Applied Industrial Technologies (NYSE:AIT) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Applied Industrial Technologies (NYSE:AIT) posted its quarterly earnings results on Tuesday. The industrial products company reported $2.51 EPS for the quarter, beating the consensus estimate of $2.48 by $0.03, Zacks reports. The company had revenue of $1.16 billion for the quarter, compared to analyst estimates of $1.17 billion. Applied Industrial Technologies had a net margin of 8.49% and a return on equity of 21.74%. The firm’s revenue was up 8.4% on a year-over-year basis. During the same period in the prior year, the company earned $2.39 earnings per share. Applied Industrial Technologies updated its FY 2026 guidance to 10.450-10.750 EPS.

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

• Engineered Solutions orders rose over 10% organically (the strongest quarterly order growth in 4+ years) with automation orders up 20%, signaling improving book-to-bill (>1) and potential meaningful sales conversion into H2 fiscal 2026.
• Service Center momentum strengthened — U.S. service center sales were up >4% YoY and local account growth plus heightened technical MRO needs drove early-January organic sales to mid-single-digit increases, supporting near-term recovery.
• Unexpected LIFO expense was about $7M (above prior guidance), creating a ~54 bps gross margin headwind, but management says this is largely timing as excluding LIFO gross margins rose YoY and EBITDA margins stayed within guidance.
• Management continues active capital deployment — an 11% dividend increase, >$140M of buybacks in H1, $406M cash and 0.3x net leverage — and is pursuing bolt-on M&A (e.g., Thompson, Hydradyne) to expand tech and service capabilities.
• Updated FY26 guidance narrowed to EPS $10.45–$10.75 with sales growth of 5.5%–7% and a higher LIFO assumption ($24–$26M); company expects H2 organic growth around ~4% but warned of monthly variability from macro and LIFO timing.

Applied Industrial Technologies Price Performance

Shares of NYSE AIT opened at $256.15 on Thursday. Applied Industrial Technologies has a 52 week low of $199.96 and a 52 week high of $286.66. The company has a quick ratio of 2.50, a current ratio of 3.68 and a debt-to-equity ratio of 0.31. The stock has a market capitalization of $9.66 billion, a price-to-earnings ratio of 24.65, a price-to-earnings-growth ratio of 2.67 and a beta of 0.87. The firm has a 50-day simple moving average of $264.07 and a 200-day simple moving average of $261.58.

Applied Industrial Technologies Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, February 27th. Shareholders of record on Friday, February 13th will be paid a dividend of $0.51 per share. This is a boost from Applied Industrial Technologies’s previous quarterly dividend of $0.46. The ex-dividend date of this dividend is Friday, February 13th. This represents a $2.04 annualized dividend and a yield of 0.8%. Applied Industrial Technologies’s dividend payout ratio is presently 17.71%.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on AIT shares. KeyCorp decreased their price target on Applied Industrial Technologies from $310.00 to $300.00 and set an “overweight” rating for the company in a report on Wednesday. Weiss Ratings reissued a “buy (b)” rating on shares of Applied Industrial Technologies in a report on Monday, December 29th. Finally, Mizuho set a $305.00 price objective on shares of Applied Industrial Technologies in a report on Wednesday, October 29th. Six analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $290.63.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Johnson Financial Group Inc. acquired a new stake in Applied Industrial Technologies during the third quarter worth about $69,000. Headlands Technologies LLC acquired a new position in Applied Industrial Technologies in the second quarter valued at approximately $72,000. Danske Bank A S acquired a new stake in Applied Industrial Technologies during the third quarter worth $78,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main purchased a new stake in Applied Industrial Technologies in the second quarter valued at $81,000. Finally, Quarry LP lifted its stake in shares of Applied Industrial Technologies by 79.2% in the 3rd quarter. Quarry LP now owns 464 shares of the industrial products company’s stock valued at $121,000 after purchasing an additional 205 shares during the last quarter. Hedge funds and other institutional investors own 93.52% of the company’s stock.

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.