📈 Price History

Ratio Health

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By Category

📊 Sector Averages

About

Applied Industrial Technologies, Inc. distributes industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies in the United States, Canada, Mexico, Australia, New Zealand, Singapore, and Costa Rica. It operates in two segments, Service Center and Engineered Solutions. The Service Center segment distributes industrial bearings, power transmission, fluid power components and systems, specialty flow control, and advanced factory automation solutions, as well as general maintenance products; and motors, belting, drives, couplings, pumps, linear motion, hydraulic and pneumatic components, filtration supplies, hoses, and other related supplies. It also installs, modifies, and repairs conveyor belts and rubber linings, as well as hose assemblies. The Engineered Solutions segment is involved in distributing, engineering, designing, integrating, and repairing hydraulic and pneumatic fluid power technologies, engineered flow control products and services, and automation technologies; and provision of fluid power and industrial flow control products. Its fluid power products and solutions are used in off-highway mobile equipment, stationary industrial equipment and machines, marine and offshore equipment, factory automation, food processing equipment, packaging operations, and downstream energy process systems. This segment also offers pumps, valves, fittings, hoses, process instrumentation, actuators, and filtration supplies; and advanced automation technologies for the design, engineering, assembly, integration, and distribution of machine vision, collaborative robots, mobile robots, radio-frequency identification, industrial networking, motion control, and machine learning technologies for OEMs, machine builders, integrators, and other industrial and technology sectors. The company was formerly known as Bearings, Inc. and changed its name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.

Key Ratios Snapshot

📈 Growth Pattern

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📊 Quick Scorecard

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Manager	Shares	Value	% of Fund	Period
Steve Cohen Point72 Asset Management	55.4K	$14.7M	0.02%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 4 quarters analysed

Q4 2025

Confident Specific

Management repeatedly highlighted record financials (sales, EBITDA, EPS, gross margins) and exceeded guidance with specific percentages. Language such as 'extremely proud', 'new records', 'exceeded the high end' reflects confidence, while acknowledging a 'muted demand backdrop' and taking a 'prudent approach' to uncertain macro conditions.

Q1 2026

Confident Specific

Management expressed confidence with specific metrics: EBITDA grew 13%, EPS up 11%, both exceeding expectations. They highlighted 'strong earnings performance' and 'positive momentum' but acknowledged 'muted and choppy' demand and 'lingering trade policy uncertainty'.

Q2 2026

Confident Specific

Management used specific data points (2.2% organic growth, orders up >10%, LIFO expense $6.9M) and forward-looking statements like 'encouraged by early fiscal third quarter trends' to project optimism despite acknowledged December weakness and mixed end-markets.

Q3 2026 latest

Confident Specific

Management used specific metrics (6% organic growth, double-digit orders, 250 bps pricing) and phrases like 'solid quarter', 'strongest growth in over two years', 'encouraging signals'. They acknowledged macro uncertainty but reiterated ability to adapt, maintaining a positive yet cautious tone.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis appears stronger after this call. Organic sales growth accelerated to 6% (highest in two years), orders in Engineered Solutions were up double digits for a second straight quarter, and management raised full-year guidance. The volume-driven expansion (3.5% volume growth) signals a potential end-market recovery after a prolonged stagnant period. Cross-selling and technology vertical exposure (semiconductor, data centers) add company-specific growth drivers. However, caution remains on tariff/trade policy and lumpy customer spending. Key metrics to watch next quarter: sustainability of volume momentum, incremental margins as sales grow, M&A execution, and any tariff-related impact on pricing or supply chains.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED Applied Industrial Q3 2026: organic sales +6%, record EBITDA, raised guidance

Revenue & Profitability

Consolidated sales increased 7.3% over the prior year quarter. Reported EBITDA increased 6.2% to a record level, and EBITDA margin was 12.3%. Earnings per share were $2.65, up 3.1% from prior-year EPS of $2.57. Full-year fiscal 2026 EPS guidance was tightened to $10.60-$10.75, with organic sales growth assumed at 3.8%-4.2%.

Outlook

Management sees the trajectory of sales and industrial macro indicators as indicative of an early end-market recovery, following a prolonged period of deferred maintenance. Business funnel and order momentum are positive, but they remain mindful of ongoing geopolitical and trade policy uncertainty that could continue to influence customer spending behavior. They assume near-term variability persists across end markets.

Growth Drivers

Key growth levers include the Engineered Solutions segment, which delivered 9.3% organic growth, with automation and fluid power both up double digits. The technology vertical now represents over 15% of Engineered Solutions and contributed over 300 basis points to its organic growth. Cross-selling added over 100 basis points to Service Center organic growth. The company also sees growing opportunities in data center thermal management and semiconductor applications.

Balance Sheet & CapEx

Not discussed in this earnings call.

Margins

Q3 reported EBITDA margin was 12.3%, down 13 bps year-over-year, including a 27 bps LIFO headwind. Excluding LIFO, gross margins improved year-over-year. For Q4, EBITDA margin is expected to be 12.6%-12.8%. The company targets mid-to-high teen incremental EBITDA margins at mid single-digit organic sales growth, supported by internal margin initiatives and structural mix tailwinds.

Key Risks

Management highlighted ongoing dynamic trade policy and tariff backdrop, which could impact supplier pricing and customer purchasing decisions. Geopolitical developments and broader macroeconomic uncertainty persist. LIFO expense was a headwind, and the company assumes near-term variability across end markets that could lead to choppy demand.

Generated by AI · Q3 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q3 2026 Q3 2026 2026-04-28

Third quarter saw 6% organic sales growth, record EBITDA, and strong momentum across both segments. Guidance for fiscal 2026 was raised to the high end, with continued focus on M&A, share buybacks, and navigating macro and geopolitical uncertainties.

Q2 2026 Q2 2026 2026-01-27

Q2 results met guidance with 2.2% organic sales growth and strong order momentum, especially in Engineered Solutions and automation. FY26 EPS guidance was raised, with higher LIFO expense and pricing contributions expected. Capital deployment remains robust, supported by strong cash flow and low leverage.

Q1 2026 Q1 2026 2025-10-28

EBITDA and EPS grew 13% and 11% year-over-year, with strong service center performance and positive order momentum in engineered solutions. Full-year EPS guidance was raised, while sales and margin outlooks remain steady amid ongoing trade policy uncertainty.

Q4 2025 Q4 2025 2025-08-14

Record sales, EBITDA, and EPS were achieved in fiscal 2025, with strong cash generation and significant capital deployment. Fiscal 2026 guidance anticipates 4%-7% sales growth, margin expansion, and continued M&A activity, despite ongoing macro and trade policy uncertainty.

Q3 2025 Q3 2025 2025-05-01

Gross margin, EBITDA, and EPS exceeded expectations in Q3, driven by cost controls and M&A, despite a 3% organic sales decline. Free cash flow hit record levels, supporting acquisitions and buybacks, while guidance reflects ongoing macro uncertainty and cautious customer spending.

📊 Analysis Methodology

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Investment Risk:
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