AIT · Applied Industrial Technologies, Inc.

Applied Industrial Technologies delivered a solid fiscal third quarter, marked by accelerating organic sales growth and record quarterly EBITDA. Net sales of $1.3 billion increased 7.3% year-over-year, driven by a 6.0% organic growth contribution split between a 4.2% rise in the Service Center segment and a robust 9.3% increase in the Engineered Solutions segment. Management attributed the momentum to positive order trends and improving demand across industry verticals, signaling a strengthening U.S. industrial backdrop. Operating income settled at $137.9 million, while EBITDA reached $153.9 million, representing a 6.2% year-over-year increase. Results included specific headwinds, notably $1.7 million in discrete tax expenses and $5.6 million in LIFO expenses, the latter increasing from the prior year period.

Looking forward, the company raised its fiscal 2026 guidance, narrowing and lifting the EPS range to $10.64-$10.75 from the prior $10.45-$10.75. Total sales growth guidance was revised upward to 7.2%-7.7%, reflecting confidence in continued demand. This outlook incorporates macro uncertainties regarding geopolitical events and trade policy but excludes impacts from future acquisitions. Supporting capital allocation priorities, the Board authorized a new share repurchase program for up to 3.0 million shares, effectively replacing the previous authorization. Additionally, a quarterly dividend of $0.51 per share was declared, reinforcing the company's commitment to shareholder returns.