Applied Industrial Technologies’ Acquisition Strategy: Inside the Hydradyne Power Play!

Applied Industrial Technologies reported a solid start to fiscal 2026, registering a 9.2% increase in consolidated sales over the prior year. This performance was driven by acquisition contributions and organic sales growth of 3%. Their EBITDA and EPS grew by 13% and 11%, respectively, exceeding expectations, and consolidating the company’s strategic initiatives in cost control and gross margin improvements. One of the highlights was the Service Center segment where organic sales increased by 4.4%, marking a positive shift from the previous fiscal year’s declines. The segment showed resilience with strong national account sales and improved local account activity. This was further reflected in the segment’s increased EBITDA margin of 13.9%, attributed to effective execution and cost containment. Engineered Solutions faced challenges with a slight decline in organic sales by 0.4%. However, order momentum has remained positive, suggesting potential growth ahead.