Chris Dankert
Analyst, Loop Capital Markets
Replay available
Applied Industrial Technologies, Inc. (AIT) Q2 2026 Earnings Call
Applied Industrial Technologies, Inc. (NYSE: AIT) Q2 2026 earnings conference call, held 2026-01-27. Replay captured from the company's public earnings webcast.
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Investor webinar replay
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Replay transcript excerpt
WEBVTT 00:00:00.031 -- 00:00:05.456 Overall, we continue to effectively manage through a mixed yet evolving in-market 00:00:05.456 -- 00:00:10.521 backdrop during the second quarter. Sales and EBITDA margins were in line 00:00:10.521 -- 00:00:15.626 with guidance despite higher than expected LIFO expense and 00:00:15.626 -- 00:00:19.549 seasonally weak sales activity in December. 00:00:19.549 -- 00:00:25.275 Our team responded well with strong underlying margin performance and cost control 00:00:25.275 -- 00:00:30.388 while continuing to expand backlogs and business funnels supporting a stronger 00:00:30.388 -- 00:00:34.813 sales trajectory into calendar 2026. We 00:00:34.813 -- 00:00:39.879 also remain active with capital deployment across many fronts, supported by our free 00:00:39.879 -- 00:00:44.182 cash generation and balance sheet capacity. 00:00:44.544 -- 00:00:49.230 As it relates to sales trends in the quarter, reported year-over-year organic growth 00:00:49.230 -- 00:00:55.027 of 2.2% was modestly below last quarter of 3%. 00:00:55.027 -- 00:01:00.255 Underlying sales growth showed signs of strengthening as the quarter progressed, 00:01:00.255 -- 00:01:05.744 with November sales up by a nearly mid single-digit percent organically over 00:01:05.744 -- 00:01:10.773 the prior year, following a low single-digit percent increase 00:01:10.773 -- 00:01:12.596 in October. 00:01:12.596 -- 00:01:17.744 However, growth moderated in December with average daily sales rates notably 00:01:17.744 -- 00:01:21.132 below normal seasonal patterns. 00:01:21.132 -- 00:01:26.578 While monthly sales trends have been choppy for most of the year, we do not view December's 00:01:26.578 -- 00:01:31.683 weakness as indicative of the underlying sales trend developing across 00:01:31.683...