Parker-Hannifin Corporation

Record FY26 performance (profitability + cash + EPS) - Sales: $21.5B, surpassing $20B for the first time; organic growth 6.6% - Margins: Adjusted segment operating margin 27.3%, up 120 bps to a record; EPS: $32.31, up 18% - Cash flow: CFO $4.4B (record; first time >$4B); FCF $3.9B, 18.2% of sales with ~107% conversion - Safety: 9% reduction in recordable incident rate; safest year ever

Capital deployment + M&A pipeline (a major driver of the story, with integration as the key execution risk) - > $15B total announced/deployed capital in FY26 (strategic acquisitions) - Completed: Curtis Instruments (electrification) closed last September - Pending: - Filtration Group (announced Nov; expands filtration aftermarket by ~500 bps) - CIRCOR commercial aerospace/defense (announced May; adds flight-critical capabilities) - Timing: Management expects both to close in 2H calendar year / 1H FY27, subject to “customary regulatory clearances” - Investor implication: guidance already includes previously completed deals (Curtis) but explicitly does not include Filtration/CIRCOR yet (will update after close)

FY27 outlook (new record expectations; growth + margin expansion) - Organic growth: guided 5.5%–8.5% (7% midpoint); guidance assumes positive growth in all market verticals for the first time - Reported sales: 5.5%–8.5% (7% midpoint) → modeled to about $23B annual sales - By vertical (midpoint themes): - Aerospace & defense: high single-digit organic growth (commercial OEM double-digit; sustained aftermarket growth; defense supportive) - Industrial: mid-single-digit recovery (distribution signals improving; automation supporting) - Transportation: mid-single-digit (heavy-duty truck build-rate increases offset weaker automotive) - Off-highway: mid-single-digit (construction/mining strong; agriculture soft; energy supported by gas turbine power; oil & gas ~flat) - HVAC & refrigeration: mid-single-digit (commercial leads; residential stabilizing) - Currency: slight headwind ~0.5% (June 30 spot) - Margins / EPS: Adjusted segment operating margin 27.7% midpoint (up 40 bps YoY) and adjusted EPS $34.75 midpoint (+8% YoY) - Cash flow: FCF $3.4B–$3.9B with ~100% conversion - Q1 FY27 (midpoint): reported sales ~+9%, organic ~+8%, adj. segment operating margin 27.7%, adj. EPS ~$8.07