STANDEX REPORTS FISCAL FOURTH QUARTER AND FISCAL YEAR 2026 FINANCIAL RESULTS
SALEM, N.H., July 30, 2026 /PRNewswire/ -- Standex International Corporation (NYSE: SXI) today reported financial results for the fourth quarter of fiscal year 2026 ended June 30, 2026.
Summary Financial Results - Total
($M except EPS and Dividends)
4Q26
4Q25
3Q26
Y/Y
Q/Q
Net Sales
$228.3
$222.0
$224.6
2.8 %
1.6 %
Operating Income – GAAP
$37.5
$34.7
$90.8
8.1 %
-58.7 %
Operating Income – Adjusted
$45.4
$45.8
$44.2
-0.8 %
2.6 %
Operating Margin % - GAAP
16.5 %
15.6 %
40.4 %
80 bps
- 2,390 bps
Operating Margin % - Adjusted
19.9 %
20.6 %
19.7 %
- 70 bps
+ 20 bps
Net Income from Continuing Ops – GAAP
$23.6
$15.5
$68.6
52.5 %
-65.6 %
Net Income from Continuing Ops – Adjusted
$29.7
$27.5
$26.7
7.8 %
11.2 %
EBITDA
$48.1
$45.2
$99.4
7.2 %
-51.7 %
EBITDA margin
21.1 %
20.4 %
44.3 %
+ 70 bps
- 2,320 bps
Adjusted EBITDA
$51.5
$51.6
$48.4
-5.1 %
6.4 %
Adjusted EBITDA margin
22.6 %
23.2 %
21.6 %
- 60 bps
+ 100 bps
Diluted EPS – GAAP
$1.69
$1.23
$5.56
37.7 %
-69.6 %
Diluted EPS – Adjusted
$2.45
$2.28
$2.21
7.4 %
10.9 %
Dividends per Share
$0.34
$0.32
$0.34
6.3 %
0.0 %
Free Cash Flow
$35.0
$24.9
$6.3
40.7 %
454.0 %
Net Debt to EBITDA
1.8x
2.6x
1.9x
-30.8 %
-5.3 %
Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "We concluded our fiscal year with a strong performance in the fourth quarter. We delivered 7.7% organic growth with a book to bill of 1.18, led by our Electronics segment which grew 12.9% organically with a book to bill of 1.27. Sales from fast growth markets totaled approximately $72 million in the fiscal fourth quarter and approximately $264 million for the fiscal year. Adjusted earnings per share increased 7.4% to a record $2.45. Our net leverage ratio was reduced to 1.8x.
In fiscal year 2026, sales increased by more than $100 million with organic growth of 5.5%. Building on record profitability in fiscal year 2025, we set several new records in fiscal year 2026 with adjusted gross margin of 42.0%, adjusted operating income of $173.3 million, adjusted operating margin of 19.4%, and adjusted earnings per share of $8.74. We remain confident in our long-term operating margin potential as we leverage organic growth, driven by our fast growth end markets and higher sales contribution from new products.
On July 2nd, we acquired the remaining 9.9% interest in Narayan for approximately $64 million. The integration of Narayan and Amran continues to progress smoothly, and our internal teams remain fully focused on meeting customer demand now and in the future."
Fiscal First Quarter 2027 Outlook
In fiscal first quarter 2027, on a year-on-year basis, the Company expects moderately higher revenue, driven by high single-digit to low double-digit organic growth from higher sales into fast growth end markets and increased new product sales, partially offset by the divestiture of Federal Industries. The Company expects slightly to moderately higher adjusted operating margin as contributions from organic growth and realization of productivity actions are partially offset by growth investments.
On a sequential basis, the Company expects slightly higher revenue, driven by increased contributions from fast growth end markets and new product sales, and similar adjusted operating margin.
Fiscal Year 2027 Outlook
For fiscal year 2027, the Company expects mid-to-high single digit sales growth driven by high-single digit to low-double digit organic growth, partially offset by the impact of the Federal Industries divestiture and unfavorable foreign exchange. The Company expects continued adjusted operating margin expansion.
The Company plans to release more than 20 new products, which are expected to contribute approximately 300 bps of incremental growth. Sales from fast growth markets are on track to grow approximately 20% year-on-year to greater than $310 million.
Fourth Quarter Segment Operating Performance
Electronics (57% of sales; 63% of segment adjusted operating income)
4Q26
4Q25
% Change
Electronics ($M)
Revenue
129.1
115.2
12.1 %
GAAP Operating Income
31.6
28.0
12.9 %
GAAP Operating Margin %
24.5
24.3
Adjusted Operating Income
35.1
32.9
6.7 %
Adjusted Operating Margin %
27.2
28.5
Revenue increased approximately $13.9 million or 12.1% year-on-year, reflecting organic growth of 12.9%, partially offset by a foreign currency impact of 0.8%. Organic growth was driven by higher sales into fast growth markets and increased new product sales. Adjusted operating income increased approximately $2.2 million or 6.7% year-on-year due to higher volume and pricing initiatives, partially offset by growth investments and unfavorable mix from transitory operational issues in the Edge business.
The segment had a book-to-bill ratio of approximately 1.27 in the fiscal fourth quarter, with orders of approximately $165 million.
In fiscal first quarter 2027, on a sequential basis, the Company expects slightly higher revenue, reflecting higher sales into fast growth end markets and increased new product sales, and moderately higher adjusted operating margin.
Aerospace & Defense (17% of sales; 15% of segment adjusted operating income)
4Q26
4Q25
% Change
Aerospace & Defense ($M)
Revenue
37.9
32.0
18.3 %
GAAP Operating Income
8.1
4.3
88.4 %
GAAP Operating Margin %
21.4
13.5
Adjusted Operating Income
8.5
5.9
44.8 %
Adjusted Operating Margin %
22.5
18.4
Revenue increased approximately $5.9 million or 18.3% year-on-year reflecting organic growth of 18.4% and a foreign currency impact of 0.1%. Organic growth was primarily driven by increased project activity in the defense end market. Adjusted operating income increased approximately $2.6 million or 44.8% year-on-year reflecting higher volume and project mix.
In fiscal first quarter 2027, on a sequential basis, the Company expects moderately lower revenue due to less favorable project timing, and moderately lower adjusted operating margin.
Scientific (8% of sales; 10% of segment adjusted operating income)
4Q26
4Q25
% Change
Scientific ($M)
Revenue
18.8
17.9
5.0 %
GAAP Operating Income
5.2
4.1
25.6 %
GAAP Operating Margin %
27.4
22.9
Adjusted Operating Income
5.4
4.3
23.9 %
Adjusted Operating Margin %
28.6
24.3
Revenue increased approximately $0.9 million or 5.0% year-on-year reflecting organic growth of 5.0%. Organic growth was driven by pricing initiatives and a slight market recovery. Adjusted operating income increased approximately $1.1 million or 23.9% year-on-year reflecting higher sales and tariff refunds.
In fiscal first quarter 2027, on a sequential basis, the Company expects moderately higher revenue and similar adjusted operating margin.
Engraving & Hydraulics (19% of sales; 12% of segment adjusted operating income)
4Q26
4Q25
% Change
Engraving & Hydraulics ($M)
Revenue
42.4
47.0
-9.7 %
GAAP Operating Income
6.4
7.0
-7.9 %
GAAP Operating Margin %
15.2
14.9
Adjusted Operating Income
6.7
7.4
-8.5 %
Adjusted Operating Margin %
15.8
15.7
Revenue decreased approximately $4.6 million or 9.7% year-on-year reflecting an organic decline of 9.6% from general market weakness and a foreign currency impact of 0.1%. Adjusted operating income decreased approximately $0.6 million or 8.5% year-on-year.
In fiscal first quarter 2027, on a sequential basis, the Company expects slightly to moderately higher revenue and similar to slightly higher adjusted operating margin.
Capital Allocation
Balance Sheet and Cash Flow Highlights
Conference Call Details
Standex will host a conference call for investors tomorrow, July 31, 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 July 31, 2027. To listen to the teleconference playback, please dial in the U.S. (888) 660-6345 or (646) 517-4150 internationally; the passcode is 98594#. The audio playback via phone will be available through August 7, 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
Year Ended
June 30,
June 30,
June 30,
June 30,
(In thousands, except per share data)
2026
2025
2026
2025
Net sales
$
228,251
222,049
$
891,597
$
790,107
Cost of sales
130,816
130,751
519,565
474,859
Gross profit
97,434
91,298
372,032
315,248
Selling, general and administrative expenses
52,533
47,954
201,597
178,750
(Gain) loss on sale of business
(249)
-
(57,085)
-
Restructuring costs
2,762
2,920
12,186
6,903
Amortization of acquired intangible assets
4,341
4,647
17,691
14,612
Acquisition related costs
496
1,042
4,059
21,434
Income from operations
37,552
34,734
193,584
93,549
Interest expense
6,558
9,016
30,712
23,931
Other non-operating (income) expense, net
(1,122)
(364)
(68)
808
Total
5,436
8,652
30,644
24,739
Income from continuing operations before income taxes
32,116
26,082
162,940
68,810
Provision for income taxes
8,515
10,609
34,253
11,084
Net income from continuing operations
23,601
15,473
128,687
57,726
Income (loss) from discontinued operations, net of tax
(50)
13
(144)
(42)
Net income
23,551
15,486
128,543
57,684
Less: net income attributable to redeemable noncontrolling interest
824
660
2,900
1,924
Less: change of redeemable noncontrolling interest to redemption value
2,248
-
21,011
-
Net income attributable to Standex International
$
20,479
$
14,826
$
104,633
$
55,760
Basic earnings per share:
Income (loss) from discontinued operations
(0.00)
-
(0.01)
-
Total income (loss) attributable to Standex International
$
1.70
$
1.23
$
8.70
$
4.68
Diluted earnings per share:
Income (loss) from discontinued operations
(0.00)
-
(0.01)
-
Total income (loss) attributable to Standex International
$
1.69
$
1.23
$
8.68
$
4.64
Average Shares Outstanding
Basic
12,053
11,990
12,038
11,926
Diluted
12,121
12,076
12,070
12,016
Standex International Corporation
Condensed Consolidated Balance Sheets
(unaudited)
June 30,
June 30,
(In thousands)
2026
2025
ASSETS
Current assets:
Cash and cash equivalents
$
178,734
104,542
Accounts receivable, net
172,896
172,702
Inventories
128,960
129,994
Prepaid expenses and other current assets
71,165
73,641
Total current assets
551,755
480,879
Property, plant, equipment, net
153,024
160,364
Intangible assets, net
199,479
225,757
Goodwill
581,553
610,338
Deferred tax asset
4,409
11,971
Operating lease right-of-use asset
45,400
47,998
Other non-current assets
50,088
29,573
Total non-current assets
1,033,953
1,086,001
Total assets
$
1,585,708
$
1,566,880
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
80,098
88,001
Accrued liabilities
131,999
63,204
Income taxes payable
17,419
15,770
Total current liabilities
229,516
166,975
Long-term debt
517,950
552,515
Operating lease long-term liabilities
35,814
40,057
Accrued pension and other non-current liabilities
47,214
67,743
Total non-current liabilities
600,978
660,315
Redeemable non-controlling interest
-
27,913
Stockholders' equity:
Common stock
41,976
41,976
Additional paid-in capital
127,621
136,082
Retained earnings
1,215,329
1,126,851
Accumulated other comprehensive loss
(199,061)
(164,765)
Treasury shares
(430,651)
(428,467)
Total stockholders' equity
755,214
711,677
Total liabilities, redeemable noncontrolling interest and stockholders' equity
$
1,585,708
$
1,566,880
Standex International Corporation and Subsidiaries
Statements of Consolidated Cash Flows
(unaudited)
Year Ended
June 30,
(In thousands)
2026
2025
Cash Flows from Operating Activities
Net income
$
128,543
57,684
Income (loss) from discontinued operations
(144)
(42)
Income from continuing operations
128,687
57,726
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
38,653
35,438
Stock-based compensation
8,821
8,691
Non-cash portion of restructuring charge
1,480
10
(Gain) loss on sale of business
(57,085)
-
Contributions to defined benefit plans
(6,846)
(7,796)
Net changes in operating assets and liabilities
(23,797)
(24,421)
Net cash provided by operating activities - continuing operations
89,913
69,648
Net cash provided by (used in) operating activities - discontinued operations
(350)
(52)
Net cash provided by (used in) operating activities
89,563
69,596
Cash Flows from Investing Activities
Capital Expenditures
(25,199)
(28,343)
Expenditures for acquisitions, net of cash acquired
-
(478,890)
Proceeds from the sale of business
68,280
-
Other investing activities
14
3,800
Net cash provided by (used in) investing activities
43,095
(503,433)
Cash Flows from Financing Activities
Proceeds from borrowings
75,000
792,313
Payments of debt
(110,000)
(389,109)
Contingent consideration payment
(660)
-
Activity under share-based payment plans
2,347
2,226
Purchase of treasury stock and other
(4,402)
(9,906)
Distributions to non-controlling interests
(2,726)
-
Cash dividends paid
(16,185)
(15,033)
Net cash provided by (used in) financing activities
(56,627)
380,490
Effect of exchange rate changes on cash
(1,839)
3,686
Net changes in cash and cash equivalents
74,192
(49,661)
Cash and cash equivalents at beginning of year
104,542
154,203
Cash and cash equivalents at end of period
$
178,734
$
104,542
Standex International Corporation
Selected Segment Data
(unaudited)
Three Months Ended
Year Ended
June 30,
June 30,
(In thousands)
2026
2025
2026
2025
Net Sales
Electronics
$
129,109
$
115,192
$
475,036
$
400,130
Aerospace & Defense
37,909
32,040
135,031
102,595
Scientific
18,817
17,918
75,748
72,380
Engraving & Hydraulics
42,416
46,982
182,329
179,303
Other
-
9,917
23,453
35,699
Total
$
228,251
$
222,049
$
891,597
$
790,107
Income from operations
Electronics
$
31,635
$
28,009
$
121,340
$
87,927
Aerospace & Defense
8,117
4,308
21,952
15,428
Scientific
5,160
4,108
18,035
17,470
Engraving & Hydraylics
6,445
6,995
27,404
25,173
Other
-
2,101
4,046
7,315
Restructuring
(2,762)
(2,920)
(12,186)
(6,903)
Gain (loss) on sale of business
249
-
57,085
-
Acquisition related costs
(496)
(1,042)
(4,059)
(21,434)
Corporate
(10,796)
(6,825)
(40,033)
(31,427)
Total
$
37,552
$
34,734
$
193,584
$
93,549
Standex International Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
Three Months Ended
Year Ended
June 30,
June 30,
(In thousands, except percentages)
2026
2025
%
Change
2026
2025
%
Change
Adjusted income from operations and adjusted net income from
continuing operations:
Net Sales
$
228,251
$
222,049
2.8 %
$
891,597
$
790,107
12.8 %
Income from operations, as reported
$
37,552
$
34,734
8.1 %
$
193,584
$
93,549
106.9 %
Income from operations margin
16.5 %
15.6 %
21.7 %
11.8 %
Adjustments:
Restructuring charges
2,762
2,920
12,186
6,903
Acquisition-related costs
496
1,042
4,059
21,434
Amortization of acquired intangible assets
4,341
4,647
17,691
14,612
Litigation (settlement refund) charge
450
-
550
-
(Gain) loss on sale of business
(249)
-
(57,085)
-
Purchase accounting expenses
-
2,407
2,316
14,083
Adjusted income from operations
$
45,351
$
45,751
-0.9 %
$
173,301
$
150,581
15.1 %
Adjusted income from operations margin
19.9 %
20.6 %
19.4 %
19.1 %
Interest and other income (expense), net
(5,436)
(8,652)
(30,644)
(24,739)
Foreign currency related (gain) loss on acquisition and divestiture
activities
-
-
-
554
Provision for income taxes
(8,515)
(10,609)
(34,253)
(11,084)
Discrete and other tax items
1,075
3,502
1,075
(5,444)
Tax impact of above adjustments
(1,946)
(1,808)
(1,049)
(12,113)
Net income from continuing operations, as adjusted
30,530
28,183
108,431
97,755
Less: net income attributable to redeemable noncontrolling interest
3,072
660
23,911
1,924
Add back: change of redeemable noncontrolling interest to redemption
value per the acquisition agreement
(2,248)
-
(21,011)
-
Net income from continuing operations attributable to Standex, as
adjusted
$
29,706
$
27,523
7.9 %
$
105,531
$
95,831
10.1 %
EBITDA and Adjusted EBITDA:
Net income (loss) from continuing operations, as reported
$
23,601
$
15,473
52.5 %
$
128,687
$
57,726
Net income from continuing operations margin
10.3 %
7.0 %
14.4 %
7.3 %
Add back:
Provision for income taxes
8,515
10,609
34,253
11,084
Interest expense
6,558
9,016
30,712
23,931
Depreciation and amortization
9,404
10,128
38,653
35,438
EBITDA
$
48,078
$
45,226
6.3 %
$
232,305
$
128,179
81.2 %
EBITDA Margin
21.1 %
20.4 %
26.1 %
16.2 %
Adjustments:
Restructuring charges
2,762
2,920
12,186
6,903
Acquisition-related costs
496
1,042
4,059
21,434
Litigation (settlement refund) charge
450
-
550
-
(Gain) loss on sale of business
(249)
-
(57,085)
-
Purchase accounting expenses
-
2,407
2,316
14,083
Adjusted EBITDA
$
51,537
$
51,596
-0.1 %
$
194,330
$
170,599
13.9 %
Adjusted EBITDA Margin
22.6 %
23.2 %
21.8 %
21.6 %
Free operating cash flow:
Net cash provided by operating activities - continuing operations, as
reported
$
40,506
$
33,435
$
89,913
$
69,648
Less: Capital expenditures
(5,525)
(8,581)
(25,199)
(28,343)
Free cash flow from continuing operations
$
34,980
$
24,855
$
64,714
$
41,306
Standex International Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
Three Months Ended
Year Ended
Adjusted earnings per share from continuing operations
June 30,
June 30,
2026
2025
%
Change
2026
2025
% Change
Diluted earnings per share from continuing operations
attributable to Standex, as reported
$
1.69
$
1.23
37.7 %
$
8.68
$
4.64
87.1 %
Adjustments:
Restructuring charges
0.18
0.20
0.76
0.45
Acquisition-related costs
0.03
0.07
0.26
1.43
Amortization of acquired intangible assets
0.27
0.32
1.12
0.94
Litigation (settlement refund) charge
0.03
-
0.03
-
(Gain) loss on sale of business
(0.03)
-
(4.09)
-
Foreign currency related (gain) loss on acquisition and
divestiture activities
-
-
-
0.04
Discrete tax items
0.09
0.29
0.09
(0.45)
Purchase accounting expenses
-
0.17
0.15
0.93
Change of redeemable noncontrolling interest to
redemption value per the acquisition agreement
0.19
-
1.74
-
Diluted earnings per share from continuing operations
attributable to Standex, as adjusted
$
2.45
$
2.28
7.5 %
$
8.74
$
7.98
9.6 %
SOURCE Standex International Corporation