Applied Industrial Posts Strong Q1, Updates Guidance

Applied Industrial Technologies reported $1.2 billion in revenue for the quarter ended September 2025, up about 9% year‑over‑year, and GAAP EPS of $2.63, topping consensus. Organic sales rose 3%, the strongest in two years, driven by a 4.4% gain in the Service Center segment while Engineered Solutions sales were roughly flat though orders remained positive. Margins improved with operating margin near 10.8% and EBITDA margin of 12.2% (about a 50 basis‑point expansion year‑over‑year), while free‑cash‑flow margin declined to 9.3% from 11.1%. Management described demand as “stable to slightly positive” and said internal initiatives are building momentum toward fiscal 2026 objectives; the company’s full‑year GAAP EPS guidance midpoint was $10.48. A note accompanying some earnings‑call insights says they were generated by an AI tool and carries a Seeking Alpha disclaimer about accuracy and that they do not constitute personalized investment advice.