Applied Industrial Technologies revealed its latest earnings on Tuesday, posting a “solid” Q3 buoyed by strong organic sales.
The Cleveland-based company posted a 6% YoY increase in organic sales, which is the strongest improvement in more than two years. Company CEO Neil Schrimsher said the growth was stronger later in the quarter, and that March organic sales growth was around 10% – well above average.
Meanwhile, the report was marked by record quarterly EBITDA, with a 6.2% year-over-year increase.
The company saw growth largely driven by its “Engineered Solutions” segment, which leverages Applied’s team of subject matter experts to assist customers in problem-solving, systems building and other custom requirements. Within this, Schrimsher pointed to strong activity in automation and fluid power.
The technology vertical now represents more than 15% of the Engineered Solutions segment, with Schrimsher adding that thermal management, robotics and machine vision applications within data centers were generating growth.
Schrimsher noted that M&A will remain a priority for Applied in 2026, and that the company is focused on smaller and mid-sized acquisitions with developing deals currently in the pipeline.
Applied Industrial Technologies is #8 on our 2025 ID Big 50 List.
