Core Insights - Applied Industrial Technologies (AIT) reported first-quarter fiscal 2026 earnings of $2.63 per share, exceeding the Zacks Consensus Estimate of $2.47, with a year-over-year increase of 11.4% [1] - Net revenues reached $1.20 billion, surpassing the consensus estimate of $1.18 billion, reflecting a 9.2% year-over-year growth, driven by acquisitions contributing 6.3% and organic sales increasing by 3% [1][8] Segmental Performance - The Service Center-Based Distribution segment generated revenues of $782.5 million, accounting for 65.3% of net revenues, with a year-over-year increase of 4.4%, surpassing the estimate of $767.9 million [2] - The Engineered Solutions segment reported revenues of $417.0 million, contributing 34.7% to net revenues, with a significant year-over-year increase of 19.4%, aided by acquisitions which boosted sales by 19.8, despite a slight organic sales decline of 0.4% [3] Financial Metrics - AIT's cost of sales rose by 8.3% year over year to $838.1 million, while gross profit increased by 11.2% to $361.4 million, resulting in a gross margin improvement to 30.1% from 29.6% [4] - EBITDA for the quarter was $146.3 million, reflecting a 13.4% increase [4] Balance Sheet and Cash Flow - As of the end of the first three months of fiscal 2026, AIT had cash and cash equivalents of $418.7 million, up from $388.4 million at the end of fiscal 2025, with long-term debt remaining stable at $572.3 million [5] - The company generated net cash of $119.3 million from operating activities, a decrease of 6.6% year over year, while capital expenditures increased by 31.6% to $7.3 million [6] Dividend Information - AIT's board approved a quarterly cash dividend of 46 cents per share, payable on November 28, 2025, to shareholders of record as of November 14 [7] Guidance - For fiscal 2026, AIT anticipates adjusted earnings in the range of $10.10-$10.85 per share, an increase from the previous forecast of $10.00-$10.75, with expected sales growth of 4-7% year over year [9]