AIT APPLIED INDUSTRIAL TECHNOLOGIES INC

Overview and Growth

APPLIED INDUSTRIAL TECHNOLOGIES INC generated $4.97B of revenue in fiscal 2026, with net income of $414.52M and an operating cash inflow of $484.08M. Revenue of $4.97B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 8.8% above fiscal 2025 revenue of $4.56B, marking a year-over-year increase. On a per-share basis, diluted EPS was $10.95, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS increased by 8.2% from $10.12 in fiscal 2025, showing how the earnings change reached shareholders on a per-share basis.

Profitability

The first profit layer was $1.51B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross margin was 30.3%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operations produced $549.47M of income after the reported operating expense base, before the remaining non-operating and tax effects. The operating result equaled 11.1% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. After all reported below-operating-line items, the company recorded net income of $414.52M for the fiscal year. Net margin was 8.3%, meaning that this portion of revenue remained as net income after all recognized expenses. The earnings statement records $544.27M of pretax income, the profit base against which the reported tax provision can be assessed. Pretax income represented 11.0% of revenue, placing earnings before tax in the context of the company’s operating scale. The reported income-tax provision was $129.75M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 23.8%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

At period end, the $3.01B asset base was financed through $1.15B of liabilities and $1.86B of equity. At period end, current assets of $1.58B compared with current liabilities of $612.41M, defining the company’s short-term resource position. Current assets covered current liabilities by 2.58x, leaving a positive buffer for near-term obligations. The company held $127.13M in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 20.8%, excluding receivables and other current assets. The company carried $262.30M of total debt at period end, which frames its leverage and debt-service burden. Debt equaled 0.14x of book equity, describing the relative scale of borrowing and shareholder capital. Relative to total assets, debt measured 8.7%, showing how much of the asset base was matched by borrowing. Liabilities represented 38.1% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 4.2% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $484.08M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Against net income, operating cash flow measured 1.17x, showing the relationship between accrual earnings and operating cash. Capital spending was $23.57M, absorbing part of the cash generated from operations before free cash flow. Capital expenditures represented 4.9% of operating cash flow, leaving the remainder available as free cash flow. After capital spending, free cash flow was $460.52M, leaving cash available for debt reduction, shareholder returns, or further investment. Relative to revenue, free cash flow equaled 9.3%, showing how much sales converted into cash after investment. The free-cash-flow-to-assets relationship was 15.3%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Jun 30, 2026. Analysis generated Oct 21, 2026.