Standex International (SXI) Conference presentation summary

Company overview and financial highlights

• Operates in 16 countries with approximately 3,995 employees and FY26 revenue of $892M, adjusted operating income of $173M, and a 19.4% margin.

• Electronics and Aerospace & Defense segments contribute 68% of sales and 76% of segment profits.

• Market capitalization stands at $3.9B with a net debt to EBITDA ratio of 1.8x.

• Consistent margin expansion achieved despite macroeconomic challenges, with adjusted operating margin rising from 13.8% in FY21 to 19.4% in FY26.

• Portfolio repositioning and operational improvements increased margins by ~1050 bps since FY16.

Growth strategy and market opportunities

• Focus on engineered components, with ~70% of sales from this area and a current serviceable market of ~$10B, aiming to expand into a $50B global market.

• Over 30% of FY27 sales expected from fast growth markets, with double-digit market growth rates.

• Launching 15+ new products in FY26 to expand addressable market; new product sales projected to reach ~10% of total sales by FY27.

• Recent product launches have opened over $500M in new addressable markets, including current and voltage transformers and rocket engine components.

• Significant expansion opportunities in power grid, space, and defense markets, each with strong growth tailwinds and multi-year program wins.

Segment and operational performance

• FY26 sales increased by over $100M, with 5.5% organic growth; Electronics segment grew 7.5% organically.

• Q4 FY26 sales reached $228.3M, up 7.7% organically, with Electronics up 12.9% and Aerospace & Defense up 18.4%.

• Record adjusted EPS of $8.74 for FY26, up 9.6% year-over-year, and record free cash flow of $35M in Q4 FY26.

• Adjusted operating margin for FY26 was 19.4%, up 30 bps year-over-year.

• Book-to-bill ratio in Q4 FY26 was 1.18 overall and 1.27 for Electronics, indicating strong order intake.