Applied Industrial Technologies, Inc. Earnings Recaps
Q2 2026
Jan 27, 2026
Applied Industrial Technologies achieved a solid second quarter with 2.2% organic sales growth, driven by strong order momentum in engineered solutions, despite facing challenges like high LIFO expenses and seasonal sales fluctuations.
Key takeaways
- Organic sales growth of 2.2% year-over-year reflects strong underlying demand signals, particularly in engineered solutions where orders increased over 10%.
- Gross margins improved year-over-year and sequentially, demonstrating effective cost management amid elevated LIFO expenses of approximately $7 million.
- Announced an 11% increase in quarterly dividend, continuing a trend of growing shareholder returns, and deployed over $140 million for share buybacks in fiscal 2026.
- Ongoing evaluation of M&A opportunities aimed at enhancing technical solutions and service capabilities, highlighted by the acquisition of Thompson Industrial Supply, expected to add $20 million in annual sales.
- Positive early signs in January indicate an increase in organic sales by mid-single digits, bolstering confidence in sustained business growth into fiscal 2026.
Q4 2025
Aug 14, 2025
Applied Industrial Technologies reported record sales, EBITDA, and EPS for fiscal 2025, driven by improved operational execution and strategic acquisitions, despite a challenging demand environment.
Key takeaways
- Full-year EPS growth of 4% exceeded initial guidance; gross margins surpass 30% for the first time.
- Fourth quarter sales outperformed guidance by 2.5%, returning to positive organic growth driven primarily by the Engineered Solutions segment.
- M&A activities, including the acquisition of Hydradyne, contributed positively to sales, highlighting the effectiveness of recent strategic initiatives.
- Encouraging signs of demand recovery were noted, particularly in technology sectors and capital maintenance spending within service centers.
- Despite ongoing market uncertainties, underlying business trends suggest a gradual pick-up in industrial activity and customer spending.