Applied Industrial Technologies (AIT) Investor presentation summary

Strategic positioning and business overview

• Holds leading market positions in industrial motion, power, control, and automation technologies, with ~80% of sales from #1 or #2 market positions.

• Operates a multi-channel model with over 600 facilities and 6,800 associates, primarily in North America.

• Product portfolio is focused on critical motion control, fluid power, flow control, and automation, representing ~85% of sales.

• Diverse customer base across industrial machinery, food & beverage, metals, and general industry, with 88% of sales in the U.S.

Financial performance and growth

• Achieved $5B in revenue and $618M in EBITDA in FY26, with a five-year sales CAGR of 9% and EBITDA CAGR of 14%.

• Gross margins increased by 120 bps and EBITDA margins by 260 bps since 2021, reaching 30.3% and 12.4% respectively in FY26.

• Free cash flow conversion averaged ~100% over the past five years, supporting growth and shareholder returns.

• Net leverage ratio at 0.2x with $127M cash and $888M in available liquidity as of June 2026.

Growth strategy and outlook

• Pursues organic growth, acquisitions, and capital deployment to expand engineered solutions and automation segments.

• Fiscal 2027 guidance projects 4.0–6.5% sales growth, EBITDA margin of 12.5–12.8%, and EPS of $11.65–$12.15.

• Intermediate objectives target $7B in sales and 14% EBITDA margin, driven by cross-selling, secular tailwinds, and M&A.

• Active acquisition pipeline, with 55 acquisitions since 2000 and $1.4B deployed in the last 10 years.