Applied Industrial Technologies reports Q4 EPS $2.64, consensus $2.51

Reports Q4 revenue $1.2B, consensus $1.19B. CEO Neil Schrimsher commented, “Our fiscal Q4 reflects strong execution and positive margin momentum within an ongoing muted demand backdrop. EBITDA and EPS increased a respective 10% and 13% over the prior year on total sales that were relatively unchanged. Gross margins exceeded 30% and EBITDA margins exceeded 13% for the first time, both significant milestones…Consistent with broader industrial datapoints in recent months, we saw a greater than expected slowdown in end-market demand as the quarter played out…Softer demand conditions have sustained into early fiscal 2025 with organic sales through mid-August trending down by a mid single-digit percent compared to prior-year levels…Combined with easing comparisons and our M&A pipeline, we see a path for year-over-year sales trends to gradually improve through fiscal 2025. Lastly, we are increasingly confident in the opportunity developing beyond our intermediate-term annual objectives of $5.5B in sales and 13% EBITDA margins considering fiscal 2024 margin performance, nearly $2B of current balance sheet capacity, and the increasing critical role we are playing across the North American industrial sector…We look forward to expanding on this progress in FY25 and years to come.”