Here's Why Investors Should Retain Applied Industrial Stock in Portfolio

Core Insights - Applied Industrial Technologies, Inc. (AIT) is positioned for growth due to strong demand in technology, food & beverage, pulp & paper, and oil & gas markets [1] - The Engineered Solutions segment is benefiting from increased investments in datacenter infrastructure and semiconductor manufacturing [1] Segment Performance - The Engineered Solutions segment's organic revenues increased by 1.8% year over year in Q4 FY25 [2] - Acquisitions of IRIS Factory Automation and Hydradyne contributed positively, adding 6.5% to sales [3][8] - Service Center revenues declined by 1.5% due to reduced maintenance, repair, and operations spending, particularly in international markets [9] Financial Performance - AIT paid out dividends totaling $63.7 million in fiscal 2025, a 14% increase year over year, and raised its quarterly dividend rate by 24% in January 2025 [4] - The company's cost of sales rose by 1.2% year over year, while SG&A expenses increased by 5.2%, reaching 19.4% of total revenues [10] Market Position - AIT's stock has gained 15.9% over the past year, outperforming the industry growth of 3.6% [7]