Applied Industrial Technologies (NYSE:AIT) today announced its financial results for its fiscal 2026 third quarter ended March 31, 2026, showcasing the strength of its technical solutions and a stabilizing industrial backdrop.
The Cleveland-based distributor posted net sales of $1.3 billion, a 7.3% increase compared to the prior-year period.
The quarter’s growth was largely organic, with sales increasing 6% when excluding the impacts of acquisitions and favorable foreign currency translation.
Performance was particularly strong in the Engineered Solutions segment, which saw organic sales jump 9.3%, reflecting deep demand for automation and flow control technologies.
The Service Center segment also contributed steadily, posting a 4.2% organic increase.
Applied reported net income of $99.8 million, or $2.65 per diluted share.
These results were achieved despite a few non-routine headwinds, including $1.7 million ($0.05 per share) in discrete tax expenses related to prior-year adjustments and a higher LIFO (last-in, first-out) expense of $5.6 million compared to $2.2 million in the previous year.
EBITDA for the quarter stood at a healthy $153.9 million.
Meanwhile, the company's balance sheet remains a strategic asset, providing the flexibility to continue its disciplined approach to M&A and capital returns.
During the quarter, Applied benefited from a 0.5% growth contribution from recent acquisitions, consistent with its strategy of "bolting on" technical distributors in the motion and fluid power space.