Bond.az reports that S&P Global Ratings revised its outlook on Parker-Hannifin Corp. to positive from stable, affirming its BBB+ issuer credit and A-2 short-term ratings.
The agency highlighted strong operating performance through the first three quarters of fiscal 2026, with adjusted leverage declining to 1.6x as of March 31, 2026.
The positive outlook reflects potential for an upgrade if Parker-Hannifin successfully integrates its $9.25 billion acquisition of Filtration Group Corp. and maintains leverage below 3x over 18-24 months.
According to Bond.az, revenue grew 7.8%, driven by aerospace and defense markets and gradual industrial recovery. Backlog increased 8.4% in diversified industrial and 15.4% in aerospace systems.
Adjusted EBITDA margins rose 60 basis points to 27.4%, due to higher volumes, price increases, and cost discipline.
The Filtration Group acquisition will strengthen Parker-Hannifin's filtration market position and aftermarket revenue. The deal is expected to close in fiscal 2027.
Bond.az notes that adjusted leverage is forecast at 2.7x by end of fiscal 2027. The company targets reducing leverage to about 2x on a company-adjusted basis.
