Applied Industrial

Revenue is tied to recurring industrial MRO and project spend across diversified end markets, creating decent visibility but not immunity to cycles.

FY2026 guidance progression and FY2027 outlook point to steady growth, with management guiding FY2027 total sales up 4.0% to 6.5% and EPS 11.65 to 12.15 after a year of 8.8% sales growth including 5.4% organic. Foreign exposure is modest and primarily in Canada and select APAC markets.

Vertical mix in FY2026: General Industry 34.8%, Industrial Machinery 13.7%, Food 10.6%, Metals 10.1%, Forest Products 9.2%, Chem/Petrochem 6.7%, Cement & Aggregate 5.4%, Transportation 3.9%, Oil & Gas 3.6%.

Risks: macro‑sensitive heavy industry, metals or construction slowdowns; project timing in Engineered Solutions; policy and trade frictions. Sources: FY2026 Annual Report; August 13, 2026 results and guidance release.