Standex International (SXI) investor relations material

Executive summary

• Q1 FY26 sales rose 27.6% year-over-year to $217.4M, driven by acquisitions, new product launches, and fast-growth markets, with new product sales up over 35% and fast growth market sales contributing ~30% of total sales.

• Record quarterly orders of ~$226M and robust performance from the rebranded Amran/Narayan (Standex GRID) business, with sales above $35M and up nearly 35% since acquisition.

• Adjusted operating margin expanded 210 bps to 19.1%, adjusted EPS grew 8.2% to $1.99, and free cash flow was $10.4M.

• Paid down ~$8M in debt, reducing net leverage ratio to 2.4x.

• Integration of recent acquisitions and expansion into Croatia and Mexico are supporting growth and capacity.

Financial highlights

• Q1 FY26 revenue rose 27.6% year-over-year to $217.4M, with 26.6% from acquisitions, 0.6% organic growth, and 0.4% from FX.

• Adjusted operating income up 43.3% to $41.6M; adjusted net income from continuing operations up 9.9% to $24.0M.

• Adjusted EBITDA was $47.1M (+38.2% YOY), with a margin of 21.7% (+170 bps YOY).

• Interest expense rose to $8.9M due to acquisitions; effective tax rate was 24.6%.

• Free cash flow was $10.4M, down 3.7% year-over-year.

Outlook and guidance

• FY26 sales outlook raised to over $110M incremental growth, with fast growth market sales projected to exceed $270M, up over 45% year-over-year.

• Over 15 new products to launch in FY26, expected to contribute ~300 bps to sales growth and deliver higher margins.

• Q2 FY26 expected to see higher revenue year-over-year and sequentially, with similar or slightly lower adjusted operating margin due to growth investments.

• FY26 revenue growth driven by mid-to-high single-digit organic growth in Electronics, double-digit growth in Engineering Technologies, and acquisitions.

• Continued growth expected in high-margin electrical grid, defense, and space markets; scientific cold storage demand expected to decline due to NIH funding cuts.