Cash conversion remains highly efficient, with OCF/NI ratios frequently exceeding 1.0 and CapEx/Revenue consistently below 1%, enabling aggressive capital deployment such as the $143.4 million share buyback in 2026Q3.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Cash from Operations | 466.13M | 492.38M | 371.39M | 343.97M | 187.57M | 241.7M | 296.71M | 180.6M | 147.3M | 164.62M | 160.99M | 154.54M | 110.11M | 111.4M | 90.42M | 76.84M | 184.32M | 81.3M | 110.3M | 70.92M | 69.85M | 81.03M | 43.09M | 67.29M | 68.95M | 37.22M | 76.44M | 83.1M | 1.2M | 41.8M | 36.4M |
| Operating CF Margin % | - | 10.79% | 8.29% | 7.79% | 4.92% | 7.47% | 9.14% | 5.2% | 4.79% | 6.35% | 6.39% | 5.62% | 4.48% | 4.52% | 3.81% | 3.47% | 9.74% | 4.23% | 5.28% | 3.52% | 3.67% | 4.72% | 2.84% | 4.6% | 4.77% | 2.29% | 4.77% | 5.34% | 0.08% | 3.6% | 3.18% |
| Operating CF Growth % | 2.86% | 32.58% | 7.97% | 83.38% | -22.39% | -18.54% | 64.29% | 22.6% | -10.52% | 2.25% | 4.18% | 40.35% | -1.16% | 23.2% | 17.67% | -58.31% | 126.72% | -26.29% | 55.52% | 1.53% | -13.8% | 88.07% | -35.97% | -2.4% | 85.26% | -51.31% | -8.01% | 6825% | -97.13% | 14.84% | 171.64% |
| Net Income | 403.76M | 392.99M | 385.76M | 346.74M | 257.41M | 144.76M | 24.04M | 143.99M | 141.63M | 133.91M | 29.58M | 115.48M | 112.82M | 118.15M | 108.78M | 96.76M | 65.9M | 42.26M | 95.46M | 86.02M | 72.3M | 55.34M | 31.47M | 19.83M | 2.65M | 28.05M | 31.05M | 19.9M | 30.1M | 27.1M | 23.3M |
| Depreciation & Amortization | 66.35M | 60.48M | 52.35M | 53.07M | 53.55M | 55.15M | 62.75M | 62.12M | 49.86M | 39.68M | 41.55M | 42.38M | 28M | 25.73M | 22.7M | 22.62M | 21.62M | 22.39M | 14.04M | 13.74M | 12.34M | 16.47M | 16.07M | 15.21M | 17.55M | 22.51M | 22.99M | 22.7M | 21M | 13.6M | 15.4M |
| Stock-Based Compensation | 4.75M | 7.29M | 9.5M | 9.58M | 8.56M | 6.45M | 4M | 4.47M | 4.67M | 3.63M | 2.52M | 2.85M | 2.7M | 3.44M | 4.31M | 3.16M | 2.36M | 800K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | -6.36M | -1.07M | -5.72M | 15.18M | -31.08M | -13.29M | 2.37M | 1.61M | -2.85M | -6.58M | -4.96M | -8.21M | 10.18M | 8.64M | 4.78M | 2.41M | -16.65M | -5.81M | -6.42M | 1M | -3.9M | -5.7M | -2.7M | -5M | -1.8M | -2.89M | -2.9M | 5.1M | 1.9M | -1.4M |
| Other Non-Cash Items | -30.27M | 11.06M | 1.93M | 9.55M | 4.72M | 60.04M | 145.5M | 37.87M | 3.76M | 2.19M | 71.04M | 2.23M | 6.09M | 3.09M | 6.93M | 3.96M | 5.33M | 45.33M | 5.57M | 5.98M | 14.75M | 10.04M | 9.04M | 2.42M | 18.24M | 12.44M | 6.42M | 6.8M | 6M | 6M | 5.7M |
| Working Capital Changes | 21.55M | 26.93M | -77.08M | -69.25M | -151.86M | 6.38M | 73.72M | -70.22M | -54.23M | -11.94M | 23.91M | -976K | -31.3M | -49.2M | -60.94M | -54.43M | 86.71M | -12.84M | 1.04M | -28.39M | -30.54M | 3.09M | -10.02M | 30.37M | 37.68M | -23.98M | 18.88M | 36.6M | -61M | -6.8M | -6.6M |
| Change in Receivables | 0 | -4.92M | -1.93M | -51.06M | -145.52M | -59.12M | 74.44M | 8.46M | -83.1M | -42.27M | 26.41M | 13.13M | -29.09M | -15.72M | -22.75M | -36.27M | -48.58M | 63.93M | 8.31M | -17.41M | -17.07M | -9.59M | -17.44M | 9.32M | 7.24M | 15.87M | -7.61M | 9.3M | -11.3M | -2.3M | -9.3M |
| Change in Inventory | 0 | 29.18M | 18.39M | -42.98M | -92.42M | 41.32M | 57.03M | -16.59M | -33.44M | -3.62M | 25.08M | -15.7M | -29.17M | -26.75M | -28.51M | -21.2M | 83.5M | -20.58M | -1.48M | -7.93M | 2.1M | -10.36M | 4.21M | 12.91M | 27.02M | -8.52M | 1.14M | 25.4M | -34.5M | 18.9M | -12.9M |
| Change in Payables | 0 | 2.17M | -39.27M | 37.68M | 53.6M | 10.92M | -53.86M | -29.79M | 50.34M | 32.08M | -28.64M | 1.04M | 21.37M | 12.21M | 14.16M | 12.93M | 13.57M | -38.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -56.92M | -318.75M | -95.41M | -60.83M | -35.66M | -44.93M | -55.4M | -55.1M | -797.91M | -16.89M | -75.03M | -173.62M | -203.64M | -78.83M | -39.43M | -47.89M | -6.78M | -178.43M | -26.84M | -10.22M | -37.91M | -12.54M | -15.82M | -16.28M | -8.74M | -13.28M | -38.99M | -15.9M | -53.1M | -1.4M | -30.8M |
| Capital Expenditures | -27.2M | -27.19M | -24.86M | -26.48M | -18.12M | -15.85M | -20.11M | -18.97M | -23.23M | -17.05M | -13.13M | -14.93M | -20.19M | -12.21M | -26.02M | -20.43M | -7.22M | -6.99M | -8.41M | -11.19M | -11.06M | -9.21M | -14.39M | -12.79M | -10.05M | -11.73M | -9.51M | -26.1M | -66.8M | -21.6M | -23.5M |
| CapEx % of Revenue | 0.56% | 0.6% | 0.56% | 0.6% | 0.48% | 0.49% | 0.62% | 0.55% | 0.76% | 0.66% | 0.52% | 0.54% | 0.82% | 0.5% | 1.1% | 0.92% | 0.38% | 0.36% | 0.4% | 0.56% | 0.58% | 0.54% | 0.95% | 0.87% | 0.69% | 0.72% | 0.59% | 1.68% | 4.48% | 1.86% | 2.05% |
| Acquisitions | -22.52M | -293.41M | -72.09M | -35.78M | -6.96M | -30.23M | -37.24M | -37.53M | -775.65M | -2.77M | -62.5M | -160.62M | -184.32M | -67.59M | -14.67M | -30.5M | -100K | -172.2M | -22.11M | 0 | -27.67M | -5.91M | -1.28M | -10.26M | -2.57M | -5.49M | -34.52M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -7.2M | 1.84M | 1.55M | 1.43M | -10.57M | 1.15M | 1.95M | 1.39M | 978K | 2.92M | 603K | 1.93M | 877K | 979K | 1.26M | 3.05M | 532K | 757K | 3.68M | 973K | 815K | 2.58M | -201K | 8.27M | 3.88M | 3.94M | 5.04M | 10.2M | 13.7M | 20.2M | -7.3M |
| Cash from Financing | -595.6M | -245.61M | -156.47M | -126.89M | -223.03M | -213.04M | -78.24M | -71.54M | 600.28M | -103.35M | -93.01M | 24.69M | 92.14M | -38.02M | -60.82M | -116.52M | -30.51M | 28.5M | -103.53M | -48.41M | -53.78M | -11.75M | -12.68M | -18.99M | -51.13M | -22.3M | -44.29M | -57.4M | 38.8M | -27.2M | -1.2M |
| Debt Issued (Net) | -181.89M | -25.11M | -24.84M | -67.25M | -139.9M | -105.88M | -24.55M | -6.24M | 674.08M | -36.35M | 7.34M | 150.28M | 168.35M | 0 | 0 | -75M | -5M | 55M | -50M | 0 | 0 | 0 | -2.85M | -5.71M | -34.95M | 1.33M | -13.83M | -26.4M | 55.5M | -16M | 5.8M |
| Equity Issued (Net) | -309.42M | -152.84M | -73.39M | -589K | -21.86M | -39.93M | -2.61M | -11.16M | -22.68M | -11.73M | -37.47M | -76.28M | -36.73M | -53K | -31.03M | -5.42M | -2.59M | -1.21M | -31.56M | -31.32M | -52.21M | 994K | 2M | -6.64M | -11.12M | -14.1M | -20.53M | -20.5M | -6.3M | -3.5M | -400K |
| Dividends Paid | -71.27M | -63.7M | -55.88M | -53.45M | -51.8M | -50.66M | -48.87M | -47.27M | -45.86M | -44.62M | -43.33M | -42.66M | -40.41M | -37.19M | -33.8M | -29.75M | -25.42M | -25.38M | -25.73M | -20.97M | -17.97M | -12.74M | -9.27M | -9.15M | -9.27M | -9.53M | -9.93M | -10.4M | -10.3M | -7.7M | -6.5M |
| Share Repurchases | -73.04M | -152.84M | -73.39M | -716K | -13.78M | -40.09M | -2.61M | -11.16M | -22.78M | -8.24M | -37.47M | -76.52M | -36.73M | -53K | -31.03M | -6.08M | -3.93M | -1.21M | -33.22M | -33.99M | -54.78M | -14.6M | -6.34M | -9.95M | -14.32M | -15.5M | -20.83M | -21.7M | -8.1M | -4.6M | -2.2M |
| Other Financing | -33.01M | -3.96M | -2.36M | -5.61M | -9.46M | -16.56M | -2.21M | -6.88M | -5.26M | -10.65M | -19.55M | -6.65M | 931K | -778K | 4.02M | -6.35M | 2.49M | 90K | 3.76M | 3.88M | 16.4M | 0 | -2.56M | 2.52M | 2.04M | 0 | 0 | -100K | -100K | 0 | -100K |
| Net Change in Cash | -181.27M | -72.2M | 116.58M | 159.56M | -73.27M | -10.81M | 160.33M | 54.07M | -50.91M | 45.2M | -9.61M | -1.72M | -1.98M | -5.28M | -12.65M | -84.69M | 148.13M | -74.19M | -17.84M | 13.24M | -20.71M | 57.47M | 14.59M | 32.02M | 9.08M | 1.63M | -6.84M | 9.9M | -13.1M | 13.2M | 4.4M |
| Free Cash Flow | 437.32M | 465.2M | 346.53M | 317.49M | 169.45M | 225.84M | 276.6M | 161.63M | 124.07M | 147.57M | 147.86M | 139.6M | 89.92M | 99.18M | 64.4M | 56.41M | 177.11M | 74.31M | 101.89M | 59.73M | 58.8M | 71.83M | 28.7M | 54.5M | 58.9M | 25.49M | 66.93M | 57M | -65.6M | 20.2M | 12.9M |
| FCF Margin % | 9.04% | 10.19% | 7.74% | 7.19% | 4.45% | 6.98% | 8.52% | 4.65% | 4.04% | 5.69% | 5.87% | 5.07% | 3.66% | 4.03% | 2.71% | 2.55% | 9.35% | 3.86% | 4.88% | 2.97% | 3.09% | 4.18% | 1.89% | 3.72% | 4.07% | 1.57% | 4.18% | 3.66% | -4.4% | 1.74% | 1.13% |
| FCF Growth % | -0.33% | 34.24% | 9.15% | 87.37% | -24.97% | -18.35% | 71.13% | 30.27% | -15.92% | -0.19% | 5.91% | 55.25% | -9.34% | 54.01% | 14.16% | -68.15% | 138.33% | -27.07% | 70.58% | 1.59% | -18.14% | 150.26% | -47.33% | -7.47% | 131.1% | -61.92% | 17.43% | 186.89% | -424.75% | 56.59% | 858.82% |
| FCF per Share | 11.51 | 11.98 | 8.83 | 8.10 | 4.33 | 5.75 | 7.09 | 4.13 | 3.16 | 3.75 | 3.75 | 3.39 | 2.12 | 2.33 | 1.50 | 1.30 | 4.13 | 1.74 | 2.34 | 1.34 | 1.28 | 1.56 | 0.65 | 1.26 | 1.28 | 0.57 | 1.44 | 1.18 | -1.34 | 0.48 | 0.31 |
| FCF Conversion (FCF/Net Income) | 1.08x | 1.25x | 0.96x | 0.99x | 0.73x | 1.67x | 12.34x | 1.25x | 1.04x | 1.23x | 5.44x | 1.34x | 0.98x | 0.94x | 0.83x | 0.79x | 2.80x | 1.92x | 1.16x | 0.82x | 0.97x | 1.46x | 1.37x | 3.39x | 25.97x | 1.33x | 2.46x | 4.18x | 0.04x | 1.54x | 1.56x |
| Interest Paid | 0 | 21.83M | 23.98M | 22.57M | 20.16M | 27.49M | 36.65M | 40.14M | 25.56M | 8.56M | 9.5M | 5.85M | 1.03M | -501K | 672K | 2.25M | 5.2M | 5.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 107.72M | 116.31M | 108.08M | 53.3M | 64.39M | 41.16M | 54.29M | 41.72M | 38.77M | 54.75M | -69.27M | -51.55M | -51.82M | 53.46M | 47.25M | 31.18M | 43.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical industrial demand sensitivity
According to the provided cash flow statements, AIT consistently demonstrates high-quality earnings, with the OCF/NI ratio frequently exceeding 1.0, peaking at 1.39 in 2025Q1, which suggests that the company's reported net income is well-supported by actual cash generation rather than aggressive accrual accounting practices.
The consistent ability to convert net income into operating cash flow at a ratio above parity indicates a lean working capital cycle and minimal reliance on non-cash accounting adjustments. This trend suggests that AIT's earnings are of high quality, providing a reliable foundation for its ongoing capital allocation strategy.
As reported in financial statements, AIT maintains a robust free cash flow trajectory, with margins consistently ranging between 6.7% and 11.3% over the last ten quarters, reflecting the company's ability to sustain profitability even during periods of fluctuating industrial demand and varying capital expenditure requirements.
The stability of FCF margins suggests that the company's business model is effectively insulated from the extreme volatility often seen in industrial distribution. Investors should monitor whether the recent dip in FCF margin to 7.6% in 2026Q3 represents a temporary cyclical softening or a structural shift in project-based profitability.
Based on AIT's reported figures, the company maintains a remarkably low capital intensity, with CapEx/Revenue ratios consistently remaining below 1% over the observed ten-quarter period, which highlights the asset-light nature of its distribution-heavy business model and its limited requirement for significant ongoing infrastructure reinvestment.
The minimal capital expenditure requirements allow the company to direct the vast majority of its operating cash flow toward shareholder returns and strategic M&A. This low-intensity profile appears to be a key driver of the company's ability to maintain a fortress balance sheet while simultaneously funding growth.
Analysis of recent financial disclosures reveals that AIT utilizes its strong cash position to aggressively fund share repurchases, such as the $143.4 million buyback in 2026Q3, while simultaneously maintaining a disciplined approach to bolt-on acquisitions, which collectively suggests a management team focused on long-term per-share value creation.
The company's ability to pivot between significant share repurchases and strategic acquisitions indicates a flexible capital allocation framework. However, the large cash balance warrants further investigation into whether management is finding sufficient high-return internal investment opportunities or if the current deployment strategy is becoming overly reliant on financial engineering.
Quick answers to the most common questions about buying AIT stock.
Applied Industrial Technologies, Inc. (AIT) generated $492.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Applied Industrial Technologies, Inc. (AIT) generated $465.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Applied Industrial Technologies, Inc. (AIT) spent $27.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Applied Industrial Technologies, Inc. (AIT) returned $63.7M to shareholders via cash dividends and spent $152.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.