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Sep 30, 2022

Applied Industrial Technologies Q1 2023 Earnings Report

Reported a strong start to fiscal year 2023 with sales and EBITDA growth sustaining solid momentum across both segments.

Key Takeaways

Applied Industrial Technologies reported a strong first quarter with net sales up 19.1% to $1.1 billion and EPS up 45% to $1.97. The company is raising its fiscal year 2023 guidance following the strong performance.

Net sales increased 19.1% year-over-year to $1.1 billion.

Net income was $76.9 million, with EPS of $1.97, up 45.0% year-over-year.

EBITDA increased 34.2% year-over-year to $118.7 million.

Fiscal year 2023 guidance was raised following first quarter performance.

Total Revenue
$1.06B
Previous year: $892M
+19.1%
EPS
$2.15
Previous year: $1.43
+50.3%
Gross Profit
$307M
Previous year: $255M
+20.1%
Cash and Equivalents
$148M
Previous year: $247M
-40.3%
Free Cash Flow
$20.4M
Previous year: $45M
-54.7%
Total Assets
$2.47B
Previous year: $2.3B
+7.4%

Applied Industrial Technologies

Applied Industrial Technologies

Applied Industrial Technologies Revenue by Segment

Forward Guidance

The Company now projects EPS of $6.90 to $7.55, sales growth of 5% to 9%, including 6% to 10% on an organic basis and EBITDA margins of 10.9% to 11.2%.

Positive Outlook

  • EPS of $6.90 to $7.55
  • Sales growth of 5% to 9%
  • Organic sales growth of 6% to 10%
  • EBITDA margins of 10.9% to 11.2%
  • Organic sales month to date in October are up by approximately 20% year-over-year

Challenges Ahead

  • Ongoing economic uncertainty
  • Inflationary pressures
  • Supply chain headwinds
  • Guidance does not assume contribution from potential future acquisitions
  • Mindful of ongoing macro uncertainty that could slow industrial activity and growth in coming quarters

Revenue & Expenses

Visualization of income flow from segment revenue to net income