NYSE Shariah screener · October 2026

Is Applied Industrial Technologies, Inc. (AIT) Halal?

PASS

Applied Industrial Technologies, Inc. · NYSE: AIT · Industrials

The short answer

Applied Industrial Technologies passes all three Shariah gates: it distributes industrial products and automation solutions (no interest-based business), carries about $262.3M of interest-bearing debt (2.1% of its ~$12.49 billion market cap), and interest income of about 0.19% of revenue is under the 5% ceiling.

Gate 1 — Business activity: PASS

Gate 1 — business activity: PASS. Applied Industrial Technologies, Inc., per its FY2026 Form 10-K (fiscal year ended June 30, 2026, filed August 13, 2026), is 'a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies and related maintenance supplies.' Through about 580 facilities and roughly 6,900 associates, it offers over 9.4 million stock keeping units centered on industrial bearings, power transmission products, fluid power components and systems, specialty flow control, and advanced factory automation solutions.

It reports two segments — Service Center ($3.18 billion of FY2026 net sales, 64%) and Engineered Solutions ($1.78 billion, 36%) — serving maintenance, repair, and operations (MRO), original equipment manufacturing (OEM), and new-system applications across manufacturing, agriculture, mining, transportation, and other industrial end markets in North America, Australia, New Zealand, and Singapore. It is not an interest-based lender and is not involved in tobacco, gambling, pork, or conventional banking or insurance. The business passes gate 1.

Gate 2 — Debt and cash: PASS

Gate 2 — interest-bearing debt: PASS (2.1%, ceiling 33%). Per Applied Industrial Technologies' FY2026 Form 10-K, long-term debt was $262.3 million at June 30, 2026, with no current portion of long-term debt on the consolidated balance sheet — so total interest-bearing debt is about $262.3 million. This was down from $572.3 million a year earlier after $310.0 million of revolving-credit-facility repayments. Operating lease liabilities ($52.9 million current plus $168.2 million long-term) are excluded — they are not interest-bearing debt.

$262.3 million against a market capitalization of about $12.49 billion (Finnhub, October 2, 2026) is about 2.1%, far under the 33% ceiling. Cash and cash equivalents of $127.1 million at June 30, 2026 represent about 1.0% of market cap.

Gate 3 — Non-compliant income: PASS

Gate 3 — non-compliant income: PASS (0.19%, ceiling 5%). Applied Industrial Technologies' FY2026 Form 10-K separately discloses interest income as its own line in the Statements of Consolidated Income: $9,448 thousand of interest income against net sales of $4,966,686 thousand is about 0.19% — far under the 5% ceiling (interest expense was $17,386 thousand; 'Other income, net' was $2,743 thousand).

Prior-year interest income was $17,602 thousand in FY2025 and $17,713 thousand in FY2024 against net sales of $4,563,424 thousand and $4,479,406 thousand respectively — each year under 0.4%. The most recent annual figure (0.19%) is used for this gate.

Key figures used

Business: value-added distributor of industrial motion, fluid power, flow control, automation - bearings, power transmission, fluid power components/systems, factory automation; 9.4M SKUs, ~580 facilities, ~6,900 associates; segments: Service Center ($3.18B FY2026, 64%), Engineered Solutions ($1.78B, 36%); end markets: MRO, OEM, industrial
Haram assessment: no interest-based lending; no tobacco/gambling/pork/banking/insurance; customers in manufacturing, agriculture, mining, transportation end markets - disclosed for transparency
Debt: $262.3M long-term debt at June 30, 2026 (no current portion) = 2.1% of ~$12.49B market cap (Finnhub, Oct 2, 2026) - far under the 33% ceiling (down from $572.3M at Jun 30, 2025)
Cash: $127.1M cash & equivalents at June 30, 2026 (~1.0% of market cap)
Interest income: $9,448K in FY2026 (separate line in Statements of Consolidated Income) vs $4,966,686K net sales = 0.19% - under the 5% ceiling (FY2025: $17,602K, 0.39%; FY2024: $17,713K, 0.40%)
Market data: NYSE-listed; still listed on NYSE (confirmed October 2, 2026; live quotes, no delisting); repaid $310M of revolving-credit borrowings in FY2026; share repurchases of $317.2M in FY2026
Third-party: Zoya publishes an AIT page (AAOIFI, FY2026 figures cited) but its current rating could not be verified from the page text; no verifiable Musaffa or ShariaPortfolio rating found

Frequently asked questions

What does Applied Industrial Technologies do?

Applied Industrial Technologies, Inc. (NYSE: AIT) is a US industrial distributor and technical solutions provider headquartered in Cleveland, Ohio. Per its FY2026 Form 10-K (fiscal year ended June 30, 2026, filed August 13, 2026), it distributes industrial motion, fluid power, flow control, and automation products - bearings, power transmission products, fluid power components and systems, specialty flow control, and factory automation solutions - offering over 9.4 million stock keeping units through about 580 facilities and 6,900 associates. It reports two segments: Service Center ($3.18 billion of FY2026 net sales, 64%) and Engineered Solutions ($1.78 billion, 36%), serving maintenance, repair, and operations (MRO) and original equipment manufacturer (OEM) customers in North America, Australia, New Zealand, and Singapore.

Is Applied Industrial Technologies' business Shariah compliant?

Applied Industrial Technologies is a value-added distributor of industrial products and technical solutions - bearings, power transmission, fluid power, flow control, and automation for industrial customers - and is not an interest-based lender. It is not involved in tobacco, gambling, pork, or conventional banking or insurance. Its end markets span manufacturing, agriculture, mining, transportation, and other industrial sectors. Assessed on the filed numbers, the business passes this screener's first gate.

How much interest-bearing debt does Applied Industrial Technologies have?

Applied Industrial Technologies' FY2026 Form 10-K reports long-term debt of $262.3 million at June 30, 2026, with no current portion of long-term debt on the balance sheet, so total interest-bearing debt is about $262.3 million. Against a market capitalization of about $12.49 billion (Finnhub, October 2, 2026), that is about 2.1% - far under the 33% ceiling. Operating lease liabilities ($52.9 million current plus $168.2 million long-term) are excluded as they are not interest-bearing debt.

How much interest income does Applied Industrial Technologies earn?

Applied Industrial Technologies' FY2026 Form 10-K separately discloses interest income as its own line in the Statements of Consolidated Income: $9,448 thousand of interest income against net sales of $4,966,686 thousand is about 0.19% - under the 5% ceiling. Interest expense was $17,386 thousand and 'Other income, net' was $2,743 thousand. Cash and cash equivalents of $127.1 million at June 30, 2026 represent about 1.0% of market capitalization.

What do third-party Shariah screeners say about Applied Industrial Technologies?

Zoya publishes an AIT page citing FY2026 figures (about $4,967 million revenue) under its AAOIFI methodology, but the compliance rating on the page did not render cleanly in a text fetch, so its current rating could not be verified from public sources. I could not verify a Musaffa rating page for AIT or a ShariaPortfolio rating from public sources. Third-party screeners apply different assumptions and update on different schedules, and their results can change when new financial statements are published - always check the latest screening before investing.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).