NYSE$AIT

Applied Industrial Technologies Inc · Q2 2025 earnings

Q2 2025 earnings · · Before market open · Investor relations

Briefing

Applied Industrial Technologies reported mixed results with increased EPS and EBITDA despite a slight decrease in net sales.

Applied Industrial Technologies reported a slight decrease in net sales by 0.4% year-over-year to $1.1 billion for the fiscal 2025 second quarter. However, the company's net income increased to $93.3 million, or $2.39 per share, and EBITDA rose to $135.1 million. The company is raising its fiscal year 2025 guidance to reflect the second quarter performance and the recent Hydradyne acquisition.

  • Net sales decreased 0.4% year-over-year to $1.1 billion, with a 3.4% decrease on an organic daily basis.
  • Net income increased to $93.3 million, or $2.39 per share, up 6.7% compared to the prior-year adjusted EPS.
  • EBITDA increased 3.3% year-over-year to $135.1 million.
  • Fiscal year 2025 guidance is raised to reflect Q2 performance and the Hydradyne acquisition, with EPS projected at $9.65 to $10.05 and sales growth of 1% to 3%.

Headline financials

Total Revenue

$1.07B

Previous: $1.08B-0.4%
EPS (adj)

$2.39

Previous: $2.32+3.0%
Capital Expenditures

-$5.2M

Previous: -$5.52M+5.9%
Free Cash Flow

$89.9M

Previous: $91.2M-1.4%
Net Income

$93.3M

Previous: $91.2M+2.3%
Operating Income

$121M

Previous: $115M+5.5%
Gross Profit

$328M

Previous: $317M+3.5%

Revenue & EPS history

Applied Industrial Technologies · Revenue · Quarterly

$1.07B

Q2 2025-0.4%vs Q2 2024
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Applied Industrial Technologies · $1.1B total across 2 segments · Q1 2023

  • Engineered Solutions
    $550M
  • Service Center
    $550M

Forward guidance

Applied Industrial Technologies is raising its fiscal 2025 guidance, projecting EPS of $9.65 to $10.05 and sales growth of 1% to 3%.

Tailwinds

  • Updated guidance reflects second quarter performance.
  • Guidance incorporates initial estimated contribution from the recent Hydradyne acquisition.
  • Improving industrial macro indicators are expected to drive a growth inflection in end-market demand.
  • Order momentum and business funnels are building across the technology vertical.
  • Ongoing self-help margin opportunities and balance sheet capacity support the ability to accelerate sales and earnings growth.

Headwinds

  • Guidance assumes industrial activity remains muted near term due to economic policy uncertainty.
  • A more gradual pace to interest rate cuts is expected.
  • January sales are trending down by a mid single-digit percent on an organic basis over prior-year levels.
  • Guidance incorporates ongoing economic uncertainty and potential margin pressures on muted sales trends near term.
  • Guidance includes ongoing inflationary headwinds and growth investments.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

+0.2%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+4.1%

Avg return

30 days after

39%

26 / 67 earnings

Positive

+14.6%

Q1 2017

Best reaction

-9.1%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+3.0%+1.6%+3.4%
Q2 2026-6.8%-7.5%+0.7%
Q1 2026-0.8%-1.1%-1.0%
Q3 2025-0.6%-5.6%-1.0%
Q2 2025+0.9%+2.5%-0.7%
Q1 2025+3.3%+5.2%+23.8%
Q4 2024+1.3%+0.3%+2.5%
Q3 2024-2.8%-1.5%+5.2%
Q2 2024+0.9%+3.8%+7.5%
Q1 2024-1.0%+0.8%+7.4%
Q4 2023+7.5%+7.4%+10.9%
Q3 2023+3.1%+0.9%-2.7%
Q2 2023+14.5%+16.9%+13.4%
Q1 2023+8.7%+11.1%+13.0%
Q4 2022+7.0%+9.5%+2.7%
Q3 2022+8.8%+11.0%+7.2%
Q2 2022+3.4%+3.2%+4.1%
Q1 2022-2.7%-4.4%-1.1%
Q4 2021-0.5%-1.8%-4.3%
Q3 2021+0.2%+6.0%+2.6%
Q2 2021-8.6%-3.8%+10.9%
Q1 2021+2.5%+6.9%+34.2%
Q4 2020-7.1%-8.0%-16.8%
Q3 2020-9.1%-8.5%+2.4%
Q2 2020-0.6%-1.0%+1.3%
Q1 2020+4.1%+8.9%+11.1%
Q4 2019-2.5%-0.0%+6.3%
Q3 2019-2.5%-3.5%-10.2%
Q2 2019-2.7%-2.4%-0.5%
Q1 2019-0.7%-1.2%-3.7%
Q4 2018-1.1%+2.4%+2.7%
Q3 2018-9.1%-9.2%-2.7%
Q2 2018+4.8%+4.6%+3.6%
Q1 2018-1.1%-3.9%-6.3%
Q4 2017+4.3%+2.6%+5.9%
Q3 2017-0.2%+0.5%-3.8%
Q2 2017-2.7%-5.9%-2.0%
Q1 2017+14.6%+15.8%+37.4%
Q4 2016-4.9%-5.0%-2.4%
Q3 2016-0.0%
Q2 2016+2.9%
Q1 2016+3.9%
Q4 2015+5.0%
Q3 2015+0.6%
Q2 2015-0.5%
Q1 2015-2.0%
Q4 2014-2.5%
Q3 2014-1.6%
Q2 2014+9.9%
Q1 2014-8.9%
Q4 2013-5.1%
Q3 2013+8.9%
Q2 2013+2.7%
Q1 2013-2.1%
Q4 2012+8.2%
Q3 2012-0.3%
Q2 2012-4.8%
Q1 2012-7.0%
Q4 2009-6.0%
Q4 2011-6.0%
Q3 2010-1.9%
Q3 2011-1.9%
Q2 2011-1.4%
Q1 2010-0.5%
Q2 2010-0.5%
Q4 2010-0.5%
Q1 2011-0.5%

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