Applied Industrial Technologies reported fiscal fourth-quarter and full-year results ended June 30 that marked company records. Quarterly sales reached $1.4 billion, representing 10.4% year-over-year growth with organic expansion of 9.7%, the strongest pace in more than three years. Full-year net sales totaled $5.0 billion, up 8.8% with 5.4% organic growth, with the fourth quarter alone running at nearly double the full-year organic rate.
Profitability gains outpaced revenue growth. Fourth-quarter EBITDA rose 16.1% year over year to $177.6 million with EBITDA margins expanding more than 60 basis points. Net income for the quarter climbed 13.2% to $118.6 million, or $3.17 per share, while full-year earnings per share reached $10.95, up 8.2%. The company noted an estimated 7% organic sales increase in the first quarter of fiscal 2027 to date, indicating sustained demand.
Despite strong results, the company guided for markedly slower growth ahead. Fiscal 2027 guidance called for total sales growth of only 4.0% to 6.5%, well below the 10.4% quarterly pace just posted, and EBITDA margins were guided to 12.5% to 12.8%. Management cited tougher year-over-year comparisons and flagged inflation impacts, with full-year LIFO expense nearly tripling to $21.5 million from $7.7 million. Geopolitical events and trade policy dynamics were identified as risks.
The company raised intermediate targets to $7 billion in sales and 14% EBITDA margins over five years, contingent on an active acquisition pipeline. However, fiscal 2027 guidance excluded contributions from future acquisitions or share buybacks. Short interest remained minimal at 2.45% of float, while the stock traded at a forward price-to-earnings ratio of 11.53 as of September 4.
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