AITNYSEWholesale-Machinery, Equipment & SuppliesUS GAAP · USD

Applied Industrial Technologies, Inc

Applied Industrial Technologies is an Ohio-based industrial distributor and technical solutions company with roots dating back to 1923 and headquarters in Cleveland. It serves customers that need motion, power, control, and automation products tied directly to plant uptime, maintenance, and production efficiency. The company operates through a large network of service centers, engineered solutions facilities, repair shops, and distribution centers, supported by more than 9.2 million SKUs. Its business model combines local inventory availability with technical services such as engineering, assembly, repair, systems integration, and inventory management.

Revenue4,967m USD
+8.8 %y/y
Operating profit (EBIT)549m USD
+10.2 %y/y
EBIT margin11.1%
+0.1 ppy/y
Net income415m USD
+5.5 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

01,0002,0003,0004,0005,000m USD2021: 3,236 m USD2021: EBIT 205 m USD20212022: 3,811 m USD2022: EBIT 358 m USD20222023: 4,413 m USD2023: EBIT 473 m USD20232024: 4,479 m USD2024: EBIT 496 m USD20242025: 4,563 m USD2025: EBIT 499 m USD20252026: 4,967 m USD2026: EBIT 549 m USD20264,967549
RevenueOperating profit (EBIT)

Business

Share of revenue
Service Center Based Distribution70 %

Local MRO-focused distribution of bearings, drives, motors, hoses, pumps, and related industrial supplies.

Engineered Solutions20 %

Designed and integrated fluid power, flow control, and automation solutions for more complex applications.

Repair and Fabrication Services5 %

Repair, fabrication, assembly, and shop services that extend equipment life and reduce downtime.

Inventory Management and Value-Added Services5 %

Storeroom management, DVA reporting, training, and other services that support customer procurement and uptime.

Customers

Applied sells to industrial customers that need parts and technical support to keep production equipment running, rather than to end consumers. Its core buyers include manufacturing plants, maintenance teams, OEMs, and engineering groups that source MRO items, replacement components, and new-installation systems. The company also serves customers in food processing, chemicals, fabricated metals, mining, oil and gas, transportation, utilities, and government. Customers buy from Applied because local inventory, fast delivery, and application expertise reduce downtime and help them manage complex equipment and labor constraints.

MRO and maintenance customers

Plants and maintenance teams buy replacement parts, hoses, bearings, drives, and other consumables to keep equipment operating and reduce downtime.

OEM and new system install customers

Original equipment manufacturers and project teams buy components and engineered packages for new machines and system builds.

Engineered solutions customers

Industrial operators buy fluid power, flow control, and automation systems that require design, integration, and technical support.

Industrial end markets

Customers in food processing, chemicals, metals, mining, oil and gas, transportation, and utilities buy because Applied supports critical operating assets.

Government and institutional buyers

Public-sector entities purchase industrial supplies and service support for maintenance and facility operations.

Strategy

Applied’s strategy centers on being close to customer operations with local inventory, technical expertise, and rapid service execution. The company emphasizes break-fix responsiveness, engineered solutions, and value-added services that make it harder for customers to switch to a pure catalog distributor. It is also using acquisitions to expand capabilities and geographic reach, especially in adjacent industrial markets and newer locations. Capital allocation remains focused on working capital, acquisitions, facilities, debt service, dividends, and share repurchases, supported by operating cash flow and liquidity.

Strengthen local service and inventory densityShort term

Customers value fast delivery and nearby stock when equipment fails or maintenance is urgent.

Grow engineered solutions and automation capabilitiesMedium term

More complex customer applications support higher-value relationships and reduce commoditization.

Pursue acquisitions and integrate them effectivelyMedium term

Acquisitions broaden product coverage and geography, but only if integration and supplier/customer retention succeed.

Geography

Q1/2026

Applied is primarily a North American business, with the United States accounting for the vast majority of sales and Canada contributing a smaller but meaningful share. The company also operates in Australia, New Zealand, Singapore, Mexico, and Costa Rica, mainly through its service center and engineered solutions footprint. Its local inventory model makes geography important because proximity to customer facilities is a key part of the value proposition, especially for emergency repairs and break-fix situations. Foreign operations add exposure to currency movements and acquisition integration, while the U.S. business is tied closely to domestic manufacturing activity and industrial capacity utilization.

United States88 %
Other countries (US filing)5.9 %
Canada5.7 %

Share of the revenue the company reports by geography.

Risks

Applied’s results depend heavily on industrial activity levels, so weak manufacturing output, lower capacity utilization, or customer production slowdowns can reduce demand for replacement parts and engineered projects. The company also faces integration risk from acquisitions, because expected synergies may not materialize and acquired businesses can bring hidden liabilities or distract management. Its service model depends on uninterrupted operations, transportation, and information systems, making it vulnerable to outages, logistics disruptions, cyber incidents, and severe weather. As a distributor, it is also exposed to supplier incentives, inventory valuation, and competitive pressure from other industrial distributors and service providers.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Cyclical industrial demand1Acquisition integration risk2Operational disruption and logistics failure3Cybersecurity incident4Foreign currency and international exposure5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Cyclical industrial demandImpact: HighLikelihood: Medium

    The company sells parts and services used in customer production processes, so lower manufacturing activity reduces orders and replacement demand.

    ExposureU.S. manufacturingCapacity utilizationPMI trends
  2. Acquisition integration riskImpact: HighLikelihood: Medium

    Growth through acquisitions can fail if the company cannot realize synergies, retain suppliers and customers, or manage contingent liabilities.

    Exposure: Purchased businesses and new geographies

  3. Operational disruption and logistics failureImpact: HighLikelihood: Medium

    The business depends on timely delivery from service centers and distribution centers, so outages or transport interruptions can quickly affect revenue and reputation.

    ExposureHeadquartersBranchesDistribution centersTransportation network
  4. Cybersecurity incidentImpact: HighLikelihood: Medium

    A breach or system outage could disrupt ordering, inventory management, and customer interfaces across a distributed branch network.

    ExposureApplied.comEDIInternal systemsCustomer platform integrations
  5. Foreign currency and international exposureImpact: MediumLikelihood: Low

    Sales in Canada and other countries are affected by exchange rates, which can distort reported growth and margins.

    Exposure: Canada and other non-U.S. operations

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Accounting

Judgemental items
LIFO inventory valuation

U.S. inventories are on LIFO, so inflation and inventory layer changes affect cost of goods sold, gross margin, and the balance sheet.

Impact: Reported earnings and inventory reserve

Goodwill impairment

The company uses forecast-based valuation models for reporting units, making impairment sensitive to market conditions and execution.

Impact: Potential non-cash write-downs

Acquisition accounting and holdbacks

Purchased businesses require opening balance estimates and may include contingent holdback payments.

Impact: Purchase price allocation and future cash outflows

Self-insurance and accrued liabilities

The company estimates liabilities for self-insurance and other accruals, which can vary with claims experience.

Impact: Operating expenses and reserves

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026