Applied Industrial Technologies Reports Strong Q3 FY25 Results, Announces Automation Acquisition, and New Share Buyback Program

AIT
October 04, 2025

Applied Industrial Technologies reported fiscal 2025 third quarter net sales of $1.2 billion, an increase of 1.8% year-over-year. Diluted EPS was $2.57, and EBITDA reached $144.9 million, up 6.8% from the prior year. Gross profit margin expanded by 95 basis points to 30.5%, driven by internal initiatives and a favorable mix.

The company achieved record third-quarter cash generation, with year-to-date free cash flow increasing 39% to $327 million. AIT also announced the acquisition of IRIS Factory Automation, a provider of turnkey productized solutions for material handling and traceability workflows, expected to add approximately $10 million in annual sales. This acquisition expands AIT's automation platform and is expected to close this week.

Applied Industrial Technologies' Board of Directors authorized a new share buyback program to repurchase up to 1.5 million shares, replacing the previous plan. The company adjusted its fiscal 2025 EPS guidance to $9.85 to $10.00 and total sales growth to flat to up 1%, reflecting ongoing macro uncertainty. Order and backlog trends in higher-margin engineered solutions remain positive, with automation orders up over 30% year-over-year.

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