Standex International (SXI) Q4 2025 earnings summary

Executive summary

• FY25 marked a record year with sales up 9.6% to $790.1M and Q4 sales up 23.2% to $222M, driven by acquisitions, fast growth markets, and operational execution.

• Adjusted EPS reached a record $7.98 in FY25, up 5.8% year-over-year; Q4 adjusted EPS was $2.28, up 20.6%.

• Fast growth markets accounted for about 28% of FY25 sales, with new products contributing up to 2.8% of incremental sales.

• Net leverage ratio reduced to 2.6x through strong cash generation and debt paydown.

• 16 new products launched in FY25, with over 15 planned for FY26.

Financial highlights

• Q4 FY25 revenue grew 23.2% year-over-year to $222M, with a 23.4% benefit from acquisitions and organic decline of 1.4%.

• Adjusted operating income increased 48.8% year-over-year; Q4 adjusted operating margin reached a record 20.6%, up 350 bps.

• FY25 adjusted gross margin was 41.7%, up 230 bps; adjusted operating margin 19.1%, up 210 bps.

• Free cash flow for Q4 FY25 was $24.9M, up from $22.2M a year ago.

• Q4 FY25 interest expense increased to $9M due to acquisitions.

Outlook and guidance

• FY26 revenue expected to grow by over $100M, with continued adjusted operating margin expansion and >15 new product launches.

• Fast growth market sales projected to exceed $265M in FY26, up ~45% year-over-year.

• New product sales projected to add about 3% incremental growth in FY26.

• Q1 FY26: higher year-over-year revenue and margin, but slightly lower sequentially.

• Long-term FY28 targets: sales >$1.15B, adjusted operating margin >23%, ROIC 12.5%.