#USA #financial results #Salem #Standex International #Q2 FY2026

Standex International Corporation's Fiscal Second Quarter 2026 Results

On January 29, 2026, Standex International Corporation, publicly traded as NYSE SXI, announced its impressive financial performance for the second quarter of fiscal year 2026, which concluded on December 31, 2025. The report revealed a notable sales increase, showcasing the company's robust growth trajectory and successful product strategies.

Record Sales Growth

During Q2 FY2026, Standex achieved an incredible 16.6% year-over-year (YOY) sales increase, reaching $221.3 million. This growth was significantly driven by contributions from new product sales, which alone grew by approximately 13%, and the company's focus on fast-growth markets, accounting for about 28% of total sales in the quarter. The electronics segment was a standout performer, witnessing an 11.1% organic growth driven by strong demand in emerging markets.

Financial Highlights

Several key financial metrics from the second quarter highlighted Standex's operational strength:

• - GAAP Operating Margin rose to 16.1%, which marks an increase of 1160 basis points from the previous year.
• - Adjusted operating margin stood at 19.0%, reflecting a 30 basis points improvement.
• - The net income from continuing operations under GAAP surged to $20.6 million, up over 1501.9% YOY. Adjusted net income reflected a more moderate growth of 9.5%, reaching $25.1 million.
• - The company generated approximately $13 million in free cash flow, showcasing a year-over-year increase of 506.5%.

Strategic Outlook

Looking towards the future, the leadership expressed optimism about the company's trajectory. President and CEO David Dunbar noted the successful execution of product launches and highlighted the expected growth in sales from fast-growth markets. For the third quarter of fiscal year 2026, Standex anticipates mid-to-high single-digit organic growth, attributing this forecast to strong demands in the electrical grid, defense, and aviation sectors.

The company reiterated its FY26 revenue outlook, predicting growth exceeding $110 million compared to FY25, propelled by a more than 45% expected increase in fast-growth market sales, anticipated to surpass $270 million. With plans to release more than 15 new products during the fiscal year, these innovations are projected to contribute roughly 300 basis points to overall growth.

Segment Performance Review

Standex's business segments exhibited varied growth rates this quarter:

Electronics

As the largest segment, Electronics generated $115.7 million, representing a 20.6% year-over-year increase. It accounted for 52% of total sales, continuing its strong performance backed by organic growth and acquisitions.

Engineering Technologies

This segment reported revenues of $30.6 million, showing an impressive 35.3% YOY increase. The increase was attributed significantly to the recent acquisition of McStarlite, contributing to the segment's overall growth.

Scientific Segment

Revenue for the Scientific Sector remained relatively flat at $19.5 million, a marginal increase of 5.5%. This stability reflects the segment's challenges including fluctuating demand.

Engraving and Specialty Solutions

Engraving reported $35.7 million in sales, marking a 13.6% growth, while Specialty Solutions experienced a decline to $19.8 million, down 7.2%.

Conclusion

Standex International Corporation's strong performance in Q2 FY2026 demonstrates a solid application of its strategic product development and market expansion efforts. With a promising outlook for further growth fueled by continued investments in innovation, Standex is well-positioned to navigate the evolving market landscape effectively. The forthcoming conference call scheduled for January 30, 2026, will provide a deeper insight into Standex’s strategies and future expectations.