Applied Industrial raises FY27 EPS to $11.70–$12.20
AIT raised its FY27 diluted EPS range to $11.70–$12.20 and reiterated its sales and EBITDA-margin guidance.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Applied Industrial Technologies (AIT) reported fiscal 2027 first-quarter net sales of $1,291.170 million, up 7.6% year over year and 7.1% organically, for the quarter ended September 30, 2026. Net income was $110.403 million and diluted EPS was $2.97, up 12.7%. Operating income rose 11.3% to $143.592 million, while EBITDA, a non-GAAP measure, increased 9.6% to $160.320 million. Engineered Solutions sales grew 14.1% organically; Service Center sales grew 3.5% organically.
Operating cash flow was $86.376 million, compared with $119.317 million a year earlier; free cash flow was $73.363 million versus $112.016 million. AIT raised FY27 diluted EPS guidance to $11.70–$12.20 from $11.65–$12.15, citing a lower diluted-share-count assumption following first-quarter share repurchases. It reiterated sales growth guidance of 4.0%–6.5% and EBITDA margins of 12.5%–12.8%; guidance excludes future acquisitions and share buybacks. The board declared a $0.51 quarterly dividend, payable November 30, 2026, and selected Joe A. Raver as independent chairman after Peter C. Wallace retired on October 20, 2026.
3 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet sales increased 7.6% year over year to $1,291.170 million.
- Moderate pointDiluted EPS rose 12.7% year over year to $2.97.
- Moderate pointOperating income increased 11.3% year over year to $143.592 million.
Negative
- Moderate pointOperating cash flow was $86.376 million, below $119.317 million a year earlier.
Filing Explained
The quarter’s cash-flow statement records
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net sales: $1,291.170 million
Net income: $110.403 million
Diluted EPS: $2.97 per share
+5 more
8 metrics
Net sales
$1,291.170 million
Fiscal 2027 first quarter; up 7.6% year over year
Net income
$110.403 million
Fiscal 2027 first quarter
Diluted EPS
$2.97 per share
Fiscal 2027 first quarter; up 12.7% year over year
Operating income
$143.592 million
Fiscal 2027 first quarter; up 11.3% year over year
EBITDA
$160.320 million
Fiscal 2027 first quarter; up 9.6% year over year
Operating cash flow
$86.376 million
Three months ended September 30, 2026; $119.317 million in the prior-year period
FY2027 diluted EPS guidance
$11.70–$12.20 per share
Raised from $11.65–$12.15
Quarterly cash dividend
$0.51 per common share
Payable November 30, 2026
Key Terms
EBITDA, organic basis, LIFO, Free Cash Flow, +1 more
5 terms
EBITDA financial
"EBITDA is a non-GAAP financial measure"
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
"increased 7.1% 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 financial
"last-in, first-out (LIFO) method"
An accounting method that assumes the most recently acquired inventory items are sold first, so the newest costs flow into cost of goods sold while older costs stay on the balance sheet. Imagine a stack of boxes where you take from the top; when prices are rising, that top-first approach produces higher reported costs and lower reported profits, which can reduce taxes and change profit margins. Investors watch LIFO because it affects reported earnings, tax liabilities, and how comparable a company’s performance is to peers.
Free Cash Flow financial
"Free Cash Flow, a non-GAAP financial measure"
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.
Earnings Snapshot
Net sales: $1,291.170 million · Guidance included
Fiscal 2027 first quarter ended September 30, 2026
Net sales
$1,291.170 million
+7.6% year over year
Diluted EPS
$2.97 per share
+12.7% year over year
Operating income
$143.592 million
+11.3% year over year
EBITDA
$160.320 million
+9.6% year over year
Guidance
FY2027 diluted EPS of $11.70 to $12.20; sales growth of 4.0% to 6.5%; EBITDA margins of 12.5% to 12.8%.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were AIT’s fiscal 2027 first-quarter results?
AIT reported net sales of $1,291.170 million, up 7.6% year over year, and net income of $110.403 million. Diluted EPS was $2.97, up 12.7%, and EBITDA was $160.320 million, up 9.6%.
What is AIT’s FY2027 EPS guidance?
AIT raised diluted EPS guidance to $11.70 to $12.20 from $11.65 to $12.15, reflecting a lower diluted share count assumption following first-quarter share repurchases. It reiterated sales growth guidance of 4.0% to 6.5% and EBITDA margin guidance of 12.5% to 12.8%. Guidance does not assume contributions from future acquisitions or share buybacks.
What dividend did AIT declare, and when is it payable?
AIT declared a quarterly cash dividend of $0.51 per common share, payable November 30, 2026, to shareholders of record on November 13, 2026.
Who is AIT’s next independent chairman?
The board selected Joe A. Raver to succeed Peter C. Wallace as independent chairman. Wallace retired from the board as of the company’s annual meeting on October 20, 2026. Raver joined the board in 2017.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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 October 27, 2026, Applied Industrial Technologies, Inc. (“Applied”) issued a press release related to its earnings for the fiscal year 2027 first quarter ended September 30, 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 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits.
| Exhibit No. | Description | ||||
| 99.1 | Press release of Applied Industrial Technologies, Inc. dated October 27, 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: October 27, 2026 | |||||
EXHIBIT 99.1
Financial Release
For Immediate Release
Applied Industrial Technologies Reports Fiscal 2027 First Quarter Results
•Net Sales of $1.3 Billion Up 7.6% YoY; Up 7.1% on an Organic Basis
•Net Income of $110.4 Million, or $2.97 Per Share Up 12.7% YoY
•Operating Income of $143.6 Million Up 11.3%; EBITDA of $160.3 Million Up 9.6% YoY
•Operating Cash Flow of $86.4 Million; Free Cash Flow of $73.4 Million
•Increasing FY27 EPS Guidance to $11.70 to $12.20
•Reiterate FY27 Sales and EBITDA Margin Guidance
CLEVELAND, OHIO (October 27, 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 2027 first quarter ended September 30, 2026.
Net sales for the quarter of $1.3 billion increased 7.6% over the prior year. The change includes a 0.3% increase from acquisitions and a 0.2% benefit from foreign currency translation. Excluding these factors, sales increased 7.1% on an organic basis reflecting a 14.1% increase in the Engineered Solutions segment and a 3.5% increase in the Service Center segment. The Company reported net income of $110.4 million, or $2.97 per share, and EBITDA of $160.3 million. On a pre-tax basis, results include $5.6 million ($0.12 after tax per share) of LIFO expense compared to $2.6 million ($0.05 after tax per share) of LIFO expense in the prior-year period.
Neil A. Schrimsher, Applied’s President & Chief Executive Officer, commented, “We had an encouraging start to fiscal 2027. First quarter EPS grew 13% year over year reflecting a favorable demand environment and solid margin performance. Sales growth was led by our Engineered Solutions segment, where our leading engineering capabilities and market positioning drove strong mid-teens organic sales growth, as well as ongoing positive order momentum. Service Center segment sales growth strengthened through the quarter, with positive trends continuing into October. In addition, we continue to manage broader inflationary pressures very well through ongoing gross margin initiatives, cost control, and channel execution. Combined with favorable mix, EBITDA margins expanded over the prior year and achieved the high-end of our first quarter guidance.”
Mr. Schrimsher added, “Following first quarter results, we are reiterating fiscal 2027 sales and EBITDA margin guidance established in mid-August. Sales trends are tracking in line with our expectations year to date and remain positive into early F2Q27, with organic sales month to date in October up approximately 10% year over year. While mindful of inflationary headwinds and macro uncertainty, we remain positively biased considering favorable market conditions and order trends, as well as various company-specific opportunities that should provide ongoing benefits moving forward. Combined with our leading technical industry position and balance sheet capacity, we are in a favorable position to deliver strong performance in fiscal 2027 and meaningful value creation long term.”
Fiscal 2027 Guidance
Today, the Company is modestly increasing fiscal 2027 EPS guidance to a range of $11.70 to $12.20 (prior $11.65 to $12.15) to reflect a slightly lower diluted share count assumption following first quarter share repurchases. The Company is maintaining guidance for sales of up 4.0% to 6.5%, as well as EBITDA margins of 12.5% to 12.8%. Guidance continues to incorporate macro uncertainty tied to ongoing geopolitical events and trade policy dynamics, as well as broader inflationary headwinds and growth investments. Guidance does not assume contribution from future acquisitions or share buybacks.
Board of Directors Transition
The Company also announced today that Peter C. Wallace, Chairman, retired from the Board as of the Company’s annual meeting held on October 20th, 2026. The Board has selected Joe A. Raver to succeed Mr. Wallace as its next independent Chairman. Mr. Raver joined the Board of Directors in 2017.
Mr. Schrimsher commented, “On behalf of the Board of Directors and the Company, we thank Pete for his outstanding leadership and dedication to Applied throughout his 21 years of service on the Board, including 12 years as Chairman. We are grateful for his many contributions and the steady guidance provided during his tenure, which helped shape the Company’s progress and position for continued success in the years ahead. We wish him well going forward.”
“Having served on our Board for nearly a decade, Joe has a deep understanding of our business and strategy that provides a seamless transition as our next Chairman,” said Mr. Schrimsher. “His track record of strategic leadership, strong business acumen, and operational excellence throughout his executive career serving industrial markets has brought valuable direction and insight since joining our Board. I look forward to continuing to work alongside him and our fellow Board members as we further position Applied for sustainable growth and long-term value creation.”
Dividend
Today the Company also announced that its Board of Directors declared a quarterly cash dividend of $0.51 per common share, payable on November 30, 2026, to shareholders of record on November 13, 2026.
Conference Call Information
The Company will host a conference call at 10 a.m. ET to discuss the quarter’s results and outlook. A live audio webcast and presentation can be accessed on our Investor Relations site at https://ir.applied.com. To join by telephone, dial 833-461-5787 (toll free) using conference ID 447 138 162.
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 “expect,” “will,” “guidance,” “assume,” “should,” 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 September 30, | ||||||||
| 2026 | 2025 | |||||||
| Net Sales | $ | 1,291,170 | $ | 1,199,523 | ||||
| Cost of sales | 898,957 | 838,094 | ||||||
| Gross Profit | 392,213 | 361,429 | ||||||
| Selling, distribution and administrative expense, | ||||||||
| including depreciation | 248,621 | 232,399 | ||||||
| Operating Income | 143,592 | 129,030 | ||||||
| Interest expense, net | 3,087 | 993 | ||||||
| Other income, net | (436) | (548) | ||||||
| Income before income taxes | 140,941 | 128,585 | ||||||
| Income tax expense | 30,538 | 27,778 | ||||||
| Net Income | $ | 110,403 | $ | 100,807 | ||||
| Net income per share - basic | $ | 3.01 | $ | 2.67 | ||||
| Net income per share - diluted | $ | 2.97 | $ | 2.63 | ||||
| Average Shares Outstanding - Basic | 36,705 | 37,757 | ||||||
| Average Shares Outstanding - Diluted | 37,180 | 38,271 | ||||||
| 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 CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| September 30, | June 30, | |||||||||||||||||||
| 2026 | 2026 | |||||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 112,236 | $ | 127,130 | ||||||||||||||||
| Accounts receivable, net | 822,293 | 831,244 | ||||||||||||||||||
| Inventories | 533,253 | 508,979 | ||||||||||||||||||
| Other current assets | 85,829 | 111,376 | ||||||||||||||||||
| Total current assets | 1,553,611 | 1,578,729 | ||||||||||||||||||
| Property, net | 134,621 | 131,651 | ||||||||||||||||||
| Operating lease assets, net | 217,535 | 213,199 | ||||||||||||||||||
| Identifiable intangibles, net | 303,147 | 312,814 | ||||||||||||||||||
| Goodwill | 704,507 | 704,700 | ||||||||||||||||||
| Other assets | 70,328 | 68,880 | ||||||||||||||||||
| Total Assets | $ | 2,983,749 | $ | 3,009,973 | ||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Accounts payable | $ | 293,019 | $ | 341,094 | ||||||||||||||||
| Other accrued liabilities | 245,212 | 271,317 | ||||||||||||||||||
| Total current liabilities | 538,231 | 612,411 | ||||||||||||||||||
| Long-term debt | 282,300 | 262,300 | ||||||||||||||||||
| Other liabilities | 278,902 | 273,513 | ||||||||||||||||||
| Total Liabilities | 1,099,433 | 1,148,224 | ||||||||||||||||||
| Shareholders' Equity | 1,884,316 | 1,861,749 | ||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 2,983,749 | $ | 3,009,973 | ||||||||||||||||
| APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||||||||
| CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| (In thousands) | ||||||||||||||
| Three Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash Flows from Operating Activities | ||||||||||||||
| Net income | $ | 110,403 | $ | 100,807 | ||||||||||
| Adjustments to reconcile net income to net cash provided | ||||||||||||||
| by operating activities: | ||||||||||||||
| Depreciation and amortization of property | 6,625 | 6,486 | ||||||||||||
| Amortization of intangibles | 9,667 | 10,203 | ||||||||||||
| Provision for (recovery of) losses on accounts receivable | 999 | (1,671) | ||||||||||||
| Amortization of stock appreciation rights | 1,767 | 1,494 | ||||||||||||
| Other share-based compensation expense | 2,102 | 1,831 | ||||||||||||
| Changes in operating assets and liabilities, net of acquisitions | (45,492) | (584) | ||||||||||||
| Other, net | 305 | 751 | ||||||||||||
| Net Cash provided by Operating Activities | 86,376 | 119,317 | ||||||||||||
| Cash Flows from Investing Activities | ||||||||||||||
| Capital expenditures | (13,013) | (7,301) | ||||||||||||
| Net cash paid for acquisitions, net of cash acquired | — | (2,280) | ||||||||||||
| Proceeds from property sales | 98 | 35 | ||||||||||||
| Net Cash used in Investing Activities | (12,915) | (9,546) | ||||||||||||
| Cash Flows from Financing Activities | ||||||||||||||
| Repayments under revolving credit facility | (20,000) | — | ||||||||||||
| Borrowings under revolving credit facility | 40,000 | — | ||||||||||||
| Interest rate swap settlement receipts | — | 2,698 | ||||||||||||
| Purchases of treasury shares | (80,034) | (53,175) | ||||||||||||
| Dividends paid | (18,767) | (17,383) | ||||||||||||
| Acquisition holdback payments | (310) | (1,210) | ||||||||||||
| Taxes paid for shares withheld | (8,686) | (9,495) | ||||||||||||
| Net Cash used in Financing Activities | (87,797) | (78,565) | ||||||||||||
| Effect of Exchange Rate Changes on Cash | (558) | (907) | ||||||||||||
| (Decrease) increase in Cash and Cash Equivalents | (14,894) | 30,299 | ||||||||||||
| Cash and Cash Equivalents at Beginning of Period | 127,130 | 388,417 | ||||||||||||
| Cash and Cash Equivalents at End of Period | $ | 112,236 | $ | 418,716 | ||||||||||
| 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 business. The Company strongly encourages investors and shareholders to review company 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 September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net Income | $ | 110,403 | $ | 100,807 | ||||||||||
| Interest expense, net | 3,087 | 993 | ||||||||||||
| Income tax expense | 30,538 | 27,778 | ||||||||||||
| Depreciation and amortization of property | 6,625 | 6,486 | ||||||||||||
| Amortization of intangibles | 9,667 | 10,203 | ||||||||||||
| EBITDA | $ | 160,320 | $ | 146,267 | ||||||||||
| 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 September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net Cash provided by Operating Activities | $ | 86,376 | $ | 119,317 | ||||||||||
| Capital expenditures | (13,013) | (7,301) | ||||||||||||
| Free Cash Flow | $ | 73,363 | $ | 112,016 | ||||||||||
| Free cash flow is a non-GAAP financial measure and is defined as net cash provided by operating activities less capital expenditures. | ||||||||||||||
| APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES | |||||||||||||||||
| SALES GROWTH BY REPORTABLE SEGMENT | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| (Percent change compared to prior-year period) | |||||||||||||||||
| For the three months ended September 30, 2026 | |||||||||||||||||
| Reported Sales | Selling Days Impact (1) | Acquisitions | Foreign Currency | Organic Change | |||||||||||||
| Service Center | 4.2 % | 0.0 % | 0.4 % | 0.3 % | 3.5 % | ||||||||||||
| Engineered Solutions | 14.1 % | 0.0 % | 0.0 % | 0.0 % | 14.1 % | ||||||||||||
| Total Company | 7.6 % | 0.0 % | 0.3 % | 0.2 % | 7.1 % | ||||||||||||
(1) Based on U.S. selling days; there were 64 selling days in both Q1 FY27 and Q1 FY26. | |||||||||||||||||
| APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||||||||||||||
| NET SALES, OPERATING INCOME, EBITDA, & EBITDA MARGIN BY REPORTABLE SEGMENT & CORPORATE & OTHER EXPENSE, NET | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Three Months Ended September 30, | ||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| Service Center Segment: | ||||||||||||||||||||
| Net Sales | $ | 815,349 | $ | 782,474 | ||||||||||||||||
| Operating income | $ | 105,317 | $ | 104,053 | ||||||||||||||||
| Depreciation and amortization of property | 4,667 | 4,235 | ||||||||||||||||||
| Amortization of intangibles | 727 | 730 | ||||||||||||||||||
| EBITDA | $ | 110,711 | $ | 109,018 | ||||||||||||||||
| EBITDA margin - % of sales | 13.6 % | 13.9 % | ||||||||||||||||||
| Engineered Solutions Segment: | ||||||||||||||||||||
| Net Sales | $ | 475,821 | $ | 417,049 | ||||||||||||||||
| Operating income | $ | 60,923 | $ | 45,860 | ||||||||||||||||
| Depreciation and amortization of property | 1,958 | 2,251 | ||||||||||||||||||
| Amortization of intangibles | 8,940 | 9,473 | ||||||||||||||||||
| EBITDA | $ | 71,821 | $ | 57,584 | ||||||||||||||||
| EBITDA margin - % of sales | 15.1 % | 13.8 % | ||||||||||||||||||
| Corporate & other expense, net | $ | 22,648 | $ | 20,883 | ||||||||||||||||