Applied Industrial Technologies(US:AIT)2025-10-28 13:07Financial Performance - Net sales for the first quarter reached $1.2 billion, an increase of 9.2% year-over-year, with organic sales growth of 3.0%[3] - Net income was reported at $100.8 million, or $2.63 per diluted share, reflecting an 11.4% increase compared to the prior year[5] - EBITDA for the quarter was $146.3 million, up 13.4% year-over-year, resulting in EBITDA margins of 12.2%[5][4] - Operating cash flow for the quarter was $119.3 million, with free cash flow of $112.0 million[5] - Free Cash Flow for Q3 2025 was $112.016 million, down from $122.198 million in Q3 2024, indicating a decrease of around 8.3%[22] Guidance and Projections - The company is increasing its fiscal 2026 EPS guidance to a range of $10.10 to $10.85, up from the previous range of $10.00 to $10.75[6] - Fiscal 2026 sales guidance remains at an increase of 4% to 7%, with organic growth expected to be between 1% and 4%[6] Segment Performance - The Service Center segment saw a 4.4% increase in organic sales, while the Engineered Solutions segment experienced a 0.4% decrease[3] Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.46 per common share, payable on November 28, 2025[7] M&A and Business Development - The M&A pipeline remains active, with ongoing initiatives aimed at expanding business opportunities[4] Market Sentiment and Investment - Customer sentiment is gradually improving, with expectations for capital investment in the North American industrial sector to increase in the coming quarters[4] Cash Flow and Capital Expenditures - Net Cash provided by Operating Activities for Q3 2025 was $119.317 million, a decrease from $127.747 million in Q3 2024, representing a decline of approximately 5.6%[22] - Capital expenditures increased to $7.301 million in Q3 2025 from $5.549 million in Q3 2024, reflecting a rise of about 31.6%[22]