Applied Industrial Technologies Reports Record Results But Cuts Fiscal 2027 Guidance
On August 13, Applied Industrial Technologies (NYSE:AIT) reported record fiscal fourth-quarter and full-year results for the period ended June 30. Quarterly sales rose by 10.4% year over year to $1.4 billion with organic growth of 9.7%, marking its strongest performance in more than three years. Both business segments—Engineered Solutions (up 12.9%) and Service Center (up 7.9%)—showed strong, balanced growth. Despite the record results, AIT guided for slower fiscal 2027 sales growth of just 4.0% to 6.5%, a significant drop from its recent performance. EBITDA rose by 16.1% year over year in Q4 and net income increased by 13.2%. The company also raised long-term targets, aiming for $7 billion in sales and 14% EBITDA margins within five years. However, the guidance reflects challenges ahead including tougher comparisons, rising LIFO costs due to inflation (up nearly threefold year over year), geopolitical risks, and trade policy uncertainties. The company’s M&A pipeline is expected to play a key role in achieving its long-term goals.
Tickers: $AIT
Topics: Earnings EBITDA Guidance Sales Growth