| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 1.3K | 7.6% | 7.3% |
| Total Income | 1.3K | 7.6% | 7.3% |
| Expenditure | 1.1K | 7.1% | 7.3% |
| PBT | 135.13 | 10.1% | 6.2% |
| Net Profit | 99.77 | 4.6% | 0.0% |
| OPM | 11.02% | 0.43pp | 0.07pp |
| NPM | 7.97% | 0.23pp | 0.58pp |
| EPS | 2.68 | 5.5% | 3.1% |
Applied Industrial Technologies Reports Q3 FY26 Net Sales of $1.3 Billion, Up 7.3% YoY
28 Apr 2026 · 28 Apr, 6:43 pm
Summary
Applied Industrial Technologies reported a solid fiscal 2026 third quarter, with net sales increasing 7.3% year-over-year to $1.3 billion, driven by 6.0% organic growth. The company achieved a net income of $99.8 million and diluted EPS of $2.65, up 3.1% from the prior year, alongside a record quarterly EBITDA of $153.9 million. CEO Neil A. Schrimsher highlighted strengthening organic sales growth across both segments and an increasingly positive U.S. industrial backdrop. The company also updated its full fiscal year 2026 guidance, raising its EPS outlook to $10.64-$10.75 and total sales growth to 7.2%-7.7%, reflecting confidence in continued momentum despite geopolitical uncertainties.
Key Highlights
- 1
Applied Industrial Technologies reported net sales of $1.3 billion for the fiscal 2026 third quarter, marking a 7.3% increase year-over-year, with organic sales growing by 6.0%.
- 2
Net income for the quarter was $99.8 million, resulting in diluted earnings per share (EPS) of $2.65, which is up 3.1% compared to the prior year.
- 3
The company achieved an operating income of $137.9 million and a record quarterly EBITDA of $153.9 million, representing a 6.2% increase year-over-year.
- 4
Operating cash flow reached $100.1 million, with free cash flow at $95.4 million for the third quarter.
- 5
Applied Industrial Technologies updated its fiscal year 2026 guidance, now projecting EPS between $10.64 and $10.75 on total sales growth of 7.2% to 7.7%.
- 6
The Board of Directors authorized a new share repurchase program for up to 3.0 million shares of the Company's common stock and declared a quarterly cash dividend of $0.51 per share.
Management Comments
Neil A. Schrimsher
We delivered a solid third quarter underscored by strengthening organic sales growth across both segments. Growth was led by our Engineered Solutions segment where ongoing positive order trends, improving demand across legacy and emerging industry verticals, and our deep application and engineering expertise is accelerating sales momentum. This is an encouraging sign that highlights our differentiated position, as well as distinct growth tailwinds emerging across the segment. In addition, Service Center segment demand is building nicely. Benefits from our sales initiatives and One Applied value proposition are reading through as we support our customers’ heightened technical MRO requirements within an increasingly positive U.S. industrial backdrop. Combined with steady underlying gross margin performance, we reported record quarterly EBITDA at the high end of our expectations. Overall, these are strong results that further demonstrate our favorable industry position and the Applied team’s consistent execution.
Neil A. Schrimsher
I am encouraged by our performance year to date and the company-specific opportunities that continue to develop. Organic sales month to date in April are trending up by a high single-digit percent year over year, while orders and business funnel activity remain favorable. We are mindful of recent geopolitical developments and ongoing trade policy uncertainty, which we have incorporated into our fourth quarter outlook. That said, the demand backdrop across our North American centric operations is showing favorable signs with U.S. industrial macro indicators now in more positive territory, break-fix activity firming, and customers’ capital spending gradually improving. Combined with our balance sheet capacity, we are in a solid position moving forward.
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