Applied Industrial Technologies Inc
NYSE:AIT
Applied Industrial Technologies Inc
Applied Industrial Technologies Inc., an often understated player in the industrial distribution sector, has built a reputation for being a vital cog in the wheel of American industry. Founded in 1923, the company has grown into a powerhouse primarily through the strategic distribution of fluid power, motion control, and automation technologies. With a network of service centers across North America, Applied Industrial Technologies not only provides essential equipment but also offers value-added services, such as customized engineering solutions, repair services, and inventory management. This blend of products and services creates a robust supply chain for its customers, primarily in industries like manufacturing, energy, and transportation, ensuring operational efficiency and minimal downtime.
Revenue generation for Applied Industrial Technologies is seamlessly interwoven with this dual offering of products and services. By maintaining a comprehensive inventory of bearings, power transmission components, fluid power technologies, and specialty flow control solutions, the company positions itself as an indispensable partner to its customers. In addition, its focus on enhancing customer operations through technical support and innovative solutions has driven recurring business. With its forward-thinking approach, the company continually explores advancements in technology, such as automation and digital transformation, to stay ahead in the competitive industrial landscape. It's this combination of deep industry knowledge, expansive service offerings, and a commitment to customer success that defines the financial heartbeat of Applied Industrial Technologies.
Applied Industrial Technologies Inc., an often understated player in the industrial distribution sector, has built a reputation for being a vital cog in the wheel of American industry. Founded in 1923, the company has grown into a powerhouse primarily through the strategic distribution of fluid power, motion control, and automation technologies. With a network of service centers across North America, Applied Industrial Technologies not only provides essential equipment but also offers value-added services, such as customized engineering solutions, repair services, and inventory management. This blend of products and services creates a robust supply chain for its customers, primarily in industries like manufacturing, energy, and transportation, ensuring operational efficiency and minimal downtime.
Revenue generation for Applied Industrial Technologies is seamlessly interwoven with this dual offering of products and services. By maintaining a comprehensive inventory of bearings, power transmission components, fluid power technologies, and specialty flow control solutions, the company positions itself as an indispensable partner to its customers. In addition, its focus on enhancing customer operations through technical support and innovative solutions has driven recurring business. With its forward-thinking approach, the company continually explores advancements in technology, such as automation and digital transformation, to stay ahead in the competitive industrial landscape. It's this combination of deep industry knowledge, expansive service offerings, and a commitment to customer success that defines the financial heartbeat of Applied Industrial Technologies.
Sales Growth: Applied Industrial reported consolidated sales up 8.4% year-over-year, with 2.2% organic growth, slightly below last quarter but strengthening as the quarter progressed.
Margins & LIFO Impact: EBITDA margins and EPS were in line with guidance despite higher-than-expected LIFO expense, which negatively impacted gross margins by 54 basis points year-over-year.
Guidance Adjustment: Full-year EPS guidance was raised to $10.45–$10.75 on sales growth of 5.5%–7% and EBITDA margins of 12.2%–12.4%. Guidance now assumes higher LIFO expense and stronger pricing contribution.
Order Momentum: Engineered Solutions orders rose over 10% organically, with automation orders up 20%. Book-to-bill was above 1 for three of the last four quarters.
Capital Deployment: The company increased its quarterly dividend by 11% and repurchased $143 million in shares year-to-date, reflecting strong cash generation and balance sheet flexibility.
End Market Trends: Growth was strongest in metals, aggregates, utilities, energy, mining, and machinery, while lumber, chemicals, oil and gas, and refining saw declines.
Positive Early Q3 Trends: January organic sales are trending up mid-single digits year-over-year, and business funnels are expanding, supporting a constructive outlook for the second half of fiscal 2026.
