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Jun 30
Applied Industrial Technologies Q4 2025 Earnings Report
Applied Industrial Technologies reported its fiscal 2025 fourth quarter and full-year results, with fourth quarter net sales increasing 5.5% year-over-year and net income rising 5.9%.
Key Takeaways
Applied Industrial Technologies concluded fiscal 2025 with a strong fourth quarter, exceeding expectations in sales and EPS. The company saw a return to positive organic growth, driven by robust performance in the Engineered Solutions segment and steady sales in the Service Center segment. Significant cash generation led to record free cash flow for the fiscal year.
Fourth quarter net sales increased by 5.5% year-over-year to $1.2 billion, with organic daily sales up 0.2%.
Net income for the fourth quarter was $107.8 million, or $2.80 per diluted share, representing a 5.9% increase year-over-year.
EBITDA for the fourth quarter was $153.0 million, a slight decrease of 0.3% compared to the prior year.
The Engineered Solutions segment saw a 1.8% increase in organic daily sales, while the Service Center segment experienced a 0.4% decrease.
Applied Industrial Technologies
Applied Industrial Technologies
Forward Guidance
For fiscal 2026, Applied Industrial Technologies is guiding for total sales growth of 4% to 7% and diluted EPS in the range of $10.00 to $10.75, assuming ongoing economic uncertainties.
Positive Outlook
- Positive sales momentum sustained into the first quarter of fiscal 2026, with organic sales up an estimated 4% year-over-year to date.
- Greater contribution expected from company-specific growth initiatives and structural mix tailwinds.
- Easier comparisons in fiscal 2026 are expected to contribute to growth.
- Expects another meaningful year of cash generation supporting ongoing M&A, share buybacks, and dividend growth.
- Strong position to manage through various macro and trade scenarios, with a compelling long-term growth and margin expansion opportunity.
Challenges Ahead
- Ongoing trade and interest rate uncertainty continue to impact broader demand visibility.
- Customer capital expenditure decisions are being impacted by current uncertainties.
- Guidance assumes ongoing economic, interest rate, and tariff related uncertainty continues to impact broader end-market demand through the first half of the year.
- Assumes ongoing inflationary headwinds.
- Assumes growth investments will continue.