Applied Industrial (AIT) Q4 Earnings Beat, Revenues Rise Y/Y

Core Insights - Applied Industrial Technologies (AIT) reported fourth-quarter fiscal 2024 earnings of $2.64 per share, exceeding the Zacks Consensus Estimate of $2.52, with a year-over-year increase of 12.3% [1] - Net revenues reached $1.16 billion, slightly below the consensus estimate of $1.19 billion, but showed a year-over-year increase of 0.2% [1] Financial Performance - The Service Center-Based Distribution segment generated revenues of $791.4 million, accounting for 68.2% of net revenues, with a year-over-year increase of 1.2% [2] - The Engineered Solutions segment reported revenues of $369.3 million, contributing 31.8% to net revenues, but experienced a year-over-year decline of 1.8% [3] - Gross profit increased by 5.2% year over year to $356.2 million, with gross margin rising to 30.7% from 29.2% [4] Cost and Cash Flow - Cost of sales decreased by 1.8% year over year to $804.4 million, while EBITDA increased by 9.6% to $153.5 million [4] - Cash and cash equivalents at the end of fiscal 2024 were $460.6 million, up from $344 million at the end of fiscal 2023 [5] - Free cash flow increased by 9.2% year over year to $346.5 million [5] Future Guidance - For fiscal 2025, AIT anticipates adjusted earnings in the range of $9.20-$9.95 per share, with sales expected to decrease by 2.5% to increase by 2.5% year over year [6] - The company expects an EBITDA margin in the range of 12.2-12.3% [6] Industry Performance - Pentair plc reported second-quarter adjusted earnings per share of $1.22, beating estimates and improving 18% year over year [8] - Crown Holdings, Inc. reported second-quarter adjusted earnings per share of $1.81, also exceeding estimates, but net sales decreased by 2.2% year over year [8]