Watching APPLIED INDUSTRIAL TECHNOLOGIES INC? See every signal: funding, hires, M&A, contracts, sentiment.
Book a demoChoose your planAPPLIED INDUSTRIAL TECHNOLOGIES INC
www.applied.comAI Executive Summary
AI-powered analysis of 10-K filing content
Applied Industrial Technologies reported solid fiscal 2026 results with consolidated sales of $5.0 billion (up 8.8%), operating margin expansion to 11.1% from 10.9%, and net income growth to $414.5 million from $393.0 million. Diluted EPS increased to $10.95 from $10.12, and management/auditors confirmed effective internal controls and disclosure controls with no material weaknesses. The company continues to benefit from favorable industrial demand indicators (ISM PMI at 53.3, above the 50 expansion threshold) and acquisition-driven growth alongside organic volume gains.
Red Flags Detected (3)
Working capital declined significantly by $255.0 million year-over-year, and current ratio fell from 3.3:1 to 2.6:1, indicating tighter liquidity position
Company explicitly states inability to quantify certain standard comparative metrics (volume/mix/price) due to high SKU turnover, reducing analytical transparency
Heavy reliance on acquisitions for growth (3.1 percentage points of the 8.8% sales increase) raises questions about organic growth sustainability
Key Takeaways
Sales grew 8.8% to $5.0 billion driven by acquisitions (3.1%), favorable FX (0.3%), and organic volume/price growth (5.4%)
Operating margin improved 20 basis points to 11.1%, reflecting operating leverage and pricing execution
3 more takeaways
Filing Overview
What This Means
Annual Report: Comprehensive filing covering the full fiscal year with audited financial statements.