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Sep 30, 2023

Applied Industrial Technologies Q1 2024 Earnings Report

Delivered a positive start to fiscal 2024 with EBITDA and EPS growing a respective 12% and 21% over the prior year.

Key Takeaways

Applied Industrial Technologies reported a 3.1% increase in net sales to $1.1 billion, with a 3.4% increase on an organic daily basis. Net income increased to $93.8 million, or $2.39 per share, and EBITDA was $133.4 million. The company is raising fiscal 2024 guidance.

Net sales increased by 3.1% year-over-year to $1.1 billion.

Net income increased by 21.3% year-over-year to $93.8 million, or $2.39 per share.

EBITDA increased by 12.3% year-over-year to $133.4 million.

The company is raising fiscal 2024 guidance.

Total Revenue
$1.1B
Previous year: $1.06B
+3.1%
EPS
$2.39
Previous year: $2.15
+11.2%
Gross Profit
$325M
Previous year: $307M
+6.0%
Cash and Equivalents
$360M
Previous year: $148M
+144.2%
Free Cash Flow
$61.9M
Previous year: $20.4M
+203.4%
Total Assets
$2.75B
Previous year: $2.47B
+11.2%

Applied Industrial Technologies

Applied Industrial Technologies

Forward Guidance

For fiscal 2024, the Company now projects EPS of $9.25 to $9.80, sales growth of 1% to 4% including 0% to 3% on an organic daily basis, and EBITDA margins of 12.0% to 12.3%.

Positive Outlook

  • EPS of $9.25 to $9.80
  • Sales growth of 1% to 4%
  • Organic daily sales growth of 0% to 3%
  • EBITDA margins of 12.0% to 12.3%
  • Guidance incorporates current economic uncertainty and assumptions of easing end-market demand near term, as well as ongoing inflationary and supply chain headwinds.

Challenges Ahead

  • Current economic uncertainty
  • Easing end-market demand near term
  • Ongoing inflationary headwinds
  • Ongoing supply chain headwinds
  • Guidance does not assume contribution from future acquisitions.