Overview

* Applied Industrial ( AIT ) fiscal Q1 sales rise 9.2% yr/yr, beating analyst expectations

* Automation tech provider's net income for fiscal Q1 beats analyst estimates, reaching $100.8 mln

* Company raises FY26 EPS guidance to $10.10-$10.85, reflecting Q1 performance

Outlook

* Company raises FY26 EPS guidance to $10.10-$10.85

* Company maintains FY26 sales growth guidance of 4%-7%

* Company expects gradual improvement in end-market demand

Result Drivers

* SERVICE CENTER GROWTH - Organic growth led by Service Center segment due to internal initiatives and firming MRO demand

* OPERATING LEVERAGE - Favorable operating leverage and cost control improved EBITDA margins

* MACRO UNCERTAINTY - Company expects gradual improvement in end-market demand amid macro and trade policy uncertainty

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales Beat $1.20 $1.18

bln bln (8

Analysts

)

Q1 EPS $2.63

Q1 Net Beat $100.80 $95.73

Income mln mln (6

Analysts

)

Q1 Beat $146.30 $143.23

EBITDA mln mln (4

Analysts

)

Q1 Beat $129.03 $125.89

Operatin mln mln (6

g Income Analysts

)

Q1 Beat $128.58 $124.16

Pretax mln mln (5

Profit Analysts

)

Q1 Basic $2.67

EPS

Q1 Gross $361.42

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "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 $300.00, about 13.3% above its October 27 closing price of $260.00

* The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release:

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(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.)