Applied Industrial Technologies Q3 EPS $2.65, Revenue $1.25B, Organic Sales Up 6%
Applied Industrial Technologies posted Q3 revenue of $1.25 billion and earnings of $2.65 per share, surpassing consensus estimates of $1.22 billion and $2.63 EPS. Organic sales grew 6%, led by Engineered Solutions’ 9.3% growth and a technology vertical now 15% of the segment contributing 300 bps.
1. Q3 Financial Results
Applied Industrial Technologies reported Q3 revenue of $1.25 billion and net income of $99.8 million, or $2.65 per share, exceeding analyst forecasts by $30 million on revenue and $0.02 on EPS.
2. Organic Sales Performance
The company achieved 6% organic sales growth, its strongest in over two years, with volume gains broad-based across 17 of its top 30 end markets.
3. Engineered Solutions & Technology Growth
The Engineered Solutions segment delivered 9.3% organic growth, driven by double-digit automation and fluid power demand for brownfield applications, while the technology vertical now represents over 15% of the segment, adding 300 basis points through semiconductor wafer fab equipment and data center liquid cooling sales.
4. Service Center Segment & Cross-Selling
Service Center performance improved to 4% organic growth as higher capacity utilization at customer sites spurred break-fix activity and maintenance, and cross-selling initiatives contributed more than 100 basis points under the ‘One Applied’ value proposition.