Core Viewpoint - Applied Industrial Technologies reported a strong second quarter for fiscal 2026, with net sales of $1.2 billion, reflecting an 8.4% increase year-over-year, driven by acquisitions and organic growth in key segments [2][3]. Financial Performance - Net sales for the quarter reached $1.2 billion, an increase of 8.4% compared to the previous year, with a 6.0% contribution from acquisitions and a 0.2% positive impact from foreign currency translation [2]. - Organic sales growth was 2.2%, with a 2.9% increase in the Service Center segment and a 0.5% increase in the Engineered Solutions segment [2]. - The company reported net income of $95.3 million, or $2.51 per share, and EBITDA of $140.4 million [2][3]. Management Commentary - The CEO highlighted effective management through a mixed end-market backdrop and expressed optimism for stronger growth in the second half of the fiscal year, with early signs of sales momentum [3]. - The company is focusing on internal initiatives and channel execution to drive gross and EBITDA margin performance, despite challenges from LIFO expenses and prior-year comparisons [3]. Fiscal 2026 Guidance - The company adjusted its fiscal 2026 EPS guidance to a range of $10.45 to $10.75, reflecting a more optimistic outlook for sales growth of 5.5% to 7.0% [4]. - Updated guidance includes an organic sales growth expectation of 2.5% to 4.0% and an EBITDA margin of 12.2% to 12.4% [4]. Acquisition Activity - Applied Industrial Technologies announced the acquisition of Thompson Industrial Supply Inc., expected to generate annual sales of approximately $20 million in the first year [5][6]. - This acquisition is aimed at enhancing the company's service center capabilities and expanding its footprint in the industrial market [6]. Dividend Announcement - The Board of Directors approved an 11% increase in the quarterly cash dividend to $0.51 per common share, marking the 17th dividend increase since 2010 [7].

Core Viewpoint - Applied Industrial Technologies will release its fiscal 2026 second quarter results on January 27, 2026, before market opens [1] Group 1: Financial Results Announcement - The fiscal 2026 second quarter ended on December 31, 2025 [1] - A conference call will be held at 10 a.m. ET on the same day to discuss the results and outlook [2] - The call will be accessible via a live audio webcast and supplemental presentation on the Investor Relations site [2] Group 2: Company Overview - Applied Industrial Technologies is a leading value-added distributor and technical solutions provider [3] - The company specializes in industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies [3] - It serves MRO, OEM, and new system install applications across various industrial markets [3]

Core Insights - Applied Industrial Technologies reported a net sales increase of 9.2% year-over-year for the first quarter of fiscal 2026, reaching $1.2 billion, with organic sales growth of 3.0% [2][7] - The company achieved a net income of $100.8 million, or $2.63 per diluted share, reflecting an 11.4% increase compared to the previous year [2][7] - EBITDA for the quarter was reported at $146.3 million, marking a 13.4% year-over-year growth [2][7] Financial Performance - Net sales for the quarter were $1.2 billion, up 9.2% from $1.1 billion in the prior year [2][9] - Organic sales growth was 3.0%, driven by a 4.4% increase in the Service Center segment, while the Engineered Solutions segment saw a slight decline of 0.4% [2][3] - The company reported an EBITDA margin of 12.2%, an increase of nearly 50 basis points from the prior year [3] Guidance and Outlook - The company has modestly increased 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 [3][7] - Sales guidance remains at an increase of 4% to 7%, with organic growth expected to be between 1% to 4% [3] - The company anticipates gradual improvement in end-market demand, despite ongoing macroeconomic uncertainties and inflationary pressures [3] Dividend Announcement - The Board of Directors declared a quarterly cash dividend of $0.46 per common share, payable on November 28, 2025 [4]