Applied Industrial Technologies, Inc. · NYSE:AIT
Applied Industrial Technologies — Q4 2026 Earnings Presentation
22 slides from Applied Industrial Technologies's earnings presentation, Aug 13, 2026
Slide 1: Fiscal Q4 2026 Recap
Fiscal Q4 2026 Recap August 13, 2026 - The Premier Provider of Advanced Motion, Power, Control, & Automation Solutions to Critical Industrial Infrastructure -
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: Primary Messages from Management
Primary Messages from Management • Finished FY26 on a high note with accelerating sales growth and steady margin performance driving mid-teens F4Q26 earnings growth, further highlighting our favorable industry position and ongoing execution. • Organic sales growth of 10% was the strongest in three y
Slide 4: Fiscal Q4 2026 Key Financial Highlights
Fiscal Q4 2026 Key Financial Highlights • Sales up 10.4% YoY Sales, $ in millions o Up 9.7% on an organic basis; acquisitions +0.3%, currency +0.4% 10.4% $1,353 9.7% Organic $1,225 • Net Income of $118.6M and EPS of $3.17 o EPS up 13.2% YoY o Includes $6.4M pre-tax ($0.13/sh) of LIFO expense Q4 2025
Slide 5: Organic Sales Growth Trend
Organic Sales Growth Trend Year-over-Year Organic % Change in Sales Per Day F4Q26 Sales Growth Detail Fiscal Quarters • Up 9.7% YoY on an organic basis vs. +6.0% in F3Q26 and exceeding F4Q26 guidance of +4.0% to +5.5% 21.1% 19.4% 18.7% • 2-Yr STACK trend improved ~700 bps sequentially vs. F3Q26 14.7
Slide 6: Investor Topic Update & Details
Investor Discussion Points Investor Topic Update & Details Recovery broadening and supported by elevated technical MRO requirements and structural capital Underlying Demand spending tailwinds; stronger local account growth a positive sign for underlying industrial activity Price contributed ~250 bps
Slide 7: 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 recovery showing durable signs with growth broaden
Slide 8: Fiscal Q4 2026 Margin and Expense Highlights
Fiscal Q4 2026 Margin and Expense Highlights Gross Profit, SD&A, and EBITDA Metrics • Gross margin down 20 bps YoY LIFO Impact o Includes an unfavorable 26 bps YoY impact from higher LIFO expense $ in millions Q4 26 Q4 25 Chg YoY YoY o Up modestly YoY excluding LIFO impact as solid channel execution
Slide 9: Segment Results – Service Center
Segment Results – Service Center Segment Overview: Representing 64% of fiscal 2026 sales - the segment Service Center Segment Sales, in Millions includes our core distribution operations including ~400 local service centers $849.5 across North America, Australia, and New Zealand, primarily focused o
Slide 10: Segment Results – Engineered Solutions
Segment Results – Engineered Solutions Segment Overview: Representing 36% of fiscal 2026 sales - the segment Engineered Solutions Segment Sales, in Millions consists of 1) our Fluid Power network specializing in distributing, engineering, $503.2 designing, integrating, and repairing hydraulic and pn
Slide 11: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet Free Cash Flow (in Millions) - Fiscal Year Period • F4Q26 cash from operations of $165.0M; free cash of $159.7M $465.2 $460.5 o Free cash up 15.6% YoY and 134.7% of net income in F4Q26 o Full-year free cash of $460.5M down only 1.0% YoY despite greater working capital $31
Slide 12: Capital Allocation
Capital Allocation Capital Allocation 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
Slide 13: Fiscal 2027 Guidance and Outlook Assumptions
Fiscal 2027 Guidance and Outlook Assumptions Fiscal 2027 Guidance Assumptions: • Mid-point assumes stronger sales growth YoY in F1H27 vs. F2H27, Guidance reflecting more difficult comparisons in F2H27, combined with more muted market growth assumptions in the back half given ongoing Total Sales - Yo
Slide 14: UPDATED - Intermediate Financial Objectives
UPDATED - Intermediate Financial Objectives Sales – Grow to $7.0 Billion Strategic Drivers & Considerations • Mid Single-Digit Plus Organic Growth on Average Over an Upcycle $7.0 • Greater Cross-Selling Across Legacy Customer Network $5.0 $3.2 • Secular Tailwinds From Leading Technical Industry Posi
Slide 15: Appendix: Number of Selling Days by Fiscal Quarter and Full Year
Appendix: Number of Selling Days by Fiscal Quarter and Full Year Fiscal Period Q1 Q2 Q3 Q4 Year 2025 64.0 62.0 63.0 63.5 252.5 2026 64.0 62.0 63.0 63.5 252.5 2027 64.0 62.0 62.5 64.0 252.5 2028 64.0 61.0 65.0 63.5 253.5 15
Slide 16: Appendix: F4Q26 Year-over-year Sales Change Summary
Appendix: F4Q26 Year-over-year Sales Change Summary Sales growth for the three months ended June 30, 2026 (Percent change compared to prior-year period) Foreign Reported Selling days Organic constant Acquisitions currency sales impact (1) currency sales exchange Service Center Segment 9.0% -% 0.5% 0
Slide 17: Appendix: FY2026 Year-over-year Sales Change Summary
Appendix: FY2026 Year-over-year Sales Change Summary Sales growth for the twelve months ended June 30, 2026 (Percent change compared to prior-year period) Foreign Reported Selling days Organic constant Acquisitions currency sales impact (1) currency sales exchange Service Center Segment 5.6% -% 0.2%
Slide 18: Appendix: Net Sales, Operating Income, EBITDA, & EBITDA Margin by Segment
Appendix: Net Sales, Operating Income, EBITDA, & EBITDA Margin by Segment Three Months Ended Jun 30 (dollar amount in thousands) Q4 FY25 Q4 FY26 Service Center Segment: Net sales $ 779,180 $ 849,497 Operating income 101,286 118,391 Depreciation and amortization of property 4,213 4,433 Amortization o
Slide 19: Appendix: Reconciliation of EBITDA
Appendix: Reconciliation of EBITDA Three Months Ended Jun 30 (dollar amount in thousands) Q4 FY25 Q4 FY26 Net Income $ 107,836 $ 118,600 Interest (income) expense, net 1,322 3,556 Income tax expense 27,208 39,189 Depreciation and amortization of property 6,466 6,403 Amortization of intangibles 10,19
Slide 20: Appendix: Reconciliation of EBITDA Margin
Appendix: Reconciliation of EBITDA Margin Three Months Ended Jun 30 (dollar amount in thousands) Q4 FY25 Q4 FY26 Net Sales $ 1,224,730 $ 1,352,687 EBITDA 153,028 177,607 EBITDA Margin 12.5% 13.1% 20
Slide 21: Appendix: Reconciliation of Free Cash Flow
Appendix: Reconciliation of Free Cash Flow Three Months Ended Twelve Months Ended June 30 June 30 (dollar amount in thousands) FY20 FY21 FY22 FY23 FY24 FY25 FY26 Q4 FY26 Cash provided by Operating Activities $ 296,714 $ 241,697 $ 187,570 $ 343,966 $ 371,393 $ 492,385 $ 484,082 $ 164,996 Capital Expe
Slide 22: Appendix: Reconciliation of Net Leverage Ratio
Appendix: Reconciliation of Net Leverage Ratio (dollar amount in thousands) Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Net Income $ 103,491 $ 92,063 $ 93,290 $ 99,799 $ 107,836 $ 100,807 $ 95,349 $ 99,769 $ 118,600 Interest expense (income), net (671) (627) (936) 853 1,3
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