$AIT Applied Industrial Technologies, Inc.

What Do They Do?

Distributes maintenance and repair products for industrial production equipment to industrial businesses. Designs, integrates and repairs fluid-power, flow-control and automation systems for equipment makers, machine builders and other industrial users.

How Do They Make Money?

Industrial customers mainly pay for purchased products, with sales counted when goods ship from an Applied facility or directly from a supplier; some customers make down payments before delivery.

revenue

Segment	Share	Revenue	How money arrives
Service Center Sold outright	64%		Sold outright
Engineered Solutions Sold outright	36% FY2023: 33%		Sold outright

Who Are Their Customers?

Industrial businesses, from large multi-location companies to small local firms, buy through Applied's service-center and distribution network; some products ship directly from suppliers to customers.

Do Revenues Turn Into Profits?

Yes. It kept 8 cents of every revenue dollar as net income in FY2026 and turned 9 cents into free cash flow.

Operating income, FY2026

11% of revenue

▲ +10% vs FY2025 ($498.5M, 11%)

Net income, FY2026

8% of revenue

▲ +5% vs FY2025 ($393M, 9%)

Free cash flow, FY2026

9% of revenue

▼ −1% vs FY2025 ($465.2M, 10%)

How Are They Changing?

Since the FY2026 annual report

Latest quarter: Q1 FY2027, the three months to Sep 30, 2026

Revenue: ▲ +8%; vs $1.2B in Q1 FY2026
Net income: ▲ +10%; vs $100.8M in Q1 FY2026

Service Center share of revenue vs 65.2% in Q1 FY2026

New system-install work The latest business description includes new system installation applications alongside MRO and OEM uses, while the earlier description names MRO and OEM applications.

Revenue over time

Service Center Engineered Solutions Service Center Segment

$5B$2.5B$0

FY2022 FY2023 FY2024 FY2025 FY2026