Applied Industrial Technologies finished its fiscal year with a solid performance, posting higher sales and profit in the final quarter and across the full year. The Cleveland-based distributor says it’s entering the new year with momentum, even as trade and interest rate uncertainty continue to hang over the industrial economy.
In the three months ending June 30, sales rose to $1.225 billion from $1.161 billion a year earlier, a 5.5% increase. Net income for the quarter climbed to $107.8 million from $103.5 million last year, up 5.9%, as stronger demand in the Engineered Solutions segment offset softness in the service center business.
For the full year, sales reached $4.56 billion, up 1.9% from $4.48 billion in fiscal 2024. Net income for the year totaled $39 million, compared with $385.8 million last year, an increase of 1.9%. The company credited recent acquisitions, steady performance in core operations, and record free cash flow for helping it navigate a slower industrial market.
“We ended fiscal 2025 on an encouraging note with fourth quarter sales and earnings exceeding our expectations,” said president and CEO Neil A. Schrimsher. “Positive momentum has carried into the new fiscal year, and we’re focused on accelerating growth.”
Applied is forecasting sales to grow between 4% and 7% in fiscal 2026. Schrimsher said organic sales in the first quarter so far are tracking about 4% higher than a year ago but cautioned that shifting trade policies and interest rates could influence customer spending decisions.
Applied Industrial Technologies distributes industrial motion, fluid power, flow control, and automation technologies, serving maintenance, repair, and manufacturing markets across North America and beyond.
Don’t miss any content from Distribution Strategy Group. Join our list.
