Applied Industrial Technologies (NYSE: AIT) has reported its fiscal 2026 second-quarter results, indicating a positive performance. The company's net sales for the quarter were $1.2 billion, reflecting an 8.4% increase year-over-year (YOY). When considering organic growth, net sales were up 2.2% compared to the previous year.
Net income for the period was $95.3 million, or $2.51 per diluted share, marking a 4.6% increase YOY. Additionally, the operating income stood at $123.2 million, with EBITDA reaching $140.4 million, up 3.9% YOY.
The company also noted a healthy operating cash flow of $99.7 million and free cash flow of $93.4 million. Moreover, Applied Industrial Technologies declared an 11% increase in its quarterly dividend, raising it to $0.51 per share.
In terms of acquisitions, the company announced the acquisition of Thompson Industrial Supply Inc., a provider of industrial bearings, power transmission, hydraulics, pneumatics, linear motion, and lightweight belting products. This strategic move is expected to enhance Applied's footprint in the industrial market and strengthen its value-added services.
Neil A. Schrimsher, the President and CEO of Applied, expressed optimism about the company's future growth prospects, highlighting positive sales trends and an encouraging outlook for the industrial sector.
As a result of the company's performance and the evolving market landscape, Applied adjusted its fiscal 2026 EPS guidance to a range of $10.45 to $10.75, representing an increase from the previous range. The updated guidance also reflects a sales growth projection of 5.5% to 7.0%, with an organic sales growth range of 2.5% to 4.0%.
As a result of these announcements, the company's shares have moved -0.45% on the market, and are now trading at a price of $281.21. For the full picture, make sure to review APPLIED INDUSTRIAL TECHNOLOGIES INC's 8-K report.
