The strong beat and raised intermediate targets (to $7B revenue, 14% EBITDA margins) signal durable demand and operating leverage. Monitor Q1 FY2027 organic sales trends (currently estimated +7% YoY) and M&A pipeline for continued upside to guidance. The $310M debt paydown and $460.5M FCF provide significant balance sheet capacity for further capital deployment.
Price Chart
Executive Summary
Applied Industrial Technologies reported a strong fiscal Q4 2026 beat, with EPS of $3.17 (+8.7% vs consensus of $2.92) and revenue of $1.35B (+10.4% YoY, +9.7% organic). The company issued FY2027 guidance for EPS of $11.65-$12.15 and total sales growth of 4.0%-6.5%, while raising its intermediate targets to $7B in sales and 14% EBITDA margins. The record quarterly results and raised long-term targets signal accelerating operational momentum and confidence in secular growth tailwinds across both segments.
Key Financial Metrics
Key Facts
- Q4 FY2026 EPS of $3.17 beat consensus of $2.92 by 8.7%
- Q4 revenue of $1.35B grew 10.4% YoY (9.7% organic), the strongest organic growth in over three years
- Q4 EBITDA of $177.6M was up 16.1% YoY, a record quarterly level
- Full-year FY2026 revenue of $5.0B (+8.8% YoY), net income of $414.5M ($10.95 EPS)
- FY2027 guidance: EPS $11.65-$12.15, total sales growth +4.0% to +6.5%, EBITDA margins 12.5%-12.8%
- Raised intermediate targets to $7B in sales and 14% EBITDA margins over the next five years
- Engineered Solutions segment organic growth accelerated to 12.9% in Q4; Service Center grew 7.9% organically
- Free cash flow for FY2026 was $460.5M
- Debt reduced to $262.3M from $572.3M at June 30, 2025, a $310M paydown
Financial Impact
Q4 EPS beat by $0.25 (8.7%) on revenue beat of ~$60M vs consensus; FY2027 guidance midpoint of $11.90 EPS implies ~8.7% YoY growth from FY2026 actual $10.95
Risk Factors
- Macro uncertainty from geopolitical events and trade policy dynamics could slow industrial demand
- Ongoing inflationary headwinds and LIFO expense ($6.4M in Q4) pressure gross margins
- More difficult YoY comparisons as FY2027 progresses could slow reported growth rates
- Guidance does not assume future acquisitions or share buybacks, limiting upside if those are executed
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000109563-26-000031 |
| Document: ait-20260813.htm | 0000109563-26-000031 |
| Document: 0000109563-26-000031-index-headers.html | 0000109563-26-000031 |
| Document: 0000109563-26-000031-index.html | 0000109563-26-000031 |
| Document: 0000109563-26-000031.txt | 0000109563-26-000031 |
| 8-K Data (Synthetic) | 0000109563-26-000031 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 15, 2026 6w ago | Institutional Cluster | $358.78 $315.82 | ▼ −11.97% | ▼ −10.00% | $345.79 (−3.62%) |
Aug 13, 2026 7w ago | 8-K | $357.62 $323.78 | ▼ −9.46% | ▼ −7.72% | $345.79 (−3.31%) |
Jun 25, 2026 14w ago | 8-K | $337.08 $344.08 | ▲ +2.08% | ▲ +0.82% | $345.79 (+2.58%) |
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