Applied Industrial Technologies Inc Achieves Record High Sales, Earnings, and Margins

By Philip Seaworth • Thursday, August 13 10:50 • Permanent Link

Applied Industrial Technologies ended fiscal 2026 with a sharp step-up in sales, earnings and margins, then lifted its outlook for the next year and its longer-term targets.

For the fourth quarter ended June 30, 2026, net sales rose 10.4% to $1.4 billion. Organic sales increased 9.7%, with the engineered solutions segment up 12.9% and the service center segment up 7.9%. Acquisitions added 0.3 percentage points and foreign currency translation added 0.4 points.

Net income climbed 13.2% to $118.6 million, or $3.17 a share. EBITDA rose 16.1% to $177.6 million. Operating income came in at $159.3 million. The company said quarterly sales, EBITDA and EPS were all record highs.

Full-year sales increased 8.8% to $5.0 billion, with organic growth of 5.4%. Net income rose 8.2% to $414.5 million, or $10.95 a share. EBITDA increased 10.0% to $618.2 million, and operating income reached $549.5 million.

LIFO expense was higher in both periods. In the fourth quarter, it was $6.4 million versus $2.9 million a year earlier. For the full year, it was $21.5 million versus $7.7 million.

Management also pointed to stronger momentum going into fiscal 2027, saying organic sales so far in the new quarter are up about 7% year over year.

For fiscal 2027, Applied forecast EPS of $11.65 to $12.15, sales growth of 4.0% to 6.5%, and EBITDA margins of 12.5% to 12.8%.

It also raised its intermediate targets to $7 billion in sales and a 14% EBITDA margin, up from prior longer-term goals. Today the company's shares have moved -0.06% to a price of $352.07. For more information, read the company's full 8-K submission here.

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