Applied Industrial Technologies, Inc. · NYSE:AIT
Applied Industrial Technologies — Q4 2026 Earnings Presentation
36 slides from Applied Industrial Technologies's earnings presentation, Aug 13, 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 $5B $618M $13B Revenue EBITDA Market Cap Bearings & P
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 Industrial Food & Machinery Beverage 14% 11% United States Metals 88% 10% Sales By Sales By Customer Type Forest Products Geography General 8% Industry * Canada 38% 6% Chemical & Petrochemical 6% Mexico Cement & 3% Aggregate Other 3% Transportation 5% 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 recovery showing durable signs with growth broaden
Slide 11: Organic Sales Growth Trend & Discussion Points – Q4 FY26
Organic Sales Growth Trend & Discussion Points – Q4 FY26 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 b
Slide 12: Other Investor Discussion Points – Q4 FY26
Other Investor Discussion Points – Q4 FY26 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 cont
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 2027 Guidance
Fiscal 2027 Guidance 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 - YoY % chg 4.0% - 6.5% unce
Slide 15: Historical Financial Highlights
Historical Financial Highlights Net Sales 9% Five-Year CAGR (2021-2026) EBITDA 14% Five-Year CAGR (2021-2026) (in billions) (Adjusted; in millions) G $5.0 $618 $4.6 $553 $562 $4.4 $4.5 $525 $3.8 $410 $3.5 $3.2 $3.2 $331 $318 $293 2019 2020 2021 2022 2023 2024 2025 2026 2019 2020 2021 2022 2023 2024
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 June 30, 2026) • Net leverage ratio at 0.2x • $127M of cash on hand 0.5x 0.5x • $888M of potential balance sheet capacity under 0.4x undrawn revolver and AR securitization facility 0.
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 55 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 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 Position 20 •
Slide 21: Segment Overview
Segment Overview Service Center 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; 36% integrating hy
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: One of the largest flow control distributors in OEM & Life the U.S. with over 50 locations and 800 associates Chemical
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) 2019 2020 2021 2022 2023 2024 2025 2026 Net Income $ 143,993 $24,042 $144,757 $257,414 $346,739 $385,762 $392,988 $414,525 Interest expense, net 40,188 36,535 30,592 2
Slide 36: Appendix: Reconciliations
Appendix: Reconciliations Free Cash Flow (dollar amount in thousands) FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Cash provided by Operating Activities $157,007 $162,014 $164,619 $147,304 $180,601 $296,714 $241,697 $187,570 $343,966 $371,393 $492,385 Capital Expenditures (14,933) (13,130)
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