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; Engineering Technologies grew 35.3% mainly from acquisitions.

• Adjusted operating margin expanded 30 bps to 19.0%; adjusted EPS up 8.9% to $2.08; net income from continuing operations (GAAP) was $20.6M.

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

• Recent acquisitions, including McStarlite and Amran/Narayan Group, significantly boosted sales and backlog.

Financial highlights

• Adjusted gross margin improved 120 bps to 42.1%; adjusted operating margin up 30 bps to 19.0%; adjusted EBITDA margin 21.3%.

• Free cash flow was $13.0M, up from $2.2M a year ago; operating cash flow for six months was $37.5M.

• Paid down ~$10M in debt; net leverage ratio reduced to 2.3x; net debt at $437.7M.

• Dividend per share increased 6.3% year-over-year to $0.34; 246th consecutive quarterly dividend declared.

• Backlog under one year increased 18.1% YoY to $282.1M, mainly from acquisitions.

Outlook and guidance

• FY26 sales outlook reiterated; revenue expected to grow by over $110M from 2025, with mid-to-high single digit organic growth in Electronics and double-digit growth in Engineering Technologies.

• New product sales expected to reach $85M, contributing ~300 bps to sales growth; over 15 new products to be launched.

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

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

• Capital spending for FY26 projected at $33M–$38M; depreciation and amortization expected at $24M–$26M.