#United States #financial results #Q3 2025 #Salem #Standex International

Standex International's Fiscal Q3 2025 Financial Results Overview

On May 1, 2025, Standex International Corporation, listed on NYSE as SXI, revealed remarkable financial results for the third quarter of the fiscal year 2025, which ended on March 31, 2025. The report highlighted a robust 17.2% increase in net sales compared to the same period last year, achieving $207.8 million against $177.3 million in Q3 2024. This growth was partly fueled by strategic acquisitions, although it was somewhat tempered by organic declines in certain core markets.

The company's fast-growing end markets, notably, represented a significant portion of total revenue, amounting to 29%, indicating a proactive shift towards sectors poised for rapid expansion. The adjusted gross margin reached a record high of 42.3%, an increase of 140 basis points sequentially and 230 basis points year-on-year. The GAAP gross margin was reported at 39.7%.

Breakdown of Financial Highlights

• - Operating Income: The company reported a GAAP operating income of $26.3 million, a year-on-year increase of 20.2%. In terms of adjusted figures, the operating income increased to $40.3 million, which represents a 37.3% rise from the prior year.
• - Earnings Per Share (EPS): Diluted EPS stood at $1.81 for GAAP measures, up 35.4% from $1.35 a year earlier. The adjusted diluted EPS was noted at $1.95, a slight increase from $1.88.

Standex's President and CEO, David Dunbar, commented on the quarter's achievements, remarking on record sales and operational performance, particularly in the context of the acquisitions of the Amran/Narayan group and McStarlite. McStarlite, known for its complex sheet metal aerospace components, has augmented Standex’s capabilities in the aerospace, defense, and commercial aviation sectors. The integration is reportedly on track, and earnings are expected to benefit in the first year following the acquisition.

Segment Performance Insights

The quarterly performance was driven significantly by the Electronics segment, which generated 54% of total sales and an impressive 68% of segment adjusted operating income. This segment saw a year-on-year revenue increase of 38.4%, reflecting strong demand despite organic decline, particularly in automotive end markets.

Engraving and Scientific segments faced challenges, with revenues decreasing by 15.7% and 8.1%, respectively. The Engraving segment experienced operational strains from platform rollout delays, while the Scientific segment dealt with lower demand due to funding cuts in academic and research spheres.

Future Outlook

Looking ahead to Q4 of fiscal 2025, Standex anticipates slightly to moderately higher revenues. This anticipated growth is expected to arise from the advantages realized from recent acquisitions and increased market demand within fast-growing sectors. The company remains confident in achieving long-term targets established for fiscal 2028, including sales projections for fast growth markets of approximately $340 million. This optimism also extends to its strategic initiatives to minimize dependency on imports, particularly from China, highlighting a disciplined approach to controlling costs and enhancing productivity.

Conclusion

Standex International's Q3 2025 results reflect a dynamic growth trend underpinned by strategic acquisitions and a robust operational structure. As the company continues to leverage its market position while navigating challenges such as tariff impacts and changing economic conditions, its focus remains on driving sustainable profitability and shareholder value.