APPLIED INDUSTRIAL TECHNOLOGIES Business Summary

Applied Industrial Technologies Inc. (AIT) operates as a leading value-added distributor and technical solutions provider, generating revenue through the sale of industrial motion, fluid power, flow control, and automation technologies alongside specialized maintenance, repair, and operations (MRO) supplies. The company’s business is divided into two primary segments: Service Center Based Distribution, which leverages a vast network of local centers to provide "break-fix" components and maintenance inventory, and Engineered Solutions, which focuses on high-margin design, integration, and repair services for complex hydraulic and automation systems. As of early 2026, AIT maintains a strong market position by prioritizing technical expertise and "uptime" solutions over low-cost commodity distribution. It competes directly with diversified industrial distributors such as W.W. Grainger, Fastenal, and MSC Industrial Supply, distinguishing itself through its deep specialization in fluid power and advanced automation sectors. The company was founded in 1923 by J. Joseph Bruening as The Ohio Ball Bearing Company and is currently led by Chairman and CEO Neil A. Schrimsher, who joined in 2011 following executive leadership roles at General Electric and Parker Hannifin. The executive team includes David K. Wells as VP, CFO & Treasurer, formerly of Colfax Corporation, and Lonny D. Lawrence, who oversees the firm’s digital infrastructure as VP of Information Technologies. The Board of Directors, chaired by Peter C. Wallace (former CEO of Gardner Denver), features notable industry veterans such as Mary Dean Hall and Richard J. Simoncic, the latter bringing extensive semiconductor and global operations experience from Microchip Technology. AIT is a publicly traded entity (NYSE: AIT) with significant institutional backing from major investment firms including BlackRock and Vanguard, reflecting its long-standing reputation for disciplined capital allocation and consistent dividend growth.