Higher guidance, new buyback and dividend at Applied (NYSE: AIT)
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Applied Industrial Technologies reported fiscal 2026 third-quarter net sales of $1.25 billion, up 7.3% year over year, with 6.0% organic growth. Net income was $99.8 million and diluted EPS was $2.65, up 3.1% from $2.57. EBITDA reached $153.9 million.
Management raised full-year fiscal 2026 guidance to EPS of $10.64 to $10.75 and total sales growth of 7.2% to 7.7%, with organic growth of 3.8% to 4.2%. The Board authorized a new share repurchase program for up to 3.0 million shares and declared a quarterly dividend of $0.51 per share, payable May 29, 2026, to shareholders of record on May 15, 2026.
Positive
- None.
Negative
- None.
Insights
Solid Q3 growth, slightly higher guidance, new buyback and steady dividend.
Applied Industrial Technologies delivered Q3 net sales of $1.25 billion, up 7.3%, with 6.0% organic growth across both segments. Diluted EPS of $2.65 rose modestly from $2.57, while EBITDA increased to $153.9 million.
Management nudged full-year FY26 guidance higher, now targeting EPS of $10.64–$10.75 and total sales growth of 7.2%–7.7%, supported by organic growth of 3.8%–4.2% and EBITDA margin of 12.3%–12.4%. This suggests confidence despite noted macro and geopolitical uncertainty.
The new authorization to repurchase up to 3.0 million shares, along with a quarterly dividend of $0.51 per share, highlights ongoing capital returns alongside growth investments. Future quarterly updates will show how actively the company uses the buyback within this framework.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q3 2026 net sales: $1,251,453,000
Q3 2026 net income: $99,769,000
Q3 2026 diluted EPS: $2.65 per share
+5 more
8 metrics
Q3 2026 net sales
$1,251,453,000
Three months ended March 31, 2026; up 7.3% year over year
Q3 2026 net income
$99,769,000
Three months ended March 31, 2026
Q3 2026 diluted EPS
$2.65 per share
Three months ended March 31, 2026; up 3.1% YoY
Q3 2026 EBITDA
$153,855,000
Three months ended March 31, 2026
FY 2026 EPS guidance
$10.64–$10.75
Updated full-year guidance ending June 30, 2026
FY 2026 total sales growth guidance
7.2%–7.7%
Updated full-year sales growth outlook
Share repurchase authorization
3.0 million shares
New Board authorization replacing prior plan
Quarterly dividend
$0.51 per share
Payable May 29, 2026, to holders of record May 15, 2026
Key Terms
EBITDA, organic basis, LIFO expense, free cash flow, +2 more
6 terms
EBITDA financial
"Operating Income of $137.9 Million; EBITDA of $153.9 Million Up 6.2% YoY"
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.
organic basis financial
"Net Sales of $1.3 Billion Up 7.3% YoY; Up 6.0% on an Organic Basis"
"Organic basis" refers to the growth in a company's revenue or sales that comes from its existing operations, without including the effects of acquisitions, divestments, or other external changes. It shows how well a company's core business is performing on its own, much like tracking the natural growth of a plant without considering external factors. For investors, understanding organic growth helps assess the true strength and sustainability of a company's fundamental business.
LIFO expense financial
"results include $5.6 million ($0.11 after tax per share) of LIFO expense compared to $2.2 million"
free cash flow financial
"Operating Cash Flow of $100.1 Million; Free Cash Flow of $95.4 Million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
non-GAAP financial measure financial
"EBITDA is a non-GAAP financial measure which excludes items that may not be indicative"
A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.
EBITDA margin financial
"EBITDA margin: 12.3% to 12.4% (prior 12.2% to 12.4%)"
EBITDA margin is the share of each dollar of sales that a company keeps as operating cash profit before interest, taxes, and accounting for equipment wear and long-term investments. Think of it like the cash a store has left from every sale after paying day-to-day running costs but before paying rent, loan interest or replacing old machinery. Investors use it to compare core profitability and operational efficiency across companies by removing financing and accounting differences.
Earnings Snapshot
Revenue: $1,251,453,000 · Guidance included
Q3 2026
Revenue
$1,251,453,000
+7.3% YoY
Diluted EPS
$2.65
+3.1% YoY
EBITDA
$153,855,000
+6.2% YoY
Guidance
FY 2026 EPS $10.64–$10.75; total sales growth 7.2%–7.7%; organic growth 3.8%–4.2%; EBITDA margin 12.3%–12.4%.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||
(Address of Principal Executive Offices) | (Zip Code) | ||||||||||
(216 ) 426-4000
Registrant's telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
o
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On April 28, 2026, Applied Industrial Technologies, Inc. (“Applied”) issued a press release related to its earnings for the fiscal year 2026 third quarter ended March 31, 2026. The release is attached as Exhibit 99.1 to this Report on Form 8-K.
The information in this Report on Form 8-K, including the Exhibit, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.
ITEM 7.01 REGULATION FD DISCLOSURE.
On April 22, 2026, Applied Industrial Technologies, Inc.’s Board of Directors authorized the repurchase of up to 3.0 million shares of the Company's common stock. Purchases can be made in the open market or in privately negotiated transactions. The authorization is in effect until all shares are purchased, or the Board of Directors revokes or amends the authorization.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
| Exhibit No. | Description | ||||
| 99.1 | Press release of Applied Industrial Technologies, Inc. dated April 28, 2026. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
| APPLIED INDUSTRIAL TECHNOLOGIES, INC. | |||||
| (Registrant) | |||||
By: /s/ Jon S. Ploetz | |||||
| Jon S. Ploetz, Vice President-General Counsel & Secretary | |||||
| Date: April 28, 2026 | |||||
EXHIBIT 99.1
Financial Release
For Immediate Release
Applied Industrial Technologies Reports Fiscal 2026 Third Quarter Results
•Net Sales of $1.3 Billion Up 7.3% YoY; Up 6.0% on an Organic Basis
•Net Income of $99.8 Million; EPS of $2.65 Up 3.1% YoY
•Operating Income of $137.9 Million; EBITDA of $153.9 Million Up 6.2% YoY
•Operating Cash Flow of $100.1 Million; Free Cash Flow of $95.4 Million
•Adjusting FY26 Guidance; EPS Now $10.64 to 10.75 on Sales of +7.2% to +7.7%
•Announcing New 3.0 Million Share Repurchase Authorization
CLEVELAND, OHIO (April 28, 2026) – Applied Industrial Technologies (NYSE: AIT), a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies, today reported results for its fiscal 2026 third quarter ended March 31, 2026.
Net sales for the quarter of $1.3 billion increased 7.3% over the prior year. The change includes a 0.5% increase from acquisitions and a positive 0.8% impact from foreign currency translation. Excluding these factors, sales increased 6.0% on an organic basis reflecting a 4.2% increase in the Service Center segment and a 9.3% increase in the Engineered Solutions segment. The Company reported net income of $99.8 million, or $2.65 per share, and EBITDA of $153.9 million. Results include $1.7 million ($0.05 per share) of non-routine discrete tax expense related to prior-year tax provision adjustments. In addition, on a pre-tax basis, results include $5.6 million ($0.11 after tax per share) of LIFO expense compared to $2.2 million ($0.04 after tax per share) of LIFO expense in the prior-year period.
Neil A. Schrimsher, Applied’s President & Chief Executive Officer, commented, “We delivered a solid third quarter underscored by strengthening organic sales growth across both segments. Growth was led by our Engineered Solutions segment where ongoing positive order trends, improving demand across legacy and emerging industry verticals, and our deep application and engineering expertise is accelerating sales momentum. This is an encouraging sign that highlights our differentiated position, as well as distinct growth tailwinds emerging across the segment. In addition, Service Center segment demand is building nicely. Benefits from our sales initiatives and One Applied value proposition are reading through as we support our customers’ heightened technical MRO requirements within an increasingly positive U.S. industrial backdrop. Combined with steady underlying gross margin performance, we reported record quarterly EBITDA at the high end of our expectations. Overall, these are strong results that further demonstrate our favorable industry position and the Applied team’s consistent execution.”
Mr. Schrimsher added, “I am encouraged by our performance year to date and the company-specific opportunities that continue to develop. Organic sales month to date in April are trending up by a high single-digit percent year over year, while orders and business funnel activity remain favorable. We are mindful of recent geopolitical developments and ongoing trade policy uncertainty, which we have incorporated into our fourth quarter outlook. That said, the demand backdrop across our North American centric operations is showing favorable signs with U.S. industrial macro indicators now in more positive territory, break-fix activity firming, and customers’ capital spending gradually improving. Combined with our balance sheet capacity, we are in a solid position moving forward.”
Updated Fiscal 2026 Guidance
Guidance for our fiscal 2026 year ending June 30, 2026 is updated as follows:
•EPS: $10.64 to $10.75 (prior $10.45 to $10.75)
•Total sales growth: 7.2% to 7.7% (prior 5.5% to 7.0%)
•Organic sales growth: 3.8% to 4.2% (prior 2.5% to 4.0%)
•EBITDA margin: 12.3% to 12.4% (prior 12.2% to 12.4%)
Updated guidance assumes the following for our fiscal fourth quarter ending June 30, 2026:
•EPS: $2.85 to $2.96
•Total sales growth: 4.5% to 6.0%
•Organic sales growth: 4.0% to 5.5% year over year
•EBITDA margin: 12.6% to 12.8%
Guidance incorporates macro uncertainty tied to recent geopolitical events and ongoing trade policy dynamics, as well as broader inflationary headwinds and growth investments. Guidance does not assume contribution from future acquisitions or share buybacks.
Share Repurchase Authorization
Today, the Company announced that its Board of Directors authorized a new share buyback program to repurchase up to 3.0 million shares of the Company’s common stock. The updated plan replaces the prior share repurchase plan. Shares may be purchased in open market and negotiated transactions.
Dividend
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.51 per common share, payable on May 29, 2026, to shareholders of record on May 15, 2026.
Conference Call Information
The Company will host a conference call at 10 a.m. ET today to discuss the quarter’s results and outlook. A live audio webcast and supplemental presentation can be accessed on our Investor Relations site at https://ir.applied.com. To join by telephone, dial 833-461-5787 (toll free) or 585-542-9983 using conference ID 381460398. Replays of the call will be available via webcast, as well as by telephone for one week by dialing 833-461-5787 (toll free) using conference ID 381460398.
About Applied®
Applied Industrial Technologies is a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. Our leading brands, specialized services, and comprehensive knowledge serve MRO (maintenance, repair, and operations) and OEM (original equipment manufacturing), and new system install applications in virtually all industrial markets through our multi-channel capabilities that provide choice, convenience, and expertise. For more information, visit www.applied.com.
This press release contains statements that are forward-looking, as that term is defined by the Securities and Exchange Commission in its rules, regulations and releases. Applied intends that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements are often identified by qualifiers such as “assume,” “expectation,” “guidance,” and derivative or similar expressions. All forward-looking statements are based on current expectations regarding important risk factors including trends and events in the industrial sector of the economy (such as the inflationary environment and supply chain strains), results of operations, and financial condition, and other risk factors identified in Applied's most recent periodic report and other filings made with the Securities and Exchange Commission. Accordingly, actual results may differ materially from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by Applied or any other person that the results expressed therein will be achieved. Applied assumes no obligation to update publicly or revise any forward-looking statements, whether due to new information, or events, or otherwise.
# # #
CONTACT INFORMATION
Ryan D. Cieslak
Vice President – Investor Relations & Treasury
216-426-4887 / rcieslak@applied.com
| APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES | |||||||||||||||||
| CONDENSED STATEMENTS OF CONSOLIDATED INCOME | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||
| Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Net Sales | $ | 1,251,453 | $ | 1,166,749 | $ | 3,613,999 | $ | 3,338,694 | |||||||||
| Cost of sales | 870,649 | 811,459 | 2,518,432 | 2,330,272 | |||||||||||||
| Gross Profit | 380,804 | 355,290 | 1,095,567 | 1,008,422 | |||||||||||||
| Selling, distribution and administrative expense, including depreciation | 242,879 | 225,888 | 705,403 | 644,978 | |||||||||||||
| Operating Income | 137,925 | 129,402 | 390,164 | 363,444 | |||||||||||||
| Interest expense (income), net | 2,447 | 853 | 4,382 | (710) | |||||||||||||
| Other expense (income), net | 350 | 1,267 | (703) | (1,769) | |||||||||||||
| Income Before Income Taxes | 135,128 | 127,282 | 386,485 | 365,923 | |||||||||||||
| Income tax expense | 35,359 | 27,483 | 90,560 | 80,771 | |||||||||||||
| Net Income | $ | 99,769 | $ | 99,799 | $ | 295,925 | $ | 285,152 | |||||||||
| Net Income Per Share - Basic | $ | 2.68 | $ | 2.60 | $ | 7.89 | $ | 7.43 | |||||||||
| Net Income Per Share - Diluted | $ | 2.65 | $ | 2.57 | $ | 7.79 | $ | 7.33 | |||||||||
| Average Shares Outstanding - Basic | 37,223 | 38,322 | 37,527 | 38,383 | |||||||||||||
| Average Shares Outstanding - Diluted | 37,684 | 38,847 | 38,002 | 38,920 | |||||||||||||
| APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| March 31, | June 30, | |||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 171,576 | $ | 388,417 | ||||||||||||||||
| Accounts receivable, net | 792,849 | 769,699 | ||||||||||||||||||
| Inventories | 526,324 | 505,337 | ||||||||||||||||||
| Other current assets | 90,457 | 84,020 | ||||||||||||||||||
| Total current assets | 1,581,206 | 1,747,473 | ||||||||||||||||||
| Property, net | 128,037 | 128,154 | ||||||||||||||||||
| Operating lease assets, net | 181,830 | 188,654 | ||||||||||||||||||
| Identifiable intangibles, net | 322,689 | 348,600 | ||||||||||||||||||
| Goodwill | 704,998 | 699,374 | ||||||||||||||||||
| Other assets | 69,951 | 63,289 | ||||||||||||||||||
| Total Assets | $ | 2,988,711 | $ | 3,175,544 | ||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Accounts payable | $ | 303,057 | $ | 280,124 | ||||||||||||||||
| Current portion of long-term debt | 18,000 | — | ||||||||||||||||||
| Other accrued liabilities | 215,565 | 246,027 | ||||||||||||||||||
| Total current liabilities | 536,622 | 526,151 | ||||||||||||||||||
| Long-term debt | 347,300 | 572,300 | ||||||||||||||||||
| Other liabilities | 244,746 | 232,573 | ||||||||||||||||||
| Total Liabilities | 1,128,668 | 1,331,024 | ||||||||||||||||||
| Shareholders' Equity | 1,860,043 | 1,844,520 | ||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 2,988,711 | $ | 3,175,544 | ||||||||||||||||
| NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||
| 1) Inventories are valued at average cost, using the last-in, first-out (LIFO) method for U.S. inventories. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory determination. | |||||||||||||||||
| APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||||||||
| CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| (In thousands) | ||||||||||||||
| Nine Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash Flows from Operating Activities | ||||||||||||||
| Net income | $ | 295,925 | $ | 285,152 | ||||||||||
| Adjustments to reconcile net income to net cash provided | ||||||||||||||
| by operating activities: | ||||||||||||||
| Depreciation and amortization of property | 19,472 | 18,433 | ||||||||||||
| Amortization of intangibles | 30,213 | 25,385 | ||||||||||||
| Provision for losses on accounts receivable | 1,095 | 2,652 | ||||||||||||
| Amortization of stock appreciation rights | 4,174 | 3,570 | ||||||||||||
| Other share-based compensation expense | 5,414 | 5,824 | ||||||||||||
| Changes in operating assets and liabilities, net of acquisitions | (55,310) | 5,371 | ||||||||||||
| Other, net | 18,103 | (1,050) | ||||||||||||
| Net Cash provided by Operating Activities | 319,086 | 345,337 | ||||||||||||
| Cash Flows from Investing Activities | ||||||||||||||
| Net cash paid for acquisitions, net of cash acquired | (11,425) | (273,312) | ||||||||||||
| Capital expenditures | (18,312) | (18,295) | ||||||||||||
| Proceeds from property sales | 986 | 1,022 | ||||||||||||
| Net Cash used in Investing Activities | (28,751) | (290,585) | ||||||||||||
| Cash Flows from Financing Activities | ||||||||||||||
| Net payments under revolving credit facility | (207,000) | — | ||||||||||||
| Long-term debt repayments | — | (25,106) | ||||||||||||
| Interest rate swap settlement receipts | 5,765 | 9,435 | ||||||||||||
| Purchases of treasury shares | (236,379) | (79,794) | ||||||||||||
| Dividends paid | (53,727) | (46,159) | ||||||||||||
| Payment of debt issuance costs | (1,611) | — | ||||||||||||
| Acquisition holdback payments | (1,393) | (1,210) | ||||||||||||
| Taxes paid for shares withheld | (12,812) | (14,332) | ||||||||||||
| Net Cash used in Financing Activities | (507,157) | (157,166) | ||||||||||||
| Effect of Exchange Rate Changes on Cash | (19) | (5,361) | ||||||||||||
| Decrease in Cash and Cash Equivalents | (216,841) | (107,775) | ||||||||||||
| Cash and Cash Equivalents at Beginning of Period | 388,417 | 460,617 | ||||||||||||
| Cash and Cash Equivalents at End of Period | $ | 171,576 | $ | 352,842 | ||||||||||
| APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||||||||
| SUPPLEMENTAL INFORMATION | ||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||
| (Unaudited) | ||||||||||||||
| (In thousands) | ||||||||||||||
| The Company supplements the reporting of financial information determined under U.S. generally accepted accounting principles (GAAP) with reporting of non-GAAP financial measures. The Company believes that these non-GAAP measures provide meaningful information to assist shareholders in understanding financial results, assessing prospects for future performance, and provide a better baseline for analyzing trends in our underlying businesses. Because non-GAAP financial measures do not have a standard definition, it may not be possible to compare these non-GAAP financial measures with other companies' non-GAAP financial measures having the same or similar names. These non-GAAP financial measures should not be considered in isolation or as a substitute for reported results. The Company believes these non-GAAP financial measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the financial results of the Company. The Company strongly encourages investors and shareholders to review the Company's financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. | ||||||||||||||
| Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure: | ||||||||||||||
| Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net Income | $ | 99,769 | $ | 99,799 | $ | 295,925 | $ | 285,152 | ||||||
| Interest expense (income), net | 2,447 | 853 | 4,382 | (710) | ||||||||||
| Income tax expense | 35,359 | 27,483 | 90,560 | 80,771 | ||||||||||
| Depreciation and amortization of property | 6,396 | 6,583 | 19,472 | 18,433 | ||||||||||
| Amortization of intangibles | 9,884 | 10,218 | 30,213 | 25,385 | ||||||||||
| EBITDA | $ | 153,855 | $ | 144,936 | $ | 440,552 | $ | 409,031 | ||||||
| The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization. EBITDA is a non-GAAP financial measure which excludes items that may not be indicative of core operating results. | ||||||||||||||
| Reconciliation of Net Cash provided by Operating activities, a GAAP financial measure, to Free Cash Flow, a non-GAAP financial measure: | ||||||||||||||
| Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net Cash provided by Operating Activities | $ | 100,110 | $ | 122,453 | $ | 319,086 | $ | 345,337 | ||||||
| Capital expenditures | (4,734) | (7,549) | (18,312) | (18,295) | ||||||||||
| Free Cash Flow | $ | 95,376 | $ | 114,904 | $ | 300,774 | $ | 327,042 | ||||||
| Free cash flow is a non-GAAP financial measure and is defined as net cash provided by operating activities less capital expenditures. | ||||||||||||||
FAQ
How did Applied Industrial Technologies (AIT) perform in fiscal Q3 2026?
Applied Industrial Technologies reported Q3 2026 net sales of $1.25 billion, up 7.3% year over year. Diluted EPS was $2.65, rising from $2.57 a year ago, while EBITDA reached $153.9 million, reflecting steady profitability alongside solid top-line growth.
What earnings guidance did Applied Industrial Technologies (AIT) give for fiscal 2026?
Applied now expects fiscal 2026 EPS of $10.64 to $10.75, slightly above prior guidance. The company targets total sales growth of 7.2% to 7.7%, organic growth of 3.8% to 4.2%, and an EBITDA margin of 12.3% to 12.4% for the year.
What dividend did Applied Industrial Technologies (AIT) declare with these results?
Applied declared a quarterly cash dividend of $0.51 per share. The dividend will be payable on May 29, 2026, to shareholders of record as of May 15, 2026, continuing the company’s pattern of returning cash to shareholders through regular dividends.
How strong was Applied Industrial Technologies’ (AIT) cash flow in fiscal 2026 year-to-date?
For the nine months ended March 31, 2026, Applied generated net cash from operating activities of $319.1 million. After $18.3 million of capital expenditures, free cash flow totaled $300.8 million, providing capacity for dividends, buybacks, debt reduction, and selective acquisitions.
What were Applied Industrial Technologies’ (AIT) profit margins in Q3 2026?
In Q3 2026, Applied posted gross profit of $380.8 million on net sales of $1.25 billion. Operating income was $137.9 million, and EBITDA reached $153.9 million, supported by relatively stable gross margins and controlled selling, distribution, and administrative expenses.