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CLEVELAND, OHIO (August 13, 2026) – Applied Industrial Technologies (NYSE: AIT), a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies, today reported results for its fiscal 2026 fourth quarter and full year ended June 30, 2026.

Net sales for the quarter of $1.4 billion increased 10.4% over the prior year. The change includes a 0.3% increase from acquisitions and a benefit of 0.4% from foreign currency translation. Excluding these factors, sales increased 9.7% on an organic basis reflecting a 12.9% increase in the Engineered Solutions segment and a 7.9% increase in the Service Center segment. The Company reported net income of $118.6 million, or $3.17 per share, and EBITDA of $177.6 million. On a pre-tax basis, results include $6.4 million ($0.13 after tax per share) of LIFO expense compared to $2.9 million ($0.06 after tax per share) of LIFO expense in the prior-year period.

For the twelve months ended June 30, 2026, sales of $5.0 billion increased 8.8% compared with the prior year. On an organic basis, sales increased 5.4%. Net income was $414.5 million, or $10.95 per share, and EBITDA was $618.2 million. On a pre-tax basis, full-year results include $21.5 million ($0.43 after tax per share) of LIFO expense compared to $7.7 million ($0.16 after tax per share) of LIFO expense in the prior-year period.

Neil A. Schrimsher, Applied’s President & Chief Executive Officer, commented, “We had a strong finish to fiscal 2026 with fourth quarter sales, EBITDA, and EPS achieving record quarterly levels and exceeding our expectations. Organic sales growth of 10% was the strongest in more than three years with trends strengthening across both segments. The growth momentum building across the business reflects our differentiated technical position and ongoing sales initiatives, which are intensifying within an increasingly favorable end-market backdrop. Combined with steady gross margin performance and solid operating leverage, we expanded EBITDA margins by more than 60 basis points, and achieved mid-teens EBITDA, EPS, and free cash growth compared to the prior-year fourth quarter. Overall, fiscal 2026 was a pivotal year showcasing the ongoing positive transformation at Applied including early signs of the growth potential taking shape across our business. The foundation of this progress is rooted in the power of the Applied team, and their commitment to our strategy and long-term vision of the Company.”

Mr. Schrimsher added, “We enter fiscal 2027 in a great position with various growth tailwinds and operational momentum continuing to develop. Positive top-line trends have sustained into the first quarter with organic sales up year over year by an estimated 7% to date. We are mindful of ongoing inflationary headwinds and macro uncertainty, as well as more difficult comparisons as fiscal 2027 plays out. That said, the demand recovery appears durable and increasingly influenced by structural and secular tailwinds. Our Service Center segment continues to benefit from elevated technical MRO spending and internal sales initiatives, while order momentum remains positive across our Engineered Solutions segment reflecting demand for our leading engineering and application expertise, as well as exposure to faster growing verticals. Combined with an active M&A pipeline and ongoing margin expansion opportunities, we are well positioned moving forward.”

In addition, the Company is increasing its intermediate financial objectives and now targets sales of $7 billion and EBITDA margins of 14%. The Company expects to achieve these targets over the next five years depending on various factors including the trajectory of broader macro conditions, the timing and scope of M&A, progress with internal initiatives, and other factors.

Mr. Schrimsher concluded, “Given our performance in recent years and the meaningful growth opportunity we have moving forward, we believe now is an opportune time to update our intermediate financial objectives. Our ongoing evolution has positioned Applied at the intersection of exciting and powerful growth trends tied to rising technical support at customer plants, industrial system upgrades, automation adoption, and the build out of critical infrastructure across both legacy and emerging customer verticals. In addition, our balance sheet and cash generation provide meaningful capacity to further compound our growth through ongoing M&A, while our margin expansion potential remains notable and supported by structural mix tailwinds, internal initiatives, and inherent operating leverage as we continue to scale the business. Overall, our teams and strategy are now firmly focused on these next milestones, which highlight a compelling outlook for sustained value creation long-term.”

Applied Industrial Technologies is a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. Our leading brands, specialized services, and comprehensive knowledge serve MRO (maintenance, repair, and operations) and OEM (original equipment manufacturing), and new system install applications in virtually all industrial markets through our multi-channel capabilities that provide choice, convenience, and expertise. For more information, visit www.applied.com.

This press release 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-looking statements are often identified by qualifiers such as “expect,” “will,” “guidance,” “assume,” “outlook,” and derivative or similar expressions. All forward-looking statements are based on current expectations regarding important risk factors including trends and events in the industrial sector of the economy (such as the inflationary environment and supply chain strains), results of operations, and financial condition, and other risk factors identified in Applied's most recent periodic report and other filings made with the Securities and Exchange Commission. Accordingly, actual results may differ materially from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by Applied or any other person that the results expressed therein will be achieved. Applied assumes no obligation to update publicly or revise any forward-looking statements, whether due to new information, or events, or otherwise.


	Three Months Ended June 30,				Year Ended June 30,
	2026		2025		2026		2025
Net Sales	$	1,352,687	$	1,224,730	$	4,966,686	$	4,563,424
Cost of sales	941,469		849,993		3,459,901		3,180,265
Gross Profit	411,218		374,737		1,506,785		1,383,159
Selling, distribution and administrative expense, including depreciation	251,913		239,652		957,316		884,630
Operating Income	159,305		135,085		549,469		498,529
Interest expense, net	3,556		1,322		7,938		612
Other income, net	(2,040)		(1,281)		(2,743)		(3,050)
Income Before Income Taxes	157,789		135,044		544,274		500,967
Income tax expense	39,189		27,208		129,749		107,979
Net Income	$	118,600	$	107,836	$	414,525	$	392,988
Net Income Per Share - Basic	$	3.21	$	2.84	$	11.09	$	10.26
Net Income Per Share - Diluted	$	3.17	$	2.80	$	10.95	$	10.12
Average Shares Outstanding - Basic	36,924		38,008		37,377		38,289
Average Shares Outstanding - Diluted	37,409		38,511		37,857		38,816



	June 30,		June 30,
	2026		2025

Assets
Cash and cash equivalents	$	127,130	$	388,417
Accounts receivable — net	831,244		769,699
Inventories	508,979		505,337
Other current assets	111,376		84,020
Total current assets	1,578,729		1,747,473
Property — net	131,651		128,154
Operating lease assets — net	213,199		188,654
Identifiable intangibles — net	312,814		348,600
Goodwill	704,700		699,374
Other assets	68,880		63,289
Total Assets	$	3,009,973	$	3,175,544

Liabilities
Accounts payable	$	341,094	$	280,124
Other accrued liabilities	271,317		246,027
Total current liabilities	612,411		526,151
Long-term debt	262,300		572,300
Other liabilities	273,513		232,573
Total Liabilities	1,148,224		1,331,024
Shareholders' Equity	1,861,749		1,844,520
Total Liabilities and Shareholders' Equity	$	3,009,973	$	3,175,544


	Year Ended June 30,

	2026		2025

Cash Flows from Operating Activities
Net income	$	414,525	$	392,988
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization of property	25,875		24,899
Amortization of intangibles	40,072		35,581
Deferred income taxes	26,264		(6,362)
Provision for losses on accounts receivable	4,613		5,978
Amortization of stock appreciation rights	5,519		4,713
Other share-based compensation expense	7,385		7,289
Changes in operating assets and liabilities, net of acquisitions	(38,904)		26,926
Other	(1,267)		373
Net Cash provided by Operating Activities	484,082		492,385
Cash Flows from Investing Activities
Cash paid for acquisition of businesses, net of cash acquired	(11,424)		(293,406)
Capital expenditures	(23,565)		(27,187)
Proceeds from property sales	1,090		1,841
Net Cash used in Investing Activities	(33,899)		(318,752)
Cash Flows from Financing Activities
Repayments under revolving credit facility	(310,000)		—
Long-term debt repayments	—		(25,106)
Interest rate swap settlement receipts	5,765		12,095
Payment of debt issuance costs	(1,611)		—
Purchases of treasury shares	(317,218)		(152,837)
Dividends paid	(72,598)		(63,702)
Acquisition holdback payments	(1,390)		(1,210)
Taxes paid for shares withheld	(14,487)		(14,847)
Net Cash used in Financing Activities	(711,539)		(245,607)
Effect of exchange rate changes on cash	69		(226)
Decrease in cash and cash equivalents	(261,287)		(72,200)
Cash and Cash Equivalents at Beginning of Period	388,417		460,617
Cash and Cash Equivalents at End of Period	$	127,130	$	388,417

APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In thousands)

The Company supplements the reporting of financial information determined under U.S. generally accepted accounting principles (GAAP) with reporting of non-GAAP financial measures. The Company believes that these non-GAAP measures provide meaningful information to assist shareholders in understanding financial results, assessing prospects for future performance, and providing a better baseline for analyzing trends in our underlying businesses. Because non-GAAP financial measures do not have a standard definition, it may not be possible to compare these non-GAAP financial measures with other companies' non-GAAP financial measures having the same or similar names. These non-GAAP financial measures should not be considered in isolation or as a substitute for reported results. The Company believes these non-GAAP financial measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review company financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.


Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure:

	Three Months Ended June 30,				Year Ended June 30,
	2026		2025		2026		2025
Net Income	$	118,600	$	107,836	$	414,525	$	392,988
Interest expense, net	3,556		1,322		7,938		612
Income tax expense	39,189		27,208		129,749		107,979
Depreciation and amortization of property	6,403		6,466		25,875		24,899
Amortization of intangibles	9,859		10,196		40,072		35,581
EBITDA	$	177,607	$	153,028	$	618,159	$	562,059

The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization. EBITDA is a non-GAAP financial measure which excludes items that may not be indicative of core operating results.

Reconciliation of Net Cash provided by Operating activities, a GAAP financial measure, to Free Cash Flow, a non-GAAP financial measure:
	Three Months Ended June 30,				Year Ended June 30,
	2026		2025		2026		2025
Net Cash provided by Operating Activities	$	164,996	$	147,048	$	484,082	$	492,385
Capital expenditures	(5,253)		(8,892)		(23,565)		(27,187)
Free Cash Flow	$	159,743	$	138,156	$	460,517	$	465,198

Free cash flow is a non-GAAP financial measure and is defined as net cash provided by operating activities less capital expenditures.



APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES
SALES GROWTH BY REPORTABLE SEGMENT
(Unaudited)
(Percent change compared to prior-year period)

For the three months ended June 30, 2026

	Reported Sales		Selling Days Impact (1)	Acquisitions		Foreign Currency		Organic Change
Service Center	9.0	%	—	0.5	%	0.6	%	7.9	%
Engineered Solutions	12.9	%	—	—		—		12.9	%
Total Company	10.4	%	0.0 %	0.3	%	0.4	%	9.7	%

(1) Based on U.S. selling days; there were 63.5 selling days in both Q4 FY26 and Q4 FY25.


For the year ended June 30, 2026

	Reported Sales		Selling Days Impact (1)	Acquisitions		Foreign Currency		Organic Change
Service Center	5.6	%	—	0.2	%	0.5	%	4.9	%
Engineered Solutions	15.1	%	—	8.8	%	—		6.3	%
Total Company	8.8	%	0.0 %	3.1	%	0.3	%	5.4	%

(1) Based on U.S. selling days; there were 252.5 selling days in both FY26 and FY25.


APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES
NET SALES, OPERATING INCOME, EBITDA, & EBITDA MARGIN BY
REPORTABLE SEGMENT & CORPORATE & OTHER EXPENSE, NET
(Unaudited)
(In thousands)
	Three Months Ended June 30,						Twelve Months Ended June 30,
	2026			2025			2026			2025
Service Center Segment:
Net Sales	$	849,497		$	779,180		$	3,184,231		$	3,014,348

Operating income	$	118,391		$	101,286		$	426,124		$	393,470
Depreciation and amortization of property	4,433			4,213			17,386			17,492
Amortization of intangibles	755			751			2,980			3,144
EBITDA	$	123,579		$	106,250		$	446,490		$	414,106
EBITDA margin - % of sales	14.5		%	13.6		%	14.0		%	13.7		%

Engineered Solutions Segment:
Net Sales	$	503,190		$	445,550		$	1,782,455		$	1,549,076

Operating income	$	65,147		$	54,095		$	210,524		$	188,738
Depreciation and amortization of property	1,970			2,253			8,489			7,407
Amortization of intangibles	9,104			9,445			37,092			32,437
EBITDA	$	76,221		$	65,793		$	256,105		$	228,582
EBITDA margin - % of sales	15.1		%	14.8		%	14.4		%	14.8		%

Corporate & other expense, net	$	24,233		$	20,296		$	87,179		$	83,679