STANDEX REPORTS FISCAL FIRST QUARTER 2026 FINANCIAL RESULTS

• In Q1 FY26, Sales Increased 27.6% YOY to $217.4 Million; New Products Sales Grew >35% and Sales into Fast Growth Markets Contributed ~30% of Total Sales
• Q1 FY26 GAAP Operating Margin of 13.6%; Adjusted Operating Margin of 19.1%, Up 210 bps YOY
• Q1 FY26 Orders of ~$226 Million; Record Quarterly Order Intake
• Electronics Book to Bill of 1.06; Record Amran/Narayan Group Sales of >$35 Million
• Paid Down ~$8 Million of Debt in Q1 FY26; Net Debt to EBITDA Ratio Lowered to 2.4x
• Raising FY26 Sales Outlook to >$110 Million Over FY25; Fast Growth Market Sales to Grow >45% and Exceed $270 Million; Plan to Release >15 New Products, Contributing ~300 bps of Growth

SALEM, N.H., Oct. 30, 2025 /PRNewswire/ -- Standex International Corporation(NYSE: SXI) today reported financial results for the first quarter of fiscal year 2026 ended September 30, 2025.

Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "Following record operating performance in fiscal year 2025, our fiscal first quarter performance provided a strong start to the fiscal year, positioning us well to surpass our previously provided outlook of greater than $100 million of incremental sales in fiscal year 2026. In the fiscal first quarter, we booked orders of $226 million, the highest quarterly order intake ever. On the top-line, sales increased 27.6% year-on-year to $217.4 million, comprised of a 7% contribution from new products and 30% contribution from sales into fast growth markets. We remain on track for organic growth in fiscal year 2026, primarily driven by new product launches, strong tailwinds in the electrical grid, defense and aviation end markets, and improving general industrial markets. Sales from fast growth markets, such as electrical grid, electric and hybrid vehicles, renewable energy, commercialization of space, and defense, totaled approximately $62 million in the fiscal first quarter and are now expected to exceed $270 million in fiscal year 2026.

Adjusted gross margin expanded 90 basis points year-on-year to 42.0%, and adjusted operating margin expanded 210 basis points year-on-year to 19.1%. These results reflect the continued evolution of our portfolio and continued focus on pricing disciplines and productivity actions. We paid down approximately $8 million of debt in the fiscal first quarter, and our net leverage ratio was reduced to 2.4x." 

Fiscal Second Quarter 2026 Outlook

In fiscal second quarter 2026, on a year-on-year basis, the Company expects significantly higher revenue, driven by mid-single-digit organic growth and the contribution from recent acquisitions, and similar adjusted operating margin due to higher growth investments and less favorable product mix.

On a sequential basis, the Company expects slightly higher revenue, primarily due to increased contribution from fast growth end markets and new product sales and realization of pricing initiatives. The Company expects slightly lower to similar adjusted operating margin due to increased investments in growth and less favorable product mix.

Fiscal Year 2026 Outlook

The Company is raising its fiscal year 2026 sales outlook. In fiscal year 2026, barring any unforeseen economic, global trade, or tariffs related disruptions, the Company now expects revenue to grow by over $110 million, versus the prior outlook calling for revenue to grow by over $100 million. Revenue growth expectations are primarily driven by mid-to-high-single-digit organic growth in Electronics, double-digit organic growth in Engineering Technologies, and the contribution from recent acquisitions. The Company plans to release over fifteen new products that it expects will contribute approximately 300 bps of incremental growth. Sales from fast growth markets are now expected to grow over 45% year-on-year and exceed $270 million. The Company expects continued adjusted operating margin expansion in fiscal year 2026.

First Quarter Segment Operating Performance

Electronics (51% of sales; 61% of segment adjusted operating income)

Revenue increased approximately $32.8 million or 42.2% year-on-year, reflecting a 45.5% benefit from acquisitions, partially offset by an organic decline of 3.1% and a 0.1% impact from foreign currency. Adjusted operating income increased approximately $13.4 million or 73.0% year-on-year due to the contribution from the Amran/Narayan Group acquisition, pricing and productivity initiatives, and product mix. In addition, the Company commenced operations at its greenfield site in Croatia serving electrical grid customers in Europe.

The segment had a book-to-bill ratio of approximately 1.06 in the fiscal first quarter, with orders of approximately $117 million. Organic orders were approximately $81 million, an increase of 7.6% year-on-year.

On a sequential basis, the Company expects slightly higher revenue, reflecting higher contribution from the core business, partially offset by lower Amran/Narayan Group sales due to holidays in India. The Company expects similar adjusted operating margin sequentially, primarily driven by product mix and continued strategic growth investments.

Engineering Technologies (14% of sales; 10% of segment adjusted operating income)

Revenue increased approximately $9.4 million or 45.6% year-on-year reflecting a 32.4% benefit from the McStarlite acquisition, organic growth of 12.7%, and a foreign currency benefit of 0.5%. Organic growth was driven by strong demand across space, defense, and aviation end markets. Adjusted operating income increased approximately $1.0 million or 25.2% year-on-year reflecting the contribution from the recent acquisition and higher volume.

In fiscal second quarter 2026, on a sequential basis, the Company expects moderately higher revenue due to growth in new product sales and similar adjusted operating margin due to project mix.

Scientific (9% of sales; 10% of segment adjusted operating income)

Revenue increased approximately $1.8 million or 9.9% year-on-year reflecting an 18.6% benefit from the Custom Biogenic Systems acquisition, partially offset by an organic decline of 8.7% from lower demand at academic and research institutions that were impacted by NIH funding cuts. Adjusted operating income decreased approximately $0.1 million or 1.7% year-on-year due to an organic decline partially offset by contribution from the acquisition.

In fiscal second quarter 2026, on a sequential basis, the Company expects similar revenue and slightly lower adjusted operating margin due to higher contribution from Custom Biogenic Systems and increased tariff costs.

Engraving (16% of sales; 13% of segment adjusted operating income)

Revenue increased approximately $2.5 million or 7.4% year-on-year reflecting organic growth of 5.6% from improved demand in Europe and a foreign currency benefit of 1.9%. Adjusted operating income increased approximately $0.7 million or 10.6% year-on-year due to higher sales and the realization of previously announced productivity initiatives and restructuring actions.

During the fiscal first quarter, the Company announced the closure of four sites, optimizing the footprint in the United Kingdom, U.S., Italy, and China. These actions are projected to yield approximately $5 million in annualized cost savings once fully implemented, and the Company expects to start realizing savings during the second half of fiscal year 2026. The segment is now substantially done with restructuring activities.

In fiscal second quarter 2026, on a sequential basis, the Company expects moderately lower revenue and slightly lower adjusted operating margin due to project timing.

Specialty Solutions (10% of sales; 6% of segment adjusted operating income)

Specialty Solutions revenue increased approximately $0.5 million or 2.6% year-on-year, reflecting slightly improved demand in the Hydraulics business. Operating income decreased approximately $0.7 million or 18.6% year-on-year.

In fiscal second quarter 2026, on a sequential basis, the Company expects slightly higher revenue and operating margin.

Capital Allocation

• Interest: In fiscal second quarter 2026, the Company expects interest expense between $8 million and $8.5 million.

• Share Repurchase: During the fiscal first quarter of 2026, the Company did not repurchase shares. There was approximately $28 million remaining on the Company's current share repurchase authorization at the end of the fiscal first quarter 2026.

• Capital Expenditures: In fiscal first quarter 2026, the Company's capital expenditures were $6.4 million compared to $6.7 million in the fiscal first quarter of 2025. The Company expects fiscal year 2026 capital expenditures between $33 million and $38 million. Capital expenditures were $28.3 million in fiscal year 2025. 

• Dividend: On October 23, 2025, the Company declared a quarterly cash dividend of $0.34 per share, an approximately 6.3% year-on-year increase. The dividend is payable November 21, 2025, to shareholders of record on November 7, 2025.

Balance Sheet and Cash Flow Highlights

• Net Debt: Standex had net (cash) debt of $446.0 million on September 30, 2025, compared to ($15.6) million at the end of fiscal first quarter 2025. Net (cash) debt for the first quarter of 2026 consisted primarily of long-term debt of $544.6 million and cash and equivalents of $98.7 million.

• Cash Flow: Net cash provided by continuing operating activities for the three months ended September 30, 2025, was $16.8 million compared to $17.5 million in the prior year's quarter. Free cash flow after capital expenditures was $10.4 million compared to free cash flow after capital expenditures of $10.8 million in the fiscal first quarter of 2025. 

Conference Call Details 

Standex will host a conference call for investors tomorrow, October 31, 2025, at 8:30 a.m. ET. On the call, David Dunbar, President and CEO, and Ademir Sarcevic, CFO, will review the Company's financial results and business and operating highlights. Investors interested in listening to the webcast and viewing the slide presentation should log on to the "Investors" section of Standex's website under the subheading, "Events and Presentations," located at www.standex.com.

A replay of the webcast will also be available on the Company's website shortly after the conclusion of the presentation online through October 31, 2026. To listen to the teleconference playback, please dial in the U.S. (888) 660-6345 or (646) 517-4150 internationally; the passcode is 33178#. The audio playback via phone will be available through November 6, 2025. The webcast replay can be accessed in the "Investor Relations" section of the Company's website, located at www.standex.com.

Use of Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles ("GAAP"), the Company uses certain non-GAAP financial measures, including non-GAAP adjusted income from operations, non-GAAP adjusted net income from continuing operations, free operating cash flow, EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted EBITDA, adjusted EBITDA to net debt, and adjusted earnings per share. The attached financial tables reconcile non-GAAP measures used in this press release to the most directly comparable GAAP measures. The Company believes that the use of non-GAAP measures which exclude the impact of restructuring charges, purchase accounting, amortization from acquired intangible assets, insurance recoveries, discrete tax events, gain or loss on sale of a business unit, acquisition costs, and litigation costs help investors to obtain a better understanding of our operating results and prospects, consistent with how management measures and forecasts the Company's performance, especially when comparing such results to previous periods.  An understanding of the impact in a particular quarter of specific restructuring costs, acquisition expenses, or other gains and losses, on net income (absolute as well as on a per-share basis), operating income or EBITDA can give management and investors additional insight into core financial performance, especially when compared to quarters in which such items had a greater or lesser effect, or no effect.  Non-GAAP measures should be considered in addition to, and not as a replacement for, the corresponding GAAP measures, and may not be comparable to similarly titled measures reported by other companies.

About Standex

Standex International Corporation is a multi-industry manufacturer in five broad business segments: Electronics, Engineering Technologies, Scientific, Engraving, and Specialty Solutions with operations in the United States, Europe, Canada, Japan, Singapore, Mexico, Turkey, India, and China. For additional information, visit the Company's website at http://standex.com/.

Forward-Looking Statements

Statements contained in this Press Release that are not based on historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as "should," "could," "may," "will," "expect," "believe," "estimate," "anticipate," "intend," "continue," or similar terms or variations of those terms or the negative of those terms. There are many factors that affect the Company's business and the results of its operations and that may cause the actual results of operations in future periods to differ materially from those currently expected or anticipated. These factors include, but are not limited to: the impact of global crises or catastrophic events on employees, our supply chain, and the demand for our products and services around the world; materially adverse or unanticipated legal judgments, fines, penalties or settlements; conditions in the financial and banking markets, including fluctuations in exchange rates and the inability to repatriate foreign cash; domestic and international economic conditions, including the impact, length and degree of economic downturns on the customers and markets we serve and more specifically conditions in the electrical grid, automotive, construction, aerospace, defense, transportation, food service equipment, consumer appliance, energy, oil and gas and general industrial markets; lower-cost competition; the relative mix of products which impact margins and operating efficiencies in certain of our businesses; the impact of higher raw material and component costs, particularly steel, certain materials used in electronics parts, petroleum based products, and refrigeration components; the impact of higher transportation and logistics costs, especially with respect to transportation of goods from Asia; the impact of inflation on the costs of providing our products and services; an inability to realize the expected cost savings from restructuring activities including effective completion of plant consolidations, cost reduction efforts including procurement savings and productivity enhancements, capital management improvements, strategic capital expenditures, and the implementation of lean enterprise manufacturing techniques; the potential for losses associated with the exit from or divestiture of businesses that are no longer strategic or no longer meet our growth and return expectations; the inability to achieve the savings expected from global sourcing of raw materials and diversification efforts in emerging markets; the impact on cost structure and on economic conditions as a result of actual and threatened increases in trade tariffs; the inability to attain expected benefits from acquisitions and the inability to effectively consummate and integrate such acquisitions and achieve synergies envisioned by the Company; increased costs from acquisitions to improve and coordinate managerial, operational, financial, and administrative systems, including internal controls over financial reporting and  compliance with the Sarbanes-Oxley Act of 2002, and other costs related to such systems in connection with acquired businesses; market acceptance of our products; our ability to design, introduce and sell new products and related product components; the ability to redesign certain of our products to continue meeting evolving regulatory requirements; the impact of delays initiated by our customers; our ability to increase manufacturing production to meet demand including as a result of labor shortages; the impact on our operations of any successful cybersecurity attacks; and potential changes to future pension funding requirements. For a more comprehensive discussion of these and other factors, see the "Risk Factors" section of the Company's most recent annual report on Form 10-K filed with the SEC and available on the Company's website. In addition, any forward-looking statements represent management's estimates only as of the day made and should not be relied upon as representing management's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, the Company and management specifically disclaim any obligation to do so, even if management's estimates change.

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SOURCE Standex International Corporation