Applied Industrial Technologies Exceeds Q4 FY25 Expectations, Reports Record Full-Year Free Cash Flow, and Issues Positive FY26 Guidance

AIT
October 04, 2025

Applied Industrial Technologies concluded fiscal 2025 with strong fourth-quarter results, reporting net sales of $1.2 billion, a 5.5% increase year-over-year. Organic daily sales returned to positive growth, increasing by 0.2%. The company's diluted EPS for the quarter was $2.80, and EBITDA reached $153.0 million, both exceeding expectations.

For the full fiscal year 2025, net sales were $4.6 billion, up 1.9% year-over-year, with diluted EPS of $10.12 and EBITDA of $562.1 million. A significant achievement was the record free cash flow generated in fiscal 2025, which supported substantial capital deployment throughout the year. The Engineered Solutions segment showed stronger than expected sales, with organic growth of 1.8%.

Looking ahead, AIT introduced fiscal 2026 EPS guidance in the range of $10.00 to $10.75, with total sales projected to grow 4% to 7% and organic sales expected to increase by 1% to 4%. EBITDA margins are forecast between 12.2% and 12.5%. The company noted positive momentum continuing into Q1 FY26, with organic sales up an estimated 4% year-over-year to date.

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