Applied Industrial Technologies Reports Fiscal 2026 Third Quarter Results
CLEVELAND--( BUSINESS WIRE)--Applied Industrial Technologies (NYSE: AIT), a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies, today reported results for its fiscal 2026 third quarter ended March 31, 2026.
Net sales for the quarter of $1.3 billion increased 7.3% over the prior year. The change includes a 0.5% increase from acquisitions and a positive 0.8% impact from foreign currency translation. Excluding these factors, sales increased 6.0% on an organic basis reflecting a 4.2% increase in the Service Center segment and a 9.3% increase in the Engineered Solutions segment. The Company reported net income of $99.8 million, or $2.65 per share, and EBITDA of $153.9 million. Results include $1.7 million ($0.05 per share) of non-routine discrete tax expense related to prior-year tax provision adjustments. In addition, on a pre-tax basis, results include $5.6 million ($0.11 after tax per share) of LIFO expense compared to $2.2 million ($0.04 after tax per share) of LIFO expense in the prior-year period.
Neil A. Schrimsher, Applied’s President & Chief Executive Officer, commented, “We delivered a solid third quarter underscored by strengthening organic sales growth across both segments. Growth was led by our Engineered Solutions segment where ongoing positive order trends, improving demand across legacy and emerging industry verticals, and our deep application and engineering expertise is accelerating sales momentum. This is an encouraging sign that highlights our differentiated position, as well as distinct growth tailwinds emerging across the segment. In addition, Service Center segment demand is building nicely. Benefits from our sales initiatives and One Applied value proposition are reading through as we support our customers’ heightened technical MRO requirements within an increasingly positive U.S. industrial backdrop. Combined with steady underlying gross margin performance, we reported record quarterly EBITDA at the high end of our expectations. Overall, these are strong results that further demonstrate our favorable industry position and the Applied team’s consistent execution.”
Mr. Schrimsher added, “I am encouraged by our performance year to date and the company-specific opportunities that continue to develop. Organic sales month to date in April are trending up by a high single-digit percent year over year, while orders and business funnel activity remain favorable. We are mindful of recent geopolitical developments and ongoing trade policy uncertainty, which we have incorporated into our fourth quarter outlook. That said, the demand backdrop across our North American centric operations is showing favorable signs with U.S. industrial macro indicators now in more positive territory, break-fix activity firming, and customers’ capital spending gradually improving. Combined with our balance sheet capacity, we are in a solid position moving forward.”
Updated Fiscal 2026 Guidance
Guidance for our fiscal 2026 year ending June 30, 2026 is updated as follows:
Updated guidance assumes the following for our fiscal fourth quarter ending June 30, 2026:
Guidance incorporates macro uncertainty tied to recent geopolitical events and ongoing trade policy dynamics, as well as broader inflationary headwinds and growth investments. Guidance does not assume contribution from future acquisitions or share buybacks.
Share Repurchase Authorization
Today, the Company announced that its Board of Directors authorized a new share buyback program to repurchase up to 3.0 million shares of the Company’s common stock. The updated plan replaces the prior share repurchase plan. Shares may be purchased in open market and negotiated transactions.
Dividend
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.51 per common share, payable on May 29, 2026, to shareholders of record on May 15, 2026.
Conference Call Information
The Company will host a conference call at 10 a.m. ET today to discuss the quarter’s results and outlook. A live audio webcast and supplemental presentation can be accessed on our Investor Relations site at https://ir.applied.com. To join by telephone, dial 833-461-5787 (toll free) or 585-542-9983 using conference ID 381460398. Replays of the call will be available via webcast, as well as by telephone for one week by dialing 833-461-5787 (toll free) using conference ID 381460398.
About Applied ®
Applied Industrial Technologies is a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. Our leading brands, specialized services, and comprehensive knowledge serve MRO (maintenance, repair, and operations) and OEM (original equipment manufacturing), and new system install applications in virtually all industrial markets through our multi-channel capabilities that provide choice, convenience, and expertise. For more information, visit www.applied.com.
This press release contains statements that are forward-looking, as that term is defined by the Securities and Exchange Commission in its rules, regulations and releases. Applied intends that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements are often identified by qualifiers such as “assume,” “expectation,” “guidance,” and derivative or similar expressions. All forward-looking statements are based on current expectations regarding important risk factors including trends and events in the industrial sector of the economy (such as the inflationary environment and supply chain strains), results of operations, and financial condition, and other risk factors identified in Applied's most recent periodic report and other filings made with the Securities and Exchange Commission. Accordingly, actual results may differ materially from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by Applied or any other person that the results expressed therein will be achieved. Applied assumes no obligation to update publicly or revise any forward-looking statements, whether due to new information, or events, or otherwise.
Three Months Ended
March 31,
Nine Months Ended
March 31,
2026
2025
2026
2025
$
1,251,453
$
1,166,749
$
3,613,999
$
3,338,694
870,649
811,459
2,518,432
2,330,272
380,804
355,290
1,095,567
1,008,422
242,879
225,888
705,403
644,978
137,925
129,402
390,164
363,444
2,447
853
4,382
(710
)
350
1,267
(703
)
(1,769
)
135,128
127,282
386,485
365,923
35,359
27,483
90,560
80,771
$
99,769
$
99,799
$
295,925
$
285,152
$
2.68
$
2.60
$
7.89
$
7.43
$
2.65
$
2.57
$
7.79
$
7.33
37,223
38,322
37,527
38,383
37,684
38,847
38,002
38,920
$
171,576
$
388,417
792,849
769,699
526,324
505,337
90,457
84,020
1,581,206
1,747,473
128,037
128,154
181,830
188,654
322,689
348,600
704,998
699,374
69,951
63,289
$
2,988,711
$
3,175,544
$
303,057
$
280,124
18,000
—
215,565
246,027
536,622
526,151
347,300
572,300
244,746
232,573
1,128,668
1,331,024
1,860,043
1,844,520
$
2,988,711
$
3,175,544
Nine Months Ended
March 31,
2026
2025
$
295,925
$
285,152
19,472
18,433
30,213
25,385
1,095
2,652
4,174
3,570
5,414
5,824
(55,310
)
5,371
18,103
(1,050
)
319,086
345,337
(11,425
)
(273,312
)
(18,312
)
(18,295
)
986
1,022
(28,751
)
(290,585
)
(207,000
)
—
—
(25,106
)
5,765
9,435
(236,379
)
(79,794
)
(53,727
)
(46,159
)
(1,611
)
—
(1,393
)
(1,210
)
(12,812
)
(14,332
)
(507,157
)
(157,166
)
(19
)
(5,361
)
(216,841
)
(107,775
)
388,417
460,617
$
171,576
$
352,842
APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Three Months Ended
Nine Months Ended
March 31,
March 31,
2026
2025
2026
2025
$
99,769
$
99,799
$
295,925
$
285,152
2,447
853
4,382
(710
)
35,359
27,483
90,560
80,771
6,396
6,583
19,472
18,433
9,884
10,218
30,213
25,385
$
153,855
$
144,936
$
440,552
$
409,031
Three Months Ended
Nine Months Ended
March 31,
March 31,
2026
2025
2026
2025
$
100,110
$
122,453
$
319,086
$
345,337
(4,734
)
(7,549
)
(18,312
)
(18,295
)
$
95,376
$
114,904
$
300,774
$
327,042