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Dec 31, 2025
Applied Industrial Technologies Q2 2026 Earnings Report
Applied Industrial Technologies reported strong Q2 2026 earnings with moderate growth in revenue and earnings.
Key Takeaways
Applied Industrial Technologies delivered a solid performance in Q2 2026 with higher net sales, net income, and operating cash flow, driven by continued organic growth and contributions from acquisitions.
Net sales reached $1.2 billion, with 2.2% organic growth.
Net income increased to $95.3 million, or $2.51 per diluted share.
Free cash flow came in at $93.4 million, supporting ongoing capital deployment.
The company announced an 11% increase in its quarterly dividend and acquired Thompson Industrial Supply.
Forward Guidance
Applied raised its FY26 outlook with expectations of accelerating sales and earnings, despite macro uncertainties.
Positive Outlook
- Raised full-year EPS guidance to $10.45–$10.75.
- Sales growth expected at 5.5% to 7.0%.
- Organic growth forecast revised upward to 2.5%–4.0%.
- EBITDA margin guidance of 12.2%–12.4%.
- Positive early Q3 sales trends observed in January.
Challenges Ahead
- Macro and policy uncertainty expected to continue.
- Muted sales activity noted in December.
- Higher LIFO expense projected for FY26.
- Customer spending may be influenced by market volatility.
- Guidance excludes future acquisitions and buybacks.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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