Applied Industrial Beats on Q1 FY27, Raises EPS Guidance to $11.70-$12.20
AIT sits 31% above its 52-week low of $238.72.
Summary
Applied Industrial reported fiscal Q1 EPS of $2.97, up 12.7%, on sales of $1.29 billion, and nudged FY27 EPS guidance to $11.70-$12.20 on a lower share count while leaving sales and margin guidance unchanged. The release also disclosed Chairman Peter Wallace's retirement and Joe Raver's appointment as independent Chairman.
Key Events · Earnings and Guidance · AIT
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Q1 FY27 EPS Up 12.7%
Net income of $110.4 million, or $2.97 per diluted share, versus $2.63 a year earlier; sales rose 7.6% to $1.29 billion and 7.1% organically.
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EPS Guidance Raised on Share Count
FY27 EPS guidance lifted to $11.70-$12.20 from $11.65-$12.15 solely on a slightly lower diluted share count after Q1 repurchases; sales growth of 4.0%-6.5% and EBITDA margin of 12.5%-12.8% were reiterated.
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Engineered Solutions Drives Growth
Engineered Solutions organic sales rose 14.1% with segment EBITDA margin of 15.1% versus 13.8%; Service Center organic growth was 3.5% and its margin slipped to 13.6% from 13.9%.
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Chairman Transition Completed
Peter C. Wallace retired from the Board at the October 20, 2026 annual meeting after 21 years of service, including 12 as Chairman; Joe A. Raver, a director since 2017, succeeds him as independent Chairman.
Analysis · AIT · Trade & Services
Applied opened fiscal 2027 with EPS of $2.97, up 12.7% year over year, on sales of $1.29 billion (+7.6%, +7.1% organic). Strength came from Engineered Solutions, where organic sales rose 14.1% and segment EBITDA margin expanded to 15.1% from 13.8%, while Service Center organic growth was a slower 3.5%. Management raised full-year EPS guidance to $11.70-$12.20 from $11.65-$12.15, but only because buybacks shrank the diluted share count — sales growth (4.0%-6.5%) and EBITDA margin (12.5%-12.8%) guidance were left unchanged. That distinction matters: the operating outlook did not improve, and the company flagged inflation and macro uncertainty while noting October organic sales up roughly 10%. Separately, Peter Wallace retired as Chairman at the October 20 annual meeting and Joe Raver took over, and the board declared a $0.51 quarterly dividend.
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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.
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At the time of this filing, AIT was trading at $312.21 on NYSE in the Trade & Services sector, with a market capitalization of approximately $11.5B. 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.