Applied Industrial Technologies 1Q 2027: Revenue $1.291B, EPS $2.97— 10-Q Summary

Oppenheimer reiterated an Outperform rating and $390 price target for Applied Industrial Technologies (AIT) after its Q1 FY2027 results. AIT reported sales in line with expectations and EPS exceeding estimates by $0.02, raising its full-year EPS guidance. The Engineered Solutions segment grew 14% with 24% incremental EBITDA margins, while Service Center sales rose 4.2%. KeyBanc lowered its price target to $360, citing concerns over future sales growth.

Applied Industrial (AIT) raised its fiscal 2027 guidance, expecting sales growth of 4.0%–6.5%, EBITDA margin of 12.5%–12.8%, and EPS of $11.70–$12.20 post-buybacks. Q2 organic sales are projected at +6%–8% with EBITDA of 12.3%–12.5%. The company also named Joe A. Raver as independent chair, succeeding Peter K. Walls. AIT's Q1 2027 earnings call is live on TradingView.

Applied Industrial Technologies (AIT) reported Q1 revenue of $1.29B, up 7.6% YoY, and EPS of $2.97, beating estimates by 3.85%. Net sales for Engineered Solutions rose 14.1% YoY, while Service Center sales increased 4.2%. Operating income for both segments was slightly above estimates. AIT shares have fallen 3.8% in the past month, but the stock has a Zacks Rank #2 (Buy).

Applied Industrial Technologies (AIT) reported Q1 2027 earnings with moderated organic sales growth in the Service Center segment (3.5%) and higher LIFO expenses impacting margins. Engineered Solutions orders grew over 30%, with strong momentum. Guidance remains cautious due to economic uncertainties. Management expects improved margins in Q2 as LIFO impacts normalize. Service Center backlog increased 20% year-over-year. Full-year incremental margins are projected at mid- to high-teens.

Applied Industrial Technologies (AIT) reported Q1 earnings, with fluid power sales up high-teens% and flow control sales up 6%. Service Center sales rose 3.5% YoY. Gross margin was 30.4%, up 25 bps YoY. EBITDA margin increased 22 bps to 12.4%. The company maintained its fiscal 2027 sales and EBITDA margin outlook but raised EPS guidance to $11.70-$12.20. AIT repurchased 245K shares for $80M and plans acquisitions.

Applied Industrial (AIT) reported Q1 2027 organic growth of 10% on a two-year stack basis, with EBITDA margins expanding year-over-year. Engineered Solutions segment saw 14% sales growth, while Service Center segment grew 3.5%. Strong demand in metals, technology, and energy sectors drove performance, with automation and fluid power as key growth areas. Company-wide volumes rose 5% year-over-year.