Applied Industrial Technologies Reports Fourth Quarter and FullYear Financial Results for Fiscal Yea
Intellectia.AI2024-08-15
Applied Industrial Technologies Reports Fourth Quarter and Full-Year Financial Results for Fiscal Year 2024
Applied Industrial Technologies (NYSE: AIT), a leading distributor and technical solutions provider, reported its financial results for the fiscal fourth quarter and full year ended June 30, 2024.
Key Financial Metrics:
Quarterly Metrics
| Metric | Q4 2024 | Q4 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $1.2 billion | $1.2 billion | +0.2% |
| Earnings Per Share (EPS) | $2.64 | Not provided | +12.6% |
| EBITDA | $153.5 million | Not provided | +9.6% |
Full-Year Metrics
| Metric | FY 2024 | FY 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $4.5 billion | $4.5 billion | +1.5% |
| Net Income | $385.8 million | Not provided | Not provided |
| Earnings Per Share (EPS) | $9.83 | Not provided | Not provided |
| Adjusted Net Income | $382.7 million | Not provided | Up 11.4% |
| EBITDA | $553.3 million | Not provided | Up 5.5% |
Interpretation: Applied Industrial Technologies reported a slight increase in net sales for both the quarter and the full year, with notable increases in EBITDA and earnings per share, reflecting strong performance despite a challenging economic environment.
Revenue Performance by Major Segments:
| Segment | Q4 2024 Revenue | YoY Change |
|---|---|---|
| Service Center | Not provided | -0.7% |
| Engineered Solutions | Not provided | -4.6% |
Interpretation: The Engineered Solutions segment saw a significant reduction in revenue, which is attributed to ongoing inventory destocking and reduced production amongst OEM customers. The Service Center segment also experienced a slight decline.
Key Operational Data:
No additional key operational data was provided in the report.
Summary of Comments from Company's Officers:
CEO Neil A. Schrimsher highlighted strong execution and margin improvements, with gross and EBITDA margins exceeding 30% and 13% respectively for the first time. He acknowledged a slowdown in end-market demand but remained optimistic about potential catalysts in fiscal 2025 including industrial production re-acceleration and continued benefits from secular tailwinds.
Announced Dividends or Share Repurchase Program:
No specific information on dividends or share repurchase programs was mentioned.
Forward Guidance:
Applied Industrial Technologies established fiscal 2025 EPS guidance in the range of $9.20 to $9.95, based on assumptions for total sales ranging from -2.5% to +2.5%. This guidance accounts for potential economic uncertainties and expects demand stabilization in the latter half of 2025.
Stock Price Movement After Earnings Release:
Post-earnings release, Applied Industrial Technologies' stock price experienced a slight decline of approximately 0.46%.
The company anticipates a prudent approach toward fiscal 2025 amidst economic uncertainty, with expectations of a mixed demand backdrop but potential for long-term growth and value creation.
For further details, visit the Applied Industrial Technologies Investor Relations site .
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