PH · 10-K · 2026A · Full report

Liquidity and Debt Position

Parker-Hannifin Corp · 2026-08-21 · Importance 38 · Surprise 24 · In source text

At June 30, 2026, Parker held $501 million in cash and cash equivalents, including $482 million at foreign subsidiaries, and had $1.0 billion of commercial paper outstanding. Its revolving credit agreement and commercial paper program were each increased to $3.75 billion; after commercial paper, $2.7 billion remained available under the revolver. Parker had not drawn on its $5.25 billion 364-day and $2.50 billion three-year delayed-draw facilities at June 30, but borrowed the full $7.75 billion after year-end to finance FGC. Parker reported a debt-to-debt-shareholders' equity covenant ratio of 0.36 to 1.0 against a maximum of 0.65 to 1.0 and senior-debt ratings of Fitch A-, Moody's A3, and S&P BBB+.

Key facts

• After June 30, 2026, Parker-Hannifin borrowed the full $7.75 billion available under its Credit Facilities to finance the FGC acquisition and intends to repay part with cash on hand and refinance the remainder with long-term debt. source
• Parker-Hannifin entered into delayed-draw term loan facilities of $5.25 billion and $2.50 billion, respectively, maturing 364 days and three years after August 13, 2026; no funds had been borrowed as of June 30, 2026. source
• Parker-Hannifin's 2026 revolving credit agreement increased the total line of credit and commercial paper program authorization to $3.75 billion; the agreement expires in June 2028, with a right to request a one-year extension. source
• Parker-Hannifin's debt levels and interest expense increased after the FGC acquisition and may increase further with the CIRCOR Aerospace acquisition, but it expects to remain in compliance with its debt covenants. source
• Parker-Hannifin expects cash and cash equivalents, operating cash flows, commercial-paper availability and capital-market access to meet liquidity needs for the next twelve months and the foreseeable future. source
• At June 30, 2026, Parker-Hannifin had no borrowings outstanding under its revolving credit agreement and had $1.0 billion of commercial paper outstanding; $2.7 billion remained available to borrow. source
• At June 30, 2026, Parker-Hannifin had $501 million of cash and cash equivalents, including $482 million held by foreign subsidiaries. source
• Parker-Hannifin intends to repatriate certain foreign earnings, which may result in non-federal U.S. or foreign tax liabilities; remaining undistributed foreign earnings are considered permanently reinvested. source

Impact estimates