olivLaw · US equity research
Applied Industrial Technologies, Inc. AIT
Wholesale-Machinery, Equipment & Supplies · SIC 5080 · Vertical: Wholesale-Machinery, Equipment & Supplies (SIC 5080)
Applied Industrial Technologies is a value-added distributor and technical solutions provider for industrial motion, fluid power, flow control, automation and maintenance supplies, operating from more than 580 facilities. In fiscal 2026 sales rose 8.8% to 5.0 billion USD, and management guides to fiscal 2027 sales growth of 4.0% to 6.5%, which makes the company relevant to investors watching the North American industrial recovery.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Applied Industrial Technologies, Inc. (AIT) stock was 298.29 USD (−2.25% on the day), with market capitalisation 10.9 bn USD, P/E 26.4 on diluted EPS of 11.30 USD over the last 12 months, dividend yield 0.67%, beta 1.17, 52-week range 240.63–361.95 USD. Latest reported quarter (Q1 2027): revenue of 1.3 bn USD (+7.6% YoY), net income of 110.4 m USD (+9.5% YoY), diluted EPS 2.97 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 37.2
- weak (30–45)
- Bollinger (20, 2)
- 287.94 – 351.38
- in the lower half of the band · %B 0.16 · band width 19.8%
- SMA 50 / 200
- 325.06 / 309.80
- mixed trend
- MACD (12, 26, 9)
- -9.18 / -6.55
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −13.7% | −1.1% | −12.6 pp | — |
| 3 months | −16.7% | −0.5% | −16.3 pp | — |
| 6 months | −5.4% | +4.4% | −9.8 pp | — |
| Year to date | +16.2% | +12.3% | +3.9 pp | — |
| 1 year | +16.3% | +13.5% | +2.8 pp | +16.5% |
| 3 years | +89.9% | +76.4% | +13.5 pp | −13.4% |
| 5 years | +189.2% | +63.7% | +125.5 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.1 bn | 1.2 bn | 1.2 bn | 1.2 bn | 1.2 bn | 1.3 bn | 1.4 bn | 1.3 bn |
| Cost of revenue | 745.0 m | 811.5 m | 850.0 m | 838.1 m | 809.7 m | 870.6 m | 941.5 m | 899.0 m |
| Gross profit | 328.1 m | 355.3 m | 374.7 m | 361.4 m | 353.3 m | 380.8 m | 411.2 m | 392.2 m |
| SG&A | 207.2 m | 225.9 m | 239.7 m | 232.4 m | 230.1 m | 242.9 m | 251.9 m | 248.6 m |
| Operating income | 120.9 m | 129.4 m | 135.1 m | 129.0 m | 123.2 m | 137.9 m | 159.3 m | 143.6 m |
| Pre-tax income | 122.6 m | 127.3 m | 135.0 m | 128.6 m | 122.8 m | 135.1 m | 157.8 m | 140.9 m |
| Income tax | 29.3 m | 27.5 m | 27.2 m | 27.8 m | 27.4 m | 35.4 m | 39.2 m | 30.5 m |
| Net income | 93.3 m | 99.8 m | 107.8 m | 100.8 m | 95.3 m | 99.8 m | 118.6 m | 110.4 m |
| Diluted EPS | 2.39 | 2.57 | 2.80 ≈ | 2.63 | 2.51 | 2.65 | 3.17 ≈ | 2.97 |
| Operating cash flow | 95.1 m ≈ | 122.5 m ≈ | 147.0 m | 119.3 m | 99.7 m ≈ | 100.1 m ≈ | 165.0 m | 86.4 m |
| Capex | 5.2 m | 7.5 m | 8.9 m | 7.3 m | 6.3 m | 4.7 m | 5.3 m | 13.0 m |
| Dividends paid | 14.3 m ≈ | 17.7 m ≈ | 17.5 m | 17.4 m | 17.3 m ≈ | 19.0 m ≈ | 18.9 m | 18.8 m |
| Share repurchases | 20.1 m ≈ | 49.7 m ≈ | 73.0 m | 53.2 m | 90.2 m ≈ | 93.0 m ≈ | 80.8 m | 80.0 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 82 percentile of its own 39-quarter history (min 12.9, median 19.6, max 117.6; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.5 bn | 3.2 bn | 3.2 bn | 3.8 bn | 4.4 bn | 4.5 bn | 4.6 bn | 5.0 bn |
| Revenue YoY | +13.0% | −6.5% | −0.3% | +17.8% | +15.8% | +1.5% | +1.9% | +8.8% |
| Net income | 144.0 m | 24.0 m | 144.8 m | 257.4 m | 346.7 m | 385.8 m | 393.0 m | 414.5 m |
| Net income YoY | +1.7% | −83.3% | +502.1% | +77.8% | +34.7% | +11.3% | +1.9% | +5.5% |
| Diluted EPS | 3.68 | 0.62 | 3.68 | 6.58 | 8.84 | 9.83 | 10.12 | 10.95 |
| Diluted EPS YoY | +1.9% | −83.2% | +493.5% | +78.8% | +34.3% | +11.2% | +3.0% | +8.2% |
| net % | 4.1% | 0.7% | 4.5% | 6.8% | 7.9% | 8.6% | 8.6% | 8.3% |
| Free cash flow | 161.6 m | 276.6 m | 225.8 m | 169.4 m | 317.5 m | 346.5 m | 465.2 m | 460.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 30 Jun 2026
- Cash
- 127.1 m USD
- Financial debt
- 262.3 m USD
- Net debt
- 135.2 m USD
- Equity
- 1.9 bn USD
- Total assets
- 3.0 bn USD
- Debt / equity
- 0.14x
- Current ratio
- 2.58x
- ROE
- 22.4%
- ROA
- 13.4%
- FCF margin
- 9.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 3.2 bn | 3.8 bn | 4.4 bn | 4.5 bn | 4.6 bn | 5.0 bn | SEC (XBRL)· 13 Aug 2026verified |
| Cost of revenue | 2.3 bn | 2.7 bn | 3.1 bn | 3.1 bn | 3.2 bn | 3.5 bn | SEC (XBRL)· 13 Aug 2026verified |
| Gross profit | 935.5 m | 1.1 bn | 1.3 bn | 1.3 bn | 1.4 bn | 1.5 bn | SEC (XBRL)· 13 Aug 2026verified |
| SG&A | 680.5 m | 749.1 m | 813.8 m | 840.8 m | 884.6 m | 957.3 m | SEC (XBRL)· 13 Aug 2026verified |
| Operating income | 205.5 m | 357.9 m | 473.2 m | 495.8 m | 498.5 m | 549.5 m | SEC (XBRL)· 13 Aug 2026verified |
| Interest expense | 30.8 m | 26.8 m | 24.8 m | 20.5 m | 18.2 m | 17.4 m | SEC (XBRL)· 13 Aug 2026verified |
| Pre-tax income | 177.1 m | 329.8 m | 449.8 m | 498.1 m | 501.0 m | 544.3 m | SEC (XBRL)· 13 Aug 2026verified |
| Income tax | 32.3 m | 72.4 m | 103.1 m | 112.4 m | 108.0 m | 129.7 m | SEC (XBRL)· 13 Aug 2026verified |
| Net income | 144.8 m | 257.4 m | 346.7 m | 385.8 m | 393.0 m | 414.5 m | SEC (XBRL)· 13 Aug 2026verified |
| Diluted EPS | 3.68 | 6.58 | 8.84 | 9.83 | 10.12 | 10.95 | SEC (XBRL)· 13 Aug 2026verified |
| Weighted average diluted shares | 39.3 m | 39.1 m | 39.2 m | 39.3 m | 38.8 m | 37.9 m | SEC (XBRL)· 13 Aug 2026verified |
| Dividend per share | 1.30 | 1.34 | 1.38 | 1.44 | 1.66 | 1.99 | SEC (XBRL)· 13 Aug 2026verified |
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 257.7 m | 184.5 m | 344.0 m | 460.6 m | 388.4 m | 127.1 m | SEC (XBRL)· 13 Aug 2026verified |
| Receivables | 516.3 m | 656.4 m | 708.4 m | 724.9 m | 769.7 m | 831.2 m | SEC (XBRL)· 13 Aug 2026verified |
| Inventories | 362.5 m | 449.8 m | 501.2 m | 488.3 m | 505.3 m | 509.0 m | SEC (XBRL)· 13 Aug 2026verified |
| Current assets | 1.2 bn | 1.4 bn | 1.6 bn | 1.8 bn | 1.7 bn | 1.6 bn | SEC (XBRL)· 13 Aug 2026verified |
| Property, plant & equipment, net | 115.6 m | 111.9 m | 115.0 m | 118.5 m | 128.2 m | 131.7 m | SEC (XBRL)· 13 Aug 2026verified |
| Goodwill | 560.1 m | 563.2 m | 578.4 m | 619.4 m | 699.4 m | 704.7 m | SEC (XBRL)· 13 Aug 2026verified |
| Intangibles (excl. goodwill) | 279.6 m | 250.6 m | 235.5 m | 245.9 m | 348.6 m | 312.8 m | SEC (XBRL)· 13 Aug 2026verified |
| Total assets | 2.3 bn | 2.5 bn | 2.7 bn | 3.0 bn | 3.2 bn | 3.0 bn | SEC (XBRL)· 13 Aug 2026verified |
| Accounts payable | 208.2 m | 259.5 m | 301.7 m | 266.9 m | 280.1 m | 341.1 m | SEC (XBRL)· 13 Aug 2026verified |
| Short-term debt | 43.5 m | 40.2 m | 25.2 m | 25.1 m | 0 | — | SEC (XBRL)· 15 Aug 2025verified |
| Long-term debt | 784.9 m | 649.2 m | 596.9 m | 572.3 m | 572.3 m | 262.3 m | SEC (XBRL)· 13 Aug 2026verified |
| Current liabilities | 427.7 m | 499.6 m | 540.3 m | 501.1 m | 526.2 m | 612.4 m | SEC (XBRL)· 13 Aug 2026verified |
| Total liabilities | 1.3 bn | 1.3 bn | 1.3 bn | 1.3 bn | 1.3 bn | 1.1 bn | SEC (XBRL)· 13 Aug 2026verified |
| Equity | 932.5 m † | 1.1 bn † | 1.5 bn † | 1.7 bn † | 1.8 bn † | 1.9 bn † | SEC (XBRL)· 13 Aug 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 241.7 m | 187.6 m | 344.0 m | 371.4 m | 492.4 m | 484.1 m | SEC (XBRL)· 13 Aug 2026verified |
| Capex | 15.9 m | 18.1 m | 26.5 m | 24.9 m | 27.2 m | 23.6 m | SEC (XBRL)· 13 Aug 2026verified |
| Free cash flow | 225.8 m ≈ | 169.4 m ≈ | 317.5 m ≈ | 346.5 m ≈ | 465.2 m ≈ | 460.5 m ≈ | SEC (XBRL)· 13 Aug 2026derived |
| Investing cash flow | -44.9 m | -35.7 m | -60.8 m | -95.4 m | -318.8 m | -33.9 m | SEC (XBRL)· 13 Aug 2026verified |
| Financing cash flow | -213.0 m | -223.0 m | -126.9 m | -156.5 m | -245.6 m | -711.5 m | SEC (XBRL)· 13 Aug 2026verified |
| Dividends paid | 50.7 m | 51.8 m | 53.4 m | 55.9 m | 63.7 m | 72.6 m | SEC (XBRL)· 13 Aug 2026verified |
| Share repurchases | 40.1 m | 13.8 m | 716.0 k | 73.4 m | 152.8 m | 317.2 m | SEC (XBRL)· 13 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 66 / 100
A scoring methodology on indicators and valuation, not investment advice.
(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 10.9 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation31
- Returns73
- Quality94
- Balance sheet100
- Growth41
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 152.38 – 335.05 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)152.38 – 235.37 (Mid 184.62)WACC 9.2% · starting FCFF 435.1 m USD · terminal value share of EV 73%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 26.2%
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E193.05 – 335.05 (Mid 242.09)3 companies used · median multiple 21.4x · quartiles 17.1x – 29.7xHDSN, TLIH, WLFC
- Dividend discount (DDM)outside the aggregate26.15 – 35.17 (Mid 30.00)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 66/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 21.0% | 100 (on a fixed band) | 13% |
| Net margin · Quality | 8.4% | 80 (vs peers) | 8% |
| FCF conversion · Quality | 99.5% | 99 (on a fixed band) | 8% |
| Revenue CAGR 3Y · Growth | 4.0% | 34 (on a fixed band) | 11% |
| EPS CAGR 3Y · Growth | 7.4% | 49 (on a fixed band) | 11% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 32.4x | 100 (on a fixed band) | 8% |
| Current ratio · Balance sheet | 2.9x | 100 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 26.4x | 16 (on a fixed band) | 13% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 3.9% | 48 (on a fixed band) | 11% |
| Shareholder yield (distributions) · Returns | 3.8% | 55 (on a fixed band) | 8% |
| Payout ratio (FCF) · Returns | 17.5% | 100 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet100/100 · 2/3 factors with a value
- Growth41/100 · 2/2 factors with a value
- Quality94/100 · 3/3 factors with a value
- Returns73/100 · 2/2 factors with a value
- Valuation31/100 · 2/3 factors with a value
Memo
APPLIED INDUSTRIAL TECHNOLOGIES, INC. (AIT). Latest full fiscal year: 2026; data up to 2026-09-30.
Figures computed from the financial statements: revenue 5.0 bn USD in 2026; YoY growth 8.8%; net margin 8.4%; ROE 22.5%.
The estimated value range is 172.72–285.21 USD per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 213.36 USD, the price of 298.29 USD leaves a potential of -28.5% (value / price − 1) and a margin of safety of -39.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 66/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 21.0%
- Net margin: 8.4%
- FCF conversion: 99.5%
- Interest coverage: 32.4x
- Current ratio: 2.9x
- Payout ratio (FCF): 17.5%
What contradicts it
- P/E (TTM): 26.4x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Wholesale-Machinery, Equipment & Supplies (SIC 5080) · same industry (4-digit SIC) · compared with 5 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AITApplied Industrial Technologies, Inc. | 10.9 bn | 26.4 | 22.5% | 8.4% | +8.8% | +16% / +90% |
| DSGRDistribution Solutions Group, Inc. | 1.6 bn | 180.0 | 1.4% | 0.4% | +9.8% | +26% / +38% |
| WLFCWillis Lease Finance Corp | 1.0 bn | 12.7 | 11.5% | 9.6% | +28.3% | +16% / +213% |
| ASLEAerSale Corporation | 237.2 m | — | -0.9% | -1.2% | −2.8% | −23% / −64% |
| HDSNHudson Technologies Inc | 185.6 m | 21.4 | 3.6% | 3.5% | +4.0% | −35% / −64% |
| TLIHTen-League International Holdings Limited | 167.1 m | 37.9 | 49.6% | 7.3% | +38.4% | +59% / unavailable |
1- and 3-year price returns: for AIT from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 180.37 Total return -39% · Per year -39% | 318.95 Total return 8% · Per year 8% | 480.53 Total return 62% · Per year 62% |
| 3 years | 173.36 Total return -40% · Per year -16% | 345.11 Total return 18% · Per year 6% | 571.12 Total return 94% · Per year 25% |
| 5 years | 166.63 Total return -42% · Per year -10% | 373.41 Total return 29% · Per year 5% | 678.80 Total return 133% · Per year 18% |
- Exit P/E± 86.28
- Net margin± 60.39
- Annual revenue growth± 49.80
- Annual dilution± 5.07
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 13 Aug 2026; since then the company filed 8-K (27 Oct 2026 · results), 10-Q (27 Oct 2026).
In brief
Applied Industrial Technologies is a value-added distributor and technical solutions provider for industrial motion, fluid power, flow control, automation and maintenance supplies, operating from more than 580 facilities. In fiscal 2026 sales rose 8.8% to 5.0 billion USD, and management guides to fiscal 2027 sales growth of 4.0% to 6.5%, which makes the company relevant to investors watching the North American industrial recovery.
SWOT
Strengths
- The company has an extensive network of facilities close to customers and local in-stock inventory, which supports fast repairs.
- Technical expertise and long-tenured supplier relationships give it a competitive advantage that management highlights.
- Balance sheet strength and access to capital allow the company to fund acquisitions and investment.
Weaknesses
- Dependence on the operating levels of industrial customers makes sales sensitive to economic cycles.
- Labour costs are one of the largest expenses, and wage pressures could reduce margins.
- International operations expose the company to currency fluctuations and political risk outside the United States.
Opportunities
- Reshoring and infrastructure investment could expand the company's addressable market.
- Growth in Engineered Solutions could improve margins if the product mix keeps shifting favourably.
- Sector consolidation through acquisitions could add capabilities and market share.
Threats
- A decline in industrial activity could reduce demand and put pressure on prices.
- Supply chain disruptions or loss of supplier authorisations could affect sales.
- Cyber-attacks or information system outages could disrupt operations and damage reputation.
Risks
- Dependence on customer activityhigh
If industrial customers reduce production, the company could face pricing pressure and difficulty managing inventory.
- Loss of supplier authorisationshigh
Key supplier relationships can be terminated by either party, and changed terms could weaken the company's competitive position.
- Costs and inflationmedium
If prices cannot be passed on to customers in time, margins could fall, especially in an inflationary environment.
- Currency and international riskmedium
Operations outside the United States could be hit by currency swings and political instability.
- Information systems securitymedium
A disruption or security breach could affect order processing, inventories and the company's reputation.
Investment thesis
What would need to be true (bull case)
- Organic sales growth accelerated in the fourth quarter of fiscal 2026, and management reports a positive start to fiscal 2027, which could support earnings growth.
- Expansion of Engineered Solutions and automation trends could improve margins over the long term.
- The intermediate targets announced by management, sales of 7 billion USD and an EBITDA margin of 14%, could show the growth potential if macro conditions are favourable.
What would break the thesis
- Guidance for fiscal 2027 includes uncertainty tied to geopolitics, trade policy and inflation, which could limit growth.
- Tougher year-over-year comparisons could slow organic sales growth in the second half of fiscal 2027.
- If labour cost and price pressures stay high, margins could remain under pressure.
What to watch
- Delivery against fiscal 2027 sales and EPS guidance2027
- Development of organic sales growth in the first quarter of fiscal 2027Q1 2027
- Pace of acquisitions and their integration in Engineered Solutionsnext 10-K
- Trend in gross margin and LIFO expense2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 13 Aug 2026; since then the company filed 8-K (27 Oct 2026 · results), 10-Q (27 Oct 2026).
The business
Applied Industrial Technologies, headquartered in Cleveland, Ohio, has been in business since 1923 as a value-added distributor and technical solutions provider for industrial motion, fluid power, flow control and automation. The company serves MRO, OEM and new system install applications through more than 580 facilities and a selection of more than 9.4 million stock keeping units. Operations are primarily in the United States, which generated 88% of 2026 sales.
The business model rests on local in-stock inventory, technical service and fast repairs for industrial customers, which ties its products closely to customers' production processes. The company cites technical expertise, local presence and long-tenured supplier relationships as its main competitive advantages.
The company also emphasises growth through acquisitions and the expansion of its Engineered Solutions segment, which is approaching 40% of total sales and carries higher margins. Management is thus also pursuing better long-term profitability.
Segments
Service Center
The Service Center segment covers MRO distribution across North America, Australia and New Zealand and represented 64% of 2026 sales. Products include industrial bearings, motors, belting, drives, pumps, hydraulic and pneumatic components, filtration supplies and hoses.
Engineered Solutions
The Engineered Solutions segment designs, engineers and integrates fluid power, flow control and automation solutions and represented 36% of 2026 sales. The company describes it as its higher-margin, faster-growing segment.
Market context
The North American industrial distribution market is highly fragmented, with local, regional, national and multinational participants. The company estimates an addressable market of over 80 billion USD, and demand is shaped by industrial production, capacity utilisation and capital spending.
Indicators the company tracks, such as the MCU and ISM PMI readings, showed manufacturing expansion in June 2026, which supports demand for replacement components on heavily used equipment.
Trends
- Reshoring of production to North Americatailwind
Reshoring and localisation of supply chains in North America could support demand for the company's products and services, especially for new equipment and upgrades.
- Automation and physical AI adoptiontailwind
Adoption of robotics, machine vision and automation could lift sales in the Engineered Solutions segment, although it requires significant engineering investment.
- Inflation and macro uncertaintyheadwind
Inflationary pressures and uncertainty over trade policy could reduce customer demand and affect margins if price increases cannot be passed on in time.
- Consolidation in the distribution industrymixed
Consolidation among customers and suppliers could favour larger distributors, but it could also put pressure on prices and commercial terms.
Competitive position
Competition comes from specialist and general line distributors of bearings, power transmission, fluid power and flow control, as well as local, regional, national and multinational operators. The company also names OEMs, integrators and catalogue and e-commerce companies as competitors.
Larger competitors could have greater financial resources or stronger supplier relationships, which could hurt sales and profitability if they pursue aggressive pricing.
- Specialist bearing and power transmission distributors
Local and regional competitors in the same service areas, named as principal competitors in the annual report.
- General line industrial distributors
National and multinational operators offering a broad range of consumables and maintenance equipment.
- OEMs and system integrators
Indirect competitors that can supply automation solutions and systems directly to industrial customers.
- E-commerce and catalogue distributors
Online platforms competing on availability, pricing and assortment in the MRO product segment.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Applied Industrial (AIT) Smashed Records, Then Guided For LessYahoo Finance — News · 07 Sept 2026 · EN
The latest news item in our archive is from 07 Sept 2026; the newest SEC filing is from 27 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report27 Oct 2026
- Current report27 Oct 2026Results of operations · Financial statements and exhibits
- Current report (amendment)23 Oct 2026Departure or appointment of officers
- Current report22 Oct 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Proxy statement10 Sept 2026
- Current report14 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Annual report13 Aug 2026
- Current report13 Aug 2026Results of operations · Financial statements and exhibits
- Current report25 Jun 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report28 Apr 2026
Sources
- [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / Applied Industrial Technologies, Inc. · 13 Aug 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Applied Industrial Technologies, Inc. · 13 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.