Applied Industrial Technologies on Tuesday reported stronger sales, profit and earnings in the first quarter of its new fiscal year and maintained its sales forecast heading into the second.
The Cleveland-based motion, flow control and automation distributor — no. 8 on ID’s newest Big 50 List — posted net sales of $1.29 billion from July through September, an increase of 7.6% compared to the same window last year. Sales were up 7.1% on an organic basis, while recent acquisitions and foreign currently translation contributed 0.3% and 0.2%, respectively.
Gross profit rose from $361.4 million in the previous Q1 up to $392.2 million in the latest quarter, while operating income rose from $129 million to $143.6 million. Net income climbed from $100.8 million to $110.4 million.
Applied President and CEO Neil Schrimsher said the company saw an “encouraging start” to the 2027 fiscal year, led by 14.1% sales growth and “ongoing positive order momentum” in its Engineered Solutions division. The company’s Service Center segment, meanwhile, posted 3.5% growth that “strengthened through the quarter” and continued into the current month, he said.
“Sales trends are tracking in line with our expectations year to date and remain positive into early F2Q27, with organic sales month to date in October up approximately 10% year over year,” Schrimsher said in a statement.
The company maintained its initial fiscal year outlook for sales and EBITDA margin, and “modestly” increased its earnings per share guidance due to share repurchases in the latest quarter.
“While mindful of inflationary headwinds and macro uncertainty, we remain positively biased considering favorable market conditions and order trends, as well as various company-specific opportunities that should provide ongoing benefits moving forward,” Schrimsher said.
Applied also announced Tuesday that Chairman Pete Wallace retired from the company’s board at the time of Applied’s annual meeting on Oct. 20. Joe Raver, the former president and CEO of Hillenbrand Inc. who joined Applied’s board in 2017, was named the company’s new independent chairman.
“Having served on our board for nearly a decade, Joe has a deep understanding of our business and strategy that provides a seamless transition as our next chairman,” Schrimsher said.
