AIT delivered a low-, yet positive, revenue trajectory in Q4 2024, underscored by meaningful margin expansion and strong cash generation amid a choppy end-market backdrop. Consolidated revenue rose 0.2% year-over-year to $1.1607 billion, with gross margins improving to 29.56% and EBITDA margins surpassing 13% for the first time in the period. The company benefited from a normalization of LIFO expense, favorable mix from Engineered Solutions, and disciplined cost management that supported double-digit earnings growth for the year. Management highlighted ongoing margin expansion versus prior cycles and reinforced the durability of the company’s operating model through a period of end-market softness, driven in part by higher interest rate uncertainty and industry defensives like MRO spend in the Service Center channel. Free cash flow (FCF) was robust at $111.7 million for the quarter and $346.5 million for the full year, with cash position strong at ~$461 million and net leverage at ~0.2x EBITDA, providing substantial firepower for acquisitions and buybacks.
Looking ahead to fiscal 2025, management issued guidance of $9.20–$9.95 per share with organic sales down 4% to up 1% and EBITDA margins of 12.1%–12.3%. The midpoint implies a softer first half followed by stabilization and a return to growth in the fourth quarter, reflecting continued macro uncertainty and a plan to reaccelerate as demand normalizes. The outlook explicitly contemplates near-term margin headwinds from expense deleveraging on lower volumes and ongoing inflationary pressures, while expecting improving contribution from Engineered Solutions and durable cash generation to support capital allocation (Capex $28–$30 million in 2025). The long‑term growth thesis remains anchored by strategic M&A, an expanding solution portfolio, and secular megatrends in North American manufacturing and decarbonization.