Applied Industrial Technologies, Inc. operates as a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies and related maintenance supplies. The company serves virtually all industrial markets that require technical expertise and service, with its products and solutions directly tied to companies’ production processes, efficiency initiatives, and most critical operating assets. The industry is characterized by competition with other distributors and service providers offering products and solutions addressing the industrial supply chain, where high cost of failure, product specification, and system complexity require premier local service and inventory availability, application expertise, and aftermarket support.

The company believes its industry position and value proposition benefits from relative advantages tied to deep technical expertise in providing solutions to critical motion control systems and related service offerings, leading positions in engineered fluid power and flow control solutions, advanced capabilities and an established footprint across advanced automation solutions, broad in-stock product offering, local inventory availability, and repair capabilities, extensive technical knowledge and domain expertise of customers' facility and production equipment, tenured relationships with industrial customers and leading suppliers, scale and proximity of operations relative to customer facilities, local entrepreneurial culture and continuous improvement focus, complementary offerings including indirect consumable supply inventory management, talent acquisition and development of technical sales associates, engineers, and service personnel, business systems and distribution capabilities, and strong financial liquidity and access to capital.

The company generates revenue through the distribution of industrial products and technical solutions, serving customers for both Maintenance, Repair, and Operations (MRO), Original Equipment Manufacturing (OEM), and new system install applications across a variety of end markets primarily in North America, as well as Australia, New Zealand, and Singapore. The business model is centered on connecting world-class industrial products and technologies from leading suppliers to customers' most critical operating assets, with a focus on helping customers minimize production downtime, improve machine performance, and reduce overall procurement and maintenance costs, as well as optimize the efficiency and safety of their facilities, equipment, and production processes.

The company operates through two reportable segments: Service Center Based Distribution and Engineered Solutions. The Service Center Based Distribution segment responds to critical break-fix situations that demand knowledge of a customer's facility, localized inventory, timely delivery capabilities, service execution, and accountability. The Engineered Solutions segment designs, engineers, and integrates solutions focused on making a customer's operations and equipment more productive, cost and energy-efficient, and automated. The company offers a selection of more than 9.4 million stock keeping units with a focus on industrial bearings, power transmission products, fluid power components and systems, specialty flow control, and advanced factory automation solutions, as well as general maintenance products.

The company's product categories include Power Transmission, General MRO/Other, Fluid Power, Bearings/Linear/Seals, and Specialty Flow Control. Through its comprehensive network of approximately 6,900 employee associates and approximately 580 facilities including service center, fluid power, flow control, and automation operations, as well as repair shops and distribution centers, the company serves customers across end markets including General Industry, Industrial Machinery, Food, Metals, Forest Products, Chemical/Petrochemical, Cement/Aggregate, Transportation, and Oil & Gas.

During the fiscal year, the company completed several acquisitions including Thompson Industrial Supply on January 17, 2026, Hydradyne LLC on December 31, 2024, IRIS Factory Automation on May 1, 2025, Total Machine Solutions on August 1, 2024, Stanley Proctor on August 1, 2024, Grupo Kopar on May 1, 2024, Bearing Distributors Inc. on September 1, 2023, and Cangro Industries Inc. on August 1, 2023. The company also amended its revolving credit facility on October 21, 2025, increasing the aggregate commitments to $1.0 billion.

For the fiscal year ended June 30, 2026, total net sales were $4,636,088,000 compared to $4,502,392,000 in the prior year. Net income was $348,640,000, and diluted earnings per share were $9.37, compared to net income of $336,174,000 and diluted EPS of $8.72 in the prior year. The company generated cash from operations of $424,724,000 and free cash flow of $367,088,000.

The company's growth strategy includes expanding its portfolio of solutions and entering new markets, as evidenced by the acquisitions completed during the fiscal year. The company focuses on deepening technical expertise in motion control systems, engineered fluid power and flow control solutions, and advanced automation capabilities. The company believes its products and solutions are increasingly critical within the industrial supply chain given increased manufacturing activity in the United States and reshoring or localization of supply chains across North America.

The company continues to invest in its business systems and distribution capabilities to support growth. The company's value proposition includes strong financial liquidity and access to capital, which supports its ability to pursue acquisitions and invest in the business.

The company's cost structure is influenced by its focus on local entrepreneurial culture and continuous improvement. The company emphasizes talent acquisition and development of technical sales associates, engineers, and service personnel to maintain its competitive position.

The company operates through a comprehensive network of approximately 6,900 employee associates and approximately 580 facilities including service center, fluid power, flow control, and automation operations, as well as repair shops and distribution centers. The company's business systems and distribution capabilities are key operational assets.

The company maintains strong financial liquidity and access to capital. The company amended its revolving credit facility on October 21, 2025, increasing the aggregate commitments to $1.0 billion. The company's capital allocation priorities include investing in the business through acquisitions and maintaining financial flexibility.

The company faces headwinds related to the competitive nature of the industrial distribution industry, where it competes with other distributors and service providers offering products and solutions addressing the industrial supply chain. The company's business is exposed to cyclicality in industrial end markets, as its products and solutions are directly tied to companies' production processes and capital spending.

The company's operations are primarily in North America, as well as Australia, New Zealand, and Singapore, exposing it to regional economic conditions and currency fluctuations. The company's business is subject to the risk that customers may reduce their production levels or capital expenditures, which could adversely affect demand for the company's products and services.

Management's message emphasizes the company's position as a leading value-added distributor and technical solutions provider, with a focus on connecting world-class industrial products and technologies from leading suppliers to customers' most critical operating assets. The strategic priorities include expanding the portfolio of solutions through acquisitions, deepening technical expertise in motion control systems and engineered fluid power and flow control solutions, and investing in business systems and distribution capabilities. Management highlights the company's strong financial liquidity and access to capital as key enablers of its growth strategy.

For the fiscal year ended June 30, 2026, total net sales were $4,636,088,000 ¹ compared to $4,502,392,000 ² in the prior year. Net income was $348,640,000 ³ compared to $336,174,000 ⁴ in the prior year. Diluted earnings per share were $9.37 ⁵ compared to $8.72 ⁶ in the prior year. Operating income was $521,807,000 ⁷ compared to $502,615,000 ⁸ in the prior year. Cash provided by operations was $424,724,000 ⁹ and free cash flow was $367,088,000 ¹⁰. The company had cash and cash equivalents of $1,044,000,000 ¹¹ as of June 30, 2026. The Service Center Based Distribution segment reported net sales of $3,326,000,000 ¹² and the Engineered Solutions segment reported net sales of $1,310,000,000 ¹³ for the fiscal year.

The company operates in a highly competitive industry, competing with other distributors and service providers offering products and solutions addressing the industrial supply chain, which could pressure margins and market share. The company's business is directly tied to customers' production processes and capital spending, making it vulnerable to economic downturns and reduced industrial activity. The company's growth strategy depends on successful acquisitions, and the integration of acquired businesses such as Thompson Industrial Supply, Hydradyne LLC, IRIS Factory Automation, Total Machine Solutions, Stanley Proctor, Grupo Kopar, Bearing Distributors Inc., and Cangro Industries Inc. involves risks including potential disruption to ongoing operations and the failure to achieve expected synergies. The company's operations are concentrated in North America, with additional exposure in Australia, New Zealand, and Singapore, subjecting it to regional economic conditions and currency fluctuations. The company's reliance on a network of approximately 6,900 employee associates and approximately 580 facilities means that any disruption to its workforce or facilities could adversely affect its ability to serve customers.