Applied Industrial Technologies Reports Fiscal 2025 First Quarter Results
Applied Industrial Technologies (NYSE: AIT) reported fiscal 2025 first quarter results with net sales of $1.1 billion, up 0.3% year-over-year. Net income was $92.1 million ($2.36 per share), down 1.0% YoY, while EBITDA decreased 3.3% to $129.0 million. The company generated strong free cash flow of $122.2 million. Despite mixed demand conditions, sales exceeded expectations and strengthened in September. The company increased its FY25 EPS guidance to $9.25-$10.00 while maintaining sales guidance of -2.5% to +2.5% and EBITDA margin guidance of 12.1% to 12.3%. A quarterly dividend of $0.37 per share was declared.
Applied Industrial Technologies (NYSE: AIT) ha riportato i risultati del primo trimestre fiscale 2025 con vendite nette di 1,1 miliardi di dollari, in aumento dello 0,3% rispetto all'anno precedente. L'utile netto è stato di 92,1 milioni di dollari (2,36 dollari per azione), in calo dell'1,0% su base annua, mentre l'EBITDA è diminuito del 3,3% a 129,0 milioni di dollari. L'azienda ha generato un forte flusso di cassa libero di 122,2 milioni di dollari. Nonostante condizioni di domanda miste, le vendite hanno superato le aspettative e si sono rafforzate a settembre. L'azienda ha aumentato la sua guida sugli utili per azione FY25 a 9,25-10,00 dollari mantenendo la guida sulle vendite fra -2,5% e +2,5% e la guida sul margine EBITDA fra 12,1% e 12,3%. È stato dichiarato un dividendo trimestrale di 0,37 dollari per azione.
Applied Industrial Technologies (NYSE: AIT) informó los resultados del primer trimestre fiscal 2025 con ventas netas de 1,1 mil millones de dólares, un aumento del 0,3% en comparación con el año anterior. La utilidad neta fue de 92,1 millones de dólares (2,36 dólares por acción), una disminución del 1,0% interanual, mientras que el EBITDA disminuyó un 3,3% a 129,0 millones de dólares. La compañía generó un fuerte flujo de caja libre de 122,2 millones de dólares. A pesar de las condiciones de demanda mixtas, las ventas superaron las expectativas y se fortalecieron en septiembre. La compañía aumentó su guía de EPS para FY25 a 9,25-10,00 dólares, mientras mantenía la guía de ventas entre -2,5% y +2,5% y la guía de margen EBITDA entre 12,1% y 12,3%. Se declaró un dividendo trimestral de 0,37 dólares por acción.
Applied Industrial Technologies (NYSE: AIT)는 2025 회계 연도 1분기 실적을 보고했으며, 순매출은 11억 달러로 전년 대비 0.3% 증가했습니다. 순이익은 9,210만 달러 (주당 2.36달러)로, 지난해에 비해 1.0% 감소했으며, EBITDA는 1억 2,900만 달러로 3.3% 감소했습니다. 회사는 1억 2,220만 달러의 강력한 자유 현금 흐름을 생성했습니다. 혼합된 수요 조건에도 불구하고 매출은 기대를 초과하였고 9월에는 더욱 강화되었습니다. 회사는 FY25 EPS 가이드를 9.25-10.00달러로 상향 조정했으며, 매출 가이드는 -2.5%에서 +2.5%, EBITDA 마진 가이드는 12.1%에서 12.3%로 유지했습니다. 주당 0.37달러의 분기 배당금이 선언되었습니다.
Applied Industrial Technologies (NYSE: AIT) a annoncé ses résultats pour le premier trimestre de l'exercice 2025, avec des ventes nettes de 1,1 milliard de dollars, en hausse de 0,3% par rapport à l'année précédente. Le bénéfice net a été de 92,1 millions de dollars (2,36 dollars par action), soit une baisse de 1,0% par rapport à l'année dernière, tandis que l'EBITDA a diminué de 3,3% pour atteindre 129,0 millions de dollars. L'entreprise a généré un solide flux de trésorerie libre de 122,2 millions de dollars. Malgré des conditions de demande mitigées, les ventes ont dépassé les attentes et se sont renforcées en septembre. L'entreprise a relevé ses prévisions de bénéfice par action pour l'exercice FY25 à 9,25-10,00 dollars tout en maintenant les prévisions de ventes entre -2,5% et +2,5% et les prévisions de marge EBITDA entre 12,1% et 12,3%. Un dividende trimestriel de 0,37 dollars par action a été déclaré.
Applied Industrial Technologies (NYSE: AIT) hat die Ergebnisse des ersten Quartals des Geschäftsjahres 2025 mit einem Nettoumsatz von 1,1 Milliarden Dollar berichtet, was einem Anstieg von 0,3% im Vergleich zum Vorjahr entspricht. Der Nettogewinn betrug 92,1 Millionen Dollar (2,36 Dollar pro Aktie) und sank um 1,0% im Jahresvergleich, während EBITDA um 3,3% auf 129,0 Millionen Dollar fiel. Das Unternehmen erzielte einen starken freien Cashflow von 122,2 Millionen Dollar. Trotz gemischter Nachfragebedingungen übertrafen die Verkäufe die Erwartungen und stärkten sich im September. Das Unternehmen erhöhte seine EPS-Prognose für FY25 auf 9,25-10,00 Dollar und hielt die Umsatzerwartung bei -2,5% bis +2,5% sowie die EBITDA-Margenprognose zwischen 12,1% und 12,3% stabil. Eine Quartalsdividende von 0,37 Dollar pro Aktie wurde erklärt.
- Strong free cash flow generation of $122.2 million, nearly double YoY
- Sales exceeded expectations with strengthening trends in September
- Increased FY25 EPS guidance to $9.25-$10.00
- 2.0% sales increase from acquisitions
- Net income decreased 1.0% YoY to $92.1 million
- EBITDA declined 3.3% YoY to $129.0 million
- Organic daily sales decreased 3.0%
- Engineered Solutions segment sales decreased 6.1%
Insights
The Q1 FY25 results present a mixed but generally resilient picture.
The EPS guidance increase, though modest (
Key positives include strengthening September sales, improving Automation operations and potential for strategic acquisitions. However, headwinds persist with mid-single-digit organic sales decline in October and ongoing economic uncertainty. The company's focus on strategic growth initiatives while maintaining cost discipline positions it well for potential market recovery.
The industrial distribution sector faces near-term challenges, with AIT's performance reflecting broader market dynamics. The
The company's strategic positioning in industrial motion, fluid power and automation technologies provides diversification benefits. Management's commentary about customers slowly reengaging production and capital investments ahead of the U.S. Election indicates potential pent-up demand. The focus on bolt-on acquisitions and share repurchases demonstrates a balanced capital allocation strategy that could drive future growth.
-
Net Sales of
$1.1 Billion 0.3% YoY; Down3.0% on an Organic Daily Basis -
Net Income of
$92.1 Million $2.36 1.0% YoY -
EBITDA of
$129.0 Million 3.3% YoY -
Operating Cash Flow of
$127.7 Million $122.2 Million -
Increasing FY25 EPS Guidance to
$9.25 $10.00 - Reiterate FY25 Sales and EBITDA Margin Guidance
Net sales for the quarter of
Neil A. Schrimsher, Applied’s President & Chief Executive Officer, commented, “I’m encouraged by the start to fiscal 2025. While the demand backdrop remains mixed, first-quarter sales exceeded our expectations and strengthened during September. Positive trends are developing across our Engineered Solutions segment including stronger orders within our Automation operations and the technology sector, while Service Center segment sales held steady as the quarter progressed. As expected, margin trends were more modest against difficult comparisons, mix dynamics, and softer volumes early in the quarter. We remain prudent with cost measures but balanced considering firming demand the past couple of months, while protecting investments in key strategic growth initiatives during the quarter. Additionally, free cash flow nearly doubled over the prior year to record first quarter levels. Our cash flow growth potential remains significant as we continue to scale our differentiated industry position, benefit from working capital initiatives, and enhance our margin profile.”
Mr. Schrimsher added, “Looking ahead, we expect near-term sales to remain choppy as customers slowly reengage production and capital investments ahead of the upcoming
Fiscal 2025 Guidance
Today, the Company is modestly increasing fiscal 2025 EPS guidance to a range of
Dividend
Today the Company also announced that its Board of Directors declared a quarterly cash dividend of
Conference Call Information
The Company will host a conference call at 10 a.m. ET today to discuss the quarter’s results and outlook. A live audio webcast and supplemental presentation can be accessed on our Investor Relations site at https://ir.applied.com. To join by telephone, dial 800-715-9871 (toll free) or 646-307-1963 using conference ID 3459273. Replays of the call will be available via webcast, as well as by telephone for one week by dialing 800-770-2030 (toll free) using conference ID 3459273.
About Applied®
Applied Industrial Technologies is a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. Our leading brands, specialized services, and comprehensive knowledge serve MRO (maintenance, repair, and operations) and OEM (original equipment manufacturing), and new system install applications in virtually all industrial markets through our multi-channel capabilities that provide choice, convenience, and expertise. For more information, visit www.applied.com.
This press release contains statements that are forward-looking, as that term is defined by the Securities and Exchange Commission in its rules, regulations and releases. Applied intends that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements are often identified by qualifiers such as “expect,” “will,” “guidance,” “assume,” “optimistic,” “believe,” and derivative or similar expressions. All forward-looking statements are based on current expectations regarding important risk factors including trends and events in the industrial sector of the economy (such as the inflationary environment and supply chain strains), results of operations, and financial condition, and other risk factors identified in Applied's most recent periodic report and other filings made with the Securities and Exchange Commission. Accordingly, actual results may differ materially from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by Applied or any other person that the results expressed therein will be achieved. Applied assumes no obligation to update publicly or revise any forward-looking statements, whether due to new information, or events, or otherwise.
| APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||
| CONDENSED STATEMENTS OF CONSOLIDATED INCOME | ||||||
| (Unaudited) | ||||||
| (In thousands, except per share data) | ||||||
| Three Months Ended September 30, |
||||||
|
2024 |
|
|
2023 |
||
| Net Sales | $ |
1,098,944 |
|
$ |
1,095,188 |
|
| Cost of sales |
|
773,862 |
|
|
770,106 |
|
| Gross Profit |
|
325,082 |
|
|
325,082 |
|
| Selling, distribution and administrative expense, including depreciation |
|
211,910 |
|
|
204,402 |
|
| Operating Income |
|
113,172 |
|
|
120,680 |
|
| Interest (income) expense, net |
|
(627 |
) |
|
1,320 |
|
| Other (income) expense, net |
|
(2,281 |
) |
|
431 |
|
| Income Before Income Taxes |
|
116,080 |
|
|
118,929 |
|
| Income tax expense |
|
24,017 |
|
|
25,103 |
|
| Net Income | $ |
92,063 |
|
$ |
93,826 |
|
| Net Income Per Share - Basic | $ |
2.40 |
|
$ |
2.42 |
|
| Net Income Per Share - Diluted | $ |
2.36 |
|
$ |
2.39 |
|
| Average Shares Outstanding - Basic |
|
38,398 |
|
|
38,700 |
|
| Average Shares Outstanding - Diluted |
|
38,944 |
|
|
39,310 |
|
| NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||||||
| 1) Applied uses the last-in, first-out (LIFO) method of valuing |
||||||
| APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| (In thousands) | ||||||||
| September 30, 2024 |
June 30, 2024 |
|||||||
| Assets | ||||||||
| Cash and cash equivalents | $ |
538,520 |
$ |
460,617 |
||||
| Accounts receivable, net |
|
691,512 |
|
724,878 |
||||
| Inventories |
|
497,568 |
|
488,258 |
||||
| Other current assets |
|
81,950 |
|
96,148 |
||||
| Total current assets |
|
1,809,550 |
|
1,769,901 |
||||
| Property, net |
|
119,061 |
|
118,527 |
||||
| Operating lease assets, net |
|
145,043 |
|
133,289 |
||||
| Intangibles, net |
|
242,744 |
|
245,870 |
||||
| Goodwill |
|
624,217 |
|
619,395 |
||||
| Other assets |
|
62,596 |
|
64,928 |
||||
| Total Assets | $ |
3,003,211 |
$ |
2,951,910 |
||||
| Liabilities | ||||||||
| Accounts payable | $ |
265,136 |
$ |
266,949 |
||||
| Current portion of long-term debt |
|
25,003 |
|
25,055 |
||||
| Other accrued liabilities |
|
188,161 |
|
209,096 |
||||
| Total current liabilities |
|
478,300 |
|
501,100 |
||||
| Long-term debt |
|
572,288 |
|
572,279 |
||||
| Other liabilities |
|
200,546 |
|
189,750 |
||||
| Total Liabilities |
|
1,251,134 |
|
1,263,129 |
||||
| Shareholders' Equity |
|
1,752,077 |
|
1,688,781 |
||||
| Total Liabilities and Shareholders' Equity | $ |
3,003,211 |
$ |
2,951,910 |
||||
| APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS | ||||||||
| (Unaudited) | ||||||||
| (In thousands) | ||||||||
| Three Months Ended September 30, |
||||||||
|
2024 |
|
|
2023 |
|
|||
| Cash Flows from Operating Activities | ||||||||
| Net income | $ |
92,063 |
|
$ |
93,826 |
|
||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization of property |
|
5,924 |
|
|
5,717 |
|
||
| Amortization of intangibles |
|
7,600 |
|
|
7,393 |
|
||
| Provision for losses on accounts receivable |
|
1,056 |
|
|
867 |
|
||
| Amortization of stock appreciation rights and options |
|
1,326 |
|
|
844 |
|
||
| Other share-based compensation expense |
|
1,675 |
|
|
1,976 |
|
||
| Changes in assets and liabilities, net of acquisitions |
|
16,587 |
|
|
(45,245 |
) |
||
| Other, net |
|
1,516 |
|
|
831 |
|
||
| Net Cash provided by Operating Activities |
|
127,747 |
|
|
66,209 |
|
||
| Cash Flows from Investing Activities | ||||||||
| Acquisition of businesses, net of cash acquired |
|
(10,498 |
) |
|
(21,440 |
) |
||
| Capital expenditures |
|
(5,549 |
) |
|
(4,340 |
) |
||
| Proceeds from property sales |
|
831 |
|
|
123 |
|
||
| Net Cash used in Investing Activities |
|
(15,216 |
) |
|
(25,657 |
) |
||
| Cash Flows from Financing Activities | ||||||||
| Long-term debt repayments |
|
(63 |
) |
|
(62 |
) |
||
| Interest rate swap settlement receipts |
|
3,738 |
|
|
3,558 |
|
||
| Purchases of treasury shares |
|
(9,980 |
) |
|
- |
|
||
| Dividends paid |
|
(14,218 |
) |
|
(13,551 |
) |
||
| Acquisition holdback payments |
|
(1,210 |
) |
|
(562 |
) |
||
| Taxes paid for shares withheld for equity awards |
|
(12,314 |
) |
|
(11,866 |
) |
||
| Net Cash used in Financing Activities |
|
(34,047 |
) |
|
(22,483 |
) |
||
| Effect of Exchange Rate Changes on Cash |
|
(581 |
) |
|
(1,690 |
) |
||
| Increase in cash and cash equivalents |
|
77,903 |
|
|
16,379 |
|
||
| Cash and Cash Equivalents at Beginning of Period |
|
460,617 |
|
|
344,036 |
|
||
| Cash and Cash Equivalents at End of Period | $ |
538,520 |
|
$ |
360,415 |
|
||
| APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES |
| SUPPLEMENTAL INFORMATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
(Unaudited) (In thousands) |
| The Company supplemented the reporting of financial information determined under |
| Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure: | ||||||
| Three Months Ended September 30, |
||||||
|
2024 |
|
|
2023 |
|
|
| Net Income | $ |
92,063 |
|
$ |
93,826 |
|
| Interest (income) expense, net |
|
(627 |
) |
|
1,320 |
|
| Income tax expense |
|
24,017 |
|
|
25,103 |
|
| Depreciation and amortization of property |
|
5,924 |
|
|
5,717 |
|
| Amortization of intangibles |
|
7,600 |
|
|
7,393 |
|
| EBITDA | $ |
128,977 |
|
$ |
133,359 |
|
| The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization, a non-GAAP financial measure. EBITDA excludes items that may not be indicative of core operating results. | ||||||
| Reconciliation of Net Cash provided by Operating activities, a GAAP financial measure, to Free Cash Flow, a non-GAAP financial measure: | ||||||
| Three Months Ended September 30, |
||||||
|
2024 |
|
|
2023 |
|
|
| Net Cash provided by Operating Activities | $ |
127,747 |
|
$ |
66,209 |
|
| Capital expenditures |
|
(5,549 |
) |
|
(4,340 |
) |
| Free Cash Flow | $ |
122,198 |
|
$ |
61,869 |
|
| Free cash flow is defined as net cash provided by operating activities less capital expenditures, a non-GAAP financial measure. | ||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241024779522/en/
Ryan D. Cieslak
Director – Investor Relations & Treasury
216-426-4887 / rcieslak@applied.com
Source: Applied Industrial Technologies, Inc.
FAQ
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