v3.26.1
Business Segment Information
 12 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business Segment Information 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 41 countries throughout EMEA, Asia Pacific and Latin America.
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 consistent with those described in Note 1, except that certain items are not allocated to the businesses. 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.
Segment operating income is measured as net sales less other segment items. Other segment items are primarily comprised of cost of sales; selling, general and administrative expenses; and income related to equity method investments. Management further excludes certain costs presented within cost of sales and selling, general and administrative expenses in the Consolidated Statement of Income, including corporate general and administrative expenses, stock-based compensation, and acquisition-related transaction costs, all of which are managed on a consolidated basis. For business segment reporting purposes, corporate general and administrative expenses are presented as a separate reconciling item, and stock-based compensation and acquisition-related transaction costs are reported within other expense (income), net.
For the years ended June 30,202620252024
Net Sales
Diversified Industrial$14,438 $13,665 $14,458 
Aerospace Systems7,061 6,185 5,472 
$21,499 $19,850 $19,930 
Other Segment Items
Diversified Industrial$10,998 $10,545 $11,282 
Aerospace Systems5,228 4,744 4,361 
$16,226 $15,289 $15,643 
Segment Operating Income:
Diversified Industrial$3,440 $3,120 $3,176 
Aerospace Systems1,833 1,441 1,111 
Total segment operating income5,273 4,561 4,287 
Corporate general and administrative expenses205 214 218 
Income before interest expense and other expense (income), net5,068 4,347 4,069 
Interest expense401 409 506 
Other expense (income), net104 (169)(32)
Income before income taxes$4,563 $4,107 $3,595 
AssetsProperty Additions
202620252024202620252024
Diversified Industrial$17,001 $15,953 $16,174 $319 $310 $303 
Aerospace Systems(1)
12,180 12,218 12,016 110 88 90 
Corporate 1,696 1,323 1,108 30 37 7 
Total$30,877 $29,494 $29,298 $459 $435 $400 
(1) Assets include an investment in a joint venture in which ownership is 50% or less and in which the Company does not have operating control (2026 - $223 million; 2025 - $226 million; 2024 - $218 million).
DepreciationAmortization
202620252024202620252024
Diversified Industrial$240 $228 $232 $280 $253 $266 
Aerospace Systems101 114 108 304 300 312 
Corporate12 12 9 — — — 
Total$353 $354 $349 $584 $553 $578 
Geographic Area
Net sales are attributed to countries based on the location of the selling unit. No country other than the United States represents greater than 10% of consolidated sales. Long-lived assets are comprised of property, plant and equipment based on physical location.
Net SalesLong-Lived Assets
202620252024202620252024
United States$13,819 $12,853 $12,862 $1,751 $1,702 $1,718 
Other countries7,680 6,997 7,068 1,269 1,235 1,158 
Total$21,499 $19,850 $19,930 $3,020 $2,937 $2,876