APPLIED INDUSTRIAL TECHNOLOGIES INC Earnings Summary — Q3 2026

• Revenue grew 7.2% YoY to $1.25B, marking a accelerating trend compared to the previous quarter's 8.4% growth but remaining robust.
• Net income remained essentially flat year-over-year at $99.77M despite higher revenue, primarily due to increased selling, general, and administrative expenses.
• Operating income rose to $137.9M, a sequential increase from $123.2M in Q2 2026, showcasing positive operational momentum.
• Total operating expenses increased 7.5% YoY to $242.88M, keeping pace with revenue growth and pressuring net margins.
• Shares outstanding decreased by approximately 3% YoY, helping to defend EPS levels as the company continues buyback activities.
• The business continues its successful pivot from a parts distributor to a higher-value automation and fluid power solutions provider.
• Non-operating income segments showed a slight headwind this quarter compared to the prior year's performance.

Management remains focused on expanding EBITDA margins through a specialized 'solutions' provider strategy, targeting technical capabilities in fluid power and automation.

Stable

Revenue growth is resilient and operating leverage remains healthy, though increased costs are currently offsetting the bottom-line benefits of higher sales.

The company is positioned for continued long-term growth as it captures higher margins from advanced automation and software-driven industrial solutions, though it remains sensitive to North American industrial production cycles.