Standex Q4 2025 slides: record margins and $100M growth outlook for FY26

Introduction & Market Context

Standex International Corporation (NYSE:SXI) presented its fourth quarter and fiscal year 2025 results on August 1, 2025, highlighting record financial performance and an optimistic outlook for fiscal 2026. The company’s stock closed at $225.88, reflecting a 1.82% increase, as investors responded positively to the strong results and forward guidance. Currently trading near its 52-week high of $231.21, Standex has delivered an impressive 61.64% return over the past six months.

The industrial manufacturer reported substantial growth driven by strategic acquisitions, expansion in fast-growth markets, and operational efficiencies. These results come amid a period of transformation for Standex as it shifts its focus toward higher-margin businesses and emerging market opportunities.

Quarterly Performance Highlights

Standex delivered exceptional financial results for Q4 FY25, with sales increasing 23.2% year-over-year to $222.0 million. This growth was primarily driven by acquisitions (23.4%), with organic growth contributing a modest 1.4% and favorable foreign exchange adding 1.2%.

As shown in the following comprehensive financial summary, the company achieved record adjusted operating margin of 20.6%, representing a substantial 350 basis point improvement from the prior year:

Adjusted earnings per share reached $2.28, up 20.6% from Q4 FY24, marking the highest quarterly EPS in company history. Free cash flow generation remained strong at $24.9 million, a 12.1% increase year-over-year, demonstrating Standex’s ability to convert earnings into cash.

For the full fiscal year 2025, Standex reported:

• Revenue of $790.1 million, up 9.6% from FY24
• Record adjusted gross margin of 41.7%, up 230 basis points
• Record adjusted operating margin of 19.1%, up 210 basis points
• Record adjusted EPS of $7.98, up 5.8%

Strategic Growth Initiatives

Standex’s presentation highlighted several key growth initiatives that have reached an inflection point. The company has strategically focused on fast-growth markets, which now represent approximately 28% of total sales. These markets, including Space, Defense, and Electrical Grid, are expected to grow approximately 45% year-over-year in FY26 to exceed $265 million in sales.

The following slide illustrates Standex’s growth strategy across new products, fast-growth markets, and recent acquisitions:

New product development has been a significant driver of organic growth, with 16 new products launched in FY25 contributing approximately 2.8% of incremental sales. The company plans to release over 15 new products in FY26, which are expected to add approximately 300 basis points of incremental growth.

Recent acquisitions, including AMRAN, Narayan Power, and McHarlite Co., have exceeded pre-acquisition performance levels. AMRAN is reporting run-rate sales more than 25% above pre-acquisition levels and will begin shipments from a new greenfield site in Croatia in September 2025, strengthening Standex’s European market position. Similarly, McHarlite is achieving run-rate sales more than 20% above pre-acquisition levels and is well-positioned for upcoming defense aviation opportunities.

Segment Performance Analysis

The Electronics segment was the standout performer, with revenue increasing 43.2% to $115.2 million and adjusted operating margin expanding to 28.5%, up from 22.1% in the prior year. This growth was primarily driven by the Amran/Narayan Group acquisition, with slight organic growth and favorable currency effects also contributing.

As shown in the following segment breakdown, Electronics now represents the largest portion of Standex’s business:

Engineering Technologies also performed well, with revenue increasing 26.8% to $32.0 million, driven by both acquisition contribution and organic growth from new products. Adjusted operating margin improved to 18.4%.

The Scientific segment saw modest revenue growth of 2.3%, but adjusted operating income decreased by 16.1% due to lower demand from academic and research institutions affected by NIH funding cuts. Similarly, Engraving showed flat revenue growth of 0.6%, while Specialty Solutions experienced a slight decline of 1.2%.

Financial Position & Outlook

Standex has maintained a strong financial position despite significant acquisition activity. The company reduced its net debt to adjusted EBITDA ratio to 2.6x as of June 30, 2025, down from 3.0x at the end of the previous quarter. This improvement was driven by strong cash generation and cash repatriation.

The following slide details Standex’s capitalization and liquidity position:

With approximately $208 million of available liquidity, Standex is well-positioned to pursue additional growth opportunities while maintaining financial flexibility. Capital expenditures are expected to be between $33 million and $38 million in FY26.

Forward-Looking Statements

Looking ahead to fiscal 2026, Standex expects revenue to grow by over $100 million with continued adjusted operating margin expansion. This growth is projected to come from:

• Mid-to-high-single-digit organic growth in Electronics
• Double-digit organic growth in Engineering Technologies
• Contribution from recent acquisitions
• Approximately 300 basis points of incremental growth from new products
• 45% growth in fast-growth markets, exceeding $265 million in sales

The company’s key takeaways and long-term outlook are summarized in the following slide:

Standex reaffirmed its long-term targets for fiscal 2028, including more than $1.15 billion in sales, adjusted operating margin exceeding 23%, and return on invested capital of 12.5% (adjusted for acquisitions).

CEO David Dunbar expressed confidence in the company’s strategic direction, stating, "After years of building, refining, and preparing, the results are starting to show." He emphasized Standex’s resilience, noting, "We have learned to love uncertainty in this company," and highlighted that "Our growth drivers have reached an inflection point."

Standex appears well-positioned to navigate economic uncertainties due to its regional presence, strong customer relationships, and disciplined approach to pricing and productivity actions. With its focus on fast-growth markets, new product development, and strategic acquisitions, the company has established a solid foundation for continued growth and margin expansion in fiscal 2026 and beyond.

Full presentation:

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