Applied Industrial Q4 sales, profit beat on Engineered Solutions strength

Applied Industrial Technologies

13/08/2026 11:42

Overview
U.S. industrial distributor's fiscal Q4 sales grew 10.4% yr/yr, beating analyst expectations
Fiscal Q4 net income rose 13.2% yr/yr, beating analyst estimates
Company issued fiscal 2027 guidance for sales growth of 4.0% to 6.5% and EPS $11.65-$12.15

Outlook
Company sees FY27 EPS of $11.65 to $12.15
Company expects FY27 total sales growth of 4.0% to 6.5%
Company raises intermediate financial targets to $7 bln sales and 14% EBITDA margins over five years

Result Drivers
ENGINEERED SOLUTIONS SEGMENT - Co said organic sales growth in Engineered Solutions segment rose 12.9% yr/yr, helping drive overall Q4 results
SALES INITIATIVES - Co attributed growth momentum to intensified sales initiatives and favorable end-market conditions
MARGIN EXPANSION - Steady gross margin performance and operating leverage contributed to expanded EBITDA margins

Company press release: ID:nBw5vWmh4a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$1.35 bln
$1.29 bln (8 Analysts)
Q4 EPS
 
$3.17
 
Q4 Net Income
Beat
$118.60 mln
$109.39 mln (7 Analysts)
Q4 EBITDA
Beat
$177.60 mln
$164.16 mln (4 Analysts)
Q4 Operating Income
Beat
$159.31 mln
$147.48 mln (7 Analysts)
Q4 Pretax Profit
Beat
$157.79 mln
$144.58 mln (6 Analysts)
Q4 Basic EPS
 
$3.21
 
Q4 Gross Profit
 
$411.22 mln
 

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 $355.00, about 0.8% above its August 12 closing price of $352.29
The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 26 three months ago

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Aug 12 - Germany's Brenntag Q2 sales rise 11%, operating EBITDA up 41% on higher chemical pricing

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