Parker-Hannifin CorpPH
Parker-Hannifin Corp Segments Disclosure
Business Segment Information
The Company operates in two reportable business segments: Diversified Industrial and Aerospace Systems. Both segments utilize eight core technologies, including hydraulics, pneumatics, electromechanical, filtration, fluid & gas handling, process control, engineered materials, and climate control, to drive superior customer problem solving and value creation.
The Diversified Industrial Segment is an aggregation of several business units that design, manufacture, and provide aftermarket support for highly engineered solutions that create value for customers primarily in aerospace and defense, in-plant and industrial equipment, transportation, off-highway, energy, and HVAC and refrigeration markets around the world. Diversified Industrial Segment products are marketed direct to OEMs and independent distributors through field sales employees. The Diversified Industrial North America businesses have manufacturing plants and distribution networks throughout the United States, Canada and Mexico and primarily service North America. The Diversified Industrial International businesses provide Parker products and services to 40 countries throughout Europe, Asia Pacific, Latin America, the Middle East and Africa.
The Aerospace Systems Segment designs, manufactures and provides aftermarket support for highly engineered airframe and engine solutions for both OEMs and end users. Our components and systems are utilized across commercial transport, defense fixed wing, business jets, regional transport, helicopter and energy applications. Aerospace Systems Segment products are marketed by field sales employees and are sold directly to manufacturers and end users.
The accounting policies of the business segments are the same as those described in the Significant Accounting Policies footnote. The business segment results are prepared on a basis that is consistent with the manner in which the Company’s management disaggregates financial information for internal review and decision-making.
The Company’s Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The CODM uses Segment Operating Income as a measure to assess performance, drive decisions and allocate human and financial capital to our reportable segments. Annual plan, monthly forecasts and prior year results are continually compared to these measures when evaluating performance. Other segment items are managed on a consolidated basis for the CODM’s review.
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Net Sales: | ||||||||||||||||||||
| Diversified Industrial | $ | 13,665 | $ | 14,458 | $ | 14,705 | ||||||||||||||
| Aerospace Systems | 6,185 | 5,472 | 4,360 | |||||||||||||||||
| $ | 19,850 | $ | 19,930 | $ | 19,065 | |||||||||||||||
Other Segment Items:(1) | ||||||||||||||||||||
| Diversified Industrial | $ | 10,545 | $ | 11,282 | $ | 11,634 | ||||||||||||||
| Aerospace Systems | 4,744 | 4,361 | 3,797 | |||||||||||||||||
| $ | 15,289 | $ | 15,643 | $ | 15,431 | |||||||||||||||
| Segment Operating Income: | ||||||||||||||||||||
| Diversified Industrial | $ | 3,120 | $ | 3,176 | $ | 3,071 | ||||||||||||||
| Aerospace Systems | 1,441 | 1,111 | 563 | |||||||||||||||||
| Total segment operating income | 4,561 | 4,287 | 3,634 | |||||||||||||||||
| Corporate general and administrative expenses | 214 | 218 | 230 | |||||||||||||||||
| Income before interest expense and other (income) expense, net | 4,347 | 4,069 | 3,404 | |||||||||||||||||
| Interest expense | 409 | 506 | 574 | |||||||||||||||||
| Other (income) expense, net | (169) | (32) | 150 | |||||||||||||||||
| Income before income taxes | $ | 4,107 | $ | 3,595 | $ | 2,680 | ||||||||||||||
(1) Other segment items are primarily comprised of cost of sales; selling, general and administrative expenses; and income related to equity method investments. | ||||||||||||||||||||
| Assets | Property Additions | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Diversified Industrial | $ | 15,953 | $ | 16,174 | $ | 15,573 | $ | 310 | $ | 303 | $ | 293 | ||||||||||||||||||||||||||
Aerospace Systems(1) | 12,218 | 12,016 | 13,661 | 88 | 90 | 81 | ||||||||||||||||||||||||||||||||
| Corporate | 1,323 | 1,108 | 730 | 37 | 7 | 7 | ||||||||||||||||||||||||||||||||
| Total | $ | 29,494 | $ | 29,298 | $ | 29,964 | $ | 435 | $ | 400 | $ | 381 | ||||||||||||||||||||||||||
(1) Assets include an investment in a joint venture in which ownership is 50 percent or less and in which the Company does not have operating control (2025 - $226 million; 2024 - $218 million; 2023 - $216 million). | ||||||||||||||||||||||||||||||||||||||
| Depreciation | Amortization | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Diversified Industrial | $ | 228 | $ | 232 | $ | 205 | $ | 253 | $ | 266 | $ | 268 | ||||||||||||||||||||||||||
| Aerospace Systems | 114 | 108 | 104 | 300 | 312 | 233 | ||||||||||||||||||||||||||||||||
| Corporate | 12 | 9 | 8 | — | — | — | ||||||||||||||||||||||||||||||||
| Total | $ | 354 | $ | 349 | $ | 317 | $ | 553 | $ | 578 | $ | 501 | ||||||||||||||||||||||||||
Geographic Area - Net sales are attributed to countries based on the location of the selling unit. North America includes the United States, Canada and Mexico. No country other than the United States represents greater than 10 percent of consolidated sales. Long-lived assets are comprised of property, plant and equipment based on physical location.
| Net Sales | Long-Lived Assets | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| North America | $ | 13,406 | $ | 13,512 | $ | 12,690 | $ | 1,874 | $ | 1,864 | $ | 1,828 | ||||||||||||||||||||||||||
| International | 6,444 | 6,418 | 6,375 | 1,063 | 1,012 | 1,037 | ||||||||||||||||||||||||||||||||
| Total | $ | 19,850 | $ | 19,930 | $ | 19,065 | $ | 2,937 | $ | 2,876 | $ | 2,865 | ||||||||||||||||||||||||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 22, 2025 | Showing above |
| 2024 | Aug 22, 2024 | |
| 2023 | Aug 24, 2023 | |
| 2022 | Aug 24, 2022 | |
| 2021 | Aug 25, 2021 | |
| 2020 | Aug 26, 2020 | |
| 2019 | Aug 23, 2019 | |
| 2018 | Aug 24, 2018 | |
| 2017 | Aug 25, 2017 | |
| 2016 | Aug 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.