APPLIED INDUSTRIAL TECHNOLOGIES INC

Applied Industrial Technologies, Inc.

Company profile

• Name: Applied Industrial Technologies, Inc. (an Ohio corporation)
• Headquarters: Cleveland, Ohio
• Fiscal year end: June 30
• Business type: Value-added distributor and technical solutions provider
• Core focus: Industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies
• Global footprint: Approximately 6,900 associates across seven countries
• Facilities: About 580 locations, including service centers, fluid power and flow control operations, automation operations, repair shops, and distribution centers

Products and services

• More than 9.4 million SKUs in inventory
• Key product areas: industrial bearings, power transmission products, fluid power components and systems, specialty flow control, advanced factory automation solutions, and general maintenance products
• Applications: Maintenance, Repair, and Operations (MRO); Original Equipment Manufacturing (OEM); new system installation across multiple end markets
• Major sales regions: Primarily North America, with operations in Australia, New Zealand, and Singapore

Online and branding

• Website: www.applied.com
• Public filings and ethics materials available via hyperlink on the investor relations site (not incorporated by reference into the Annual Report)

Customers and concentration

• Serves thousands of customers across many industries
• No single customer accounted for more than 5% of 2026 sales
• Customer relationships cover both MRO and engineered solutions needs

Segments and revenue mix (2026)

• Reportable segments:
  • Service Center
  • Engineered Solutions
• 2026 sales mix:
  • Service Center: 64% of total sales
  • Engineered Solutions: 36% of total sales
• Geographic sales distribution (2026):
  • United States: 88%
  • Canada: 6%
  • Other international (including Mexico, Australia, New Zealand, Singapore, Costa Rica, etc.): 6%

Operations and capabilities

Service Center segment

• Focus: MRO-focused distribution across North America, Australia, and New Zealand
• Facilities: Approximately 420 service centers and distribution centers
• Capabilities: Local inventory, rapid order processing, on-site account management, product and industry specialists
• Value-added services: Onsite training, fabrication and repair, inventory management solutions, and documented value-added (DVA) reporting
• Supporting activities: Indirect consumables management, rubber shops, and field service crews for conveyors, hoses, and related equipment

Engineered Solutions segment

• Focus: Distribution, engineering, design, integration, and repair of hydraulic and pneumatic fluid power technologies, engineered flow control, and automation technologies
• Facilities: About 160 facilities
• Capabilities: System design and integration, electronic control integration, software programming, valve actuation, fabrication and assembly, repair and rebuild, hose assemblies, hydraulic cylinder work, skid-mounted assembly, process instrumentation, and compliance consulting
• Market emphasis: Fluid power, flow control, and automation solutions for industrial, mobile, and technology sectors, including datacenter and semiconductor-related applications

Assets and properties

• Asset base: 109 owned properties and 433 leased properties as of June 30, 2026
• Principal owned properties: Cleveland (corporate HQ); Atlanta (distribution center/service center); Florence (distribution center/hose and reducer shops); Baldwinsville (fluid power shop); Carlisle (distribution center/hose shop); Fort Worth (distribution center and rubber shop)
• Principal leased properties: Locations in Fontana (distribution center/service center/rubber and fluid power), Newark (fluid power shop), Midland (flow control shop), Strongsville (offices and warehouse), Portland (distribution center/hose/reducer shops), Sherwood (automation), and multiple other sites

International reach

• 88% of sales in the United States; Canada is the largest non-U.S. market
• Other international markets include Mexico, Australia, New Zealand, Singapore, and Costa Rica

Human capital

• Approximately 6,900 associates (as of June 30, 2026)
  • United States: ~5,300
  • Canada: ~700
  • Other countries: ~900
• Segment staffing: Service Center ~4,100; Engineered Solutions ~2,500; Other ~300
• Workforce programs: Recruitment, development, and retention initiatives; formal training programs and performance review processes; safety and well-being programs such as Healthy You!

Leadership (executive officers as of October 22, 2025)

• Neil A. Schrimsher — President (since 2013) and Chief Executive Officer (since 2011); Age 62
• Warren E. Hoffner — Vice President, General Manager–Engineered Solutions (since Oct 2018); Age 66
• Kurt W. Loring — Vice President, Chief Human Resources Officer (since 2014); also Vice President, General Counsel (since March 2023); Age 57
• Jon S. Ploetz — Vice President, Sales & Marketing, U.S. Service Centers (since June 2017); Age 53
• Jason W. Vasquez — Vice President, Sales & Marketing, U.S. Service Centers (since June 2017); Age 50
• David K. Wells — Vice President, Chief Financial Officer & Treasurer (since September 2017); Age 63

Financial snapshot highlights

• Total debt outstanding: $262.3 million as of June 30, 2026
• Goodwill: $704.7 million; other intangible assets, net: $312.8 million
• The company notes potential debt-related covenants and effects on liquidity
• Ongoing focus on liquidity management, acquisition activity, and both organic and inorganic growth, including investments in technology and shared services