Applied Industrial Technologies, Inc. · NYSE:AIT
Applied Industrial Technologies — Q4 2025 Earnings Presentation
18 slides from Applied Industrial Technologies's earnings presentation, Aug 14, 2025
Slide 1: Fiscal Q4 2025 Recap
Fiscal Q4 2025 Recap August 14, 2025 - The Premier Provider of Advanced Motion, Power, Control, & Automation Solutions to Critical Industrial Infrastructure -
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements that are forward-looking, as that term is defined by the Securities and Exchange Commission in its rules, regulations and releases. Applied intends that such forward-looking statements be subject to the safe harbors created thereby. Forward
Slide 3: Primary Messages from Management
Primary Messages from Management • F4Q25 sales and EPS exceeded our expectations on solid execution within a muted yet stable end-market backdrop, combined with emerging growth tailwinds tied to our industry position and business pipeline. • Organic daily sales returned to positive YoY growth for th
Slide 4: Fiscal Q4 2025 Key Financial Highlights
Fiscal Q4 2025 Key Financial Highlights • Sales up 5.5% YoY Sales, $ in millions o Up 0.2% on an organic daily basis $1,225 5.5% o Acquisitions +6.5%, currency -0.4%, selling days -0.8% $1,161 0.2% Org/Day • Net Income of $107.8M and EPS of $2.80 o EPS up 5.9% YoY o Includes $2.9M pre-tax ($0.06/sh)
Slide 5: Organic Sales Growth Trend and Investor Discussion Points
Organic Sales Growth Trend and Investor Discussion Points Year-over-Year Organic % Change in Sales Per Day F4Q25 Sales Growth Detail Fiscal Quarters • Up 0.2% YoY on an organic daily basis vs. down 3.1% YoY in F3Q25 and guidance of down mid to low-single digits 21.1% 18.7% 19.4% • 2-year stack trend
Slide 6: Investor Topic Update & Details
Other Investor Discussion Points Investor Topic Update & Details End-market demand remains mixed given ongoing macro/tariff uncertainty but showing some Underlying Demand incremental positive signs including slightly stronger capital maintenance and project activity Price contribution was over 100 b
Slide 7: Fiscal Q4 2025 Margin and Expense Highlights
Fiscal Q4 2025 Margin and Expense Highlights Gross Profit, SD&A, and EBITDA Metrics • Gross margin down 9 bps YoY LIFO Impact o Includes an unfavorable 21 bps YoY impact from LIFO expense, $ in millions Q4 25 Q4 24 Chg YoY YoY primarily reflecting a layer liquidation benefit in the prior-year period
Slide 8: Segment Results – Service Center
Segment Results – Service Center Segment Overview: Representing 66% of fiscal 2025 sales - the segment Service Center Segment Sales, in Millions includes our core distribution operations including ~400 local service centers across North America, Australia, and New Zealand, primarily focused on our t
Slide 9: Segment Results – Engineered Solutions
Segment Results – Engineered Solutions Segment Overview: Representing 34% of fiscal 2025 sales - the segment Engineered Solutions Segment Sales, in Millions consists of 1) our Fluid Power network specializing in distributing, engineering, designing, integrating, and repairing hydraulic and pneumatic
Slide 10: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet Free Cash Flow (in Millions) - Fiscal Year Period • F4Q25 cash from operations of $147.0M; free cash of $138.2M $465.2 o Free cash at 128% of net income in F4Q25 o Full-year FY25 free cash of $465.2M up 34%, and 118% of net income $317.5 $346.5 o YoY cash flow growth prim
Slide 11: Capital Allocation
Capital Allocation Capital Allocation Priorities & Strategy Capital Deployed Last 5 Years (Capex, M&A, Share Repurchases, & Dividends) Pursue greenfield expansion while optimizing customer service Organic Growth capabilities and operating efficiencies through technology, working capital, and system
Slide 12: Fiscal 2026 Guidance and Outlook Assumptions
Fiscal 2026 Guidance and Outlook Assumptions Fiscal 2026 Guidance Guidance Assumptions: • Assumes ongoing demand headwinds from macro and tariff related Total Sales - YoY % chg 4% - 7% uncertainty primarily through the first half of the year Organic Sales - YoY % chg 1% - 4% • Approximately 150 to 2
Slide 13: Appendix: Number of Selling Days by Fiscal Quarter and Full Year
Appendix: Number of Selling Days by Fiscal Quarter and Full Year Fiscal Period Q1 Q2 Q3 Q4 Year 2024 63.0 61.0 63.5 64.0 251.5 2025 64.0 62.0 63.0 63.5 252.5 2026 64.0 62.0 63.0 63.5 252.5 2027 64.0 62.0 62.5 64.0 252.5 13
Slide 14: Appendix: Net Sales, Operating Income, EBITDA, & EBITDA Margin by Segment
Appendix: Net Sales, Operating Income, EBITDA, & EBITDA Margin by Segment Three Months Ended Jun 30 (dollar amount in thousands) Q4 FY24 Q4 FY25 Service Center Segment: Net sales $ 791,393 $ 779,180 Operating income 110,618 101,287 Depreciation and amortization of property 4,478 4,213 Amortization o
Slide 15: Appendix: Reconciliation of EBITDA
Appendix: Reconciliation of EBITDA Three Months Ended Jun 30 (dollar amount in thousands) Q4 FY24 Q4 FY25 Net Income $ 103,491 $ 107,836 Interest (income) expense, net (671) 1,322 Income tax expense 37,444 27,208 Depreciation and amortization of property 5,864 6,466 Amortization of intangibles 7,322
Slide 16: Appendix: Reconciliation of EBITDA Margin
Appendix: Reconciliation of EBITDA Margin Three Months Ended Jun 30 (dollar amount in thousands) Q4 FY24 Q4 FY25 Net Sales $ 1,160,675 $ 1,224,730 EBITDA 153,450 153,028 EBITDA Margin 13.2% 12.5% 16
Slide 17: Appendix: Reconciliation of Free Cash Flow
Appendix: Reconciliation of Free Cash Flow Three Months Ended June 30 (dollar amount in thousands) Q4 FY19 Q4 FY20 Q4 FY21 Q4 FY22 Q4 FY23 Q4 FY24 Q4 FY25 Cash provided by Operating Activities $ 103,435 $ 127,090 $ 38,288 $ 53,747 $ 179,939 $ 119,234 $ 147,048 Capital Expenditures (7,259) (3,892) (3
Slide 18: Appendix: Reconciliation of Net Leverage Ratio
Appendix: Reconciliation of Net Leverage Ratio (dollar amount in thousands) Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Net Income $ 92,215 $ 93,826 $ 91,228 $ 97,217 $ 103,491 $ 92,063 $ 93,290 $ 99,799 $ 107,836 Interest expense (income), net 4,201 1,320 1,917 265 (671)
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