Applied Industrial Technologies Inc (NYSE: AIT) on Tuesday adjusted its fiscal 2026 earnings guidance following the first half of the year.
Oulook & Guidance
The company now expects full-year:
Diluted earnings per share in a range of $10.45 to $10.75
Sales growth of 5.5% to 7%
EBITDA margin outlook of 12.2 % to 12.4 %.
The updated guidance reflects performance through the second quarter and incorporates ongoing macroeconomic and policy uncertainty.
The guidance range assumes:
Organic sales growth of approximately 2.5% to 4%
Anticipated LIFO expense in the range of $24 million to $26 million.
The outlook does not assume contributions from future acquisitions or share repurchases. Analysts and investors will watch how industrial demand patterns and broader economic indicators influence customer capital expenditures and order activity in the second half of the company’s fiscal year.
M&A and Strategic Actions
During the second quarter, Applied Industrial Technologies announced the acquisition of Thompson Industrial Supply Inc., a Los Angeles-based provider of industrial bearings, power transmission, hydraulics, pneumatics, linear motion products, and service solutions. Thompson Industrial Supply is expected to contribute approximately $20 million in annual sales in its first year of ownership and will be integrated into Applied’s U.S. Service Center operations, expanding the company’s local service footprint and value-added offerings.
The company also continued capital deployment through ongoing share repurchases and the announced dividend increase. Share repurchase activity and dividend adjustments reflect Applied’s use of free cash flow alongside investment in bolt-on acquisitions, to allocate capital across strategic priorities.
What to Watch For
Market participants will monitor Applied Industrial’s third-quarter organic sales trends, order backlog developments across its Service Center and Engineered Solutions segments, and the impact of macroeconomic conditions on industrial maintenance, repair and operations spending. Execution on the integration of Thompson Industrial Supply and further capital deployment decisions, including any additional M&A activity, are also key areas for investors and industry analysts in the coming reporting periods.