#USA #Salem #Financial Growth #Standex International #fiscal year 2026

Standex Reports Financial Results for Q4 FY25

Standex International Corporation announced impressive financial results for the fourth quarter of fiscal year 2025, which ended on June 30, 2025. The company's revenue increased by 23.2% year-over-year, reaching $222.0 million. This robust performance was driven primarily by the strong momentum from new product launches and growth in fast-expanding markets.

Key Financial Highlights

The financial results revealed a GAAP operating margin of 15.6%, showcasing how effectively the company is managing its resources. Additionally, Standex achieved a record adjusted operating margin of 20.6%, a significant improvement of 350 basis points compared to the previous year. This indicates a solid trajectory for profitability, reflecting effective cost management and operational efficiency.

In the fiscal fourth quarter, Standex also reported considerable advancements in its earnings per share (EPS). The GAAP EPS was recorded at $4.65, whereas the adjusted EPS reached a new high of $7.98, marking an increase of 5.8% year-over-year. These figures underline the company's consistent performance and its strategy focused on delivering value to shareholders.

Debt Management and Financial Stability

Standex continued its proactive approach to debt management, having paid down $27 million of its debt in the fourth quarter alone. This effort reduced the net debt to EBITDA ratio to 2.6x, enhancing the company's financial stability and positioning it favorably for future investments.

Looking ahead, Standex plans to continue its momentum into fiscal year 2026, forecasting revenue growth exceeding $100 million. This bullish outlook is supported by the introduction of over 15 new products, which are projected to contribute around 300 basis points of growth. Sales in fast growth markets, which totaled approximately $61 million or about 28% of total sales in FY25, are expected to expand by roughly 45%, exceeding $265 million.

Segment Performance

Diving into specific segments, the Electronics division has emerged as a key growth driver, accounting for 52% of the company’s sales in Q4 FY25. Revenue in this segment surged to $115.2 million, which reflects a year-over-year growth of 43.2%. This increase was buoyed by strategic acquisitions and rising demand within the electrical grid market.

The Engineering Technologies segment also experienced growth, with an increase of 26.8% in revenue, attributed largely to the McStarlite acquisition. New product sales have played a substantial role here as well, while the Scientific segment remains stable but faces pressures due to reduced demand in academic circles.

Strategic Growth Initiatives

CEO David Dunbar commented on the results, stating, “We concluded our fiscal year with a very strong performance in the fourth quarter, driven by our investment in growth and our robust operational capabilities.” He also noted the successful integration of recent acquisitions, highlighting the expansion of capacity in locations like Houston and Croatia.

Standex remains confident about capitalizing on positive trends related to electrical grids, electric vehicles, renewable energy, and the commercialization of space. The company is reaffirming its long-term growth targets, projecting fast growth market sales to reach approximately $340 million by fiscal year 2028.

In conclusion, Standex International Corporation's Q4 FY25 results exemplify strong operational performance, strategic foresight, and a proactive approach to optimizing financial health. With ambitious plans for fiscal year 2026 and beyond, the company is set to leverage its enhanced product lineup and solid market positioning to drive future growth and maximize shareholder value.