Applied Industrial (AIT) Q3 2025 Earnings Call May 01, 2025 10:00 AM ET Speaker0 Please note that this conference is being recorded. I will now turn the call over to Ryan Cieslak, Director of Investor Relations and Treasury. Ryan, you may begin. Speaker1 Okay. Thanks, and good morning to everyone on the call. This morning, we issued our earnings release and supplemental investor deck detailing our third quarter results. Both of these documents are available in the Investor Relations section of Applied.com. ...

Financial Performance - Net sales for Q3 2025 were $1.2 billion, an increase of 1.8% year-over-year, with a 6.6% contribution from acquisitions[4] - Net income reached $99.8 million, or $2.57 per share, reflecting a 3.7% increase compared to the previous year[6] - EBITDA for the quarter was $144.9 million, up 6.8% year-over-year, with EBITDA margins expanding due to effective cost management[6] - The company reported a 3.1% organic sales decline, with expectations of continued end-market weakness in the near term[5] - Net income for the nine months ended March 31, 2025, was $285,152,000, compared to $282,271,000 for the same period in 2024, reflecting a slight increase[24] - EBITDA for the nine months ended March 31, 2025, was $409,031,000, compared to $399,865,000 for the same period in 2024, showing a growth of approximately 2.8%[27] - The company reported a diluted adjusted net income per share of $7.10 for the nine months ended March 31, 2024, compared to $7.18 for the same period in 2023[26] Cash Flow and Dividends - Operating cash flow was $122.5 million, and free cash flow increased by 50% year-over-year to $114.9 million[6] - Net cash provided by operating activities increased to $345,337,000 for the nine months ended March 31, 2025, from $252,159,000 in 2024, representing a growth of approximately 37%[24] - Free cash flow for the nine months ended March 31, 2025, was $327,042,000, up from $234,805,000 in 2024, indicating an increase of about 39%[28] - The company paid dividends totaling $46,159,000 in the nine months ended March 31, 2025, compared to $41,524,000 in 2024, marking an increase of approximately 11%[24] - A quarterly cash dividend of $0.46 per common share was declared, payable on May 30, 2025[11] Acquisitions and Capital Expenditures - The company announced the acquisition of IRIS Factory Automation, expected to close soon, enhancing its automation platform[8] - The company incurred $273,312,000 in cash outflows for the acquisition of businesses during the nine months ended March 31, 2025, significantly higher than $21,440,000 in 2024[24] - Capital expenditures for the nine months ended March 31, 2025, were $18,295,000, compared to $17,354,000 in 2024, reflecting a slight increase[24] Guidance and Market Conditions - The company updated its fiscal 2025 guidance, projecting EPS of $9.85 to $10.00, down from the previous range of $9.65 to $10.05[7] - The total assets increased to $3.12 billion as of March 31, 2025, compared to $2.95 billion a year earlier[22] - The tax rate for adjusted net income was 21.8% for the nine months ended March 31, 2024[26] - The effect of exchange rate changes resulted in a cash decrease of $5,361,000 during the nine months ended March 31, 2025[24] Share Repurchase - A new share repurchase authorization was announced for up to 1.5 million shares, replacing the prior plan[10]

Applied Industrial Technologies (AIT) came out with quarterly earnings of $2.57 per share, beating the Zacks Consensus Estimate of $2.40 per share. This compares to earnings of $2.48 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.08%. A quarter ago, it was expected that this industrial products company would post earnings of $2.22 per share when it actually produced earnings of $2.39, delivering a surprise of 7.66%.Over the ...

This presentation contains statements that are forward-looking, as that term is defined by the Securities and Exchange Commission in its rules, regulations and releases. Applied intends that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements are often identified by qualifiers such as "believe," "expect," "outlook," "project" "guidance," "target," "objectives," "will" and derivative or similar expressions. All forward-looking statements are based on cur ...

Wall Street analysts expect Applied Industrial Technologies (AIT) to post quarterly earnings of $2.40 per share in its upcoming report, which indicates a year-over-year decline of 3.2%. Revenues are expected to be $1.16 billion, up 1.3% from the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a company's earnings release, it i ...

Investors in Applied Industrial Technologies, Inc. (AIT) need to pay close attention to the stock based on moves in the options market lately. That is because the May 16, 2025 $175 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the ...

Despite expansion in manufacturing activities, slowdown in new orders and supply-chain issues amid tariff-related risks have marred the outlook of the Zacks Manufacturing – General Industrial industry. The shortage of skilled labor in the United States is another concern for the industry.However, industry participants’ focus on cost-control measures and investments in product development has allowed them to stay competitive in the market. Dover Corporation (DOV) , RBC Bearings Incorporated (RBC) , Applied I ...

Applied Industrial Technologies, Inc. (AIT) is benefiting from strength in its Engineered Solutions segment and accretive acquisitions. The company’s shareholder-friendly moves also augur well.Applied Industrial is a distributor of value-added industrial products, including engineered fluid power components, bearings, specialty flow control solutions, power transmission products and miscellaneous industrial supplies. These products are mainly sold to original equipment manufacturers (OEMs) and maintenance, ...

The price trend for Applied Industrial Technologies (AIT) has been bearish lately and the stock has lost 5% over the past week. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support.While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall ...

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