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

Applied Industrial Technologies (NYSE:AIT) issued its earnings results on Tuesday. The industrial products company reported $2.51 earnings per share for the quarter, topping analysts’ consensus estimates of $2.48 by $0.03, Zacks reports. Applied Industrial Technologies had a net margin of 8.61% and a return on equity of 21.86%. The business had revenue of $1.16 billion for the quarter, compared to the consensus estimate of $1.17 billion. During the same period in the previous year, the company earned $2.39 earnings per share. The firm’s revenue for the quarter was up 8.4% on a year-over-year basis. 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 Stock Performance

AIT opened at $262.55 on Wednesday. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.55 and a quick ratio of 2.50. The business has a fifty day simple moving average of $263.82 and a 200 day simple moving average of $261.62. Applied Industrial Technologies has a 1 year low of $199.96 and a 1 year high of $286.66. The company has a market capitalization of $9.90 billion, a PE ratio of 25.27, a price-to-earnings-growth ratio of 2.87 and a beta of 0.87.

Applied Industrial Technologies Increases Dividend

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

Trending Headlines about Applied Industrial Technologies

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

• Positive Sentiment: Raised quarterly dividend 10.9% to $0.51 (annualized yield ~0.8%), signalling confidence in cash flow and returning capital to shareholders.
• Positive Sentiment: Q2 EPS beat consensus (reported $2.51 vs. ~$2.49 consensus) and net sales grew ~8.4% year-over-year, showing continued earnings momentum and organic/acquisition growth. BusinessWire: Q2 Results
• Positive Sentiment: Analyst commentary highlights an earnings-beat streak and upward revisions that could support longer-term multiple expansion. Yahoo: Earnings Beat Streak
• Neutral Sentiment: Earnings call transcript and analyst write-ups are available for color on margins, backlog and end-market trends — useful for assessing sustainability of the beat but not a clear immediate catalyst. SeekinAlpha: Earnings Call Transcript
• Neutral Sentiment: Analyst-focused summaries (Zacks) break down key metrics versus estimates — helpful for traders and modelers but not a direct driver by itself. Zacks: Key Metrics
• Negative Sentiment: FY2026 guidance gouged investor expectations: EPS range of $10.45–$10.75 is centered slightly below consensus (~$10.65 midpoint vs. consensus ~10.65) and revenue guidance ($4.8–$4.9B) is at/just under Street estimates—the tone suggests cautious top-line growth and pressured near-term upside. Press Release / Slide Deck
• Negative Sentiment: Revenue narrowly missed the quarter consensus (~$1.16B reported vs. ~$1.17B expected), which combined with conservative guidance appears to have outweighed the EPS beat in investor reaction.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on AIT shares. Weiss Ratings restated a “buy (b)” rating on shares of Applied Industrial Technologies in a research note on Monday, December 29th. Mizuho set a $305.00 price objective on Applied Industrial Technologies in a research note 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.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $287.50.

Institutional Investors Weigh In On Applied Industrial Technologies

A number of institutional investors have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. increased its position in Applied Industrial Technologies by 7.4% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 653 shares of the industrial products company’s stock worth $170,000 after acquiring an additional 45 shares during the period. Focus Partners Wealth grew its position in shares of Applied Industrial Technologies by 4.5% during the 1st quarter. Focus Partners Wealth now owns 1,341 shares of the industrial products company’s stock worth $302,000 after purchasing an additional 58 shares in the last quarter. Public Employees Retirement System of Ohio increased its holdings in shares of Applied Industrial Technologies by 0.5% during the third quarter. Public Employees Retirement System of Ohio now owns 13,163 shares of the industrial products company’s stock worth $3,436,000 after purchasing an additional 60 shares during the period. Cresset Asset Management LLC increased its holdings in shares of Applied Industrial Technologies by 3.8% during the third quarter. Cresset Asset Management LLC now owns 1,707 shares of the industrial products company’s stock worth $446,000 after purchasing an additional 62 shares during the period. Finally, Fiduciary Trust Co raised its position in shares of Applied Industrial Technologies by 6.2% in the third quarter. Fiduciary Trust Co now owns 1,373 shares of the industrial products company’s stock valued at $358,000 after buying an additional 80 shares in the last quarter. Institutional investors own 93.52% of the company’s stock.

Applied Industrial Technologies Company Profile

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.