Applied Industrial Technologies(US:AIT)2025-05-01 13:27Financial Performance - Net sales for Q3 2025 were $1.2 billion, an increase of 1.8% year-over-year, with a 6.6% contribution from acquisitions[4] - Net income reached $99.8 million, or $2.57 per share, reflecting a 3.7% increase compared to the previous year[6] - EBITDA for the quarter was $144.9 million, up 6.8% year-over-year, with EBITDA margins expanding due to effective cost management[6] - The company reported a 3.1% organic sales decline, with expectations of continued end-market weakness in the near term[5] - Net income for the nine months ended March 31, 2025, was $285,152,000, compared to $282,271,000 for the same period in 2024, reflecting a slight increase[24] - EBITDA for the nine months ended March 31, 2025, was $409,031,000, compared to $399,865,000 for the same period in 2024, showing a growth of approximately 2.8%[27] - The company reported a diluted adjusted net income per share of $7.10 for the nine months ended March 31, 2024, compared to $7.18 for the same period in 2023[26] Cash Flow and Dividends - Operating cash flow was $122.5 million, and free cash flow increased by 50% year-over-year to $114.9 million[6] - Net cash provided by operating activities increased to $345,337,000 for the nine months ended March 31, 2025, from $252,159,000 in 2024, representing a growth of approximately 37%[24] - Free cash flow for the nine months ended March 31, 2025, was $327,042,000, up from $234,805,000 in 2024, indicating an increase of about 39%[28] - The company paid dividends totaling $46,159,000 in the nine months ended March 31, 2025, compared to $41,524,000 in 2024, marking an increase of approximately 11%[24] - A quarterly cash dividend of $0.46 per common share was declared, payable on May 30, 2025[11] Acquisitions and Capital Expenditures - The company announced the acquisition of IRIS Factory Automation, expected to close soon, enhancing its automation platform[8] - The company incurred $273,312,000 in cash outflows for the acquisition of businesses during the nine months ended March 31, 2025, significantly higher than $21,440,000 in 2024[24] - Capital expenditures for the nine months ended March 31, 2025, were $18,295,000, compared to $17,354,000 in 2024, reflecting a slight increase[24] Guidance and Market Conditions - The company updated its fiscal 2025 guidance, projecting EPS of $9.85 to $10.00, down from the previous range of $9.65 to $10.05[7] - The total assets increased to $3.12 billion as of March 31, 2025, compared to $2.95 billion a year earlier[22] - The tax rate for adjusted net income was 21.8% for the nine months ended March 31, 2024[26] - The effect of exchange rate changes resulted in a cash decrease of $5,361,000 during the nine months ended March 31, 2025[24] Share Repurchase - A new share repurchase authorization was announced for up to 1.5 million shares, replacing the prior plan[10]