Applied Industrial Technologies, Inc. (AIT) reported a 4.2% year-over-year increase in organic sales for its Service Center Based Distribution segment during the third quarter of fiscal 2026, ending March 31, 2026. U.S. organic sales grew in the high single digits, supported by successful cross-selling initiatives. The Engineered Solutions segment saw a 9.3% rise in organic sales, bolstered by volume gains in fluid power and automation operations.
During the first nine months of fiscal 2026, AIT paid out $53.7 million in dividends, a 15.2% increase from the previous year, and repurchased shares worth $236.4 million. The company anticipates LIFO expenses to increase further, impacting profit margins, even as sales continue to rise. The overall cost of sales climbed 8.1% year-over-year, highlighting the challenges posed by rising expenses and supply chain constraints.
Notably, AIT’s acquisition of Thompson Industrial Supply in January 2026 is projected to add approximately $20 million in annual sales in its first year, further enhancing its service offerings.
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