Applied Industrial Technologies, Inc. (NYSE:AIT) Q1 2025 Earnings Conference Call October 24, 2024 10:00 AM ET Company Participants Ryan Cieslak - Director of IR, Treasury Neil Schrimsher - President & CEO David Wells - CFO Conference Call Participants David Manthey - Baird Christopher Glynn - Oppenheimer Ken Newman - KeyBanc Brett Linzey - Mizuho Christopher Dankert - Loop Capital Aaron Reed - Northcoast Research Sabrina Abrams - Bank of America Operator Welcome to the Fiscal 2025 First Quarter Earnings Ca ...

EXHIBIT 99.1 Applied Industrial Technologies Reports Fiscal 2025 First Quarter Results • Net Sales of $1.1 Billion Up 0.3% YoY; Down 3.0% on an Organic Daily Basis • Net Income of $92.1 Million, or $2.36 Per Share Down 1.0% YoY • EBITDA of $129.0 Million Down 3.3% YoY • Operating Cash Flow of $127.7 Million; Free Cash Flow of $122.2 Million • Increasing FY25 EPS Guidance to $9.25 to $10.00 • Reiterate FY25 Sales and EBITDA Margin Guidance CLEVELAND, OHIO (October 24, 2024) – Applied Industrial Technologies ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended JUNE 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number 1-2299 APPLIED INDUSTRIAL TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Ohio 34-0117420 ...

Financial Data and Key Metrics Changes - Consolidated sales increased by 0.2% year-over-year, with acquisitions contributing 150 basis points and selling days adding 80 basis points, while foreign currency translation negatively impacted by 10 basis points [18] - Organic daily sales declined by 2% year-over-year, with gross margins reaching 30.7%, an increase of 146 basis points compared to the prior year [20][21] - EBITDA margins exceeded 13% for the first time, with reported EBITDA increasing by 9.6% year-over-year [6][21] Business Line Data and Key Metrics Changes - Service Center segment sales decreased by 0.7% year-over-year on an organic daily basis, while segment EBITDA increased by 16% [19] - Engineered Solutions segment sales decreased by 1.8% year-over-year, with a 4.6% decline in organic daily sales primarily due to fluid power weakness [19][20] - Flow control operations within Engineered Solutions saw low single-digit growth, benefiting from decarbonization efforts and data center growth [14] Market Data and Key Metrics Changes - Organic sales trends showed a decline of mid single digits in early fiscal 2025 compared to prior year levels, reflecting muted demand due to higher interest rates and economic uncertainty [9] - The top 30 end markets showed mixed results, with 14 markets experiencing positive sales growth year-over-year [8] - MRO-related sales, which represent approximately 70% of overall business, held steady with slight year-over-year increases [8] Company Strategy and Development Direction - The company is focused on executing growth strategies through acquisitions and internal investments, with a strong emphasis on technology and automation [15][26] - M&A remains a top capital allocation priority, with an active pipeline targeting enhancements in technical differentiation and service capabilities [16] - The company aims to leverage secular megatrends such as reshoring and infrastructure investments to support long-term growth [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a mixed end market backdrop and conservative customer spending, but expressed optimism about potential demand recovery in the latter half of fiscal 2025 [25][26] - The company expects ongoing inflationary pressures but anticipates a solid year of free cash flow performance [23][24] - Management highlighted the importance of maintaining operational discipline and cost controls amid economic uncertainty [25] Other Important Information - The company generated record cash flow in fiscal 2024, with over $250 million spent on various capital deployment initiatives [15][22] - Share repurchases totaled approximately 400,000 shares for $73 million, with ongoing plans for additional buybacks [17][22] Q&A Session Summary Question: What is embedded in the midpoint of guidance regarding macro outlook? - Management indicated that the midpoint assumes first half declines by mid single digits organically and second half increases by low single digits [29] Question: How resilient can Engineered Solutions margins be relative to Q4? - Management expects gross margins to decline sequentially from Q4 due to mix and lower sales, but remains optimistic about the segment's margin performance [31][32] Question: How much of the margin performance was due to discrete actions versus discretionary cost management? - Management noted that the margin performance reflects the resiliency of the model, with variable costs adjusting based on sales activity [38] Question: Can you quantify the status of reshoring projects? - Management highlighted ongoing industrial manufacturing capacity growth as a positive indicator, suggesting sustained activity and opportunities for service center business [41] Question: What is the margin profile of recent acquisitions? - Management indicated that the margin profiles of the acquired companies are expected to be similar to existing operations, contributing positively to overall margins [43]

EXHIBIT 99.1 Financial Release For Immediate Release Applied Industrial Technologies Reports Fiscal 2024 Fourth Quarter and Full-Year Results; Issues Guidance for Fiscal 2025 CLEVELAND, OHIO (August 15, 2024)) – 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 2024 fourth quarter and full year ended Ju ...

Part I [Item 1: Financial Statements](index=4&type=section&id=Item%201%3A%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including income, comprehensive income, balance sheet, cash flow, and equity statements, with detailed notes [Condensed Statements of Consolidated Income](index=4&type=section&id=Condensed%20Statements%20of%20Consolidated%20Income) For the nine months ended March 31, 2024, net sales increased to $3.32 billion and net income rose to $282.3 million, with diluted EPS at $7.18 | Financial Metric (in thousands) | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | Nine Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $1,146,390 | $1,132,035 | $3,318,731 | $3,254,720 | | **Gross profit** | $338,246 | $333,118 | $980,418 | $948,406 | | **Operating income** | $121,206 | $126,911 | $356,480 | $346,336 | | **Net income** | $97,217 | $97,187 | $282,271 | $254,524 | | **Net income per share - diluted** | $2.48 | $2.47 | $7.18 | $6.49 | [Condensed Statements of Consolidated Comprehensive Income](index=5&type=section&id=Condensed%20Statements%20of%20Consolidated%20Comprehensive%20Income) For the nine months ended March 31, 2024, comprehensive income was $273.1 million, primarily impacted by a net other comprehensive loss of $9.2 million | Metric (in thousands) | Nine Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | **Net income** | $282,271 | $254,524 | | **Other comprehensive (loss) income, net of tax** | $(9,193) | $6,651 | | **Comprehensive income, net of tax** | $273,078 | $261,175 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased to $2.85 billion, total liabilities decreased to $1.19 billion, and shareholders' equity grew to $1.67 billion | Balance Sheet Item (in thousands) | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | **Total current assets** | $1,767,682 | $1,646,807 | | **Total Assets** | $2,854,943 | $2,743,332 | | **Total current liabilities** | $468,406 | $540,344 | | **Total Liabilities** | $1,185,919 | $1,284,895 | | **Total Shareholders' Equity** | $1,669,024 | $1,458,437 | [Condensed Statements of Consolidated Cash Flows](index=7&type=section&id=Condensed%20Statements%20of%20Consolidated%20Cash%20Flows) For the nine months ended March 31, 2024, net cash from operating activities significantly increased to $252.2 million, leading to a $112.5 million net increase in cash | Cash Flow Activity (in thousands) | Nine Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | **Net Cash provided by Operating Activities** | $252,159 | $164,027 | | **Net Cash used in Investing Activities** | $(38,280) | $(56,250) | | **Net Cash used in Financing Activities** | $(101,176) | $(111,526) | | **Increase (Decrease) in Cash and Cash Equivalents** | $112,497 | $(2,347) | [Condensed Statements of Shareholders' Equity](index=8&type=section&id=Condensed%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity increased to $1.67 billion, driven by net income, partially offset by dividends, treasury stock purchases, and other comprehensive loss - Total Shareholders' Equity grew to **$1,669,024 thousand** at March 31, 2024, from **$1,458,437 thousand** at June 30, 2023[23](index=23&type=chunk) - Key activities impacting equity during the nine months ended March 31, 2024 include net income of **$282.3 million**, dividend payments of **$41.5 million**, and treasury stock purchases of **$28.9 million**[20](index=20&type=chunk)[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations of accounting policies and financial results, including revenue disaggregation, acquisitions, goodwill, debt, derivatives, and segment performance [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 and nine-month fiscal 2024 financial results, covering sales growth, segment performance, margin improvements, operating expenses, and the company's strong liquidity position [Overview](index=24&type=section&id=Overview) Q3 FY2024 consolidated sales rose 1.3% to $1.15 billion, with operating income at $121.2 million and net income flat at $97.2 million | Metric | Q3 FY2024 (in Billions/Millions) | Q3 FY2023 (in Billions/Millions) | | :--- | :--- | :--- | | **Consolidated Sales** | $1.146 B | $1.132 B | | **Sales Growth** | 1.3% | - | | **Operating Income** | $121.2 M | $126.9 M | | **Operating Margin** | 10.6% | 11.2% | - The ISM Purchasing Managers Index (PMI) rose to **50.3** in March 2024, indicating expansion, up from **47.1** in December 2023[83](index=83&type=chunk) - The Manufacturing Capacity Utilization (MCU) index slightly decreased to **78.4** in March 2024[83](index=83&type=chunk) [Results of Operations (Three Months Ended March 31, 2024 and 2023)](index=25&type=section&id=Results%20of%20Operations%20%28Three%20Months%29) Q3 2024 sales increased 1.3% to $1.15 billion, with mixed segment performance, improved gross margin, and increased SD&A expenses | Segment | Q3 2024 Sales (in Millions) | Change vs Q3 2023 | Organic Change | | :--- | :--- | :--- | :--- | | **Service Center Based Distribution** | $789.4 M | +3.6% | +1.8% | | **Engineered Solutions** | $357.0 M | -3.6% | -4.0% | - Gross profit margin was positively impacted by **30 basis points** due to a **$3.4 million** decrease in LIFO expense compared to the prior year quarter[92](index=92&type=chunk) - SD&A expenses increased by **$10.8 million (5.3%)**, primarily due to a **$4.9 million** increase in bad debt expense[93](index=93&type=chunk) [Results of Operations (Nine Months Ended March 31, 2024 and 2023)](index=27&type=section&id=Results%20of%20Operations%20%28Nine%20Months%29) For the nine months ended March 31, 2024, sales grew 2.0% to $3.32 billion, with improved gross profit margin and a 10.9% rise in net income | Segment | Nine Months 2024 Sales (in Millions) | Change vs Nine Months 2023 | Organic Change | | :--- | :--- | :--- | :--- | | **Service Center Based Distribution** | $2,265.2 M | +3.7% | +2.1% | | **Engineered Solutions** | $1,053.5 M | -1.5% | -2.7% | - Gross profit margin for the nine-month period was positively impacted by **40 basis points** due to a **$13.4 million** decrease in LIFO expense[106](index=106&type=chunk) - The effective income tax rate decreased to **21.0%** from **22.2%**, primarily due to the reversal of a tax valuation allowance in Mexico[111](index=111&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity, with total debt reduced to $597.1 million, working capital increased to $1.3 billion, and cash from operations significantly rising | Metric (in Millions) | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | **Working Capital** | $1,299.3 M | $1,106.5 M | | **Current Ratio** | 3.8 to 1 | 3.0 to 1 | | **Total Debt** | $597.1 M | $622.2 M | - Net cash provided by operating activities increased to **$252.2 million** for the nine months ended March 31, 2024, up from **$164.0 million** in the prior year period[116](index=116&type=chunk) - The company was in compliance with all financial covenants, with net indebtedness at less than **0.4 times** consolidated EBITDA, well below the required maximum of **3.75 times**[125](index=125&type=chunk) [Cautionary Statement Under Private Securities Litigation Reform Act](index=32&type=section&id=Cautionary%20Statement%20Under%20Private%20Securities%20Litigation%20Reform%20Act) This section contains forward-looking statements, warning that actual results may differ materially due to various uncontrollable risk factors, including economic conditions and supply chain issues - The company identifies several important risk factors that could cause actual results to differ from forward-looking statements[130](index=130&type=chunk)[131](index=131&type=chunk) - Key risks cited include: customer operations levels, inflation, supply chain issues, competitive pressures, information system security, and ability to integrate acquisitions[132](index=132&type=chunk) [Item 3: Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk disclosures have not materially changed since the last annual report, referring readers to the Form 10-K for detailed information - There have been no material changes in the company's market risk exposures since the fiscal year ended June 30, 2023[135](index=135&type=chunk) [Item 4: Controls and Procedures](index=34&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[137](index=137&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the third fiscal quarter of 2024[138](index=138&type=chunk) Part II [Item 1: Legal Proceedings](index=35&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is involved in various legal proceedings but does not anticipate a material adverse effect on its financial position or results - The company does not expect any pending legal proceedings to have a material adverse effect on its consolidated financial position, results, or cash flows[140](index=140&type=chunk) [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2024, the company repurchased 100,053 shares at an average price of $181.89, with 1,337,000 shares remaining authorized for repurchase | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | **Jan 2024** | 37,053 | $168.18 | | **Feb 2024** | 0 | $0.00 | | **Mar 2024** | 63,000 | $189.96 | | **Total Q3 2024** | **100,053** | **$181.89** | - As of March 31, 2024, the company has authorization to repurchase an additional **1,337,000 shares**[141](index=141&type=chunk) [Item 5: Other Information](index=35&type=section&id=Item%205%3A%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements during the quarter[142](index=142&type=chunk) [Item 6: Exhibits](index=35&type=section&id=Item%206%3A%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, debt agreements, CEO/CFO certifications, and Inline XBRL financial data - The report includes standard exhibits such as CEO and CFO certifications (Rule 13a-14(a)/15d-14(a) and Section 1350) and financial statements in Inline XBRL format[147](index=147&type=chunk)[148](index=148&type=chunk)

Applied Industrial Technologies, Inc. (NYSE:AIT) Q3 2024 Earnings Conference Call April 25, 2024 10:00 AM ET Company Participants Ryan Cieslak – Director-Investor Relations and Treasury Neil Schrimsher – President and Chief Executive Officer Dave Wells – Chief Financial Officer Conference Call Participants David Manthey – Baird Christopher Glynn - Oppenheimer Ken Newman – KeyBanc Chris Dankert – Loop Capital Aaron Reed - Northcoast Research Operator Welcome to the Fiscal 2024 Third Quarter Earnings Call for ...

EXHIBIT 99.1 Applied Industrial Technologies Reports Fiscal 2024 Third Quarter Results and Announces Strategic Automation Acquisition • Net Sales of $1.1 Billion Up 1.3% YoY; Up 0.7% on an Organic Daily Basis • Net Income of $97.2 Million, or $2.48 Per Share; EBITDA of $135.7 Million • Operating Cash Flow of $84.2 Million; Free Cash Flow of $76.7 Million • Signed Definitive Agreement to Acquire Grupo Kopar, Expanding Automation Platform • Updating Fiscal 2024 Guidance CLEVELAND, OHIO (April 25, 2024) – Appl ...

(Mark One) Table of Contents ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the quarterly period ended DECEMBER 31, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ For the transition period from ___ to ___ Commission file number 1-2299 APPLIED INDUSTRIAL TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Ohi ...

Applied Industrial Technologies, Inc. (NYSE:AIT) Q2 2024 Earnings Conference Call January 25, 2024 10:00 AM ET Company Participants Ryan Cieslak – Director-Investor Relations and Treasury Neil Schrimsher – President and Chief Executive Officer Dave Wells – Chief Financial Officer Conference Call Participants David Manthey – Baird Chris Dankert – Loop Capital Ken Newman – KeyBanc Operator Welcome to the Fiscal 2024 Second Quarter Earnings Call for Applied Industrial Technologies. My name is Rob and I'll be y ...