Financial Analysis

"BUSINESS COMBINATIONS The operating results of all acquired entities are included within the consolidated operating results of the Company from the date of each respective acquisition. Fiscal 2026 Acquisitions On January 17, 2026, the Company acquired substantially all the net assets of Thompson Industrial Supply (""Thompson""), a Los Angeles, California based provider of industrial bearings, power transmission, hydraulics, pneumatics, linear motion products, and service solutions. Thompson is included in the Service Center segment. The purchase price for Thompson was $9,000 , net tangible assets acquired were $1,400, identifiable intangible assets were $3,800, and goodwill was $3,800; the values are based upon preliminary estimated fair values at the acquisition date, which are subject to adjustment. The purchase price includes $1,350 of acquisition holdback payments, which is included in other current liabilities and other liabilities on the condensed consolidated balance sheet as of March 31, 2026 , and will be paid on the first and second anniversary of the acquisition date with interest at a fixed rate of 1.0% per annum. Fiscal 2025 Acquisitions On December 31, 2024, the Company acquired all the membership interests of Hydradyne, LLC (""Hydradyne""), a Dallas, Texas based provider of fluid power solutions and value-added services including product offerings in hydraulics, pneumatics, electromechanical, instrumentation, filtration and fluid conveyance. The purchase price …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT A summary of both current and long-term debt is as follows (amounts in thousands): March 31, 2026 June 30, 2025 Revolving credit facility $ 177,000 $ 384,000 Trade receivable securitization facility 188,300 188,300 Total debt $ 365,300 $ 572,300 Revolving Credit Facility In October 2025, the Company entered into a new five -year revolving credit facility with a group of banks to refinance the existing credit facility as well as provide funds for future acquisitions, ongoing working capital and other general corporate purposes. The revolving credit facility provides a $900,000 unsecured revolving credit facility and an uncommitted accordion feature which allows the Company to request an increase in the borrowing commitments, or incremental term loans, under the credit facility in aggregate principal amounts of up to $800,000. The new revolving credit facility also provides for a $25,000 sublimit for swing line loans and a $50,000 sublimit for letters of credit. Borrowings under this agreement bear interest, at the Company's election, at either the base rate plus a margin that ranges from 0 to 55 basis points based on the Company's net leverage ratio or Secured Overnight Financing Rate (SOFR) plus a margin that ranges from 80 to 155 basis points based on the Company's net leverage ratio. Borrowing capacity under this facility, without exercising the accordion feature, totaled $722,757 at March 31, 2026 and is available to fund future acquisitions or other capital and oper …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables present the Companys percentage of revenue by reportable segment and major customer industry for the three and nine months ended March 31, 2026 and 2025: Three Months Ended March 31, 2026 2025 Service Center Engineered Solutions Total Service Center Engineered Solutions Total General Industry 34.9 % 44.2 % 38.1 % 33.8 % 41.5 % 36.6 % Industrial Machinery 8.6 % 26.5 % 15.0 % 8.7 % 24.3 % 14.1 % Food 15.2 % 3.0 % 10.8 % 15.5 % 2.9 % 11.1 % Metals 12.0 % 6.5 % 10.1 % 11.1 % 6.5 % 9.5 % Forest Products 11.8 % 1.9 % 8.3 % 12.5 % 3.1 % 9.2 % Chem/Petrochem 2.3 % 10.5 % 5.2 % 2.7 % 13.1 % 6.3 % Cement & Aggregate 7.1 % 1.5 % 5.1 % 7.2 % 1.3 % 5.1 % Transportation 3.4 % 4.5 % 3.8 % 3.5 % 5.4 % 4.2 % Oil & Gas 4.7 % 1.4 % 3.6 % 5.0 % 1.9 % 3.9 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Nine Months Ended March 31, 2026 2025 Service Center Engineered Solutions Total Service Center Engineered Solutions Total General Industry 34.5 % 43.6 % 37.7 % 34.5 % 39.1 % 36.1 % Industrial Machinery 8.2 % 25.2 % 14.2 % 8.3 % 23.4 % 13.2 % Food 15.5 % 2.9 % 11.1 % 15.3 % 3.3 % 11.4 % Metals 11.7 % 6.4 % 9.9 % 11.1 % 7.6 % 9.9 % Forest Products 11.7 % 2.0 % 8.2 % 12.1 % 3.2 % 9.2 % Chem/Petrochem 2.5 % 11.8 % 5.8 % 2.8 % 15.3 % 6.9 % Cement & Aggregate 7.6 % 1.4 % 5.4 % 7.5 % 1.4 % 5.5 % Transportation 3.5 % 4.9 % 4.0 % 3.6 % 4.8 % 4.0 % Oil & Gas 4.8 % 1.8 % 3.7 % 4.8 % 1.9 % 3.8 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % The following tab …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"FAIR VALUE MEASUREMENTS Marketable securities measured at fair value at March 31, 2026 and June 30, 2025 totaled $27,428 and $25,628, respectively. The majority of these marketable securities are held in a rabbi trust for a non-qualified deferred compensation plan. The marketable securities are included in other assets on the accompanying condensed consolidated balance sheets and their fair values were determined using quoted market prices (Level 1 in the fair value hierarchy). In addition, the Company holds Corporate-Owned Life Insurance (""COLI"") policies on certain retired employees, which are valued at the cash surrender value of the policies (Level 3 in the fair value hierarchy). The fair value of the COLI policies totaled $21,598 and $20,817, at March 31, 2026 and June 30, 2025, respectively, and are included in other assets on the condensed consolidated balance sheets. As of March 31, 2026 and June 30, 2025, the Company had no fixed interest rate debt outstanding. The revolving credit facility and the AR Securitization Facility contain variable interest rates and their carrying values approximate fair value (Level 2 in the fair value hierarchy). The carrying value of our cash and cash equivalents, trade accounts receivable, and accounts payable approximate fair value because of the short-term maturity of these financial instruments."

FairValueDisclosuresTextBlock

GOODWILL AND INTANGIBLES The changes in the carrying amount of goodwill for both the Service Center segment and the Engineered Solutions segment for the fiscal year ended June 30, 2025 and the nine months ended March 31, 2026 are as follows: Service Center Engineered Solutions Total Balance at June 30, 2024 $ 219,574 $ 399,821 $ 619,395 Goodwill acquired during the year 2,262 77,847 80,109 Other, primarily currency translation (130) (130) Balance at June 30, 2025 $ 221,706 $ 477,668 $ 699,374 Goodwill acquired during the period 4,307 1,518 5,825 Other, primarily currency translation (201) (201) Balance at March 31, 2026 $ 225,812 $ 479,186 $ 704,998 The Company has eight (8) reporting units for which an annual goodwill impairment assessment was performed as of January 1, 2026. Based on the assessment performed, the Company concluded that the fair value of all of the reporting units exceeded their carrying amount as of January 1, 2026, therefore no impairment exists. At March 31, 2026 and June 30, 2025, accumulated goodwill impairment losses subsequent to fiscal 2002 totaled $64,794 related to the Service Center segment and $167,605 related to the Engineered Solutions segment. The Companys identifiable intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following: March 31, 2026 Amount Accumulated Amortization Net Book Value Finite-Lived Identifiable Intangibles: Customer relationships $ 509,690 $ 251,9 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Guidance In December 2025, the Financial Accounting Standards Board (""FASB"") issued its final Accounting Standard Update (""ASU"") which makes improvements to the Accounting Standards Codification (""ASC"") in response to feedback from stakeholders. This standard, issued as ASU 2025-12, specifically updates the Codification for a broad range of Topics arising from technical corrections, unintended application of the Codification, clarifications, and other minor improvements. This update is effective for annual reporting periods beginning after December 15, 2026, including interim reporting periods within those annual reporting periods. The Company is currently evaluating the effect of this guidance on its financial statements and related disclosures. In December 2025, the FASB issued its final ASU which amends and clarifies the interim disclosure requirements associated with ASC Topic 270 - Interim Reporting . This standard, issued as ASU 2025-11, provides clarity about current requirements to help entities determine whether disclosures not specified in ASC 270 should be provided in interim reporting periods. This update is effective for interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the effect of this guidance on its financial statements and related disclosures. In September 2025, the FASB issued its final ASU which amends certain aspects of existing guidance on the accounting for and disclosure …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

REVENUE RECOGNITION Disaggregation of Revenues The following tables present the Company's net sales by reportable segment and by geographic areas based on the location of the facility shipping the product for the three and nine months ended March 31, 2026 and 2025. Other countries consist of Mexico, Australia, New Zealand, Singapore, and Costa Rica. Three Months Ended March 31, 2026 2025 Service Center Engineered Solutions Total Service Center Engineered Solutions Total Geographic Areas: United States $ 682,464 $ 424,658 $ 1,107,122 $ 643,479 $ 388,804 $ 1,032,283 Canada 70,783 70,783 71,555 71,555 Other countries 51,690 21,858 73,548 46,568 16,343 62,911 Total $ 804,937 $ 446,516 $ 1,251,453 $ 761,602 $ 405,147 $ 1,166,749 Nine Months Ended March 31, 2026 2025 Service Center Engineered Solutions Total Service Center Engineered Solutions Total Geographic Areas: United States $ 1,964,425 $ 1,223,234 $ 3,187,659 $ 1,868,962 $ 1,050,103 $ 2,919,065 Canada 220,628 220,628 220,808 220,808 Other countries 149,681 56,031 205,712 145,398 53,423 198,821 Total $ 2,334,734 $ 1,279,265 $ 3,613,999 $ 2,235,168 $ 1,103,526 $ 3,338,694 The following tables present the Companys percentage of revenue by reportable segment and major customer industry for the three and nine months ended March 31, 2026 and 2025: Three Months Ended March 31, 2026 2025 Service Center Engineered Solutions Total Service Center Engineered Solutions Total General Industry 34.9 % 44.2 % 38.1 % 33.8 % 41.5 % 36.6 % Indu …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"SEGMENT INFORMATION The Company's reportable segments are: Service Center and Engineered Solutions. These reportable segments contain the Company's various operating segments which have been aggregated based upon similar economic and operating characteristics. The Service Center segment operates through local service centers and distribution centers with a focus on providing products and services addressing the maintenance and repair of production equipment and motion control infrastructure. Products primarily include industrial bearings, motors, belting, drives, couplings, pumps, linear motion products, hydraulic and pneumatic components, filtration supplies, and hoses, as well as other related supplies for general operational needs of customers machinery and equipment. The Engineered Solutions segment includes our operations that specialize in distributing, engineering, designing, integrating, and repairing hydraulic and pneumatic fluid power technologies, engineered flow control products and services, and automation technologies. The accounting policies of the Companys reportable segments are as described in Note 1. The Company's chief operating decision maker (""CODM"") is the chief executive officer. The CODM uses Segment Operating Income as the measure of segment profit and loss in measuring segment performance, determining how to allocate the Company's assets, evaluating performance in periodic reviews, and during the development of the annual budget and the regular f …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SHAREHOLDERS' EQUITY Accumulated Other Comprehensive Loss Changes in the accumulated other comprehensive loss are comprised of the following amounts, shown net of taxes: Three Months Ended March 31, 2026 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive loss Balance at December 31, 2025 $ (92,642) $ (435) $ 746 $ (92,331) Other comprehensive loss (2,446) (2,446) Amounts reclassified from accumulated other comprehensive income (loss) 1 (746) (745) Net current-period other comprehensive (loss) income (2,446) 1 (746) (3,191) Balance at March 31, 2026 $ (95,088) $ (434) $ $ (95,522) Three Months Ended March 31, 2025 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive loss Balance at December 31, 2024 $ (116,461) $ (399) $ 11,026 $ (105,834) Other comprehensive income 1,818 16 1,834 Amounts reclassified from accumulated other comprehensive loss (3) (2,759) (2,762) Net current-period other comprehensive income (loss) 1,818 (3) (2,743) (928) Balance at March 31, 2025 $ (114,643) $ (402) $ 8,283 $ (106,762) Nine Months Ended March 31, 2026 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total Accumulated other comprehensive loss Balance at June 30, 2025 $ (97,216) $ (438) $ 5,968 $ (91,686) Other comprehensive income 2,139 198 2,337 Amounts reclassified from accumulated other comprehensive (loss) income (11) 4 (6,166) …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS The Company evaluated events and transactions occurring subsequent to March 31, 2026 through the date the financial statements were issued, noting no significant subsequent events require disclosure.

SubsequentEventsTextBlock