Applied Industrial Technologies (NYSE:AIT) Releases Earnings Results, Beats Estimates By $0.25 EPS

Applied Industrial Technologies (NYSE:AIT) announced its quarterly earnings data on Thursday. The industrial products company reported $3.17 earnings per share for the quarter, topping the consensus estimate of $2.92 by $0.25, Zacks reports. Applied Industrial Technologies had a net margin of 8.34% and a return on equity of 21.64%. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same period in the prior year, the firm posted $2.80 EPS. The company’s revenue was up 10.5% on a year-over-year basis. Applied Industrial Technologies updated its FY 2027 guidance to 11.650-12.150 EPS.

Here are the key takeaways from Applied Industrial Technologies’ conference call:

• Strong fourth-quarter execution: Organic sales grew 10%, led by 13% growth in Engineered Solutions and 8% in Service Centers. EBITDA increased 16% and EPS rose 13%, with EBITDA margins expanding to 13.1% despite higher LIFO costs.
• Demand momentum continued into fiscal 2027, with quarter-to-date organic sales up approximately 7%, positive order trends, and particular strength in automation, fluid power, technology, and data-center-related activity.
• Applied raised its five-year intermediate objectives to $7 billion in sales and a 14% EBITDA margin, citing operating leverage, productivity initiatives, cross-selling, technology investments, acquisition synergies, and secular industrial automation tailwinds.
• The company ended the year with approximately 0.2x net leverage and nearly $2 billion of balance-sheet capacity, supporting continued share repurchases, dividend growth, capital investment, and potentially greater M&A contribution.
• Fiscal 2027 guidance is relatively cautious, calling for sales growth of 4%–6.5%, EBITDA margins of 12.5%–12.8%, and EPS of $11.65–$12.15. Management cited difficult second-half comparisons, geopolitical and trade-policy uncertainty, inflation, higher interest expense, LIFO costs, and potentially lower free cash flow from increased working-capital investment.

Applied Industrial Technologies Trading Up 0.9%

AIT traded up $3.15 during trading on Friday, hitting $360.76. 95,168 shares of the company’s stock were exchanged, compared to its average volume of 300,653. The company has a current ratio of 2.95, a quick ratio of 1.97 and a debt-to-equity ratio of 0.19. Applied Industrial Technologies has a 1 year low of $238.34 and a 1 year high of $374.80. The stock has a 50 day moving average price of $336.11 and a 200 day moving average price of $302.91. The firm has a market cap of $13.33 billion, a P/E ratio of 34.07, a price-to-earnings-growth ratio of 3.04 and a beta of 0.84.

Applied Industrial Technologies Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 31st. Shareholders of record on Friday, August 14th will be given a dividend of $0.51 per share. This represents a $2.04 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Friday, August 14th. Applied Industrial Technologies’s payout ratio is 19.26%.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Wall Street Zen lowered shares of Applied Industrial Technologies from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. DA Davidson lifted their price target on shares of Applied Industrial Technologies from $380.00 to $400.00 and gave the company a “buy” rating in a report on Friday. Robert W. Baird boosted their price objective on shares of Applied Industrial Technologies from $317.00 to $400.00 and gave the company an “outperform” rating in a research note on Friday. Weiss Ratings restated a “buy (b)” rating on shares of Applied Industrial Technologies in a report on Tuesday, July 21st. Finally, Oppenheimer reaffirmed an “outperform” rating and issued a $390.00 target price on shares of Applied Industrial Technologies in a research report on Friday. Seven equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, Applied Industrial Technologies has a consensus rating of “Moderate Buy” and an average target price of $370.00.

Key Headlines Impacting Applied Industrial Technologies

Here are the key news stories impacting Applied Industrial Technologies this week:

• Positive Sentiment: Analysts raised price targets: DA Davidson increased its target from $380 to $400 and upgraded AIT to “buy.” Mizuho raised its target from $355 to $400 with an “outperform” rating, while Robert W. Baird lifted its target from $317 to $400 and also maintained an “outperform” rating. The new targets imply roughly 11% potential upside from the recently cited share price. Analyst forecasts for Applied Industrial Technologies
• Positive Sentiment: Fourth-quarter results beat estimates: AIT reported adjusted earnings of $3.17 per share, versus the $2.92 consensus estimate and $2.80 a year earlier. Revenue reached approximately $1.35 billion, topping expectations of $1.29 billion and increasing 10.5% year over year. Applied Industrial Technologies earnings and revenue results
• Positive Sentiment: Fiscal 2027 outlook is broadly ahead of expectations: Management forecast EPS of $11.65 to $12.15, with a midpoint above the $11.82 analyst consensus, and revenue of $5.2 billion to $5.3 billion. The company also increased its intermediate financial targets, reinforcing the longer-term growth case. Applied Industrial Technologies fiscal 2026 results and fiscal 2027 guidance
• Neutral Sentiment: The positive results are already reflected in a relatively elevated valuation, with AIT trading near its 12-month high and at roughly 34 times earnings. This could limit further gains if future results or guidance fail to maintain the current pace of growth.

Insider Activity at Applied Industrial Technologies

In other news, Director Madhuri A. Andrews sold 3,845 shares of the firm’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $329.89, for a total value of $1,268,427.05. Following the transaction, the director owned 4,951 shares of the company’s stock, valued at approximately $1,633,285.39. This trade represents a 43.71% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 1.60% of the company’s stock.

Institutional Trading of Applied Industrial Technologies

Large investors have recently added to or reduced their stakes in the stock. Corient Private Wealth LLC lifted its stake in shares of Applied Industrial Technologies by 22,451.0% during the fourth quarter. Corient Private Wealth LLC now owns 585,423 shares of the industrial products company’s stock worth $150,319,000 after purchasing an additional 582,827 shares in the last quarter. Adage Capital Partners GP L.L.C. grew its stake in shares of Applied Industrial Technologies by 4,933.8% in the fourth quarter. Adage Capital Partners GP L.L.C. now owns 264,575 shares of the industrial products company’s stock valued at $67,935,000 after buying an additional 259,319 shares in the last quarter. AQR Capital Management LLC grew its stake in shares of Applied Industrial Technologies by 92.4% in the fourth quarter. AQR Capital Management LLC now owns 430,924 shares of the industrial products company’s stock valued at $110,648,000 after buying an additional 206,915 shares in the last quarter. Royal London Asset Management Ltd. raised its holdings in shares of Applied Industrial Technologies by 69.2% during the 2nd quarter. Royal London Asset Management Ltd. now owns 393,743 shares of the industrial products company’s stock valued at $91,526,000 after buying an additional 161,048 shares during the period. Finally, Wellington Management Group LLP raised its holdings in shares of Applied Industrial Technologies by 24.7% during the 3rd quarter. Wellington Management Group LLP now owns 769,441 shares of the industrial products company’s stock valued at $200,863,000 after buying an additional 152,197 shares during the period. 93.52% of the stock is currently owned by institutional investors and hedge funds.

About Applied Industrial Technologies

Applied Industrial Technologies, listed on the New York Stock Exchange under the symbol AIT, is a leading distributor of industrial products and services. The company offers a comprehensive range of bearings, power transmission components, fluid power products, industrial rubber products, and automation solutions. Through its network of distribution centers and branch locations, Applied Industrial Technologies serves diverse end markets including manufacturing, oil and gas, mining, food and beverage, and wastewater treatment.

Founded in 1923 and headquartered in Cleveland, Ohio, Applied Industrial Technologies has grown through a combination of organic expansion and strategic acquisitions.