Applied Industrial Technologies reported fiscal fourth-quarter organic sales growth of 9.7%, its fastest pace in more than three years, and raised its five-year sales target to $7 billion from $5.5 billion. Twenty of the company's top 30 end markets posted positive year-over-year sales growth, up from 17 last quarter, with automation sales jumping more than 20% year-over-year. EBITDA margin expanded more than 60 basis points to above 13%, EBITDA grew 16%, and the company generated $461 million in free cash flow for the year. However, fiscal 2027 guidance calls for sales growth of just 4% to 6.5%, citing tougher comparisons and limited visibility into trade policy, while gross margin slipped 20 basis points as LIFO expense more than doubled to $6.4 million.
Applied Industrial TechnologiesRecord quarter with strong organic growth, raised long-term sales target, and expanded EBITDA margin.
