Applied Industrial Technologies Inc (NYSE:AIT)
$ 223.06 1.14 (0.51%) Market Cap: 8.57 Bil Enterprise Value: 8.71 Bil PE Ratio: 22.69 PB Ratio: 5.07 GF Score: 84/100
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Q4 2024 Applied Industrial Technologies Inc Earnings Call Transcript

Aug 15, 2024 / 02:00PM GMT
Release Date Price: $200.03 (+0.56%)

Key Points

Positve
  • Applied Industrial Technologies Inc (AIT) delivered double-digit earnings growth in the fourth quarter despite weaker end market demand.
  • Gross margins approached 31% and EBITDA margins exceeded 13% for the first time.
  • The company saw benefits from strong channel execution and favorable mix across its Engineered Solutions segment.
  • AIT expanded gross margins by nearly 70 basis points and EBITDA margins by approximately 50 basis points for the full year.
  • The company generated record free cash flow of $346.5 million for fiscal 2024, up 9% from the prior year.
Negative
  • Organic daily sales declined 2% year-over-year in the fourth quarter.
  • Sales within the Engineered Solutions segment declined 4.6% on an organic daily basis.
  • Muted demand trends have sustained into early fiscal 2025, with organic sales through mid-August trending down mid-single digits.
  • Sales were softer across the local account base and within the consumables MSS business.
  • The company expects ongoing moderation in broader market demand through the first half of fiscal 2025.
Operator

Ladies and gentlemen, welcome to the Fiscal 2024 fourth quarter earnings call for Applied Industrial Technologies. My name is Abby, and I'll be your operator for today's call. (Operator Instructions) Please note that this conference is being recorded.

I will now turn the call over to Ryan Cieslak, Director of Investor Relations and treasury. Ryan, you may begin.

Ryan Cieslak
Applied Industrial Technologies Inc - Director - Investor Relations and Treasury

Okay. Thanks, Abby, and good morning to everyone on the call. This morning, we issued our earnings release in supplemental investor deck detailing our fourth quarter results, both of these documents are available in the Investor Relations section of applied.com.

Before we begin, just a reminder, we'll discuss our business outlook and make forward-looking statements. Our forward-looking statements are based on current expectations, subject to certain risks and uncertainties, including those detailed in our SEC filings, actual results may differ materially from those expressed in the forward

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