Core Viewpoint - Parker Hannifin Corporation will host its Annual Meeting of Shareholders on October 22, 2025, at 9:00 a.m. Eastern time, which will be available via webcast on its investor website [1] Company Overview - Parker Hannifin is a Fortune 250 company recognized as a global leader in motion and control technologies, with over a century of experience in enabling engineering breakthroughs [2] - The company has a strong track record of increasing its annual dividend per share for 69 consecutive fiscal years, ranking among the top five longest-running dividend-increase records in the S&P 500 index [2]

Core Viewpoint - Parker Hannifin Corporation is set to host its Annual Meeting of Shareholders on October 22, 2025, which will be available via webcast on its investor website [1] Company Overview - Parker Hannifin is recognized as a Fortune 250 global leader in motion and control technologies, with a history of over a century in enabling engineering breakthroughs [2] - The company has a notable track record of increasing its annual dividend per share for 69 consecutive fiscal years, ranking among the top five longest-running dividend-increase records in the S&P 500 index [2]

Core Insights - Parker-Hannifin Corporation (PH) is experiencing growth driven by its Aerospace Systems segment and benefits from acquired assets, positioning it well for future performance [1][3] Business Strength - The Aerospace Systems segment is benefiting from strong demand in both commercial and military markets, with growth in air transport activities and stable defense spending [3][8] Expansion Efforts - The acquisition of Curtis Instruments in September 2025 enhances PH's industrial electrification portfolio and strengthens its electric motor and motion control capabilities [4][8] Gains from Win Strategy - PH's Win Strategy 3.0 focuses on innovation and strategic positioning, contributing to organic growth and improved operating margins, which increased by 170 basis points to 23.9% in Q4 fiscal 2025 [5][8] Rewards to Shareholders - In fiscal 2025, PH rewarded shareholders with $861 million in dividends (up 10.1%) and repurchased shares worth $851 million, with a 10% dividend increase to $1.80 per share in April 2025 [6][8]

Core Viewpoint - ClearBridge Investments reported strong performance in the third quarter of 2025, with significant gains in major indices, but underperformance in its strategy due to underexposure to AI stocks and holding perceived AI losers [1] Group 1: Market Performance - The S&P 500 Index increased by 8.1% and the Nasdaq Composite rose by 11.2% during the third quarter of 2025 [1] - The Russell 1000 Growth Index saw a rise of 10.5% for the quarter [1] Group 2: Company Focus - Parker-Hannifin Corporation - Parker-Hannifin Corporation (NYSE:PH) is highlighted as a promising investment, with a one-month return of 1.24% and a 52-week gain of 22.21% [2] - As of October 3, 2025, Parker-Hannifin's stock closed at $763.03, with a market capitalization of $97.386 billion [2] - The company operates in motion and control technologies for mobile, industrial, and aerospace markets, with a focus on early cyclical companies benefiting from an improving economy [3] Group 3: Investment Strategy Insights - ClearBridge Investments added Parker-Hannifin to its portfolio, citing its exposure to resilient aerospace growth and rebounding short-cycle industrial businesses [3] - The firm expresses optimism about the durability of growth in aerospace, supported by holdings in RTX and Airbus [3] - Despite recognizing Parker-Hannifin's potential, the firm suggests that certain AI stocks may offer greater upside potential and less downside risk [4]

Company Overview - Parker-Hannifin Corporation (NYSE:PH) is recognized as a global leader in motion and control technologies, serving aerospace, industrial, and mobile machinery markets [2] - The company has a long history of innovation and financial stability, boasting a 69-year streak of dividend increases, one of the longest in the S&P 500 [2] Recent Developments - In September 2025, Parker-Hannifin completed a $1 billion acquisition of Curtis Instruments, which specializes in motor speed controllers and power conversion devices for electric vehicles and mobile machinery [3] - Curtis Instruments is expected to generate $320 million in sales in 2025 and will be integrated into Parker-Hannifin's Motion Systems Group, enhancing its electrification and hybrid technology offerings [3] Financial Performance - For fiscal 2025, Parker-Hannifin reported record results, with fourth-quarter sales reaching $5.2 billion, reflecting a 2% organic growth [4] - Net income increased by 18% to $923 million, and adjusted earnings per share rose by 7% to $27.33 [4] - The company declared a quarterly dividend of $1.80 per share, marking its 301st consecutive payout, and expanded its share repurchase authorization to cover up to 20 million shares, indicating confidence in long-term growth [4]

Acquisition Overview - Parker-Hannifin Corporation (PH) has completed the acquisition of Curtis Instruments, Inc. for approximately $1 billion, announced in June 2025 [1][9] - Curtis Instruments specializes in motor control, battery management, and vehicle instrumentation solutions, expecting revenues of about $320 million in 2025 [2][9] Strategic Rationale - The acquisition aligns with Parker-Hannifin's strategy to strengthen its business and expand market share, enhancing its industrial electrification portfolio and motion control capabilities [3][9] - This move is expected to provide more comprehensive electric and hybrid solutions to customers, particularly in in-plant material handling and off-highway markets [3] Previous Acquisitions - In September 2022, Parker-Hannifin acquired Meggitt plc, which expanded its presence in the UK and enhanced its offerings in aircraft and aero-engine components [4] Market Performance - Parker-Hannifin is experiencing steady demand across end markets, particularly in the Aerospace Systems segment, with a year-to-date stock gain of 18.8% compared to the industry's 6% growth [5][7] Growth Strategy - The company's Win strategy (version 3.0) focuses on innovation, strategic positioning, and distribution growth to drive organic growth and support margin performance [6]

Core Insights - The article emphasizes the importance of companies that consistently increase their dividends at a rate faster than inflation, rather than focusing solely on high-yield stocks [1][2] Dividend Growth Companies - Parker-Hannifin (PH) has a five-year dividend growth rate of 14.3% with a low payout ratio of 24.6%, showcasing its potential for future increases after 69 consecutive years of dividend growth [4] - Procter & Gamble (PG) offers a 2.64% yield with a 62% payout ratio and has maintained 69 consecutive years of dividend increases, demonstrating resilience through economic downturns [5] - Coca-Cola (KO) yields 3.03% with a 70.5% payout ratio and has increased dividends for 63 years, benefiting from emerging market expansion and premium products [6][7] - Johnson & Johnson (JNJ) provides a 2.93% yield with a 53.4% payout ratio and has averaged 5.3% annual dividend growth over the past five years, supported by its diversified operations [8] - Altria Group (MO) yields 6.5% with a high payout ratio of 78.9%, managing to increase dividends at a 4.04% rate despite declining cigarette volumes [9] - Lowe's Companies (LOW) has raised its dividend by 16.9% over the past five years, with a conservative payout ratio of 38.1% and a history of 25 consecutive years of increases [10] - W.W. Grainger (GWW) yields 0.91% with a 21.3% payout ratio and has achieved 8.06% annual dividend growth, reflecting its essential role in various industries [11] - Abbott Laboratories (ABT) has increased its dividend by 10.6% annually over the past five years, with a 28.6% payout ratio and a strong position in continuous glucose monitoring [12]

Core Insights - Parker-Hannifin Corporation has completed the acquisition of Curtis Instruments, Inc. for approximately $1 billion in cash, enhancing its electrification capabilities [1][2] - Curtis Instruments specializes in motor speed controllers and related technologies, with expected sales of around $320 million for the calendar year 2025 [2] - The acquisition aims to create operational synergies and accelerate growth opportunities within Parker's Motion Systems Group [3] Company Overview - Parker-Hannifin is a Fortune 250 global leader in motion and control technologies, with a history of over a century in enabling engineering breakthroughs [4] - The company has a strong track record of increasing its annual dividend per share for 69 consecutive fiscal years, ranking among the top five longest-running dividend-increase records in the S&P 500 index [4]

Core Insights - Parker-Hannifin Corporation (PH) is experiencing strong growth in its Aerospace Systems segment, with revenues increasing approximately 13% year over year in fiscal 2025 [1][8] - The company anticipates continued demand in the Aerospace Systems segment, driven by growth in air transport activities and stable defense spending [2][3] - Fiscal 2026 guidance indicates total sales growth of 2-5% and organic sales growth of 1.5-4.5% [4][8] Segment Performance - The Aerospace Systems segment is benefiting from robust demand in both commercial and military markets, including Original Equipment Manufacturer (OEM) and aftermarket channels [1][8] - Key trends supporting long-term growth include advancements in clean technologies, increased automation, infrastructure investments, digitalization, and electrification [3] Peer Comparison - Howmet Aerospace Inc. reported a 21% year-over-year revenue increase in its defense aerospace market, driven by demand for engine spares related to the F-35 program [5] - RBC Bearings Incorporated saw a 10.4% year-over-year revenue increase in its Aerospace/Defense segment, supported by strong orders from OEM and aftermarket verticals [6] Financial Performance - Parker-Hannifin's shares have increased by 24.6% over the past year, outperforming the industry growth of 5.1% [7] - The company is trading at a forward price-to-earnings ratio of 25.48X, above the industry average of 21.10X [10] - The Zacks Consensus Estimate for PH's fiscal 2026 earnings has increased by 0.6% over the past 60 days [11]

Core Insights - Parker-Hannifin Corporation is highlighted as a stock to consider before its anticipated split, with TD Cowen raising its price target to $650 from $575 while maintaining a Hold rating [1] - The company reported record-breaking results for both Q4 and the full fiscal year 2025, indicating strong financial performance [1] Financial Performance - Total revenue for the fiscal year reached $19.9 billion, with an adjusted segment operating margin of 26.1%, up 1.2% from the previous year [2] - Cash flow from operations was a record $3.8 billion, and free cash flow amounted to $3.3 billion, representing 16.8% of sales and a 109% conversion rate [2] - Adjusted EPS increased by 7% year-over-year, and the company ended the fiscal year with a record backlog of $11 billion [2] Segment Performance - The Aerospace segment was a significant contributor to the company's success, achieving record sales of $6.2 billion and 13% organic growth for the fiscal year, with a backlog of $7.4 billion [3] - The Industrial segment faced negative organic growth, but its adjusted segment operating margin reached a record 25.1%, an increase of 0.9% [3] Company Overview - Parker-Hannifin Corporation specializes in manufacturing and selling motion and control technologies and systems across various markets, including aerospace and defense, industrial equipment, transportation, energy, and HVAC [4]