Applied Industrial Q2 sales, profit just short of estimates

Applied Industrial Technologies

27/01/2026 11:40

Overview

Industrial distributor's fiscal Q2 net sales rose 8.4% yr/yr, slightly missing analyst expectations

Net income for fiscal Q2 slightly missed analyst expectations

Company announced acquisition of Thompson Industrial Supply Inc.

Outlook

Applied Industrial Technologies sees fiscal 2026 EPS at $10.45 to $10.75 (prior $10.10 to $10.85)

Company expects fiscal 2026 sales growth of 5.5% to 7.0%  (prior range up 4.0% to 7.0%)

Applied Industrial Technologies anticipates ongoing macro uncertainty impacting customer spending

Result Drivers

ACQUISITIONS - Sales growth driven by acquisitions, contributing 6.0% to the increase

LIFO EXPENSE - Higher than expected LIFO expense impacted earnings

SEGMENT PERFORMANCE - Service Center segment saw 2.9% growth, while Engineered Solutions segment increased by 0.5%

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Slight Miss*
$1.16 bln
$1.17 bln (8 Analysts)
Q2 EPS
$2.51
Q2 Net Income
Slight Miss*
$95.35 mln
$95.36 mln (7 Analysts)
Q2 EBITDA
Miss
$140.40 mln
$143.36 mln (5 Analysts)
Q2 Operating Income
Miss
$123.21 mln
$126.50 mln (7 Analysts)
Q2 Pretax Profit
Miss
$122.77 mln
$125.53 mln (6 Analysts)
Q2 Basic EPS
$2.54
Q2 Gross Profit
$353.33 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

Wall Street's median 12-month price target for Applied Industrial Technologies Inc is $300.00, about 6.6% above its January 26 closing price of $281.54

The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nBw2W4qdGa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)