Applied Industrial Technologies, Inc. · NYSE:AIT
Applied Industrial Technologies — Q3 2026 Earnings Presentation
36 slides from Applied Industrial Technologies's earnings presentation, Apr 28, 2026
Slide 1: Investor Presentation
We Keep Industry Running Investor Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements that are forward-looking, as that term is defined by the Securities and Exchange Commission in its rules, regulations and releases. Applied intends that such forward-looking statements be subject to the safe harbors created thereby. Forward
Slide 3: Company Profile
Company Profile We Are One of the Largest Distributors and Solution Providers of Industrial Motion, Power, Control, & Automation Technologies Strategic Focus on Technical Products & Solutions ~80% of Sales Generated From #1 or #2 Market Positions $4.7B $578M $11B Revenue EBITDA Market Cap Bearings &
Slide 4: Multi-Channel Capabilities
Multi-Channel Capabilities Service Centers • Local MRO / Aftermarket Support • Leading Motion / Power Control Expertise • Technical Shop, Repair, Consult Services • Over 400+ Locations Concentrated in North America Fluid Power • Fluid Power System Design, Build, Integration • Industrial, Off-Highway
Slide 5: Product Portfolio
Product Portfolio Power Bearings, Advanced General MRO; Fluid Power Flow Control Transmission Linear, Seals Automation Hose Products ~85% of Sales Focused in Critical Motion Control, Fluid Power, Flow Control, & Automation Products & Solutions 5
Slide 6: Customer Application / Cross-Sell Potential of Applied Products & Solutions
Customer Application / Cross-Sell Potential of Applied® Products & Solutions Service Centers Service Centers Specialty Flow Control Service Centers Automation Solutions Mounted bearings, gearing, & Fluid power MRO supplies, including Pumps, valves, instrumentation, hoses, & filtration to Maintenance
Slide 7: Primary Supplier Partners
Primary Supplier Partners Leading Manufacturers with World Class Brands Focused on Premier Industrial Solutions 7
Slide 8: Customer & Geographic Exposure
Customer & Geographic Exposure Food & Industrial Beverage Machinery 11% 13% Metals 10% United States 88% Sales By Forest Sales By Products Customer Type 9% Geography General Industry * Canada 36% 6% Chemical & Petrochemical 7% Mexico Cement & 2% Aggregate Other 6% 4% Transportation Oil & Gas 4% 4% *
Slide 9: Applied Value Creation Model
Applied® Value Creation Model Supports Growth Into Higher Margin Operational Focus CORE Engineered Solutions & Emerging • History of Cost Discipline • World-Class Brands • Operational Excellence Initiatives • Critical Support to Industrial Infrastructure Areas of the Industrial Sector • Shared Servi
Slide 10: Applied Industry Position and Growth Considerations
Applied Industry Position and Growth Considerations A Differentiated & Leading Industry Position … With Secular Tailwinds & Customer Requirements Focused on Mission Critical Industrial Solutions… Presenting Distinct Growth Opportunities • End-market demand in the early stages of recovery with greate
Slide 11: Organic Sales Growth Trend & Discussion Points – Q3 FY26
Organic Sales Growth Trend & Discussion Points – Q3 FY26 Year-over-Year Organic % Change in Sales Per Day F3Q26 Sales Growth Detail Fiscal Quarters • Up 6.0% YoY on an organic basis vs. +2.2% YoY in F2Q26 and 21.1% F3Q26 guidance of a low to mid-single digit percent increase YoY 19.4% 18.7% 16.4% •
Slide 12: Other Investor Discussion Points – Q3 FY26
Other Investor Discussion Points – Q3 FY26 Investor Topic Update & Details Trends continuing to gradually improve with demand strengthening as F3Q26 progressed; Underlying Demand sentiment across sales teams more favorable; customer capital spending backdrop improving Price contributed ~250 bps YoY
Slide 13: Growth Vertical Highlight - Technology
Growth Vertical Highlight - Technology • The expansion of our Engineered Solutions segment has increased our Technology vertical exposure including providing fluid power, flow control, and automation solutions across semiconductor and data center value chains • Sales from the Technology vertical rep
Slide 14: Fiscal 2026 Guidance
Fiscal 2026 Guidance Fiscal 2026 Guidance Updated Considerations: Prior Current • Tightening FY26 guidance toward the high end of previous range (1/27/26) (4/28/26) following F3Q26 results Total Sales - YoY % chg 5.5% - 7.0% 7.2% - 7.7% • F4Q26 sales outlook takes into consideration more difficult Y
Slide 15: Historical Financial Highlights
Historical Financial Highlights Net Sales 7% Five-Year CAGR (2020-2025) EBITDA 14% Five-Year CAGR (2020-2025) (in billions) (Adjusted; in millions) $553 $562 $4.6 $525 $4.4 $4.5 $3.8 $410 $3.5 $3.2 $3.2 $331 $318 $3.1 $293 $278 2018 2019 2020 2021 2022 2023 2024 2025 2018 2019 2020 2021 2022 2023 20
Slide 16: Historical Free Cash Generation
Historical Free Cash Generation Durable & Solid Cash Generation Through All Cycles Strategic Initiatives Aligned to Drive $500 Free Cash Flow (3-Year Rolling Average) Greater Cash Generation $450 • Average FCF Conversion of ~100% Past 5 Years $400 Free Cash Flow, 3-Year Rolling Average • Increased S
Slide 17: Balance Sheet & Liquidity
Balance Sheet & Liquidity Net Leverage Ratio (Net Debt to Trailing Adjusted EBITDA) Balance Sheet & Liquidity (As of March 31, 2026) • Net leverage ratio at 0.3x • $172M of cash on hand 0.5x 0.5x 0.5x • $785M+ of potential balance sheet capacity under 0.4x undrawn revolver and AR securitization faci
Slide 18: Capital Allocation
Capital Allocation Deployment Priorities & Strategy Capital Deployed Last 5 Years (Capex, M&A, Share Repurchases, & Dividends) Pursue greenfield expansion while optimizing customer service Organic Growth capabilities and operating efficiencies through technology, working capital, and system investme
Slide 19: Acquisitive Growth
Acquisitive Growth Active Acquisition Pipeline Aligned with Long-term Growth Priorities… • Acquisitions Remain an Element of Growth Formula Acquisition Priority Areas o 54 acquisitions since 2000 o 40 acquisitions since 2012 representing over $1B in annual sales Focused on Expanding Current Offering
Slide 20: Intermediate Financial Objectives
Intermediate Financial Objectives Net Sales – Grow to Over $5.5 Billion Strategic Drivers & Considerations • Mid Single-Digit Plus Organic Growth on Average Over an Upcycle $5.5+ $4.6 • Greater Cross-Selling Across Legacy Customer Network $3.2 • Secular Tailwinds From Leading Technical Industry Posi
Slide 21: Segment Overview
Segment Overview Service Center Based Distribution Engineered Solutions Service center distribution network across North America, Specializing in distributing, engineering, designing, & 64% Australia, & New Zealand; Focused on MRO motion & power control solutions for critical break-fix applications;
Slide 22: Service Center Network
Service Center Network • Network of service locations supporting industrial motion & power control MRO requirements • Over 400 locations across North America, Australia, & New Zealand • Local market focus with overnight inventory replenishment from 12 distribution centers • 24 / 7 emergency service
Slide 23: Fluid Power: Overview & Industry Application
Fluid Power: Overview & Industry Application The Leading Provider of an Unmatched Industrial Power & Efficiency Solution Key Applications & Market Focus Overview: Largest fluid power distributor of hydraulic, pneumatic, and fluid conveyance solutions in the U.S. with unmatched Mobile Industrial Tech
Slide 24: Fluid Power Position & Value Proposition
Fluid Power Position & Value Proposition We Provide Innovative Fluid Power Solutions Through Unmatched Engineered Systems Design, Assembly, Integration, & Service Capabilities Engineering & Design System Build & Integration Service & Repair Largest Fluid Power Distributor in North America HFX48M (24
Slide 25: Flow Control: Overview & Industry Application
Flow Control: Overview & Industry Application The Leading Provider of Process Flow Control Solutions to the Industrial Sector Flow Control Key Applications & Market Focus Overview: Largest flow control distributor in the U.S. OEM & Life with over 50 locations and 800 associates including Chemical Ma
Slide 26: Flow Control Position & Value Proposition
Flow Control Position & Value Proposition We Offer the Largest, Most Comprehensive Flow Control Product & Service Portfolio Focused on Mission-Critical & Full-Cycle Solutions Flow Control Growth and Strategy Considerations Covering • Leading technical MRO position Everything On • Higher margins from
Slide 27: Automation: Overview and Industry Application
Automation: Overview and Industry Application A Leading Provider of Next-Generation Automation Supplies & Solutions Focused on Machine Vision, Robotics, Control, & Digital Technologies Evolving Toward the Factory of the Future… Overview: One of the largest full-service providers of Machine Vision: i
Slide 28: Automation Position and Value Proposition
Automation Position and Value Proposition Footprint: 30 locations across the U.S. and Mexico with ~500 associates including ~250 degreed engineers Robotics | Vision | Motion | Industrial IoT Operating Engineered Solutions OEM Specification Value Prop: Full-service provider of innovative Locations au
Slide 29: Increasing Focus on Next Generation Automation & Industry 4.0
Increasing Focus on Next Generation Automation & Industry 4.0 Products, Solutions, & Vast Network with Entrenched Customer Expansion into Experience Across Legacy Relationships Across Underpenetrated Next Generation Automation Operations Industrial End Markets & Smart Technology Solutions Locations
Slide 30: Maintenance Supplies & Solutions
Maintenance Supplies & Solutions A Leading National Distribution Platform for C-Class MRO Supplies Through Vendor Managed Inventory (VMI) & Vending Solutions Machine Shop • 200+ Sales & Service Representatives • 4 Distribution Centers “Core Business” SM VMI Solution Cutting Tool, Manufacturing • 250
Slide 31: Environmental - Social - Governance (ESG)
Environmental - Social - Governance (ESG) Our ESG Focus Takes Many Forms • Over 100 years of conducting business Integrity Respect Customer Commitment ethically & responsibly Focus to Excellence • Low-carbon footprint as a distributor • Advise customers on energy savings & reducing their carbon foot
Slide 32: Safety & Sustainability Performance
Safety & Sustainability Performance • Dedicated safety focus with comprehensive training programs across company • Formalized EHS policy, analysis, monitoring, & accountability focus • Low carbon footprint as a distributor • Conduct customer energy audits on motors, belting, & gearing • Develop flui
Slide 33: Corporate Governance
Corporate Governance Key Governance Features Board Refreshment & Tenure • Independent Chairman; all directors independent except CEO Average Tenure of Board Members • Key committees composed of only independent directors • Women represent 33% of board members < 4 Years 2 • Strong “Pay for Performanc
Slide 34: Appendix
6 APPLIED Industrial Technologies® Appendix
Slide 35: Appendix: Reconciliations
Appendix: Reconciliations EBITDA, Adjusted EBITDA, & Adjusted EBITDA Margin Twelve Months Ended June 30 (dollar amount in thousands) 2018 2019 2020 2021 2022 2023 2024 2025 Net Income $141,625 $ 143,993 $24,042 $144,757 $257,414 $346,739 $385,762 $392,988 Interest expense, net 23,485 40,188 36,535 3
Slide 36: Appendix: Reconciliations
Appendix: Reconciliations Free Cash Flow (dollar amount in thousands) FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Cash provided by Operating Activities $111,397 $110,110 $157,007 $162,014 $164,619 $147,304 $180,601 $296,714 $241,697 $187,570 $343,966 $371,393 $492,385 Capital Ex
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