Applied Industrial Technologies · Earnings release · 8-K Exhibit 99

Financial Release

For Immediate Release

Applied Industrial Technologies Reports Fiscal 2026 Fourth Quarter

and Full-Year Results; Issues Guidance for Fiscal 2027

•Fourth Quarter Net Sales of $1.4 Billion Up 10.4% YoY; Up 9.7% on an Organic Basis

•Fourth Quarter Net Income of $118.6 Million, or $3.17 Per Share Up 13.2% YoY

•Fourth Quarter Operating Income of $159.3 Million; EBITDA of $177.6 Million Up 16.1% YoY

•Full-Year Net Sales of $5.0 Billion Up 8.8% YoY; Up 5.4% on an Organic Basis

•Full-Year Net Income of $414.5 Million, or $10.95 Per Share Up 8.2% YoY

•Full-Year Operating Income of $549.5 Million; EBITDA of $618.2 Million Up 10.0% YoY

•Establishes FY27 Guidance Including Total Sales +4.0% to +6.5% and EPS of $11.65 to $12.15

•Increases Intermediate Financial Targets to Sales of $7 Billion and EBITDA Margins of 14%

CLEVELAND, OHIO (August 13, 2026) – Applied Industrial Technologies (NYSE: AIT), a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies, today reported results for its fiscal 2026 fourth quarter and full year ended June 30, 2026.

Net sales for the quarter of $1.4 billion increased 10.4% over the prior year. The change includes a 0.3% increase from acquisitions and a benefit of 0.4% from foreign currency translation. Excluding these factors, sales increased 9.7% on an organic basis reflecting a 12.9% increase in the Engineered Solutions segment and a 7.9% increase in the Service Center segment. The Company reported net income of $118.6 million, or $3.17 per share, and EBITDA of $177.6 million. On a pre-tax basis, results include $6.4 million ($0.13 after tax per share) of LIFO expense compared to $2.9 million ($0.06 after tax per share) of LIFO expense in the prior-year period.

For the twelve months ended June 30, 2026, sales of $5.0 billion increased 8.8% compared with the prior year. On an organic basis, sales increased 5.4%. Net income was $414.5 million, or $10.95 per share, and EBITDA was $618.2 million. On a pre-tax basis, full-year results include $21.5 million ($0.43 after tax per share) of LIFO expense compared to $7.7 million ($0.16 after tax per share) of LIFO expense in the prior-year period.

Neil A. Schrimsher, Applied’s President & Chief Executive Officer, commented, “T1We had a strong finish to fiscal 2026 with fourth quarter sales, EBITDA, and EPS achieving record quarterly levels and exceeding our expectations. T2Organic sales growth of 10% was the strongest in more than three years with trends strengthening across both segments. The growth momentum building across the business reflects our differentiated technical position and ongoing sales initiatives, which are intensifying within an increasingly favorable end-market backdrop. Combined with steady gross margin performance and solid operating leverage, T3we expanded EBITDA margins by more than 60 basis points, and achieved mid-teens EBITDA, EPS, and free cash growth compared to the prior-year fourth quarter.

Overall, fiscal 2026 was a pivotal year showcasing the ongoing positive transformation at Applied including early signs of the growth potential taking shape across our business. The foundation of this progress is rooted in the power of the Applied team, and their commitment to our strategy and long-term vision of the Company.”

Mr. Schrimsher added, “We enter fiscal 2027 in a great position with various growth tailwinds and operational momentum continuing to develop. Positive top-line trends have sustained into the first quarter with organic sales up year over year by an estimated 7% to date. We are mindful of ongoing inflationary headwinds and macro uncertainty, as well as more difficult comparisons as fiscal 2027 plays out. That said, the demand recovery appears durable and increasingly influenced by structural and secular tailwinds. Our Service Center segment continues to benefit from elevated technical MRO spending and internal sales initiatives, while order momentum remains positive across our Engineered Solutions segment reflecting demand for our leading engineering and application expertise, as well as exposure to faster growing verticals. T4Combined with an active M&A pipeline and ongoing margin expansion opportunities, we are well positioned moving forward.”

Fiscal 2027 Guidance and Updated Intermediate Financial Targets

T5Applied is introducing guidance for the fiscal year ending June 30, 2027 as follows:

•Total sales growth: 4.0% to 6.5%

T6Guidance incorporates macro uncertainty tied to ongoing geopolitical events and trade policy dynamics, as well as broader inflationary headwinds and growth investments. Guidance does not assume contribution from future acquisitions or share buybacks.

T7In addition, the Company is increasing its intermediate financial objectives and now targets sales of $7 billion and EBITDA margins of 14%. The Company expects to achieve these targets over the next five years depending on various factors including the trajectory of broader macro conditions, the timing and scope of M&A, progress with internal initiatives, and other factors.

Mr. Schrimsher concluded, “Given our performance in recent years and the meaningful growth opportunity we have moving forward, we believe now is an opportune time to update our intermediate financial objectives. Our ongoing evolution has positioned Applied at the intersection of exciting and powerful growth trends tied to rising technical support at customer plants, industrial system upgrades, automation adoption, and the build out of critical infrastructure across both legacy and emerging customer verticals. In addition, our balance sheet and cash generation provide meaningful capacity to further compound our growth through ongoing M&A, while our margin expansion potential remains notable and supported by structural mix tailwinds, internal initiatives, and inherent operating leverage as we continue to scale the business. Overall, our teams and strategy are now firmly focused on these next milestones, which highlight a compelling outlook for sustained value creation long-term.”

Conference Call Information

The Company will host a conference call at 10 a.m. ET to discuss the quarter’s results and outlook. A live audio webcast and presentation can be accessed on our Investor Relations site at https://ir.applied.com. To join by telephone, dial 833-461-5787 (toll free) using conference ID 599 839 625.

About Applied®

Applied Industrial Technologies is a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. Our leading brands, specialized services, and comprehensive knowledge serve MRO (maintenance, repair, and operations) and OEM (original equipment manufacturing), and new system install applications in virtually all industrial markets through our multi-channel capabilities that provide choice, convenience, and expertise. For more information, visit www.applied.com.

This press release contains statements that are forward-looking, as that term is defined by the Securities and Exchange Commission in its rules, regulations and releases. Applied intends that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements are often identified by qualifiers such as “expect,” “will,” “guidance,” “assume,” “outlook,” and derivative or similar expressions. All forward-looking statements are based on current expectations regarding important risk factors including trends and events in the industrial sector of the economy (such as the inflationary environment and supply chain strains), results of operations, and financial condition, and other risk factors identified in Applied's most recent periodic report and other filings made with the Securities and Exchange Commission.

Accordingly, actual results may differ materially from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by Applied or any other person that the results expressed therein will be achieved. Applied assumes no obligation to update publicly or revise any forward-looking statements, whether due to new information, or events, or otherwise.

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CONTACT INFORMATION

Ryan D. Cieslak

Director – Investor Relations & Treasury

APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED STATEMENTS OF CONSOLIDATED INCOME

(Unaudited)

(In thousands, except per share data)

Three Months Ended

Year Ended

Net Sales

$

$

$

$

Cost of sales

Gross Profit

Selling, distribution and administrative expense, including depreciation

Operating Income

Interest expense, net

Other income, net

Income Before Income Taxes

Income tax expense

Net Income

$

$

$

$

Net Income Per Share - Basic

$

$

$

$

Net Income Per Share - Diluted

$

$

$

$

Average Shares Outstanding - Basic

Average Shares Outstanding - Diluted

APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

Assets

Cash and cash equivalents

$

$

Accounts receivable — net

Inventories

Other current assets

Total current assets

Property — net

Operating lease assets — net

Identifiable intangibles — net

Goodwill

Other assets

Total Assets

$

$

Liabilities

Accounts payable

$

$

Other accrued liabilities

Total current liabilities

Long-term debt

Other liabilities

Total Liabilities

Shareholders' Equity

Total Liabilities and Shareholders' Equity

$

$

APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

(Unaudited)

(In thousands)

Year Ended June 30,

Cash Flows from Operating Activities

Net income

$

$

Adjustments to reconcile net income to net cash provided

by operating activities:

Depreciation and amortization of property

Amortization of intangibles

Deferred income taxes

Provision for losses on accounts receivable

Amortization of stock appreciation rights

Other share-based compensation expense

Changes in operating assets and liabilities, net of acquisitions

Other

Net Cash provided by Operating Activities

Cash Flows from Investing Activities

Cash paid for acquisition of businesses, net of cash acquired

Capital expenditures

Proceeds from property sales

Net Cash used in Investing Activities

Cash Flows from Financing Activities

Repayments under revolving credit facility

—

Long-term debt repayments

—

Interest rate swap settlement receipts

Payment of debt issuance costs

—

Purchases of treasury shares

Dividends paid

Acquisition holdback payments

Taxes paid for shares withheld

Net Cash used in Financing Activities

Effect of exchange rate changes on cash

Decrease in cash and cash equivalents

Cash and Cash Equivalents at Beginning of Period

Cash and Cash Equivalents at End of Period

$

$

APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In thousands)

The Company supplements the reporting of financial information determined under U.S. generally accepted accounting principles (GAAP) with reporting of non-GAAP financial measures. The Company believes that these non-GAAP measures provide meaningful information to assist shareholders in understanding financial results, assessing prospects for future performance, and providing a better baseline for analyzing trends in our underlying businesses. Because non-GAAP financial measures do not have a standard definition, it may not be possible to compare these non-GAAP financial measures with other companies' non-GAAP financial measures having the same or similar names. These non-GAAP financial measures should not be considered in isolation or as a substitute for reported results. The Company believes these non-GAAP financial measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review company financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure:

Three Months Ended June 30,

Year Ended

Net Income

$

$

$

$

Interest expense, net

Income tax expense

Depreciation and amortization of property

Amortization of intangibles

EBITDA

$

$

$

$

The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization. EBITDA is a non-GAAP financial measure which excludes items that may not be indicative of core operating results.

Reconciliation of Net Cash provided by Operating activities, a GAAP financial measure, to Free Cash Flow, a non-GAAP financial measure:

Three Months Ended

Year Ended

Net Cash provided by Operating Activities

$

$

$

$

Capital expenditures

Free Cash Flow

$

$

$

$

Free cash flow is a non-GAAP financial measure and is defined as net cash provided by operating activities less capital expenditures.

APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES

SALES GROWTH BY REPORTABLE SEGMENT

(Unaudited)

(Percent change compared to prior-year period)

For the three months ended June 30, 2026

Reported Sales

Selling Days Impact (1)

Acquisitions

Foreign Currency

Organic Change

Service Center

%

—

%

%

%

Engineered Solutions

%

—

—

—

%

Total Company

%

%

%

%

(1) Based on U.S. selling days; there were 63.5 selling days in both Q4 FY26 and Q4 FY25.

Reported Sales

Selling Days Impact (1)

Acquisitions

Foreign Currency

Organic Change

Service Center

%

—

%

%

%

Engineered Solutions

%

—

%

—

%

Total Company

%

%

%

%

(1) Based on U.S. selling days; there were 252.5 selling days in both FY26 and FY25.

APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES

NET SALES, OPERATING INCOME, EBITDA, & EBITDA MARGIN BY

REPORTABLE SEGMENT & CORPORATE & OTHER EXPENSE, NET

(Unaudited)

(In thousands)

Three Months Ended

Twelve Months Ended

Service Center Segment:

Net Sales

$

$

$

$

Operating income

$

$

$

$

Depreciation and amortization of property

Amortization of intangibles

EBITDA

$

$

$

$

EBITDA margin - % of sales

%

%

%

%

Engineered Solutions Segment:

Net Sales

$

$

$

$

Operating income

$

$

$

$

Depreciation and amortization of property

Amortization of intangibles

EBITDA

$

$

$

$

EBITDA margin - % of sales

%

%

%

%

Corporate & other expense, net

$

$

$

$