Standex International (SXI) Q1 2027 earnings summary

Executive summary

• Record Q1 FY2027 sales of $232.6M, up 7.0% reported and 12.4% organically; adjusted operating margin reached 20.2%, up 110 bps.

• Record order intake of $273M and consolidated book-to-bill of 1.17; FY2027 sales guidance was raised, while FY2028 targets remained unchanged.

Financial highlights

• Organic growth added $26.9M; divestitures reduced sales by $9.5M and FX by $2.3M.

• Adjusted gross margin was a record 44.4%, up 240 bps; adjusted operating income rose 13.1% to $47.0M.

• Adjusted EPS increased 21.1% to $2.41; GAAP diluted EPS was $1.99 versus $1.25.

• Operating cash flow was $15.7M and free cash flow was $9.1M, versus $16.8M and $10.4M a year earlier.

Outlook and guidance

• FY2027 total sales growth guidance rose to high single digits from mid-to-high single digits; organic sales are expected to increase by more than $100M and adjusted EPS growth to reach the high teens.

• FY2027 new-product sales are expected to reach $94M, contributing $27M of growth and more than 300 bps of organic growth; more than 20 launches are planned.

• Fast-growth-market sales are forecast above $315M, up more than 20%; FY2028 targets remain sales above $1.1B and adjusted operating margin above 23%.

• Q2 revenue and adjusted operating margin are expected moderately higher YoY; sequentially, revenue is expected slightly higher and margin similar.