Applied Industrial Technologies (AIT) delivered a: (1) modest top-line performance in Q1 FY2025 with consolidated revenue of $1.099B, up 0.3% year-over-year on an accounting basis, while organic daily sales declined 3% (driven by weaker Machinery, Oil & Gas, and Pulp & Paper end-markets) offset by acquisitions and an extra reporting day; (2) margin dynamics that align with expectations for the period, including gross margin of 29.6% (down 10 bps YoY, aided by a 24 bps LIFO tailwind) and EBITDA margin of 11.7% (down 44 bps YoY) amid mix effects and growth investments; (3) robust free cash flow generation and a strengthened balance sheet with $538.5M cash and a net debt position of approximately $58.8M, underscoring substantial liquidity to fund bolt-on acquisitions and organic investments; (4) strategic focus on Engineered Solutions (ES) and automation technologies as the growth engine, supported by a multi-year M&A pipeline and a disciplined capital allocation framework including buybacks and dividends; (5) raised full-year EPS guidance to $9.25–$10.00, while maintaining sales organic daily guidance of down 2.5% to up 2.5%, signaling a cautious but constructive view on the back half of fiscal 2025 as demand stabilizes. Overall, management communicated a measured stance on near-term demand volatility while highlighting meaningful long-term tailwinds from reshoring, infrastructure investment, and the acceleration of automation adoption.