AIT
Applied Industrial Technologies, Inc.258.47
-1.34-0.52%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q2 '26
Orders breakdown shows momentum
Q&A unpacked engineered solutions' 10% organic order surge—automation +20%, fluid power low-teens, flow control high-single digits—with book-to-bill above 1 for three of four quarters, confirming destock done and MRO/semi tailwinds kicking in. Cap alloc got specifics: 700k shares left for opportunistic buybacks, minor debt paydown post-swap, active M&A pipeline eyeing more deals in 12-18 months. Pricing to hold 250bps in Q3, ease to 200bps Q4; guidance tightened with modest core EBIT raise from margins, mid-teens incrementals viable at 4% organic. LIFO mechanics drew scrutiny, but management stayed constructive. Orders are accelerating. Watch back-half volume durability.
Key Stats
Market Cap
9.76BP/E (TTM)
24.88Basic EPS (TTM)
10.39Dividend Yield
0.01%Recent Filings
10-Q
Q2 FY2026 results
Applied Industrial Technologies posted Q2 FY2026 net sales of $1.16B, up 8.4% y/y, with Engineered Solutions surging 19.1% y/y on $64.9M from acquisitions like Hydradyne (closed Dec 2024 for $282M cash, $68M goodwill, $126M intangibles). Gross margin slipped to 30.4% from 30.6% y/y due to higher LIFO expense, yet operating income edged up 2% y/y to $123M (10.6% margin) as Service Center volumes firmed. Diluted EPS climbed 5% y/y to $2.51, reconciling to 38.1M shares. Cash hit $406M, FCF $205M (derived); $572M debt steady, $516M revolver availability. Share buybacks accelerated. Acquisitions drive growth, but softer Canada and Mexico demand lingers.
8-K
Q2 sales up 8.4%, acquires Thompson
Applied Industrial Technologies posted Q2 FY26 net sales of $1.2B, up 8.4% YoY with 2.2% organic growth, net income of $95.3M ($2.51/share), and EBITDA of $140.4M. It acquired Thompson Industrial Supply, adding ~$20M annual sales in Southern California, and hiked its quarterly dividend 11% to $0.51/share. FY26 guidance tightened to $10.45-$10.75 EPS on 5.5%-7.0% sales growth. Bolt-on expands service center footprint.
10-Q
Q1 FY2026 results
Applied Industrial Technologies posted Q1 FY2026 sales of $1,199.5M, up 9.2% y/y from $1,098.9M, with Engineered Solutions surging 19.4% y/y on $69.7M from acquisitions like Hydradyne (closed Dec 2024 for $282.1M cash, recognizing $67.3M goodwill and $126.1M finite-lived intangibles). Gross margin lifted to 30.1% from 29.6%, operating income climbed 14.0% y/y to $129.0M (10.8% margin), and diluted EPS rose 11.4% y/y to $2.63 on 38,271 diluted shares. Cash swelled to $418.7M (up q/q), with $119.3M operating cash flow funding $7.3M capex and $53.2M buybacks; free cash flow $112.0M (derived). Total debt held steady at $572.3M against $516M revolver capacity. Acquisitions drive growth. Supply chain strains linger.
8-K
Q1 sales up 9.2%, EPS raised
Applied Industrial Technologies posted Q1 FY26 net sales of $1.2B, up 9.2% YoY with 3.0% organic growth driven by Service Center strength, while Engineered Solutions dipped 0.4%. Net income hit $100.8M ($2.63/share, +11.4%), EBITDA $146.3M (+13.4%) at 12.2% margin. Raised FY26 EPS guidance to $10.10-$10.85. Momentum builds despite macro uncertainty.
8-K
Refinances $900M revolver
Applied Industrial Technologies secured a $900M senior unsecured revolving credit facility on October 24, 2025, maturing October 24, 2030, replacing its prior 2021 agreement. KeyBank leads with a $25M swingline and $50M LC sublimit; rates tie to leverage via SOFR or base plus 80-135bps margins. Leverage covenant caps at 3.75x, rising to 4.25x post-acquisitions. Flexibility intact.
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