Parker-Hannifin (PH) risk factors, FY2025 10-K

Parker-Hannifin's FY2025 10-K, filed Aug 22, 2025, lists 21 risk factors in 4 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
214 groups
Section length
5k wordsItem 1A

Parker-Hannifin's biggest risks in the FY2025 10-K

  • International sales represent 36 percent of net sales, exposing the company to global economic and currency risks.
  • Acquisitions are a core strategy, creating integration and management challenges for expanded operations.
  • The company relies heavily on global raw materials, talent retention, and intellectual property protection.

The risks most specific to Parker-Hannifin

  • Business and Operational Risks

    As a global business, we are exposed to economic, political and other risks in different countries in which we operate, which could materially reduce our sales, profitability or cash flows, or materially increase our liabilities

    Non-U.S. locations accounted for approximately 36 percent of net sales in 2025 and 2024, exposing operations to international economic and political risks.

  • Business and Operational Risks

    If we are unable to successfully manage the risks associated with expanding our global business or adequately manage operational fluctuations internationally, the risks could have a material adverse effect on our business, results of operations or financial condition

    Targeted computer crime and cybersecurity threats pose risks of disruption or security breaches to information technology systems.

  • Business and Operational Risks

    Price and supply fluctuations of the raw materials used in our production processes and by our suppliers of component parts could negatively impact our financial results

    Price volatility and supply interruptions for raw materials and component parts, driven partly by tariffs and import regulations, could hurt financial results.

  • Strategic Transactions Risks

    We are subject to risks relating to acquisitions and joint ventures, and risks relating to the integration of acquired companies

    Executing a strategy of identifying and acquiring complementary businesses and entering joint ventures creates ongoing integration and operational risks.

  • Financial Risks

    Increasing costs of certain employee and retiree benefits could adversely affect our liability for such benefits

    Defined benefit pension plan expenses and funding requirements depend on fluctuating market interest rates and plan asset returns.

  • Financial Risks

    We carry goodwill on our balance sheet, which is subject to impairment testing and could subject us to significant non-cash charges to earnings in the future if impairment occurs

    Goodwill recorded on the balance sheet is subject to annual or interim impairment testing that could trigger significant non-cash charges.

  • Legal and Regulatory Risks

    As a provider of products to the U.S. government, we are subject to additional risks related to future government spending as well as unusual performance conditions and enhanced compliance risks

    Supplying the U.S. government creates heavy reliance on spending levels and stringent compliance with governmental acquisition regulations.

  • Legal and Regulatory Risks

    Due to the nature of our business and products, we may be liable for damages based on product liability claims

    Designing, manufacturing, and selling industrial products exposes the company to potential product liability claims and damages.

All 21 risk factors

Headings as the filing states them, in filing order.

Business and Operational Risks

  1. 01Risks arising from uncertainty in worldwide and regional economic conditions may harm our business and make it difficult to project long-term performance
  2. 02As a global business, we are exposed to economic, political and other risks in different countries in which we operate, which could materially reduce our sales, profitability or cash flows, or materially increase our liabilities
  3. 03If we are unable to successfully manage the risks associated with expanding our global business or adequately manage operational fluctuations internationally, the risks could have a material adverse effect on our business, results of operations or financial condition
  4. 04Price and supply fluctuations of the raw materials used in our production processes and by our suppliers of component parts could negatively impact our financial results
  5. 05Our operations are subject to natural and man-made unexpected events that may increase our costs, interrupt production or our supply chain or otherwise adversely affect our business, results of operations or financial condition
  6. 06Changes in the demand for and supply of our products may adversely affect our financial results, financial condition and cash flow
  7. 07The development of new products and technologies requires substantial investment and is required to remain competitive in the markets we serve. If we are unable to successfully introduce new commercial products, our profitability could be adversely affected
  8. 08Changes in the competitive environment in which we operate may eliminate any competitive advantages that we currently have, which could adversely impact our business
  9. 09We may be required to make material expenditures in order to comply with environmental laws and regulations, to address the effects of climate change and to respond to customer needs and investor expectations regarding climate-related goals, each of which may negatively impact our business
  10. 10We operate in challenging markets for talent and may fail to attract, develop and retain key personnel

Strategic Transactions Risks

  1. 11We are subject to risks relating to acquisitions and joint ventures, and risks relating to the integration of acquired companies
  2. 12Our results may be adversely affected if expanded operations from acquisitions are not effectively managed
  3. 13The Company may be subject to risks relating to organizational changes

Financial Risks

  1. 14Increasing costs of certain employee and retiree benefits could adversely affect our liability for such benefits
  2. 15Additional liabilities relating to changes in tax rates or exposure to additional income tax liabilities could adversely impact our financial condition and cash flow
  3. 16Our indebtedness and restrictive covenants under our credit facilities could limit our operational and financial flexibility
  4. 17We carry goodwill on our balance sheet, which is subject to impairment testing and could subject us to significant non-cash charges to earnings in the future if impairment occurs

Legal and Regulatory Risks

  1. 18As a provider of products to the U.S. government, we are subject to additional risks related to future government spending as well as unusual performance conditions and enhanced compliance risks
  2. 19Litigation and legal and regulatory proceedings against the Company could decrease our liquidity, impair our financial condition and adversely affect our results of operations
  3. 20Due to the nature of our business and products, we may be liable for damages based on product liability claims
  4. 21Failure to protect our intellectual property and know-how could reduce or eliminate any competitive advantage and reduce our sales and profitability, and the cost of protecting our intellectual property may be significant

Other Parker-Hannifin 10-Ks

  • FY2026 10-K risk factors
    22 risks2 new1 dropped8 reworded

    New risks highlight artificial intelligence integration and serving data-center infrastructure providers.

    Filed Aug 21, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.