Applied Industrial 10-Q: Q1 EPS $2.97, Sales $1.29B, $80M Buyback, CFO 10b5-1 Plan
AIT sits 25% above its 52-week low of $238.72 on elevated volume (2.4× avg).
Summary
Applied Industrial's fiscal Q1 10-Q confirms 7.6% sales growth to $1.29B and EPS of $2.97 with margins expanding, while operating cash flow fell on payables timing and the company bought back $80.0M of stock. The filing also discloses a new CFO 10b5-1 plan for up to 25,000 shares.
Key Events · Earnings and Guidance · AIT
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Q1 Sales Up 7.6% to $1.29B
Net sales rose to $1,291.2M from $1,199.5M, with 7.1% organic growth; Engineered Solutions jumped 14.1% to $475.8M while Service Center grew 4.2% to $815.3M.
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Margins Expand, EPS $2.97
Gross margin rose to 30.4% from 30.1% and operating margin to 11.1% from 10.8%, lifting net income 9.5% to $110.4M and diluted EPS to $2.97 from $2.63.
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$80M Buyback at $326.29 Average
The company repurchased 245,285 shares for $80.0M in the quarter, above the prior year's $53.2M, leaving 2,608,967 shares authorized under the April 2026 program.
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Operating Cash Flow Falls to $86.4M
Cash from operations dropped from $119.3M a year ago on a $45.1M accounts payable timing outflow; cash and equivalents ended at $112.2M versus $127.1M at June 30.
Analysis · AIT · Trade & Services
The 10-Q fills in the numbers behind this morning's earnings release. Sales rose 7.6% to $1.29B, including 7.1% organic growth, gross margin expanded to 30.4% from 30.1%, and operating margin reached 11.1% from 10.8%. Engineered Solutions did the heavy lifting, up 14.1% with segment operating income up $15.1M to $60.9M, while Service Center margin slipped to 12.9% from 13.3% on higher pay and receivables provisioning. The offsetting item is cash: operating cash flow fell to $86.4M from $119.3M on a $45.1M accounts payable timing swing, and the company spent $80.0M buying back 245,285 shares at an average $326.29 — above today's $297.58 quote — leaving 2.6M shares authorized. Also newly disclosed: CFO David Wells adopted a 10b5-1 plan on August 19, 2026 covering up to 25,000 shares sold from December 21, 2026 through November 17, 2027, a scheduled overhang rather than a discretionary sale.
How filings like this one have moved
In the 30 days to Oct 27, 2026, 29.9% of the 1374 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.12%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, AIT was trading at $297.58 on NYSE in the Trade & Services sector, with a market capitalization of approximately $10.9B. The 52-week trading range was $238.72 to $374.80. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.