Applied Industrial Technologies reported fiscal 2026 first‑quarter results for the quarter ended September 30, 2025. Net sales rose 9.2% year‑over‑year to $1.20 billion, driven by a 6.3% contribution from acquisitions and 3.0% organic growth.
Net income increased to $100.8 million, or $2.63 per diluted share, while EBITDA reached $146.3 million, a margin of 12.2% that expanded 50 basis points over the prior‑year quarter.
The company raised its full‑year EPS guidance to $10.10–$10.85, up from the previous $10.00–$10.75 range, and reaffirmed sales growth guidance of 4%–7% and EBITDA margin guidance of 12.2%–12.5%. A quarterly cash dividend of $0.46 per share was declared, with a record date of November 14, 2025 and payable on November 28, 2025. AIT also entered into a new $900 million senior unsecured revolving credit facility on October 24, 2025, maturing October 24, 2030, replacing the prior agreement and providing liquidity for operations and potential acquisitions.
The results surpassed consensus estimates, with EPS of $2.63 beating the $2.48 forecast and revenue of $1.20 billion exceeding the $1.19 billion expectation. CEO Neil A. Schrimsher highlighted the strong first‑quarter performance, noting double‑digit EBITDA and EPS growth driven by robust organic sales and M&A contributions. The company has maintained dividend payments for 55 consecutive years and raised dividends for 15 straight years.
Free cash flow for the quarter was $112.0 million, and the company reported a 0.1% negative impact from foreign currency translation. Segment analysis showed Service Center sales up 4.4% and Engineered Solutions sales down 0.4%. LIFO expense for the quarter was $2.6 million pre‑tax.
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