Applied Industrial Technologies Q1 sales rise 7.6%
AIT•Applied Industrial Technologies' fiscal first-quarter sales rose 7.6% year over year to $1.29 billion, in line with expectations, while net income increased 12.7% to $110.4 million, beating estimates. The company raised its FY27 EPS guidance to $11.70-$12.20 and maintained its sales growth and EBITDA margin outlook.
1. Quarterly results
Applied Industrial Technologies reported fiscal first-quarter sales of $1.29 billion, up 7.6% year over year and in line with analysts' expectations. Net income rose 12.7% to $110.40 million, above the $108.05 million consensus, while EBITDA of $160.30 million slightly missed estimates of $161.19 million.
2. FY27 outlook
The company raised its FY27 EPS guidance to $11.70-$12.20 from $11.65-$12.15. It maintained its sales growth guidance of 4.0%-6.5% and EBITDA margin guidance of 12.5%-12.8%, and said organic sales in October were up about 10% year over year.
3. Segment trends
Applied said its Engineered Solutions segment drove strong organic sales growth and positive order momentum. Sales growth in its Service Center segment improved through the quarter, with positive trends into October; the company also cited gross margin initiatives, cost control and channel execution as contributors to EBITDA margin expansion.
