Core Insights - Applied Industrial Technologies, Inc. (AIT) is positioned for growth due to strong performance in technology, food & beverage, pulp & paper, and oil & gas markets [1] - The Engineered Solutions segment is benefiting from solid demand for technical offerings, particularly in motion control, specialty flow control, and automation solutions, driven by increased investments in data center infrastructure and semiconductor manufacturing [1][2] Segment Performance - The Engineered Solutions segment's organic revenues increased by 1.8% year over year in Q4 fiscal 2025, despite a decline in fluid power component sales due to weak demand from off-highway mobile OEM customers [2][7] - Favorable order trends in automation, technology, and industrial verticals are expected to support revenue growth in the upcoming quarters [2] Acquisitions and Growth Strategy - AIT plans to enhance its business through acquisitions, such as the purchase of IRIS Factory Automation in May 2025, which is anticipated to strengthen its automation offerings [3] - The acquisition contributed to a 19.7% increase in sales for the Engineered Solutions segment in Q4 fiscal 2025 [3][7] Peer Comparison - EnerSys (ENS) reported an 8.4% revenue increase in its Energy Systems segment for Q1 fiscal 2026, driven by the expansion of U.S. communications networks and AI-driven data demand [4] - Roper Technologies, Inc. (ROP) is experiencing growth in its Technology enabled Products segment, with expectations of high-single-digit organic revenue growth in the second half of 2025 [5] Financial Performance - AIT's shares have increased by 14.7% over the past three months, outperforming the industry growth of 8% [6] - The company is currently trading at a forward price-to-earnings ratio of 24.23X, above the industry average of 21.14X [9] Earnings Estimates - The Zacks Consensus Estimate for AIT's fiscal 2026 earnings has decreased by 0.4% over the past 60 days [11]

Core Insights - The performance of Applied Industrial Technologies (AIT) in international markets is critical for understanding its financial resilience and growth potential [1][2] - AIT's total revenue for the quarter was $1.22 billion, reflecting a 5.5% increase [4] International Revenue Breakdown - Canada contributed $75.85 million, accounting for 6.2% of total revenue, which was a -5.27% surprise compared to the consensus estimate of $80.07 million [5] - Other International revenue was $66.99 million, representing 5.5% of total revenue, also a -3.46% surprise against the expected $69.39 million [6] Future Revenue Expectations - Analysts project AIT will report revenues of $1.16 billion for the current fiscal quarter, a 5.2% increase year-over-year, with expected contributions of 6.6% from Canada ($76.64 million) and 5.9% from Other International ($68.35 million) [7] - For the full year, total annual revenue is anticipated to be $4.82 billion, marking a 5.6% increase compared to the previous year, with Canada and Other International expected to contribute 6.6% ($317.07 million) and 5.8% ($278.56 million) respectively [8] Market Dependency and Trends - AIT's reliance on global markets for revenue presents both opportunities and risks, making the monitoring of international revenue trends essential for predicting future performance [9] - The increasing international interdependencies and geopolitical conflicts necessitate close monitoring of these trends by analysts to adjust earnings forecasts [10]

Core Insights - Applied Industrial Technologies, Inc. reported better-than-expected earnings for Q4, with earnings per share (EPS) of $2.80, surpassing the analyst consensus estimate of $2.65 [1] - The company achieved quarterly sales of $1.225 billion, exceeding the analyst consensus estimate of $1.183 billion [1] Financial Outlook - For FY2026, the company projects GAAP EPS in the range of $10.00 to $10.75, compared to market estimates of $9.96 [2] - Sales expectations for FY2026 are set between $4.747 billion and $4.883 billion, exceeding projections of $4.522 billion [2] Management Commentary - The President & CEO of Applied Industrial Technologies noted that Q4 sales and EPS exceeded expectations, with positive organic growth driven by strong performance in the Engineered Solutions segment [3] - The company capitalized on recent order strength and improving demand across various verticals [3] Market Reaction - Following the earnings announcement, Applied Industrial shares fell by 5.4%, trading at $258.00 [3] Analyst Ratings and Price Targets - Baird analyst David Manthey maintained an Outperform rating and raised the price target from $265 to $300 [6] - Oppenheimer analyst Christopher Glynn also maintained an Outperform rating, increasing the price target from $290 to $300 [6] - Raymond James analyst Sam Darkatsh downgraded the stock from Outperform to Market Perform [6]

Core Insights - Applied Industrial Technologies (AIT) reported revenue of $1.22 billion for the quarter ended June 2025, marking a year-over-year increase of 5.5% and exceeding the Zacks Consensus Estimate by 3.74% [1] - The earnings per share (EPS) for the same period was $2.80, up from $2.64 a year ago, representing a surprise of 7.69% over the consensus estimate of $2.60 [1] Financial Performance Metrics - Net Sales for Engineered Solutions reached $445.55 million, surpassing the three-analyst average estimate of $399.68 million, with a year-over-year change of 20.7% [4] - Net Sales for Service Center Based Distribution were reported at $779.18 million, slightly below the average estimate of $780.86 million, reflecting a year-over-year decline of 1.5% [4] - Operating income for Service Center Based Distribution was $101.29 million, compared to the average estimate of $108.41 million [4] - Operating income for Engineered Solutions was reported at $54.09 million, below the estimated $57.14 million [4] Stock Performance - Shares of Applied Industrial Technologies have returned 4.2% over the past month, outperforming the Zacks S&P 500 composite's return of 3.3% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended JUNE 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number 1-2299 Ohio 34-0117420 (I.R.S. Employer Identification No.) (State or other jurisdiction of incorporation or organi ...

Core Insights - Applied Industrial Technologies (AIT) reported fourth-quarter fiscal 2025 earnings of $2.80 per share, exceeding the Zacks Consensus Estimate of $2.60, marking a year-over-year increase of 5.9% [1][10] - Net revenues for the quarter reached $1.22 billion, surpassing the consensus estimate of $1.18 billion, with a year-over-year growth of 5.5% [2][10] - For fiscal 2025, AIT's total net revenues were $4.6 billion, reflecting a 1.9% increase year over year, while adjusted earnings were $10.12 per share, up 3.8% [2] Revenue Breakdown - The Service Center-Based Distribution segment generated revenues of $779.2 million, contributing 66% to net revenues, but saw a year-over-year decline of 1.5% [3] - The Engineered Solutions segment, which accounted for 34% of net revenues, reported revenues of $445.5 million, a significant year-over-year increase of 20.7% [4] - Acquisitions positively impacted the top line by 19.7%, while organic sales increased by 1.8% due to strong demand in key growth areas [5] Margin and Cost Analysis - AIT's cost of sales rose by 5.7% year over year to $850 million, with gross profit increasing by 5.2% to $374.7 million, resulting in a slight decrease in gross margin to 30.6% [6] - Selling, distribution, and administrative expenses increased by 10.5% year over year to $239.7 million, while EBITDA was reported at $153 million, reflecting a decrease of 0.3% [6] Balance Sheet and Cash Flow - At the end of fiscal 2025, AIT had cash and cash equivalents of $388.4 million, down from $460.6 million at the end of fiscal 2024, with long-term debt remaining stable at $572.3 million [7] - The company generated net cash of $492.4 million from operating activities, a 32.6% increase year over year, and free cash flow rose by 34.2% to $465.2 million [8] Future Guidance - For fiscal 2026, AIT anticipates adjusted earnings in the range of $10-$10.75 per share, with sales growth projected between 4-7% year over year [10][11] - The company expects EBITDA margin to be in the range of 12.2-12.5% for fiscal 2026 [11]

Financial Data and Key Metrics Changes - The company achieved record sales, EBITDA, and EPS in fiscal 2025, with full-year EPS growth of 4% exceeding initial guidance [6][7] - Gross margins expanded nearly 50 basis points, surpassing 30% for the first time in history [6][7] - Free cash flow reached over $465 million, up 34% year-over-year, marking a new record [18][19] Business Line Data and Key Metrics Changes - The Engineered Solutions segment saw a 2% organic daily sales increase, marking the first year-over-year growth in seven quarters [10][11] - The Service Center segment experienced a 0.4% organic sales decline year-over-year, but showed improvement from a 1.6% decline in the previous quarter [37][38] - Overall, the Engineered Solutions segment's sales increased by 20.7% year-over-year, with acquisitions contributing significantly to this growth [40][41] Market Data and Key Metrics Changes - Year-over-year trends across the top 30 end markets remained mixed, with 15 markets showing positive sales growth [11][12] - Declines were noted in machinery, primary metals, utility and energy, aggregates, and chemicals, while demand was solid in technology, pulp and paper, and food and beverage sectors [12][13] - Orders in the Engineered Solutions segment increased by a high single-digit percentage year-over-year, indicating a positive trend [13] Company Strategy and Development Direction - The company is focused on accelerating growth while being mindful of ongoing trade and interest rate policy uncertainties [22][24] - There is an emphasis on increasing growth with local customers through ancillary products and comprehensive service solutions [26][28] - The company plans to remain active in M&A, with a developing pipeline for fiscal 2026 [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute amid evolving tariff backdrops and inflationary pressures [20][21] - The outlook for fiscal 2026 includes expectations for organic sales growth of 1% to 4% and EBITDA margins of 12.2% to 12.5% [45][46] - Management noted that recent U.S. trade agreements and tax reforms could positively impact business sentiment and capital investment [23][24] Other Important Information - The company repurchased 656,000 shares for $153 million and increased its quarterly dividend by 24% [19] - The Hydrodyne acquisition is expected to contribute positively to EPS and EBITDA, with synergy realization ahead of schedule [87][88] Q&A Session Summary Question: Hydrodyne's sequential sales growth and EBITDA contribution - Management indicated that the stronger margin performance was due to leverage from SG&A falling through to EBITDA and quicker realization of synergy benefits [53][54] Question: Break fix MRO market trends - Management noted positive trends in local accounts and indicated that there are signs of firming demand [56][57] Question: Pricing contributions in guidance - Management expects pricing contributions to be similar to the previous quarter, with potential increases as the year progresses [62] Question: Engineered Solutions segment growth drivers - Management highlighted growth in data centers and semiconductor manufacturing as key components of the technology vertical [63][64] Question: LIFO and AR provisioning impacts - Management clarified that the majority of AR provisioning impacts were skewed towards the Service Center segment, with expectations for normalization moving forward [75][76]

Financial Data and Key Metrics Changes - The company achieved record sales, EBITDA, and EPS in fiscal 2025, with full-year EPS growth of 4% exceeding initial guidance [6][7] - Gross margins expanded nearly 50 basis points, surpassing 30% for the first time in history [6][7] - Free cash flow reached over $465 million, up 34% year-over-year, marking a new record [17][18] Business Line Data and Key Metrics Changes - Engineered Solutions segment sales grew organically year-over-year for the first time in seven quarters, with a 2% organic daily sales increase [9][11] - Service Center segment trends improved, returning to positive organic growth in June, with average daily sales increasing 1.5% sequentially [11][37] - The Engineered Solutions segment saw a 20.7% increase in sales year-over-year, with acquisitions contributing 19.7 points to this increase [39] Market Data and Key Metrics Changes - Year-over-year trends across the top 30 end markets remained mixed, with 15 markets generating positive sales growth [11] - Declines were noted in machinery, primary metals, utility and energy, aggregates, and chemicals, while technology verticals showed solid demand [12][13] - Orders in the Engineered Solutions segment increased by a high single-digit percentage year-over-year, indicating a positive inflection [13] Company Strategy and Development Direction - The company is focused on accelerating growth while being mindful of ongoing trade and interest rate policy uncertainties [21][24] - There is an emphasis on increasing growth with local customers through greater sales of ancillary products and comprehensive service solutions [25][28] - The company plans to remain active in M&A, with a developing pipeline for fiscal 2026 [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute amid evolving tariff backdrops and inflationary pressures [19][20] - The outlook for fiscal 2026 includes expectations for organic sales growth of 1% to 4% and EBITDA margins of 12.2% to 12.5% [44][45] - Management noted that recent U.S. trade agreements and tax reforms could positively impact business sentiment and capital investment [22][24] Other Important Information - The company closed four acquisitions in fiscal 2025, including Hydrodyne, which contributed over 400 basis points of inorganic growth [18][39] - The company repurchased 656,000 shares for $153 million and increased its quarterly dividend by 24% [18] Q&A Session Summary Question: Hydrodyne's sequential sales growth and EBITDA performance - Management indicated that the improvement in Hydrodyne's performance was due to stronger margin performance and quicker realization of synergy benefits [52][53] Question: Break fix MRO market trends - Management noted positive trends in local accounts and national accounts, indicating potential firming in the market [54][55] Question: Pricing contributions to guidance - Management expects pricing contributions to remain similar in the first quarter, with potential increases as the year progresses [61][62] Question: Market softness in international operations - Management identified Canada as experiencing more softness due to tariff impacts, but noted improvements as the quarter progressed [97] Question: Hydrodyne's contribution to EBITDA - Hydrodyne contributed just over $7 million to EBITDA in Q4, aligning with initial expectations for the first twelve months [87][88]

Financial Performance - Q4 2025 sales increased by 5.5% year-over-year, reaching $1.225 billion compared to $1.161 billion in Q4 2024[8] - Organic daily sales saw a positive year-over-year growth of 0.2% for the first time in over a year[8] - Earnings per share (EPS) increased by 5.9% year-over-year, from $2.64 in Q4 2024 to $2.80 in Q4 2025[8] - EBITDA decreased slightly by 0.3% year-over-year, from $153.5 million in Q4 2024 to $153.0 million in Q4 2025[8] - Free cash flow for fiscal year 2025 was $465.2 million, up 34% year-over-year[33] Segment Performance - Engineered Solutions (ES) segment sales increased by 20.7% year-over-year in Q4 2025, with organic growth of 1.8%[31] - Service Center segment sales decreased by 1.5% year-over-year in Q4 2025[23] Fiscal Year 2026 Guidance - Total sales are projected to increase by 4% to 7% year-over-year[46] - Organic sales are expected to grow by 1% to 4% year-over-year[46] - EBITDA margin is guided to be between 12.2% and 12.5%[46] - Diluted EPS is projected to be in the range of $10.00 to $10.75[46]

[Financial Highlights & Performance Summary](index=1&type=section&id=Financial%20Highlights%20%26%20Performance%20Summary) This section summarizes Applied Industrial Technologies' financial performance for Q4 and full-year fiscal 2025, detailing key sales, income, and EPS metrics [Q4 Fiscal 2025 Performance](index=1&type=section&id=Q4%20Fiscal%202025%20Performance) Q4 fiscal 2025 saw net sales increase by 5.5% to $1.2 billion, driven by acquisitions, with net income rising to $107.8 million and diluted EPS to $2.80 Q4 Fiscal 2025 Key Financial Metrics (vs. Q4 FY2024) | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1.2 Billion | $1.16 Billion | +5.5% | | Net Income | $107.8 Million | $103.5 Million | +4.2% | | Diluted EPS | $2.80 | $2.64 | +6.1% | | EBITDA | $153.0 Million | $153.5 Million | -0.3% | - The **5.5% sales growth** was primarily driven by a **6.5% increase from acquisitions**, while organic daily sales grew by **0.2%**, partially offset by negative selling day and foreign currency impacts[4](index=4&type=chunk) - Pre-tax results included a LIFO expense of **$2.9 million**, significantly higher than the **$0.3 million** LIFO expense in the prior-year period[4](index=4&type=chunk) [Full-Year Fiscal 2025 Performance](index=1&type=section&id=Full-Year%20Fiscal%202025%20Performance) For fiscal year 2025, sales increased by 1.9% to $4.6 billion, with net income reaching $393.0 million and diluted EPS at $10.12, while organic daily sales declined Full-Year Fiscal 2025 Key Financial Metrics (vs. FY2024) | Metric | FY 2025 | FY 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $4.6 Billion | $4.48 Billion | +1.9% | | Net Income | $393.0 Million | $385.8 Million | +1.9% | | Diluted EPS | $10.12 | $9.83 | +2.9% | | EBITDA | $562.1 Million | $553.3 Million | +1.6% | - On an organic daily basis, full-year sales declined by **2.3%**[5](index=5&type=chunk) - Full-year pre-tax results included a LIFO expense of **$7.7 million**, compared to **$13.0 million** in the prior year[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management provides insights into fiscal 2025 performance, highlighting Q4's positive organic growth and record free cash flow, alongside the strategic outlook for fiscal 2026 [Performance Review and Business Environment](index=1&type=section&id=Performance%20Review%20and%20Business%20Environment) Management expressed satisfaction with fiscal 2025 results, noting Q4 sales and EPS exceeded expectations with a return to positive organic growth and record free cash flow generation - Q4 sales and EPS exceeded expectations, with a return to positive organic growth as underlying trends improved throughout the quarter[6](index=6&type=chunk) - The Engineered Solutions segment performed exceptionally well, capitalizing on recent order strength and firming demand[6](index=6&type=chunk) - The company generated record free cash flow in fiscal 2025, enabling meaningful capital deployment throughout the year[6](index=6&type=chunk) [Outlook and Strategic Focus](index=1&type=section&id=Outlook%20and%20Strategic%20Focus) Management is focused on accelerating growth in fiscal 2026, with positive sales momentum continuing into Q1, while maintaining a prudent outlook due to economic uncertainties - Positive momentum has sustained into the first quarter of fiscal 2026, with organic sales up an estimated **4%** year-over-year to date[6](index=6&type=chunk) - Ongoing trade and interest rate uncertainty continue to impact broader demand visibility and customer capital expenditure decisions, leading to a prudent initial outlook for FY2026[6](index=6&type=chunk)[9](index=9&type=chunk) - The company highlighted its strong five-year track record, including compounded annual growth for EBITDA and EPS of **14%** and **22%**, respectively, and significant margin expansion[9](index=9&type=chunk) [Fiscal 2026 Guidance](index=1&type=section&id=Fiscal%202026%20Guidance) This section outlines Applied Industrial Technologies' fiscal 2026 guidance, including projected sales growth, EPS, and EBITDA margins, along with key underlying assumptions [Guidance Overview](index=1&type=section&id=Guidance%20Overview) Applied Industrial Technologies projects fiscal 2026 total sales growth of 4% to 7%, with EPS between $10.00 and $10.75, and EBITDA margins of 12.2% to 12.5% Fiscal 2026 Guidance | Metric | Guidance Range | | :--- | :--- | | Total Sales Growth | +4% to +7% | | Organic Sales Growth | +1% to +4% | | EPS | $10.00 to $10.75 | | EBITDA Margins | 12.2% to 12.5% | [Key Assumptions](index=2&type=section&id=Key%20Assumptions) The fiscal 2026 guidance assumes continued economic, interest rate, and tariff-related uncertainties impacting demand through the first half, incorporating pricing and inflationary pressures but excluding future acquisitions or buybacks - Guidance assumes that ongoing economic uncertainty related to interest rates and tariffs will continue to impact demand through the first half of fiscal 2026[8](index=8&type=chunk) - The outlook incorporates expected incremental sales from pricing, as well as ongoing inflationary headwinds and investments in growth[8](index=8&type=chunk) - The guidance explicitly excludes any potential contribution from future acquisitions or share repurchases[8](index=8&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated income statements, balance sheets, and cash flow statements for the reported fiscal periods [Condensed Statements of Consolidated Income](index=3&type=section&id=Condensed%20Statements%20of%20Consolidated%20Income) For fiscal year 2025, net sales grew to $4.56 billion, gross profit increased to $1.38 billion, and net income rose to $393.0 million, resulting in a diluted EPS of $10.12 Full-Year Income Statement Highlights (in thousands) | Account | Year Ended June 30, 2025 | Year Ended June 30, 2024 | | :--- | :--- | :--- | | Net Sales | $4,563,424 | $4,479,406 | | Gross Profit | $1,383,159 | $1,336,653 | | Operating Income | $498,529 | $495,823 | | Net Income | $392,988 | $385,762 | | Diluted EPS | $10.12 | $9.83 | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $3.18 billion, driven by acquisitions, while total liabilities rose to $1.33 billion and shareholders' equity expanded to $1.84 billion Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $388,417 | $460,617 | | Total current assets | $1,747,473 | $1,769,901 | | Total Assets | $3,175,544 | $2,951,910 | | Total Liabilities | $1,331,024 | $1,263,129 | | Shareholders' Equity | $1,844,520 | $1,688,781 | [Condensed Statements of Consolidated Cash Flows](index=5&type=section&id=Condensed%20Statements%20of%20Consolidated%20Cash%20Flows) Net cash from operating activities significantly increased to $492.4 million in fiscal 2025, while cash used in investing activities rose to $318.8 million, primarily due to acquisitions, resulting in an overall cash decrease Cash Flow Highlights (in thousands) | Account | Year Ended June 30, 2025 | Year Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash provided by Operating Activities | $492,385 | $371,393 | | Net Cash used in Investing Activities | ($318,752) | ($95,407) | | Net Cash used in Financing Activities | ($245,607) | ($156,468) | | (Decrease) Increase in cash | ($72,200) | $116,581 | - Cash used for acquisitions increased significantly to **$293.4 million** in FY2025 from **$72.1 million** in FY2024[20](index=20&type=chunk) - The company more than doubled its spending on treasury share purchases, from **$73.4 million** in FY2024 to **$152.8 million** in FY2025[20](index=20&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section reconciles key non-GAAP metrics like EBITDA and Free Cash Flow to their GAAP equivalents, providing a clearer view of underlying business performance [EBITDA Reconciliation](index=6&type=section&id=EBITDA%20Reconciliation) The company reconciles Net Income to EBITDA, showing full-year fiscal 2025 EBITDA increased to $562.1 million, while Q4 fiscal 2025 EBITDA slightly decreased to $153.0 million EBITDA Reconciliation (in thousands) | Period | Net Income | EBITDA | | :--- | :--- | :--- | | Q4 FY2025 | $107,836 | $153,028 | | Q4 FY2024 | $103,491 | $153,450 | | Full-Year FY2025 | $392,988 | $562,059 | | Full-Year FY2024 | $385,762 | $553,315 | [Free Cash Flow Reconciliation](index=6&type=section&id=Free%20Cash%20Flow%20Reconciliation) Free Cash Flow, calculated as net cash from operating activities less capital expenditures, reached a record **$465.2 million** for full fiscal year 2025, a substantial increase from the prior year Free Cash Flow Reconciliation (in thousands) | Period | Net Cash from Operating Activities | Free Cash Flow | | :--- | :--- | :--- | | Q4 FY2025 | $147,048 | $138,156 | | Q4 FY2024 | $119,234 | $111,724 | | Full-Year FY2025 | $492,385 | $465,198 | | Full-Year FY2024 | $371,393 | $346,529 | [Adjusted Net Income Reconciliation (FY2024)](index=6&type=section&id=Adjusted%20Net%20Income%20Reconciliation%20(FY2024)) For fiscal year 2024, GAAP Net Income of $385.8 million was adjusted for a tax valuation allowance, resulting in a non-GAAP Adjusted Net Income of $382.7 million, or $9.75 per share - For fiscal year 2024, GAAP Net Income of **$385.8 million** was adjusted for a tax valuation allowance, resulting in a non-GAAP Adjusted Net Income of **$382.7 million**, or **$9.75 per share**[22](index=22&type=chunk)