FX.co ★ Applied Industrial Raises FY25 Outlook; Boosts Dividend 24% - Update

Applied Industrial Technologies, Inc. (AIT) announced its second-quarter financial results on Wednesday and subsequently increased its adjusted earnings and sales growth forecast for the full fiscal year 2025.

For the fiscal year 2025, AIT now anticipates adjusted earnings between $9.65 and $10.05 per share, with sales growth estimated at 1 to 3 percent. Organic sales are expected to decline by 3 to 1 percent.

Earlier projections from the company had pegged adjusted earnings between $9.25 and $10.00 per share, with sales ranging from a 2.5 percent decline to a 2.5 percent growth, and organic sales between a 4 percent decline and a 1 percent increase.

According to estimates from eight analysts, AIT is expected to report earnings of $9.79 per share with revenue growth at 1.42 percent, approximately $4.54 billion for the year. Analysts' estimates generally do not account for special items.

The revised guidance reflects an initial contribution from the recent acquisition of Hydradyne, which was finalized on December 31, 2024. The updated projection also considers ongoing economic uncertainties, potential margin pressures due to subdued sales trends in the near term, inflationary challenges, and the company's growth investments.

Additionally, AIT declared a 24 percent increase in its quarterly cash dividend, raising it to $0.46 per common share. This dividend is scheduled to be paid on February 28, 2025, to shareholders who are recorded as of February 14, 2025.