Standex International (SXI) Q4 2026 earnings summary

Executive summary

• Q4 FY26 sales reached $228.3M, up 2.8% year-over-year and 7.7% organically, led by Electronics and Aerospace & Defense segments.

• FY26 sales increased by over $100M, with 5.5% organic growth; new product sales rose from $40M to $67M, contributing 300 basis points to growth.

• Record Q4 order intake of ~$270M and book-to-bill ratio of 1.18 overall, 1.27 in Electronics.

• Acquisition of remaining 9.9% of Narayan for ~$64M completed, consolidating Standex Grid.

• Fast growth markets accounted for $264M in sales (31% of total), expected to grow ~20% in FY27.

Financial highlights

• Q4 adjusted EPS hit a record $2.45, up 7.4% year-over-year; FY26 adjusted EPS was $8.74, up 9.6%.

• Q4 adjusted operating income was $45.4M, margin 19.9%; adjusted gross margin for FY26 was 42%, operating margin 19.4%.

• Record free cash flow of $35M in Q4, up from $24.9M a year ago; net cash from operations was $40.5M.

• Net debt at Q4 end: $339.2M, down from $448M prior year; net debt to EBITDA ratio improved to 1.8x.

• Dividend increased 6.3% year-over-year to $0.34/share; 248th consecutive quarterly dividend declared.

Outlook and guidance

• FY27 expected to deliver mid- to high single-digit sales growth, high-single to low-double-digit organic growth, and margin expansion.

• Over 20 new products to launch in FY27, contributing ~300 bps incremental growth.

• Fast growth market sales projected to grow ~20% to over $310M, remaining above 30% of total sales.

• On track for >$1.1B sales and >23% adjusted operating margin by FY28.

• Q1 FY27 guidance: moderately higher revenue and slightly to moderately higher adjusted operating margin year-over-year.