#USA #financial results #Salem #Standex International #Q1 FY26

Standex International Reports Strong Financial Results for Q1 FY26

Standex International Corporation, a multi-industry manufacturer, has unveiled impressive financial results for the first quarter of fiscal year 2026, ending September 30, 2025. The company reported a remarkable 27.6% year-over-year growth in sales, totaling $217.4 million. This positive trend is largely attributed to a significant boost in new product sales, which surged over 35%, along with sales into fast growth markets, which contributed approximately 30% to total sales in Q1.

Financial Overview

In Q1 FY26, Standex reported an operating income of $29.6 million on a Generally Accepted Accounting Principles (GAAP) basis, up 23.0% compared to the previous year. The adjusted operating margin increased to 19.1%, reflecting a 210 basis points year-on-year expansion. Highlights of the quarter also include:

• - Orders: The company achieved a record $226 million in orders, indicating a strong market demand.
• - Net Income: GAAP net income from continuing operations was reported at $15.8 million, a decrease of 13.0% year-on-year; however, adjusted net income rose by 9.9% to $24.0 million.
• - Free Cash Flow: The free cash flow after capital expenditures was $10.4 million.

Segment Performance

Standex's diverse segments performed distinctly underlined by the Electronics sector, which constituted 51% of total sales and approximately 61% of segment adjusted operating income. Key segment performances included:

• - Electronics: Revenue spiked by 42.2% to $110.6 million, largely resulting from acquisitions and new product introductions. Operating income for this segment also increased significantly by 66.1% year-on-year.
• - Engineering Technologies: Saw revenue growth of 45.6%, indicative of robust demand across the space and defense markets.
• - Scientific and Engraving Segments: Reported steady performance with marginal growth driven by improved demand and previous cost-saving initiatives.
• - Specialty Solutions: While experiencing slight revenue growth, operating income reflected a decrease, pointing to challenges in that particular sector.

Strategic Moves and Future Outlook

Standex President and CEO, David Dunbar, commented on the results as a testament to the company's strategic focus on innovation and operational enhancements. He noted, “Our Q1 performance positions us well to surpass our previously set outlook of over $100 million in incremental sales for fiscal year 2026.”

Looking ahead, the company has raised its fiscal year 2026 sales outlook, estimating a revenue increase of more than $110 million compared to the previous year. Standex is optimistic about achieving mid-to-high single-digit organic growth driven by its efforts in fast-growing markets including electrical grid, renewable energy, and defense technologies.

Standex plans to launch more than 15 new products anticipated to contribute around 300 basis points of growth.

In conclusion, Standex International's Q1 FY26 results showcase a strong trajectory with optimistic forecasts for sustained growth. The company's strategic investments in innovation and efficiency enhancements are setting the stage for a successful fiscal year, reinforcing its robust market position across various sectors.