Applied Industrial Technologies reported fiscal third-quarter net sales of $1.3 billion, up 7.3% from a year earlier, with organic sales rising 6.0%. Acquisitions added 0.5 percentage point to growth and foreign currency translation added 0.8 point.
Net income came in at $99.8 million, or $2.65 a share, up 3.1% from the prior-year quarter. Operating income was $137.9 million, while EBITDA reached a record quarterly $153.9 million, up 6.2% year over year.
By segment, organic sales increased 4.2% in the service center business and 9.3% in engineered solutions. The company said engineered solutions was led by stronger order trends and improving demand across legacy and emerging industry verticals, while service center demand was supported by higher technical MRO activity.
Operating cash flow was $100.1 million and free cash flow was $95.4 million.
The company also updated its fiscal 2026 outlook. Full-year EPS is now expected at $10.64 to $10.75, compared with the prior range of $10.45 to $10.75. Total sales growth guidance was raised to 7.2% to 7.7% from 5.5% to 7.0%, and organic sales growth was lifted to 3.8% to 4.2% from 2.5% to 4.0%. EBITDA margin guidance narrowed slightly to 12.3% to 12.4% from 12.2% to 12.4%.
For the fiscal fourth quarter, Applied projected EPS of $2.85 to $2.96, total sales growth of 4.5% to 6.0%, organic sales growth of 4.0% to 5.5%, and EBITDA margin of 12.6% to 12.8%.
The board authorized a new repurchase program for up to 3.0 million shares, replacing the prior buyback plan. It also declared a quarterly dividend of $0.51 per share, payable May 29 to shareholders of record May 15. As a result of these announcements, the company's shares have moved -0.36% on the market, and are now trading at a price of $293.35. For more information, read the company's full 8-K submission here.
