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.

• Generates $4.7B in revenue and $578M in EBITDA, with a market cap of $11B and 6,800 associates.

• Offers a broad portfolio focused on motion control, fluid power, flow control, and automation, accounting for 85% of sales.

• Operates over 400 service centers and 50+ flow control locations, with advanced automation and digital sales channels.

• Diverse customer base, primarily in North America, with 88% of sales in the U.S. and exposure across industrial, food, metals, and other sectors.

Growth strategy and market trends

• Pursues organic growth through technical solutions, cross-selling, and expansion in automation and engineered solutions.

• Active acquisition strategy, with 54 acquisitions since 2000 and $1.4B deployed in the last decade.

• Positioned to benefit from secular trends: reshoring, automation, labor shortages, and modernization of industrial infrastructure.

• Technology vertical, including semiconductor and data center markets, now over 15% of Engineered Solutions segment sales.

• Intermediate financial objectives target $5.5B+ in sales and 13%+ EBITDA margins.

Financial performance and outlook

• Five-year net sales CAGR of 7% and EBITDA CAGR of 14% (2020–2025), with gross margins up 130 bps since 2020.

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

• Maintains a strong balance sheet with a net leverage ratio of 0.3x and $172M cash on hand as of March 2026.

• Fiscal 2026 guidance tightened to the high end: total sales up 7.2–7.7% YoY, organic sales up 4.0–4.2%, EBITDA margin 12.3–12.4%, and EPS $10.64–$10.75.

• Q3 FY26 organic sales grew 6% YoY, with price and volume both contributing; F4Q26 outlook expects 4.0–5.5% organic growth.