Standex International (SXI) Q2 2026 earnings summary

Executive summary

• Q2 FY26 sales rose 16.6% year-over-year to $221.3M, with 6.4% organic growth, record order intake of $231M, and strong contributions from new products and fast growth markets.

• Electronics segment led with 11.1% organic growth and a book-to-bill of 1.08; Engraving grew 10.3% organically.

• New product sales rose 13% to $16.3M, with fast growth markets contributing 28% of total sales.

• Adjusted operating margin expanded 30 bps to 19.0%; adjusted EPS increased 8.9% to $2.08.

• Company reiterates FY26 sales outlook and remains on track for long-term targets.

Financial highlights

• Adjusted gross margin improved 120 bps year-over-year to 42.1%; adjusted operating margin up 30 bps to 19.0%.

• Adjusted EPS increased 8.9% year-over-year to $2.08; free cash flow was $13M, up from $2.2M a year ago.

• Net leverage ratio reduced to 2.3 after $10M debt repayment; net debt at $437.7M; cash and equivalents at $97M.

• Dividend per share increased 6.3% year-over-year; 246th consecutive quarterly dividend declared.

• Adjusted EBITDA margin reached 21.3%, up 40 bps year-over-year.

Outlook and guidance

• FY26 revenue expected to grow by over $110M from FY25, driven by new products, fast growth markets, and acquisitions.

• New product sales expected to reach $85M, contributing 300 bps of incremental growth.

• Fast growth market sales projected to exceed $270M, up over 45% year-over-year.

• Q3 FY26 guidance: mid- to high single-digit organic growth, higher revenue, and slightly higher adjusted operating margin.

• Over 15 new products to be launched in FY26.