STANDEX REPORTS FISCAL SECOND QUARTER 2026 FINANCIAL RESULTS

SALEM, N.H., Jan. 29, 2026 /PRNewswire/ -- Standex International Corporation (NYSE: SXI) today reported financial results for the second quarter of fiscal year 2026 ended December 31, 2025.

Summary Financial Results - Total

($M except EPS and Dividends)

2Q26

2Q25

1Q26

Y/Y

Q/Q

Net Sales

$221.3

$189.8

$217.4

16.6 %

1.8 %

Operating Income – GAAP

$35.6

$8.5

$29.6

320.3 %

20.0 %

Operating Income – Adjusted

$42.2

$35.5

$41.6

18.9 %

1.4 %

Operating Margin % - GAAP

16.1 %

4.5 %

13.6 %

+ 1160 bps

+ 250 bps

Operating Margin % - Adjusted

19.0 %

18.7 %

19.1 %

+ 30 bps

- 10 bps

Net Income from Continuing Ops – GAAP

$20.6

$1.3

$15.8

1,501.9 %

30.4 %

Net Income from Continuing Ops – Adjusted

$25.1

$22.9

$24.0

9.5 %

4.3 %

EBITDA

$45.1

$16.1

$39.7

180.3 %

13.5 %

EBITDA margin

20.4 %

8.5 %

18.3 %

+ 1190 bps

+ 210 bps

Adjusted EBITDA

$47.2

$39.6

$47.1

19.2 %

0.2 %

Adjusted EBITDA margin

21.3 %

20.9 %

21.7 %

+ 40 bps

- 40 bps

Diluted EPS – GAAP

$0.17

$0.07

$1.25

145.6 %

-86.4 %

Diluted EPS – Adjusted

$2.08

$1.91

$1.99

8.9 %

4.5 %

Dividends per Share

$0.34

$0.32

6.3 %

Free Cash Flow

$13.0

$2.2

$10.4

506.5 %

25.5 %

Net Debt to EBITDA

2.3x

2.9x

2.4x

-20.8 %

-5.8 %

*Adjusted operating income, adjusted operating margin, and adjusted EPS for all periods now also exclude amortization expense from acquired intangible assets.

Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "We delivered strong top-line results and operating performance in the fiscal second quarter. Our sales increased 16.6% year-on-year to $221.3 million driven by 7% contribution from new products and 28% contribution from sales into fast growth markets. We recorded 6.4% organic growth and book to bill of 1.04, led by our Electronics segment which grew 11.1% organically with book to bill of 1.08. We are well positioned to deliver mid-to-high single digit organic growth in the fiscal third quarter, 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 totaled approximately $61 million in the fiscal second quarter and are expected to exceed $270 million in fiscal year 2026.

Adjusted operating margin expanded 30 basis points year-on-year to 19.0%. We paid down approximately $10 million of debt in the fiscal second quarter, and our net leverage ratio was reduced to 2.3x."

Fiscal Third Quarter 2026 Outlook

In fiscal third quarter 2026, on a year-on-year basis, the Company expects significantly higher revenue, driven by mid-to- high single digit organic growth from higher sales into fast growth end markets and increased new product sales, and slightly higher adjusted operating margin due to higher volume and favorable product mix, partially offset by growth investments and higher medical costs.

On a sequential basis, the Company expects slightly to moderately higher revenue, driven by increased contributions from fast growth end markets and new product sales, and slightly to moderately higher adjusted operating margin due to higher volume and pricing and productivity initiatives, partially offset by growth investments.

Fiscal Year 2026 Outlook

The Company is reiterating its fiscal year 2026 sales outlook. In fiscal year 2026, barring any unforeseen economic, global trade, or tariffs related disruptions, the Company expects revenue to grow by over $110 million, 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 remains on course to release over fifteen new products that it expects will contribute approximately 300 bps of incremental growth. Sales from fast growth markets are on track to grow over 45% year-on-year and exceed $270 million. The Company expects continued adjusted operating margin expansion in fiscal year 2026.

Second Quarter Segment Operating Performance

Electronics (52% of sales; 63% of segment adjusted operating income)

2Q26

2Q25

% Change

Electronics ($M)

Revenue

115.7

95.9

20.6 %

GAAP Operating Income

29.8

17.4

70.9 %

GAAP Operating Margin %

25.7

18.2

Adjusted Operating Income*

33.3

26.5

25.7 %

Adjusted Operating Margin %*

28.8

27.6

* Excludes the amortization of acquired intangible assets; Q2 FY25 restated to exclude the amortization of acquired intangible assets

Revenue increased approximately $19.7 million or 20.6% year-on-year, reflecting organic growth of 11.1%, an acquisition benefit of 9.1%, and a foreign currency benefit of 0.4%. Organic growth was driven by sales into fast growth markets and increased new product sales. Adjusted operating income increased approximately $6.8 million or 25.7% year-on-year due to higher volume, pricing initiatives, and product mix.

The segment had a book-to-bill ratio of approximately 1.08 in the fiscal second quarter, with orders of approximately $125 million.

In fiscal third quarter 2026, on a sequential basis, the Company expects slightly to moderately higher revenue, reflecting higher sales into fast growth end markets and increased new product sales. The Company expects similar adjusted operating margin, primarily due to product mix and continued strategic growth investments.

Engineering Technologies (14% of sales; 11% of segment adjusted operating income)

2Q26

2Q25

% Change

Engineering Technologies ($M)

Revenue

30.6

22.7

35.3 %

GAAP Operating Income

4.4

3.7

18.6 %

GAAP Operating Margin %

14.3

16.3

Adjusted Operating Income*

5.8

3.7

56.6 %

Adjusted Operating Margin %*

18.9

16.3

* Excludes the amortization of acquired backlog and acquired intangible assets

Revenue increased approximately $8.0 million or 35.3% year-on-year reflecting a 33.4% benefit from the McStarlite acquisition, organic growth of 1.2%, and a foreign currency benefit of 0.6%. Organic growth was suppressed by delays in customer project timing. Adjusted operating income increased approximately $2.1 million or 56.6% year-on-year reflecting higher volume.

In fiscal third quarter 2026, on a sequential basis, the Company expects moderately to significantly higher revenue, due to growth in new product sales and more favorable project timing, and slightly to moderately higher adjusted operating margin due to higher volume.

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

2Q26

2Q25

% Change

Scientific ($M)

Revenue

19.5

18.5

5.5 %

GAAP Operating Income

4.5

4.7

-4.9 %

GAAP Operating Margin %

23.0

25.5

Adjusted Operating Income*

4.7

5.0

-4.9 %

Adjusted Operating Margin %*

24.2

26.9

* Excludes the amortization of acquired intangible assets; Q2 FY25 restated to exclude the amortization of acquired intangible assets

Revenue increased approximately $1.0 million or 5.5% year-on-year reflecting an acquisition benefit of 8.1%, partially offset by an organic decline of 2.6% from lower demand at academic and research institutions that were impacted by NIH funding cuts. Adjusted operating income decreased approximately $0.2 million or 4.9% year-on-year due to the organic decline partially offset by contribution from the acquisition.

In fiscal third quarter 2026, on a sequential basis, the Company expects similar revenue and slightly lower adjusted operating margin due to product mix, investments in research and development, and tariff costs, partially offset by pricing and productivity initiatives.

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

2Q26

2Q25

% Change

Engraving ($M)

Revenue

35.7

31.5

13.6 %

GAAP Operating Income

6.6

4.1

59.3 %

GAAP Operating Margin %

18.4

13.1

Adjusted Operating Income*

6.8

4.5

52.4 %

Adjusted Operating Margin %*

19.2

14.3

* Excludes the amortization of acquired intangible assets; Q2 FY25 restated to exclude the amortization of acquired intangible assets

Revenue increased approximately $4.3 million or 13.6% year-on-year reflecting organic growth of 10.3% from improved demand in Europe and North America and a foreign currency benefit of 3.3%. Adjusted operating income increased approximately $2.4 million or 52.4% year-on-year due to higher sales and the realization of previously announced productivity initiatives and restructuring actions.

In fiscal third quarter 2026, on a sequential basis, the Company expects similar revenue and slightly lower adjusted operating margin due to project and regional mix.

Specialty Solutions (9% of sales; 4% of segment adjusted operating income)

2Q26

2Q25

% Change

Specialty Solutions ($M)

Revenue

19.8

21.3

-7.2 %

Operating Income

2.1

3.6

-40.7 %

Operating Margin %

10.7

16.7

Specialty Solutions revenue decreased approximately $1.5 million or 7.2% year-on-year. Operating income decreased approximately $1.5 million or 40.7% year-on-year.

In fiscal third quarter 2026, on a sequential basis, the Company expects moderately to significantly higher revenue and operating margin.

Capital Allocation

Balance Sheet and Cash Flow Highlights

Conference Call Details

Standex will host a conference call for investors tomorrow, January 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 January 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 80581#. The audio playback via phone will be available through February 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 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.

Standex International Corporation

Consolidated Statement of Operations

(unaudited)

Three Months Ended

Six Months Ended

December 31,

(In thousands, except per share data)

2025

2024

2025

2024

Net sales

221,320

189,814

438,751

360,278

Cost of sales

129,087

118,367

256,086

218,758

Gross profit

92,233

71,447

182,665

141,520

Selling, general and administrative expenses

51,166

42,189

100,998

83,232

Restructuring costs

438

920

6,436

2,006

Amortization of acquired intangible assets

4,439

3,475

8,976

5,480

Acquisition related costs

617

16,400

1,049

18,240

Income from operations

35,573

8,463

65,206

32,562

Interest expense

7,914

5,575

16,826

6,552

Other non-operating (income) expense, net

490

890

225

862

Total

8,404

6,465

17,051

7,414

Income from continuing operations before income taxes

27,169

1,998

48,155

25,148

Provision for income taxes

6,536

710

11,701

5,672

Net income from continuing operations

20,633

1,288

36,454

19,476

Income (loss) from discontinued operations, net of tax

(13)

(4)

Net income

20,681

1,275

36,475

19,472

Less: net income attributable to redeemable noncontrolling interest

582

418

1,321

418

Less: change of redeemable noncontrolling interest to redemption value

17,979

Net income attributable to Standex International

2,120

857

17,175

19,054

Basic earnings per share:

Income (loss) from discontinued operations

0.00

(0.00)

0.00

(0.00)

Total income (loss) attributable to Standex International

0.17

0.07

1.43

1.60

Diluted earnings per share:

Income (loss) from discontinued operations

0.00

(0.00)

0.00

(0.00)

Total income (loss) attributable to Standex International

0.17

0.07

1.42

1.59

Average Shares Outstanding

Basic

12,043

11,942

12,027

11,872

Diluted

12,055

12,025

12,073

11,972

Standex International Corporation

Condensed Consolidated Balance Sheets

(unaudited)

December 31,

June 30,

(In thousands)

2025

ASSETS

Current assets:

Cash and cash equivalents

96,998

104,542

Accounts receivable, net

176,628

172,702

Inventories

131,196

129,994

Prepaid expenses and other current assets

85,912

73,641

Total current assets

490,734

480,879

Property, plant, equipment, net

160,378

160,364

Intangible assets, net

212,052

225,757

Goodwill

594,080

610,338

Deferred tax asset

11,687

11,971

Operating lease right-of-use asset

47,835

47,998

Other non-current assets

37,735

29,573

Total non-current assets

1,063,767

1,086,001

Total assets

1,554,501

1,566,880

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

87,773

88,001

Accrued liabilities

69,403

63,204

Income taxes payable

13,633

15,770

Total current liabilities

170,809

166,975

Long-term debt

534,733

552,515

Operating lease long-term liabilities

37,997

40,057

Accrued pension and other non-current liabilities

66,215

67,743

Total non-current liabilities

638,945

660,315

Redeemable non-controlling interest

44,511

27,913

Stockholders' equity:

Common stock

41,976

Additional paid-in capital

140,476

136,082

Retained earnings

1,136,096

1,126,851

Accumulated other comprehensive loss

(188,019)

(164,765)

Treasury shares

(430,293)

(428,467)

Total stockholders' equity

700,236

711,677

Total liabilities, redeemable noncontrolling interest and stockholders' equity

1,554,501

1,566,880

Standex International Corporation and Subsidiaries

Statements of Consolidated Cash Flows

(unaudited)

Six Months Ended

December 31,

(In thousands)

2025

2024

Cash Flows from Operating Activities

Net income

36,475

19,472

Income (loss) from discontinued operations

(4)

Income from continuing operations

36,454

19,476

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

19,801

15,566

Stock-based compensation

4,838

5,155

Non-cash portion of restructuring charge

149

(896)

Contributions to defined benefit plans

(2,796)

(4,766)

Net changes in operating assets and liabilities

(20,935)

(7,873)

Net cash provided by operating activities - continuing operations

37,511

26,662

Net cash provided by (used in) operating activities - discontinued operations

(127)

(31)

Net cash provided by (used in) operating activities

37,384

26,631

Cash Flows from Investing Activities

Expenditures for property, plant and equipment

(14,084)

(13,690)

Expenditures for acquisitions, net of cash acquired

(419,652)

Other investing activities

(5)

3,904

Net cash provided by (used in) investing activities

(14,089)

(429,438)

Cash Flows from Financing Activities

Proceeds from borrowings

8,000

724,313

Payments of debt

(26,000)

(339,110)

Contingent consideration payment

(330)

Activity under share-based payment plans

1,528

1,791

Purchase of treasury stock and other

(3,798)

(5,166)

Distributions to non-controlling interests

(1,598)

Cash dividends paid

(7,930)

(7,362)

Other financing activities

(4,415)

Net cash provided by (used in) financing activities

(30,128)

370,051

Effect of exchange rate changes on cash

(711)

(300)

Net changes in cash and cash equivalents

(7,544)

(33,056)

Cash and cash equivalents at beginning of year

104,542

154,203

Cash and cash equivalents at end of period

96,998

121,147

Standex International Corporation

Selected Segment Data

(unaudited)

Three Months Ended

Six Months Ended

December 31,

(In thousands)

2025

2024

2025

2024

Net Sales

Electronics

115,668

95,923

226,220

173,656

Engineering Technologies

30,636

22,649

60,530

43,179

Scientific

19,502

18,477

38,952

36,170

Engraving

35,728

31,454

71,568

64,817

Specialty Solutions

19,786

21,311

41,481

42,456

Total

221,320

189,814

438,751

360,278

Income from operations

Electronics

29,765

17,419

58,048

34,446

Engineering Technologies

4,377

3,692

7,994

7,702

Scientific

4,488

4,718

9,167

9,467

Engraving

6,568

4,122

13,104

9,946

Specialty Solutions

2,112

3,562

5,000

7,110

Restructuring

(438)

(920)

(6,436)

(2,006)

Acquisition related costs

(617)

(16,400)

(1,049)

(18,240)

Corporate

(10,682)

(7,730)

(20,622)

(15,863)

Total

35,573

8,463

65,206

32,562

Standex International Corporation

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited)

Three Months Ended

Six Months Ended

December 31,

(In thousands, except percentages)

2025

2024

Change

2025

2024

Change

Adjusted income from operations and adjusted net income from

continuing operations:

Net Sales

221,320

189,814

16.6 %

438,751

360,278

21.8 %

Income from operations, as reported

35,573

8,463

320.3 %

65,206

32,562

100.3 %

Income from operations margin

16.1 %

4.5 %

14.9 %

9.0 %

Adjustments:

Restructuring charges

438

920

6,436

2,006

Acquisition-related costs

617

16,400

1,049

18,240

Amortization of acquired intangible assets

4,439

3,475

8,976

5,480

Litigation (settlement refund) charge

100

Purchase accounting expenses

993

6,197

1,985

6,197

Adjusted income from operations

42,160

35,455

18.9 %

83,752

64,485

29.9 %

Adjusted income from operations margin

19.0 %

18.7 %

19.1 %

17.9 %

Interest and other income (expense), net

(8,404)

(6,465)

(17,051)

(7,414)

Foreign currency related (gain) loss on acquisition and divestiture activities

554

Provision for income taxes

(6,536)

(710)

(11,701)

(5,672)

Discrete and other tax items

447

375

Tax impact of above adjustments

(1,561)

(5,958)

(4,566)

(7,141)

Net income from continuing operations, as adjusted

25,659

23,323

50,434

45,187

Less: net income attributable to redeemable noncontrolling interest

18,561

418

19,300

418

Add back: change of redeemable noncontrolling interest to

redemption value per the acquisition agreement

(17,979)

Net income from continuing operations attributable to Standex, as

adjusted

25,077

22,905

9.5 %

49,113

44,769

9.7 %

EBITDA and Adjusted EBITDA:

Net income (loss) from continuing operations, as reported

20,633

1,288

1501.9 %

36,454

19,476

Net income from continuing operations margin

9.3 %

0.7 %

8.3 %

5.4 %

Add back:

Provision for income taxes

6,536

710

11,701

5,672

Interest expense

7,914

5,575

16,826

6,552

Depreciation and amortization

9,984

8,505

19,801

15,566

EBITDA

45,067

16,078

180.3 %

84,782

47,266

79.4 %

EBITDA Margin

20.4 %

8.5 %

19.3 %

13.1 %

Adjustments:

Restructuring charges

438

920

6,436

2,006

Acquisition-related costs

617

16,400

1,049

18,240

Litigation (settlement refund) charge

100

Purchase accounting expenses

993

6,197

1,985

6,197

Adjusted EBITDA

47,214

39,595

19.2 %

94,352

73,709

28.0 %

Adjusted EBITDA Margin

21.3 %

20.9 %

21.5 %

20.5 %

Free operating cash flow:

Net cash provided by operating activities - continuing operations, as

reported

20,703

9,115

37,511

26,662

Less: Capital expenditures

(7,664)

(6,965)

(14,084)

(13,690)

Free cash flow from continuing operations

13,039

2,150

23,427

12,972

Standex International Corporation

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited)

Three Months Ended

Six Months Ended

Adjusted earnings per share from continuing

operations

December 31,

2025

2024

Change

2025

2024

Change

Diluted earnings per share from continuing operations

attributable to Standex, as reported

0.17

0.07

145.6 %

1.42

1.59

-10.6 %

Adjustments:

Restructuring charges

0.03

0.06

0.39

0.13

Acquisition-related costs

0.04

1.10

0.07

1.22

Amortization of acquired intangible assets

0.28

0.22

0.57

0.35

Gain on bargain purchase

Litigation (settlement refund) charge

0.01

(Gain) loss on sale of business

Foreign currency related (gain) loss on acquisition

and divestiture activities

0.03

Environmental remediation

Discrete tax items

0.04

Purchase accounting expenses

0.06

0.39

0.13

0.39

Change of redeemable noncontrolling interest to

redemption value per the acquisition agreement

1.49

Diluted earnings per share from continuing operations

attributable to Standex, as adjusted

2.08

1.91

8.9 %

4.08

3.75

8.8 %

SOURCE Standex International Corporation