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Sep 30, 2025
Applied Industrial Technologies Q1 2026 Earnings Report
Applied Industrial Technologies reported solid performance in Q1 FY2026, with increased revenue, net income, and EBITDA compared to the same period last year.
Key Takeaways
The company delivered double-digit EPS and EBITDA growth, driven by organic sales growth in the Service Center segment and contributions from acquisitions. Operating margins improved, and free cash flow remained strong.
Revenue rose to $1.2 billion, driven by 6.3% contribution from acquisitions and 3.0% organic growth.
Net income reached $100.8 million, with EPS of $2.63.
EBITDA increased to $146.3 million, reflecting improved margins and cost controls.
Free cash flow totaled $112.0 million, supporting continued capital returns and reinvestment.
Forward Guidance
The company raised FY26 EPS guidance to $10.10–$10.85, while reaffirming sales and EBITDA margin outlooks, reflecting confidence in operational execution despite macro uncertainty.
Positive Outlook
- Raised FY26 EPS guidance to $10.10–$10.85.
- Reiterated FY26 sales and EBITDA margin guidance.
- Positive trends in segment orders and customer sentiment.
- Active M&A pipeline supports growth strategy.
- Continued progress on internal growth initiatives.
Challenges Ahead
- Expecting gradual and uneven end-market recovery.
- Ongoing macroeconomic and trade policy uncertainty.
- Persistent inflationary pressures impacting costs.
- Tariff policy developments may affect outlook.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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