Applied Industrial Technologies — Oct 24, 2024 release

Basis • Net Income of $92.1 Million, or $2.36 Per Share Down 1.0% YoY • EBITDA of $129.0 Million Down 3.3% YoY • Operating Cash Flow of $127.7 Million; Free Cash Flow of $122.2 Million • Increasing FY25 EPS Guidance to $9.25 to $10.00 • Reiterate FY25 Sales and EBITDA Margin Guidance CLEVELAND, OHIO (October 24, 2024) – Applied Industrial Technologies (NYSE: AIT), a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies, today reported results for its fiscal 2025 first quarter ended September 30, 2024. Net sales for the quarter of $1.1 billion increased 0.3% over the prior year. The change includes a 2.0% increase from acquisitions and a 1.6% benefit from one extra selling day, partially offset by a negative 0.3% impact from foreign currency translation. Excluding these factors, sales decreased 3.0% on an organic daily basis reflecting a 1.4% decrease in the Service Center segment and a 6.1% decrease in the Engineered Solutions segment. The Company reported net income of $92.1 million, or $2.36 per share, and EBITDA of $129.0 million. On a pre-tax basis, results include $2.0 million ($0.04 after tax per share) of LIFO expense compared to $4.6 million ($0.09 after tax per share) of LIFO expense in the prior-year period. Neil A. Schrimsher, Applied’s President & Chief Executive Officer, commented,