Fluid power, power transmission and automation products distributor Applied Industrial Technologies reported its 2025 first quarter (July-September) financial results on Oct. 24.

For the three months ended Oct. 24, Applied posted total sales of $1.1 billion that were up 0.3% year-over-year. Acquisitions drove most of the increase (2.0%) and a positive 1.6% increase from an extra selling day, offset by a negative 0.3% impact from foreign currency translation.

The company’s 1Q organic sales declined 3.0% year-over-year, a further decrease from 4Q24’s 2.0% decline. Applied said the organic decline reflected a 1.4% decrease in the Service Center segment and a 6.1% decrease in its Engineered Solutions segment.

Applied’s 1Q gross margin was 29.5%, flat compared to the year prior — attributed in part to softer volumes early in the quarter.

The company’s 1Q EBITDA was $129 million, down 3.3% year-over-year. Sequentially, it was below 4Q24’s $153.5 million.

“I’m encouraged by the start to fiscal 2025,” Applied President & CEO Neil Schrimsher said in the financial release. “While the demand backdrop remains mixed, first-quarter sales exceeded our expectations and strengthened during September. Positive trends are developing across our Engineered Solutions segment including stronger orders within our Automation operations and the technology sector, while Service Center segment sales held steady as the quarter progressed.”

Applied’s 1Q operating profit of $113 million decreased from the $120.7 million of a year earlier, while net profit of $325 million remained flat compared to 1Q23.