How does Applied Industrial Technologies (AIT) make money?

Applied Industrial Technologies (AIT) generates revenue primarily from Service Center Based Distribution Segment, which accounted for 56.1% of total revenue in TTM through Q1 2026. The company reported $4.84B in revenue and converted 8.3% of it into net profit, equivalent to roughly $403.76M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Applied Industrial Technologies (AIT)?

Applied Industrial Technologies (AIT) reported a gross profit margin of 30% in TTM through Q1 2026, equivalent to $1.45B in gross profit on $4.84B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Applied Industrial Technologies (AIT)?

Applied Industrial Technologies (AIT) reported an operating profit margin of 11.2% in TTM through Q1 2026, equivalent to $541.85M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Applied Industrial Technologies (AIT)?

Applied Industrial Technologies (AIT) reported a net profit margin of 8.3% in TTM through Q1 2026, equivalent to $403.76M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Applied Industrial Technologies (AIT) profitable?

Yes. Applied Industrial Technologies (AIT) reported $403.76M in net income for TTM through Q1 2026, with a net profit margin of 8.3%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Applied Industrial Technologies (AIT) spend on capital expenditures?

Applied Industrial Technologies (AIT) spent $27.20M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 0.6% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Applied Industrial Technologies (AIT) generate?

Applied Industrial Technologies (AIT) generated $437.32M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 9.0%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Applied Industrial Technologies (AIT)?

Applied Industrial Technologies (AIT) had an effective tax rate of 22.6% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Applied Industrial Technologies (AIT)?

Applied Industrial Technologies (AIT) reports revenue across 2 reportable product segments, led by Service Center Based Distribution Segment at 56.1% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Applied Industrial Technologies Makes Money: 2026 Visual Revenue Map

Applied Industrial Technologies (AIT) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 28, 2026).

Applied Industrial Technologies discloses geographic revenue only in annual filings. to view the full breakdown.

Applied Industrial Technologies (AIT) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Applied Industrial Technologies (AIT) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Service Center Based Distribution Segment	$2.71B	56.1%
Engineered Solutions Segment	$2.13B	43.9%
Total	$4.84B	100%

Service Center Based Distribution Segment$2.71B
Engineered Solutions Segment$2.13B
Total$4.84B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Applied Industrial Technologies (AIT) reports revenue across 2 operating segments; the largest segment was Service Center Based Distribution Segment at 56.1%, followed by Engineered Solutions Segment (43.9%).

Frequently asked questions

Data & methodology

Applied Industrial Technologies (AIT) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Applied Industrial Technologies (AIT) Income Statement Flow — TTM through Q1 2026

Applied Industrial Technologies (AIT) Revenue by Product Segment — TTM through Q1 2026

Revenue Breakdown — TTM through Q1 2026

Frequently asked questions

+How does Applied Industrial Technologies (AIT) make money?

+What is the gross profit margin of Applied Industrial Technologies (AIT)?

+What is the operating profit margin of Applied Industrial Technologies (AIT)?

+What is the net profit margin of Applied Industrial Technologies (AIT)?

+Is Applied Industrial Technologies (AIT) profitable?

+How much does Applied Industrial Technologies (AIT) spend on capital expenditures?

+How much free cash flow does Applied Industrial Technologies (AIT) generate?

+What is the effective tax rate of Applied Industrial Technologies (AIT)?

+What are the main business segments of Applied Industrial Technologies (AIT)?

Data & methodology

+What is a Sankey diagram?

+How is the data calculated?

+Where do segment and geographic numbers come from?

+When was this data last updated?

Applied Industrial Technologies (AIT) Key Financials

Explore more