Applied Industrial Technologies, Inc.AIT
NYSE•Industrials•Industrial Distribution
Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in the United States, Canada, Mexico, Australia, New Zealand, Singapore, and Costa Rica. It operates in two segments, Service Center and Engineered Solutions. The Service Center segment distributes industrial bearings, power transmission, fluid power components and systems, specialty flow control, and advanced factory automation solutions, as well as general maintenance products; and motors, belting, drives, couplings, pumps, linear motion, hydraulic and pneumatic components, filtration supplies, hoses, and other related supplies. It also installs, modifies, and repairs conveyor belts and rubber linings, as well as hose assemblies. The Engineered Solutions segment is involved in distributing, engineering, designing, integrating, and repairing hydraulic and pneumatic fluid power technologies, engineered flow control products and services, and automation technologies; and provision of fluid power and industrial flow control products. Its fluid power products and solutions are used in off-highway mobile equipment, stationary industrial equipment and machines, marine and offshore equipment, factory automation, food processing equipment, packaging operations, and downstream energy process systems. This segment also offers pumps, valves, fittings, hoses, process instrumentation, actuators, and filtration supplies; and advanced automation technologies for the design, engineering, assembly, integration, and distribution of machine vision, collaborative robots, mobile robots, radio-frequency identification, industrial networking, motion control, and machine learning technologies for OEMs, machine builders, integrators, and other industrial and technology sectors. The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.
Applied Industrial Technologies (AIT) reported trailing twelve months revenue of $4.84B as of March 2026, a 7.5% increase year-over-year. Quarterly revenue reached $1.25B, reflecting continued top-line momentum.
Applied Industrial Technologies generated $403.76M in TTM net income, with quarterly EBITDA of $154.21M. The operating margin contracted from 11.1% to 11.0%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (11.0%) and net margin (8.0%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 8.6% a year ago, reflecting increased costs or interest expense.
AIT trades at a P/E of 23.8x (in line with broad market averages) and a P/S of 2.0x. The price-to-book ratio of 5.2x indicates a significant premium over book value.
The company generated $95.38M in free cash flow over the trailing twelve months, a 17.0% decrease year-over-year, indicating cash generation ability. The balance sheet shows $2.99B in total assets with $347.30M in long-term debt against $1.86B in stockholders equity for a debt-to-equity ratio of 0.2, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~11.0% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 21.7% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (6 of 7 quarters up), with ~8.0% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~10.9% — no sign of cost or pricing stress.
FCF covers net income by 1.1x on average — earnings are well-supported by cash generation.
D/E ratio is 0.2 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 3.5% — net buybacks are reducing shares outstanding and boosting per-share value.