Parker Hannifin: Steering the Future of Motion and Control

December 2024

Disclosure: I don't own shares in Parker Hannifin. At the time of writing, my portfolio consists of Applied Materials, ATOSS Software, Cadence Design Systems, Constellation Software, Fair Isaac, Fortinet, KLA Corp, Mastercard, Microsoft, MSCI, NVIDIA and Visa.

Business summary

Parker Hannifin (NYSE:PH) was founded in 1917 by Arthur L. Parker. The company began by innovating pneumatic brake systems and fluid coupling seals. It has since grown into a global leader in aerospace, motion and control technologies, fluid power systems, and hydraulic and pneumatic components. It is now a multinational company with over 300 facilities in 50 countries, serving more than 400,000 customers across a range of industries. Parker’s technologies were pivotal in Charles Lindbergh's transatlantic flight and NASA's Apollo missions. They continue today to enhance modern life by powering machinery, enabling infrastructure development, and advancing healthcare solutions like exoskeletons for mobility assistance. Parker should be well positioned to benefit from a range of secular trends, like clean renewable energy and infrastructure modernisation.

The multinational business and its exposure to a diverse range of sectors is reflected in the below Sankey diagram of its income statement.