Applied Industrial Technologies Q4 2024 Earnings Report
Key Takeaways
Applied Industrial Technologies reported a slight increase in net sales for the fourth quarter of fiscal year 2024, alongside significant improvements in EBITDA and EPS. The company's performance reflects strong execution and margin momentum despite a muted demand environment.
Net sales increased 0.2% year-over-year to $1.2 billion.
Net income increased 12.6% year-over-year to $103.5 million, or $2.64 per share.
EBITDA increased 9.6% year-over-year to $153.5 million.
Full-year adjusted net income was $382.7 million, or $9.75 per share, up 11.4% year-over-year.
Applied Industrial Technologies
Applied Industrial Technologies
Forward Guidance
The Company is introducing fiscal 2025 EPS guidance in the range of $9.20 to $9.95 based on assumptions for total sales of down 2.5% to up 2.5% including down 4.0% to up 1.0% on an organic daily basis, as well as EBITDA margins of 12.1% to 12.3%.
Positive Outlook
- Potential re-acceleration in industrial production following subdued activity.
- Ongoing benefits from various secular tailwinds and company initiatives.
- Demand across technology vertical and Automation operations poised to rebound.
- Developing a strong flow control business funnel related to customers’ decarbonization initiatives.
- Easing comparisons and M&A pipeline to improve sales trends through fiscal 2025.
Challenges Ahead
- Current economic uncertainty.
- End-market demand slows further through the first half of the year.
- Potential margin pressures early in the year reflecting some expense deleveraging on sales declines.
- Ongoing inflationary headwinds.
- Growth positioning.