Parker-Hannifin (PH) Financial History

Protecting our intellectual property is critical to our innovation efforts.

Our businesses expose us to potential product liability risks that are inherent in the design, manufacture and sale of our products and the products of third-party vendors that we use or resell.

policies, procedures and compliance programs, our internal controls and compliance systems may not be able to protect the Company from prohibited acts willfully committed by our employees, agents or business partners…

In addition to the risks identified herein, doing business with the U.S.

industry.

We have incurred significant indebtedness, and expect to incur a significant amount of additional debt for acquisitions, including in connection with the acquisition of FGC and the pending acquisition of CIRCOR Aerosp…

We are subject to income taxes in the U.S.

Our recent acquisitions have expanded, and further acquisitions and joint ventures may expand, significantly the size and complexity and reduce costs of our business.

If we are unable to avoid these risks relating to acquisitions, integrations of acquisitions, and divestitures, our results of operations and financial condition could be materially adversely affected.

We are subject to risks relating to acquisitions and joint ventures, the integration of acquired companies, and divestitures of certain product lines or categories.

We depend on the skills, institutional knowledge, working relationships, and continued services and contributions of key personnel, including our leadership team, engineers and others at all levels of the company, as…

The markets we serve are characterized by rapidly changing technologies and frequent introductions of new products and services.

The development of new products and technologies requires substantial investment and is required to remain competitive in the markets we serve and new product markets.

costs of raw materials that they use to manufacture the component parts.

We rely extensively on information technology systems to manage and operate our business, some of which are managed or accessible by third parties.

For example, the global nature of our business and our operations exposes us to political, economic, and other conditions in foreign countries and regions, such as the uncertainty about the future relationship between…

•the potential for nationalization of enterprises; and

•government import and export controls, embargoes, sanctions or trade restrictions, including possible restrictions on trade and/or obstacles to conducting business in China;

Our net sales attributable to selling locations outside of the United States were approximately 36% in each of 2026, 2025 and 2024.

The following "risk factors" identify what we believe to be the risks that could materially adversely affect our financial and/or operational performance.

Protecting our intellectual property is critical to our innovation efforts.

In addition, worldwide focus on climate change issues has led to legislative and regulatory efforts to limit greenhouse gas emissions in the United States and in other countries in which we operate.

•potentially adverse tax consequences, including any consequences from the One Big Beautiful Bill Act; and

Company or that the Company currently believes are immaterial also may impair the Company’s business, financial condition, results of operations and cash flows.

Although we currently maintain what we believe to be suitable and adequate product liability insurance, there can be no assurance that we will be able to maintain our insurance on acceptable terms or that our insuranc…

For example, our Aerospace Systems Segment produces aircraft components and systems that are critical to flight safety, and accordingly, the adverse impact of product quality issues, actual or perceived, can be signif…

We are subject to national and international laws and regulations, such as the anti-corruption laws of the U.S.

U.S.

Share repurchases generally constitute a component of our capital allocation strategy.

The timing and amount of the Company’s share repurchases are subject to a number of uncertainties and may affect our common stock price.

processes and products, and the associated costs and complexity.

We continually assess the strategic fit of our existing businesses and may divest or otherwise dispose of businesses that are deemed not to fit within our strategic plan or are not achieving the desired return on inve…

cost pressures for labor.

Increased public awareness and concern regarding environmental risks, including global climate change, may result in more international, regional and/or federal requirements or industry standards to reduce or mitigate…

We rely on a limited number of suppliers for certain critical components, such as specialty electronics, rare earths, specialty chemicals, aerospace super alloys and filtration media, and recent and planned acquisitio…

In addition to existing risks, any adoption or deployment of or exposure to new technologies via acquisitions or internal initiatives or changes to our information technology systems as a result of divestitures may in…

renegotiation of the United States-Mexico-Canada Agreement.

•potentially adverse tax consequences.