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Applied Industrial Technologies(AIT) - 2025 Q3 - Quarterly Results
AITApplied Industrial Technologies(AIT)2025-05-01 13:27

Financial Performance - Net sales for Q3 2025 were 1.2billion,anincreaseof1.81.2 billion, an increase of 1.8% year-over-year, with a 6.6% contribution from acquisitions[4] - Net income reached 99.8 million, or 2.57pershare,reflectinga3.72.57 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,comparedto285,152,000, 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,comparedto409,031,000, 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 7.10fortheninemonthsendedMarch31,2024,comparedto7.10 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 122.5million,andfreecashflowincreasedby50122.5 million, and free cash flow increased by 50% year-over-year to 114.9 million[6] - Net cash provided by operating activities increased to 345,337,000fortheninemonthsendedMarch31,2025,from345,337,000 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,upfrom327,042,000, up from 234,805,000 in 2024, indicating an increase of about 39%[28] - The company paid dividends totaling 46,159,000intheninemonthsendedMarch31,2025,comparedto46,159,000 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 0.46percommonsharewasdeclared,payableonMay30,2025[11]AcquisitionsandCapitalExpenditures−ThecompanyannouncedtheacquisitionofIRISFactoryAutomation,expectedtoclosesoon,enhancingitsautomationplatform[8]−Thecompanyincurred0.46 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 21,440,000in2024[24]−CapitalexpendituresfortheninemonthsendedMarch31,2025,were21,440,000 in 2024[24] - Capital expenditures for the nine months ended March 31, 2025, were 18,295,000, compared to 17,354,000in2024,reflectingaslightincrease[24]GuidanceandMarketConditions−Thecompanyupdateditsfiscal2025guidance,projectingEPSof17,354,000 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,downfromthepreviousrangeof10.00, down from the previous range of 9.65 to 10.05[7]−Thetotalassetsincreasedto10.05[7] - The total assets increased to 3.12 billion as of March 31, 2025, compared to 2.95billionayearearlier[22]−Thetaxrateforadjustednetincomewas21.82.95 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]