How Does Parker Hannifin Make its Money?
Parker Hannifin is the world’s largest diversified manufacturer of motion and control technologies. The company’s products — hydraulic systems, pneumatic equipment, electromechanical controls, filtration systems, and sealing devices — are essential components in aerospace, industrial machinery, construction equipment, and mobile applications. Parker supplies components to virtually every major industrial OEM and aftermarket channel worldwide. The company’s 2023 acquisition of Meggitt, a UK aerospace components maker, significantly expanded its aerospace exposure.
Parker Hannifin (PH) Business Model
Parker Hannifin operates in the industrials sector. Below is a summary of Parker Hannifin’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Parker Hannifin’s 2024 fiscal year filings with the SEC.
Parker Hannifin Competitors
Parker Hannifin’s key competitors and comparable public companies in the industrials sector include Honeywell, Caterpillar, Eaton, and GE Aerospace. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Parker Hannifin stacks up by comparing their revenue breakdown, margins, and growth metrics.
Parker Hannifin Competitors
Parker Hannifin’s key competitors and comparable public companies in the industrials sector include Honeywell, Caterpillar, Eaton, and GE Aerospace. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Parker Hannifin stacks up by comparing their revenue breakdown, margins, and growth metrics.
Parker Hannifin Competitors
Parker Hannifin’s key competitors and comparable public companies in the industrials sector include Honeywell, Caterpillar, Eaton, and GE Aerospace. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Parker Hannifin stacks up by comparing their revenue breakdown, margins, and growth metrics.
Parker Hannifin Competitors
Parker Hannifin’s key competitors and comparable public companies in the industrials sector include Honeywell, Caterpillar, Eaton, and GE Aerospace. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Parker Hannifin stacks up by comparing their revenue breakdown, margins, and growth metrics.
Parker Hannifin Competitors
Parker Hannifin’s key competitors and comparable public companies in the industrials sector include Honeywell, Caterpillar, Eaton, and GE Aerospace. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Parker Hannifin stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Diversified Industrial - North America | $9,900 | $9,600 | +3.1% |
| Diversified Industrial - International | $5,500 | $5,100 | +7.8% |
| Aerospace Systems | $5,700 | $4,900 | +16.3% |
| Total Revenue | $20,000 | $19,100 | +4.7% |
Diversified Industrial - North America — 50% of Revenue
Diversified Industrial - International — 28% of Revenue
Aerospace Systems — 28% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $20,000 | $19,100 |
| Cost of Revenue | $12,900 | $12,700 |
| Gross Profit | $7,100 | $6,400 |
| Operating Expenses | $2,700 | $2,500 |
| Operating Income | $4,400 | $3,900 |
| Net Income | $2,900 | $2,300 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 35.5%
- Operating Margin: 22.0%
- Revenue Growth: 4.7%
Is Parker Hannifin Profitable?
Yes, Parker Hannifin is profitable. The company reported net income of $2,900 on total revenue of $20,000. With an operating margin of 22.0%, Parker Hannifin demonstrates solid profitability for the industrials sector. The gross margin of 35.5% reflects Parker Hannifin’s pricing power and cost structure.
What to Watch
- Aerospace Systems growth from commercial aviation recovery and Meggitt synergies
- Win Strategy 3.0 operational improvements and margin expansion
- Industrial destocking recovery in distribution channels
- Electrification and hydrogen economy opportunities for motion control systems
Parker Hannifin (PH) Financial Summary
Parker Hannifin (PH) is an industrials company that generated $20,000 in total revenue in fiscal year 2024. Revenue grew 4.7% year-over-year. The company earned $2,900 in net income, making it profitable. For a deeper look at Parker Hannifin’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.