STANDEX REPORTS FISCAL FIRST QUARTER 2027 FINANCIAL RESULTS
SALEM, N.H., Oct. 29, 2026 /PRNewswire/ -- Standex International Corporation (NYSE: SXI) today reported financial results for the first quarter of fiscal year 2027 ended September 30, 2026.
Summary Financial Results - Total
($M except EPS and Dividends)
1Q27
1Q26
4Q26
Y/Y
Q/Q
Net Sales
$232.6
$217.4
$228.3
7.0 %
1.9 %
Operating Income – GAAP
$40.4
$29.6
$37.5
36.4 %
7.6 %
Operating Income – Adjusted
$47.0
$41.6
$45.4
13.1 %
3.6 %
Operating Margin % - GAAP
17.4 %
13.6 %
16.5 %
380 bps
90 bps
Operating Margin % - Adjusted
20.2 %
19.1 %
19.9 %
110 bps
30 bps
Net Income from Continuing Ops – GAAP
$24.2
$15.8
$23.6
53.1 %
2.6 %
Net Income from Continuing Ops – Adjusted
$29.3
$24.0
$29.7
21.8 %
-1.6 %
EBITDA
$48.9
$39.7
$48.1
23.2 %
1.8 %
EBITDA margin
21.0 %
18.3 %
21.1 %
270 bps
- 10 bps
Adjusted EBITDA
$51.2
$47.1
$51.5
8.7 %
-0.6 %
Adjusted EBITDA margin
22.0 %
21.7 %
22.6 %
30 bps
- 60 bps
Diluted EPS – GAAP
$1.99
$1.25
$1.69
59.6 %
17.8 %
Diluted EPS – Adjusted
$2.41
$1.99
$2.45
21.1 %
-1.6 %
Dividends per Share
$0.34
$0.32
$0.34
6.3 %
0.0 %
Free Cash Flow
$9.1
$10.4
$35.0
-12.3 %
-74.1 %
Net Debt to EBITDA
2.0x
2.4x
1.8x
-16.7 %
11.1 %
Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "We are off to a strong start to fiscal 2027. Our strategy with multiple independent growth drivers is accelerating growth and expanding margins. We delivered record sales of $232.6 million, driven by 12.4% organic growth. Strong end market demand driven by electrification, data center and defense needs, new products from our ongoing growth investments, and a recovery in general industrial market contributed to this growth. Our Electronics segment led the way with approximately 30% organic growth and a book-to-bill of 1.23. Sales from fast growth markets were approximately $78 million this quarter, and we are now on track to exceed $315 million in fiscal year 2027. Adjusted operating margin rose 110 basis points year over year to 20.2% with margin expansion across each of our segments. We ended the quarter with net leverage of 2.0x, providing flexibility to continue investing for future growth.
Considering first quarter results and our expanding backlog, we are raising our fiscal year 2027 outlook based on multiple growth engines."
Fiscal Second Quarter 2027 Outlook
In fiscal second quarter 2027, on a year-on-year basis, the Company expects moderately higher revenue and adjusted operating margin.
On a sequential basis, the Company expects slightly higher revenue and similar adjusted operating margin.
Fiscal Year 2027 Outlook
For fiscal year 2027, the Company is raising its outlook to high-single digits total sales growth, from mid-to-high single digits previously. The Company now anticipates organic sales to increase by more than $100 million in fiscal year 2027. The Company expects higher sales and adjusted operating margin expansion to drive high teens growth in adjusted earnings per share.
The Company is on track to release more than 20 new products, which are expected to contribute more than 300 bps of incremental growth. Sales from fast growth markets are now expected to grow greater than 20% year-on-year to greater than $315 million.
First Quarter Segment Operating Performance
Electronics (60% of sales; 69% of segment adjusted operating income)
1Q27
1Q26
% Change
Electronics ($M)
Revenue
140.5
110.6
27.1 %
GAAP Operating Income
37.9
28.3
33.9 %
GAAP Operating Margin %
27.0
25.6
Adjusted Operating Income
41.3
31.9
29.6 %
Adjusted Operating Margin %
29.4
28.8
Revenue increased approximately $29.9 million or 27.1% year-on-year, reflecting organic growth of 29.5%, partially offset by a foreign currency impact of 2.4%. Organic growth was driven by sales into fast growth markets, strong general industrial markets, and increased new product sales. Adjusted operating income increased approximately $9.4 million or 29.6% year-on-year due to higher volume and pricing initiatives, partially offset by growth investments and higher variable compensation expenses.
The segment had a book-to-bill ratio of approximately 1.23 in the fiscal first quarter, with record orders of approximately $173 million.
In fiscal second quarter 2027, on a sequential basis, the Company expects slightly higher revenue and similar adjusted operating margin. On a year-on-year basis, the Company expects significantly higher revenue and slightly higher adjusted operating margin.
Aerospace & Defense (14% of sales; 10% of segment adjusted operating income)
1Q27
1Q26
% Change
Aerospace & Defense ($M)
Revenue
31.4
29.9
5.1 %
GAAP Operating Income
5.8
3.6
61.6 %
GAAP Operating Margin %
18.6
12.1
Adjusted Operating Income
6.3
5.0
24.6 %
Adjusted Operating Margin %
19.9
16.8
Revenue increased approximately $1.5 million or 5.1% year-on-year reflecting organic growth from project activity in the space and defense end markets, partially offset by project timing. Adjusted operating income increased approximately $1.2 million or 24.6% year-on-year reflecting higher volume and project mix.
In fiscal second quarter 2027, on a sequential basis, the Company expects significantly higher revenue and slightly higher adjusted operating margin.
Scientific (9% of sales; 10% of segment adjusted operating income)
1Q27
1Q26
% Change
Scientific ($M)
Revenue
19.8
19.5
1.8 %
GAAP Operating Income
5.6
4.7
19.9 %
GAAP Operating Margin %
28.3
24.1
Adjusted Operating Income
5.8
4.9
18.7 %
Adjusted Operating Margin %
29.5
25.3
Revenue increased approximately $0.3 million or 1.8% year-on-year reflecting organic growth from pricing initiatives and a slight market recovery. Adjusted operating income increased approximately $0.9 million or 18.7% year-on-year.
In fiscal second quarter 2027, on a sequential basis, the Company expects similar to slightly higher revenue and similar adjusted operating margin.
Engraving & Hydraulics (18% of sales; 11% of segment adjusted operating income)
1Q27
1Q26
% Change
Engraving & Hydraulics ($M)
Revenue
40.9
48.0
-14.9 %
GAAP Operating Income
6.4
7.4
-12.5 %
GAAP Operating Margin %
15.8
15.3
Adjusted Operating Income
6.7
7.7
-12.8 %
Adjusted Operating Margin %
16.4
16.0
Revenue decreased approximately $7.2 million or 14.9% year-on-year reflecting an organic decline of 15.7% from softness in the North American automotive market, partially offset by a foreign currency benefit of 0.7%. Adjusted operating income decreased approximately $1.0 million or 12.8% year-on-year.
In fiscal second quarter 2027, on a sequential basis, the Company expects slightly lower revenue and adjusted operating margin.
Capital Allocation
Balance Sheet and Cash Flow Highlights
Conference Call Details
Standex will host a conference call for investors tomorrow, October 30, 2026, 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 30, 2027. To listen to the teleconference playback, please dial in the U.S. (888) 660-6345 or (646) 517-4150 internationally; the passcode is 25368#. The audio playback via phone will be available through November 6, 2026. 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 four broad business segments: Electronics, Aerospace & Defense, Scientific, and Engraving & Hydraulics with operations in the United States, Europe, Canada, Japan, Singapore, Mexico, Turkey, India, and China. For additional information, visit the Company's website at https://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.
Standex International Corporation
Consolidated Statement of Operations
(unaudited)
Three Months Ended
September 30,
(In thousands, except per share data)
2026
2025
Net sales
$
232,575
217,431
Cost of sales
129,375
126,998
Gross profit
103,200
90,433
Selling, general and administrative expenses
56,176
49,832
(Gain) Loss on sale of business
900
-
Restructuring costs
1,029
5,997
Amortization of acquired intangible assets
4,302
4,537
Acquisition related costs
375
433
Income from operations
40,418
29,634
Interest expense
7,224
8,912
Other non-operating (income) expense, net
1,036
(265)
Total
8,260
8,647
Income from continuing operations before income taxes
32,158
20,987
Provision for income taxes
7,931
5,165
Net income from continuing operations
24,227
15,822
Income (loss) from discontinued operations, net of tax
(61)
(27)
Net income
24,166
15,795
Less: net income attributable to redeemable noncontrolling interest
-
739
Net income attributable to Standex International
$
24,166
$
15,056
Basic earnings per share:
Income (loss) from discontinued operations
(0.01)
-
Total income (loss) attributable to Standex International
$
2.00
$
1.26
Diluted earnings per share:
Income (loss) from discontinued operations
(0.01)
-
Total income (loss) attributable to Standex International
$
1.98
$
1.25
Average Shares Outstanding
Basic
12,069
12,013
Diluted
12,146
12,047
Standex International Corporation
Condensed Consolidated Balance Sheets
(unaudited)
September 30,
June 30,
(In thousands)
2026
2026
ASSETS
Current assets:
Cash and cash equivalents
$
116,840
178,734
Accounts receivable, net
168,595
172,896
Inventories
142,692
128,960
Prepaid expenses and other current assets
85,149
71,165
Total current assets
513,276
551,755
Property, plant, equipment, net
153,727
153,024
Intangible assets, net
194,625
199,479
Goodwill
580,782
581,553
Deferred tax asset
4,263
4,409
Operating lease right-of-use asset
42,900
45,400
Other non-current assets
50,155
50,088
Total non-current assets
1,026,452
1,033,953
Total assets
$
1,539,728
$
1,585,708
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
79,410
80,098
Accrued liabilities
65,165
131,999
Income taxes payable
16,261
17,419
Total current liabilities
160,836
229,516
Long-term debt
518,058
517,950
Operating lease long-term liabilities
32,769
35,814
Accrued pension and other non-current liabilities
50,292
47,214
Total non-current liabilities
601,119
600,978
Redeemable non-controlling interest
-
-
Stockholders' equity:
Common stock
41,976
41,976
Additional paid-in capital
130,818
127,621
Retained earnings
1,235,413
1,215,329
Accumulated other comprehensive loss
(196,691)
(199,061)
Treasury shares
(433,743)
(430,651)
Total stockholders' equity
777,773
755,214
Total liabilities, redeemable noncontrolling interest and stockholders' equity
$
1,539,728
$
1,585,708
Standex International Corporation and Subsidiaries
Statements of Consolidated Cash Flows
(unaudited)
Three Months Ended
September 30,
(In thousands)
2026
2025
Cash Flows from Operating Activities
Net income
$
24,166
15,795
Income (loss) from discontinued operations
(61)
(27)
Income from continuing operations
24,227
15,822
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
9,548
9,817
Stock-based compensation
3,534
1,774
Non-cash portion of restructuring charge
-
149
(Gain) Loss on sale of business
900
-
Contributions to defined benefit plans
(159)
(1,285)
Net changes in operating assets and liabilities
(22,380)
(9,469)
Net cash provided by operating activities - continuing operations
15,670
16,808
Net cash provided by (used in) operating activities - discontinued operations
(79)
18
Net cash provided by (used in) operating activities
15,591
16,826
Cash Flows from Investing Activities
Capital Expenditures
(6,563)
(6,420)
Other investing activities
-
59
Net cash provided by (used in) investing activities
(6,563)
(6,361)
Cash Flows from Financing Activities
Proceeds from borrowings
8,000
-
Payments of debt
(8,000)
(8,000)
Purchase of/distribution to non-controlling interests
(64,000)
(725)
Cash dividend paid
(4,029)
(3,836)
Purchase of treasury stock and other
(4,285)
(4,072)
Activity under share-based payment plans
856
1,140
Net cash provided by (used in) financing activities
(71,458)
(15,493)
Effect of exchange rate changes on cash
536
(861)
Net changes in cash and cash equivalents
(61,894)
(5,889)
Cash and cash equivalents at beginning of year
178,734
104,542
Cash and cash equivalents at end of period
$
116,840
$
98,653
Standex International Corporation
Selected Segment Data
(unaudited)
Three Months Ended
September 30,
(In thousands)
2026
2025
Net Sales
Electronics
$
140,501
$
110,553
Aerospace & Defense
31,428
29,894
Scientific
19,794
19,450
Engraving & Hydraulics
40,852
48,012
Other
-
9,522
Total
$
232,575
$
217,431
Income from operations
Electronics
$
37,866
$
28,283
Aerospace & Defense
5,844
3,617
Scientific
5,607
4,678
Engraving & Hydraulics
6,435
7,351
Other
-
2,075
Restructuring
(1,029)
(5,997)
Gain (Loss) on sale of business
(900)
-
Acquisition related costs
(375)
(433)
Corporate
(13,030)
(9,940)
Total
$
40,418
$
29,634
Standex International Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
Three Months Ended
September 30,
(In thousands, except percentages)
2026
2025
% Change
Adjusted income from operations and adjusted net income from
continuing operations:
Net Sales
$
232,575
$
217,431
7.0 %
Income from operations, as reported
$
40,418
$
29,634
36.4 %
Income from operations margin
17.4 %
13.6 %
Adjustments:
Restructuring charges
1,029
5,997
Acquisition-related costs
375
433
Amortization of acquired intangible assets
4,302
4,537
(Gain) Loss on sale of business
900
-
Purchase accounting expenses
-
993
Adjusted income from operations
$
47,024
$
41,594
13.1 %
Adjusted income from operations margin
20.2 %
19.1 %
Interest and other income (expense), net
(8,260)
(8,647)
Provision for income taxes
(7,931)
(5,165)
Discrete and other tax items
-
-
Tax impact of above adjustments
(1,565)
(3,005)
Net income from continuing operations, as adjusted
29,268
24,777
Less: net income attributable to redeemable noncontrolling interest
-
739
Net income from continuing operations attributable to Standex,
as adjusted
$
29,268
$
24,038
21.8 %
EBITDA and Adjusted EBITDA:
Net income (loss) from continuing operations, as reported
$
24,227
$
15,822
53.1 %
Net income from continuing operations margin
10.4 %
7.3 %
Add back:
Provision for income taxes
7,931
5,165
Interest expense
7,224
8,912
Depreciation and amortization
9,548
9,817
EBITDA
$
48,930
$
39,716
23.2 %
EBITDA Margin
21.0 %
18.3 %
Adjustments:
Restructuring charges
1,029
5,997
Acquisition-related costs
375
433
(Gain) loss on sale of business
900
-
Purchase accounting expenses
-
993
Adjusted EBITDA
$
51,234
$
47,139
8.7 %
Adjusted EBITDA Margin
22.0 %
21.7 %
Free operating cash flow:
Net cash provided by operating activities - continuing operations,
as reported
$
15,670
$
16,808
Less: Capital expenditures
(6,563)
(6,420)
Free cash flow from continuing operations
$
9,107
$
10,388
Standex International Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
Three Months Ended
Adjusted earnings per share from continuing operations
September 30,
2026
2025
%
Change
Diluted earnings per share from continuing operations
attributable to Standex, as reported
$
1.99
$
1.25
59.6 %
Adjustments:
Restructuring charges
0.06
0.37
Acquisition-related costs
0.02
0.02
Amortization of acquired intangible assets
0.27
0.29
(Gain) Loss on sale of business
0.06
-
Purchase accounting expenses
-
0.06
Diluted earnings per share from continuing operations
attributable to Standex, as adjusted
$
2.41
$
1.99
21.1 %
SOURCE Standex International Corporation