Applied Industrial Technologies reports Q4 EPS $2.80, consensus $2.62

Reports Q4 revenue $1.2B, consensus $1.18B. CEO Neil Schrimsher commented, “We ended FY25 on an encouraging note with Q4 sales and EPS exceeding our expectations. Sales returned to positive organic growth with underlying trends improving as the quarter progressed…Lastly, we delivered another solid quarter of cash generation, culminating in record free cash flow in FY25 that enabled meaningful capital deployment throughout the year. Overall, I am extremely proud of what we accomplished within a challenging demand landscape…Moving into FY26, we are highly focused on accelerating growth and making further progress on our long-term strategic objectives. Positive momentum has sustained into Q1 with organic sales up year over year by an estimated 4% to date. Combined with greater contribution from company-specific growth initiatives, structural mix tailwinds, and easier comparisons, we are constructive on our set-up moving forward. That said, ongoing trade and interest rate uncertainty continue to impact broader demand visibility and customer capex decisions. We are mindful these dynamics could continue to restrain growth near term yet potentially create a strong demand environment once additional clarity emerges as U.S. industrial MRO and investment activity catches up to the favorable secular backdrop.”