Applied Industrial Technologies reported higher sales and profit for its fiscal 2026 second quarter, with gains driven by acquisitions and modest improvement in underlying demand.
The industrial distributor said net sales for the quarter ending Dec. 31 rose 8.4% to $1.16 billion, compared with $1.07 billion a year earlier. Acquisitions accounted for most of the increase, while sales excluding acquisitions and currency effects grew 2.2% from the prior year.
Net income for the quarter increased to $95.3 million, up 2.2% from $93.3 million a year earlier. Earnings per diluted share rose 5.0% to $2.51, compared with $2.39 in the same quarter last year.
Sales growth was modest across the company’s operating units. Sales at service centers rose 2.9% on a comparable basis, while engineered solutions sales increased 0.5%.
For the first six months of fiscal 2026, Applied reported net sales of $2.36 billion, up 8.8% from $2.17 billion a year earlier. Net income for the period rose 5.8% to $196.2 million, compared with $185.4 million in the prior year.
Applied also announced the acquisition of Thompson Industrial Supply Inc., a distributor based in Southern California that supplies bearings, power transmission, hydraulics, and related products. The company said Thompson is expected to generate about $20 million in annual sales during its first year under Applied’s ownership.
Looking ahead, Applied updated its full-year outlook for fiscal 2026, citing continued uncertainty in industrial markets. The company now expects sales to rise 5.5% to 7.0% for the year, reflecting both recent acquisitions and moderate growth in customer demand.
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