’s Aerospace Systems Segment products through the company’s regional sales organizations, which sell directly to OEMs and end users throughout the world.

Environmental Regulation

Among other environmental laws, the company is subject to the United States federal ‘Superfund’ law, under which the company has been designated as a ‘potentially responsible party’ and may be liable for cleanup costs associated with various waste sites, some of which are on the United States Environmental Protection Agency’s Superfund priority list.

Acquisitions

The company completed the acquisition of Meggitt plc (‘Meggitt’) in 2023.

Research and Development

The company’s independent research and development costs amounted to $258 million in 2023.

Competition

The company’s primary global competitors include Bosch Rexroth AG, Danaher Corporation, Danfoss A/S, Donaldson Company, Inc., Emerson Climate Technologies, Inc., Emerson/ASCO, Festo AG and Co., Freudenberg-NOK, Gates Corporation, IMI/Norgren, SMC Corporation, Swagelok Company, and Trelleborg AB.

The company is one of the market leaders in most of the major markets for the company’s most significant Aerospace Systems Segment products, primary global competitors for these products include Eaton Corporation plc, Honeywell International, Inc., Moog Inc., Triumph Group, Inc., Senior plc, Crane Co., Raytheon Collins Aerospace, Woodward, Inc., and Safran S.A.

History

Parker-Hannifin Corporation was founded in 1917. The company was incorporated in Ohio in 1938.