Overview

* Applied Industrial ( AIT ) fiscal Q4 sales rise 5.5% yr/yr, beating analyst expectations

* Net income for fiscal Q4 beats analyst estimates, per LSEG data

* Co issues fiscal 2026 guidance, projecting sales growth of 4% to 7%

Outlook

* Applied Industrial ( AIT ) sees fiscal 2026 EPS of $10.00 to $10.75

* Company expects fiscal 2026 sales growth of 4% to 7%

* Applied Industrial ( AIT ) anticipates 1% to 4% organic sales growth in fiscal 2026

* Company cites economic and tariff uncertainties impacting demand

Result Drivers

* ACQUISITIONS BOOST - Sales growth driven by a 6.5% increase from acquisitions, offset by a 0.8% negative selling day impact and a 0.4% foreign currency translation impact

* ENGINEERED SOLUTIONS - Segment saw a 1.8% increase in organic daily sales, contributing to overall growth

* LIFO EXPENSES - Q4 results include $2.9 mln of LIFO expense, up from $0.3 mln in the prior-year period, affecting pre-tax results

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Sales Beat $1.22 $1.18

bln bln (8

Analysts

)

Q4 EPS $2.8

Q4 Net Beat $107.84 $101.40

Income mln mln (5

Analysts

)

Q4 Beat $153 mln $150 mln

EBITDA (5

Analysts

)

Q4 Beat $135.08 $133.80

Operatin mln mln (5

g Income Analysts

)

Q4 Beat $135.04 $131.50

Pretax mln mln (4

Profit Analysts

)

Q4 Basic $2.84

EPS

Q4 Gross $374.74

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

* Wall Street's median 12-month price target for Applied Industrial Technologies Inc ( AIT ) is $276.43, about 0.3% above its August 13 closing price of $275.72

* The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)