# Parker Hannifin (PH) Forecast Calculator

Interactive five-year financial forecast and DCF for Parker Hannifin. Adjust revenue growth, margins, capex, and WACC to update revenue, free cash flow, and enterprise value.

- Canonical: https://finamodel.com/companies/parker-hannifin/forecast
- Industry: Industrials
- Forecast start year: 2026

## Historical data

| Year | Revenue | Free cash flow | EBITDA | Net income |
|---:|---:|---:|---:|---:|
| 2021 | 14320324000 | 1535051000 | 2461914000 | 1524516000 |
| 2022 | 13695520000 | 1838358000 | 2219603000 | 1201970000 |
| 2023 | 14347640000 | 2365044000 | 2729884000 | 1746100000 |
| 2024 | 15861608000 | 2211686000 | 3232349000 | 1315605000 |
| 2025 | 19065000000 | 2599000000 | 3721000000 | 2084000000 |

## Frequently asked questions

### What does Parker Hannifin do?

Parker Hannifin is a global leader in motion and control technologies, providing precision-engineered solutions for a wide variety of mobile, industrial, and aerospace markets. The company operates through its Diversified Industrial and Aerospace Systems segments, leveraging a massive installed base for highly profitable, recurring aftermarket revenue.

### What are the main drivers of Parker Hannifin's revenue?

Parker Hannifin's revenue is primarily driven by its highly diversified, asset-light manufacturing model and a significant installed base that generates recurring aftermarket revenue. The ongoing mix shift towards the high-growth, high-margin Aerospace Systems aftermarket is also a key driver for sales growth.

### What is Parker Hannifin's capital expenditure strategy?

Parker Hannifin maintains a historically stable capital expenditure as a percentage of revenue, typically between 1.5% to 2.0%. Approximately 60% of this capex is for maintenance, while 40% is allocated to growth initiatives like automation and facility upgrades to support margin expansion.

### How does Parker Hannifin plan to expand its margins and earnings?

Parker Hannifin aims to expand its margins and earnings through "The Win Strategy" and an ongoing mix shift towards the high-growth, high-margin Aerospace Systems aftermarket. Investments in global facility consolidation and automation robotics also support these margin expansion goals.

### What is the purpose of the downloadable Excel financial model for Parker Hannifin?

The downloadable Excel model for Parker Hannifin serves as a comprehensive equity valuation and scenario planning tool. It enables analysts to forecast earnings accretion and margin expansion, particularly those driven by "The Win Strategy" and the aerospace aftermarket shift.

### What is Parker Hannifin's approach to acquisitions?

Parker Hannifin is a serial acquirer, employing a barbell strategy that includes both transformational deals, like the Meggitt acquisition, every 3 to 5 years and frequent bolt-on acquisitions, such as Curtis Instruments. These acquisitions typically occur at 12x to 15x EV/EBITDA pre-synergies.