STANDEX REPORTS FISCAL THIRD QUARTER 2025 FINANCIAL RESULTS

Rhea-AI Summary

Standex International (NYSE: SXI) reported strong fiscal Q3 2025 results with sales increasing 17.2% to $207.8 million. The company achieved record adjusted gross margin of 42.3% and record adjusted operating margin of 19.4%. Fast growth end markets contributed 29% of total sales at $60.4 million. Key financial highlights include: - GAAP Operating Income rose 20.2% YoY to $26.3 million - Adjusted Operating Income increased 37.3% YoY to $40.3 million - GAAP EPS grew 35.4% YoY to $1.81 - Adjusted EPS improved 3.7% YoY to $1.95 The company completed the acquisition of McStarlite, expanding its aerospace components capabilities. Electronics segment showed stability with a 0.98 book-to-bill ratio. For Q4 2025, Standex expects slightly to moderately higher revenue and adjusted operating margin, driven by recent acquisitions and fast growth end markets, partially offset by higher tariff costs.

Positive

• Record adjusted gross margin of 42.3%, up 230 bps YOY
• Record adjusted operating margin of 19.4%, up 280 bps YOY
• Sales increased 17.2% to $207.8 million
• GAAP Operating Income rose 20.2% YoY to $26.3 million
• Fast growth market sales reached $60.4 million (29% of total sales)
• Strategic acquisition of McStarlite expanding aerospace capabilities
• Electronics segment showing market stability with 0.98 book-to-bill ratio

Negative

• Free cash flow declined 81.9% YoY to $3.5 million
• Net Debt to EBITDA increased to 3.0x from 0.1x YoY
• Organic decline in Electronics segment of 8.9%
• Scientific segment experiencing lower demand due to NIH funding cuts
• Specialty Solutions revenue decreased 13.9% due to market softness

Insights

Financial Analyst

Standex shows strong margin expansion and strategic acquisition momentum despite organic revenue declines, with record 19.4% adjusted operating margin.

Standex's Q3 2025 results present a compelling case of margin strength amid mixed organic performance. The headline 17.2% revenue growth was primarily acquisition-driven, as the company reported organic revenue declines across several segments. However, Standex achieved record adjusted gross margin of 42.3% (up 230 bps year-over-year) and record adjusted operating margin of 19.4% (up 280 bps year-over-year), demonstrating significant operational efficiency improvements.

The company's strategic pivot toward fast-growth markets is gaining momentum, now representing 29% of total sales at $60.4 million. These higher-margin segments (electrical grid, electric vehicles, renewable energy, space, and defense) position Standex well for future growth, as evidenced by their confidence in reaching $340 million in fast-growth market sales by FY2028.

Segment performance varied significantly. Electronics (54% of sales) grew 38.4% but showed 8.9% organic decline. Similarly, Scientific grew 8.1% through acquisition but declined 8.0% organically. Engineering Technologies was the standout with 9.9% organic growth, while Engraving and Specialty Solutions declined 15.7% and 13.9% respectively.

One point of caution is the company's balance sheet. Net debt to EBITDA increased to 3.0x from 0.1x last year, reflecting the acquisition strategy. Furthermore, free cash flow declined substantially to $3.5 million from $19.3 million in the prior year, a concerning 81.9% drop that warrants monitoring.

The recent McStarlite acquisition enhances Standex's aerospace and defense exposure, with management expecting it to be accretive in the first year. Looking ahead, the company anticipates sequential improvement in both revenue and margins for Q4, demonstrating confidence despite organic headwinds.

• Sales Increased 17.2% with Contributions from Acquisitions Partially Offset by Organic Decline; Fast Growth End Markets Increased to 29% of Total Sales
• GAAP Gross Margin of 39.7%; Record Adjusted Gross Margin of 42.3% - Up 140 bps Sequentially and 230 bps YOY
• GAAP Operating Margin of 12.6%; Record Adjusted Operating Margin of 19.4% - Up 70 bps Sequentially and 280 bps YOY
• Electronics Book to Bill of 0.98 Indicating Market Stability; Electronics Organic Bookings up >10% YOY; Strong Amran/Narayan Group Sales of >$33 Million with Book to Bill of 1.04
• Acquired McStarlite, a Leading Provider of Complex Sheet Metal Aerospace Components, Serving Space, Defense, and Commercial Aviation End Markets

SALEM, N.H., May 1, 2025 /PRNewswire/ -- Standex International Corporation (NYSE: SXI) today reported financial results for the third quarter of fiscal year 2025 ended March 31, 2025.

Summary Financial Results - Total
($M except EPS and Dividends)	3Q25	3Q24	2Q25	Y/Y	Q/Q
Net Sales	$207.8	$177.3	$189.8	17.2 %	9.5 %
Operating Income – GAAP	$26.3	$21.8	$8.5	20.2 %	210.2 %
Operating Income – Adjusted	$40.3	$29.4	$35.5	37.3 %	13.8 %
Operating Margin % - GAAP	12.6 %	12.3 %	4.5 %	+ 30 bps	+ 820 bps
Operating Margin % - Adjusted	19.4 %	16.6 %	18.7 %	+ 280 bps	+ 70 bps
Net Income from Continuing Ops – GAAP	$21.9	$15.9	$0.9	37.6 %	2420.0 %
Net Income from Continuing Ops – Adjusted	$23.5	$22.3	$23.0	5.6 %	2.5 %
EBITDA	$35.7	$28.4	$16.1	25.7 %	122.0 %
EBITDA margin	17.2 %	16.0 %	8.5 %	+120 bps	+ 870 bps
Adjusted EBITDA	$45.3	$34.5	$39.6	31.3 %	14.4 %
Adjusted EBITDA margin	21.8 %	19.5 %	20.9 %	+ 190 bps	+ 90 bps
Diluted EPS – GAAP	$1.81	$1.35	$0.07	35.4 %	2407.0 %
Diluted EPS – Adjusted	$1.95	$1.88	$1.91	3.7 %	2.2 %
Dividends per Share	$0.32	$0.30	$0.32	6.7 %	0.0 %
Free Cash Flow	$3.5	$19.3	$2.2	-81.9 %	59.1 %
Funded Debt to EBITDA per the Credit Facility	2.8x	0.6x	2.7x	366.7 %	3.7 %
Net Debt to EBITDA	3.0x	0.1x	2.9x	NM	3.4 %

               

Third Quarter Fiscal 2025 Results 

Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "Following strong operating performance in the fiscal second quarter, we achieved several new records in our fiscal third quarter: record sales since the divestment of the Refrigeration business in April 2020, record adjusted gross margin of 42.3%, and record adjusted operating margin of 19.4%. These results reflect the continued solid operational performance from core businesses, a full quarter of ownership of the fast-growing Amran/Narayan group, and contribution from the recent McStarlite acquisition. Our fast growth market sales totaled $60.4 million or approximately 29% of total sales and are well on track to our expectations for the fiscal year of approximately $170 million. We remain confident about the Company's exposure to positive secular trends in electrical grid, electric and hybrid vehicles, renewable energy, commercialization of space, and defense, and we are reaffirming our long-term target for fast growth market sales of $340 million plus by fiscal year 2028. In addition, we launched three additional new products in the fiscal third quarter totaling 13 year-to-date, achieving our previously committed target of over a dozen and delivering more than 2% of incremental sales."

"While we cannot predict the impact of new tariffs on global trade and economic growth, our regional presence, strong customer relationships, and our disciplined approach to pricing and productivity actions position us well to manage through these challenges. Most of our supply chain is strategically located to service regional demand. China imports to the US approximately 6% of our cost of goods sold. We plan to continue to invest in our key strategic growth priorities, while closely managing our cost structure, driving productivity and pricing actions and seeking alternate sources of supply to further reduce our imports from China. We remain on track to achieve our long-term financial targets by fiscal 2028 and remain confident in our ability to pay down debt and reduce our net leverage ratio."

"In early February, we acquired California-based McStarlite. The integration is on track, and we are excited about our expanded product breadth and forming capabilities in commercial aviation, space and defense applications. We expect the acquisition to be accretive to earnings in the first year of ownership."

Outlook

In fiscal fourth quarter 2025, on a sequential basis, the Company expects slightly to moderately higher revenue, driven by the impact of recent acquisitions, higher sales into fast growth end markets, and realization of pricing initiatives. On a sequential basis, the Company expects slightly to moderately higher adjusted operating margin, benefiting from higher revenue and realization of productivity actions, partially offset by higher tariff costs and targeted investments in selling, marketing, and R&D.

Third Quarter Segment Operating Performance

Electronics (54% of sales; 68% of segment adjusted operating income)

	3Q25	3Q24	% Change
Electronics ($M)
Revenue	111.3	80.4	38.4 %
GAAP Operating Income	25.5	15.7	62.2 %
GAAP Operating Margin %	22.9	19.5
Adjusted Operating Income*	33.2	17.9	85.4 %
Adjusted Operating Margin %*	29.8	22.2

* Excludes the amortization of acquired backlog, the step-up of inventory to fair value, and acquired intangible assets; Q3 FY24 restated to exclude the amortization of acquired intangible assets

 

Revenue increased approximately $30.9 million or 38.4% year-on-year, reflecting a 48.1% benefit from acquisitions, partially offset by an organic decline of 8.9% and a 0.8% impact from foreign currency. The organic decline was due to continued softness in the automotive end markets in Europe and North America and in general industrial end markets. Adjusted operating income increased approximately $15.3 million or 85.4% year-on-year due to the contribution from the Amran/Narayan Group acquisition, productivity initiatives and product mix, partially offset by lower core volume.

The segment had a book-to-bill ratio of approximately 0.98 in the fiscal third quarter, with orders of approximately $109 million. Orders in Electronics core business remained flat sequentially with a continued increase in demand in the electrical grid end market served by Amran/Narayan Group.

In fiscal fourth quarter 2025, on a sequential basis, the Company expects slightly higher revenue and similar to slightly higher adjusted operating margin, primarily driven by contributions from the Amran/Narayan Group acquisition, higher sales into fast growth end markets, and price realization, partially offset by higher tariff costs and continued strategic growth investments.

Engraving (14% of sales; 7% of segment adjusted operating income)

	3Q25	3Q24	% Change
Engraving ($M)
Revenue	30.6	36.3	-15.7 %
GAAP Operating Income	3.1	6.3	-51.2 %
GAAP Operating Margin %	10.0	17.2
Adjusted Operating Income*	3.4	6.7	-48.8 %
Adjusted Operating Margin %*	11.2	18.4

* Excludes the amortization of acquired intangible assets; Q3 FY24 restated to exclude the amortization of acquired intangible assets

 

Revenue decreased approximately $5.7 million or 15.7% year-on-year reflecting a 12.6% organic decline, primarily due to continued softness in North America from delays in new platform rollouts, and a foreign currency impact of 3.1%. Adjusted operating income decreased approximately $3.3 million or 48.8% year-on-year due to the lower revenue. Operating deleverage was partially offset by the realization of previously announced productivity initiatives and restructuring actions.

In fiscal fourth quarter 2025, on a sequential basis, the Company expects slightly higher revenue and moderately higher adjusted operating margin due to more favorable project timing in Asia, slightly improved demand in North America and Europe, and realization of previously announced restructuring actions.

Scientific (9% of sales; 8% of segment adjusted operating income)

	3Q25	3Q24	% Change
Scientific ($M)
Revenue	18.3	16.9	8.1 %
GAAP Operating Income	3.9	4.9	-20.4 %
GAAP Operating Margin %	21.3	28.9
Adjusted Operating Income*	4.1	5.1	-19.7 %
Adjusted Operating Margin %*	22.6	30.4

* Excludes the amortization of acquired intangible assets; Q3 FY24 restated to exclude the amortization of acquired intangible assets

 

Revenue increased approximately $1.4 million or 8.1% year-on-year reflecting a 16.1% benefit from the Custom Biogenic Systems acquisition, partially offset by organic decline of 8.0%, mostly due to lower demand from academic and research institutions that were impacted by NIH funding cuts. Adjusted operating income decreased approximately $1.0 million or 19.7% year-on-year due to organic decline partially offset by contribution from the acquisition.

In fiscal fourth quarter 2025, on a sequential basis, the Company expects slightly lower revenue and adjusted operating margin due to soft demand from academic and research institutions affected by NIH funding cuts and higher tariff costs.

Engineering Technologies (13% of sales; 10% of segment adjusted operating income)

	3Q25		3Q24	% Change
Engineering Technologies ($M)
Revenue	27.4		20.1	36.2 %
GAAP Operating Income	3.4		3.5	-3.0 %
GAAP Operating Margin %	12.5		17.5
Adjusted Operating Income*	5.1		3.5	44.3 %
Adjusted Operating Margin %*	18.6		17.5

* Excludes the amortization of acquired backlog, the step-up of inventory to fair value, and acquired intangible assets; Q3 FY24 restated to exclude the amortization of acquired intangible assets

 

Revenue increased approximately $7.3 million or 36.2% year-on-year reflecting a 26.3% benefit from the recent McStarlite acquisition and organic growth of 9.9%, driven by more favorable project timing in the space end market and growth in sales from new products. Adjusted operating income increased approximately $1.6 million or 44.3% year-on-year reflecting the contribution from the recent acquisition and higher volume.

In fiscal fourth quarter 2025, on a sequential basis, the Company expects similar to slightly higher revenue and similar adjusted operating margin.

Specialty Solutions (10% of sales; 7% of segment adjusted operating income)

	3Q25	3Q24	% Change
Specialty Solutions ($M)
Revenue	20.2	23.5	-13.9 %
Operating Income	3.3	4.7	-29.8 %
Operating Margin %	16.2	19.9

 

Specialty Solutions revenue decreased approximately $3.3 million or 13.9% year-on-year, reflecting general market softness in the Display Merchandising business and in the Hydraulics business. Operating income decreased approximately $1.4 million or 29.8% year-on-year due to lower volume.

In fiscal fourth quarter 2025, on a sequential basis, the Company expects moderately higher revenue and operating margin.

Capital Allocation

• Interest: In fiscal fourth quarter 2025, the Company expects interest expense to be approximately $9 million.
• Share Repurchase: During the fiscal third quarter of 2025, the Company didn't repurchase shares. There was approximately $28 million remaining on the Company's current share repurchase authorization at the end of the fiscal third quarter 2025.
• Capital Expenditures: In fiscal third quarter 2025, the Company's capital expenditures were $6.1 million compared to $5.2 million in the fiscal third quarter of 2024. The Company expects fiscal year 2025 capital expenditures between $25 million and $30 million. Capital expenditures were $20.3 million in fiscal 2024.
• Dividend: On April 24, 2025, the Company declared a quarterly cash dividend of $0.32 per share, an approximately 6.7% year-on-year increase. The dividend is payable May 23, 2025, to shareholders of record on May 9, 2025.

Balance Sheet and Cash Flow Highlights

• Net Debt: Standex had net (cash) debt of $ 470.4 million on March 31, 2025, compared to $10.0 million at the end of fiscal third quarter 2024. Net (cash) debt for the third quarter of 2025 consisted primarily of long-term debt of $580.2 million and cash and equivalents of $109.8 million.
• Cash Flow: Net cash provided by continuing operating activities for the three months ended March 31, 2025, was $9.6 million compared to $24.4 million in the prior year's quarter. Free cash flow after capital expenditures was $3.5 million compared to free cash flow after capital expenditures of $19.3 million in the fiscal third quarter of 2024. 

Conference Call Details

Standex will host a conference call for investors tomorrow, May 2, 2025, at 8:30 a.m. ET. On the call, David Dunbar, President, and CEO, and Ademir Sarcevic, CFO, will review the Company's financial results and business and operating highlights. Investors interested in listening to the webcast and viewing the slide presentation should log on to the "Investors" section of Standex's website under the subheading, "Events and Presentations," located at www.standex.com.

A replay of the webcast will also be available on the Company's website shortly after the conclusion of the presentation online through May 2, 2026. To listen to the teleconference playback, please dial in the U.S. (888) 660-6345 or (646) 517-4150 internationally; the passcode is 15269#. The audio playback via phone will be available through May 9, 2025. The webcast replay can be accessed in the "Investor Relations" section of the Company's website, located at www.standex.com.

Use of Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles ("GAAP"), the Company uses certain non-GAAP financial measures, including non-GAAP adjusted income from operations, non-GAAP adjusted net income from continuing operations, free operating cash flow, EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted EBITDA, adjusted EBITDA to net debt, and adjusted earnings per share. The attached financial tables reconcile non-GAAP measures used in this press release to the most directly comparable GAAP measures. The Company believes that the use of non-GAAP measures which exclude the impact of restructuring charges, purchase accounting, amortization from acquired intangible assets, insurance recoveries, discrete tax events, gain or loss on sale of a business unit, acquisition costs, and litigation costs help investors to obtain a better understanding of our operating results and prospects, consistent with how management measures and forecasts the Company's performance, especially when comparing such results to previous periods.  An understanding of the impact in a particular quarter of specific restructuring costs, acquisition expenses, or other gains and losses, on net income (absolute as well as on a per-share basis), operating income or EBITDA can give management and investors additional insight into core financial performance, especially when compared to quarters in which such items had a greater or lesser effect, or no effect.  Non-GAAP measures should be considered in addition to, and not as a replacement for, the corresponding GAAP measures, and may not be comparable to similarly titled measures reported by other companies.

About Standex

Standex International Corporation is a multi-industry manufacturer in five broad business segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions with operations in the United States, Europe, Canada, Japan, Singapore, Mexico, Turkey, India, and China. For additional information, visit the Company's website at http://standex.com/.

Forward-Looking Statements

Statements contained in this Press Release that are not based on historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as "should," "could," "may," "will," "expect," "believe," "estimate," "anticipate," "intend," "continue," or similar terms or variations of those terms or the negative of those terms. There are many factors that affect the Company's business and the results of its operations and that may cause the actual results of operations in future periods to differ materially from those currently expected or anticipated. These factors include, but are not limited to: the impact of pandemics and other global crises or catastrophic events on employees, our supply chain, and the demand for our products and services around the world; materially adverse or unanticipated legal judgments, fines, penalties or settlements; conditions in the financial and banking markets, including fluctuations in exchange rates and the inability to repatriate foreign cash; domestic and international economic conditions, including the impact, length and degree of economic downturns on the customers and markets we serve and more specifically conditions in the electrical grid, automotive, construction, aerospace, defense, transportation, food service equipment, consumer appliance, energy, oil and gas and general industrial markets; lower-cost competition; the relative mix of products which impact margins and operating efficiencies in certain of our businesses; the impact of higher raw material and component costs, particularly steel, certain materials used in electronics parts, petroleum based products, and refrigeration components; the impact of higher transportation and logistics costs, especially with respect to transportation of goods from Asia; the impact of inflation on the costs of providing our products and services; an inability to realize the expected cost savings from restructuring activities including effective completion of plant consolidations, cost reduction efforts including procurement savings and productivity enhancements, capital management improvements, strategic capital expenditures, and the implementation of lean enterprise manufacturing techniques; the potential for losses associated with the exit from or divestiture of businesses that are no longer strategic or no longer meet our growth and return expectations; the inability to achieve the savings expected from global sourcing of raw materials and diversification efforts in emerging markets; the impact on cost structure and on economic conditions as a result of actual and threatened increases in trade tariffs; the inability to attain expected benefits from acquisitions and the inability to effectively consummate and integrate such acquisitions and achieve synergies envisioned by the Company; increased costs from acquisitions to improve and coordinate managerial, operational, financial, and administrative systems, including internal controls over financial reporting and  compliance with the Sarbanes-Oxley Act of 2002, and other costs related to such systems in connection with acquired businesses; market acceptance of our products; our ability to design, introduce and sell new products and related product components; the ability to redesign certain of our products to continue meeting evolving regulatory requirements; the impact of delays initiated by our customers; our ability to increase manufacturing production to meet demand including as a result of labor shortages; the impact on our operations of any successful cybersecurity attacks; and potential changes to future pension funding requirements. For a more comprehensive discussion of these and other factors, see the "Risk Factors" section of the Company's most recent annual report on Form 10-K filed with the SEC and available on the Company's website. In addition, any forward-looking statements represent management's estimates only as of the day made and should not be relied upon as representing management's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, the Company and management specifically disclaim any obligation to do so, even if management's estimates change.

Standex International Corporation
Consolidated Statement of Operations
			(unaudited)
			Three Months Ended						Nine Months Ended
			March 31,						March 31,
(In thousands, except per share data)			2025			2024			2025			2024
Net sales		$	207,780			177,267		$	568,058		$	540,441
Cost of sales			125,350			108,977			344,108			327,853
Gross profit			82,430			68,290			223,950			212,588
Selling, general and administrative expenses			47,564			39,719			130,796			122,466
(Gain) loss on sale of business			-			-			-			(274)
Restructuring costs			1,976			4,037			3,982			7,303
Amortization of acquired intangible assets			4,485			2,045			9,965			6,159
Acquisition related costs			2,152			537			20,392			2,233
Other operating (income) expense, net			-			110			-			110
Income from operations			26,253			21,842			58,815			74,591
Interest expense			8,363			949			14,915			3,244
Other non-operating (income) expense, net			309			627			1,171			1,805
Total			8,672			1,576			16,086			5,049
Income from continuing operations before income taxes			17,581			20,266			42,729			69,542
Provision for income taxes			(5,197)			4,327			475			15,639
Net income from continuing operations			22,778			15,939			42,254			53,903
Income (loss) from discontinued operations, net of tax			(52)			(141)			(56)			(420)
Net income			22,726			15,798			42,198			53,483
Less: net income attributable to redeemable noncontrolling interest			846			-			1,264			-
Net income attributable to Standex International		$	21,880		$	15,798		$	40,934		$	53,483
Basic earnings per share:
Income (loss) from discontinued operations			-			(0.01)			-			(0.03)
Total income (loss) attributable to Standex International		$	1.83		$	1.34		$	3.44		$	4.55
Diluted earnings per share:
Income (loss) from discontinued operations			-			(0.02)			-			(0.04)
Total income (loss) attributable to Standex International		$	1.81		$	1.33		$	3.41		$	4.50
Average Shares Outstanding
Basic			11,986			11,772			11,906			11,764
Diluted			12,059			11,849			11,997			11,876

 

Standex International Corporation
Condensed Consolidated Balance Sheets
(unaudited)
			December 31,			June 30,
(In thousands)			2024			2024
ASSETS
Current assets:
Cash and cash equivalents		$	109,810			154,203
Accounts receivable, net			169,876			121,365
Inventories			119,966			87,106
Prepaid expenses and other current assets			87,239			67,421
Total current assets			486,891			430,095
Property, plant, equipment, net			146,666			134,963
Intangible assets, net			226,823			78,673
Goodwill			610,740			281,283
Deferred tax asset			16,633			17,450
Operating lease right-of-use asset			43,314			37,078
Other non-current assets			23,489			25,515
Total non-current assets			1,067,665			574,962
Total assets		$	1,554,556		$	1,005,057
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	76,488			63,364
Accrued liabilities			59,414			56,698
Income taxes payable			7,168			7,503
Total current liabilities			143,070			127,565
Long-term debt			579,406			148,876
Operating lease long-term liabilities			36,611			30,725
Accrued pension and other non-current liabilities			80,969			76,388
Total non-current liabilities			696,986			255,989
Redeemable non-controlling interest			27,573			-
Stockholders' equity:
Common stock			41,976			41,976
Additional paid-in capital			135,241			106,193
Retained earnings			1,115,862			1,086,277
Accumulated other comprehensive loss			(177,832)			(182,956)
Treasury shares			(428,320)			(429,987)
Total stockholders' equity			686,927			621,503
Total liabilities, redeemable noncontrolling interest and stockholders' equity		$	1,554,556		$	1,005,057

 

Standex International Corporation and Subsidiaries
Statements of Consolidated Cash Flows
(unaudited)
			Nine Months Ended
			March 31,
(In thousands)			2025			2024
Cash Flows from Operating Activities
Net income		$	42,198			53,483
Income (loss) from discontinued operations			(56)			(420)
Income from continuing operations			42,254			53,903
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			25,310			21,146
Stock-based compensation			7,878			8,524
Non-cash portion of restructuring charge			(401)			895
(Gain) loss on sale of business			-			(274)
Contributions to defined benefit plans			(6,153)			(8,506)
Net changes in operating assets and liabilities			(32,675)			(11,079)
Net cash provided by operating activities - continuing operations			36,213			64,609
Net cash provided by (used in) operating activities - discontinued operations			(42)			(497)
Net cash provided by (used in) operating activities			36,171			64,112
Cash Flows from Investing Activities
Expenditures for property, plant and equipment			(19,762)			(13,765)
Expenditures for acquisitions, net of cash acquired			(477,381)			(47,696)
Proceeds from the sale of business			-			7,774
Other investing activities			3,800			(270)
Net cash provided by (used in) investing activities			(493,343)			(53,957)
Cash Flows from Financing Activities
Proceeds from borrowings			792,313			-
Payments of debt			(362,109)			(25,000)
Activity under share-based payment plans			2,019			1,325
Purchase of treasury stock			(9,582)			(31,781)
Cash dividends paid			(11,197)			(10,375)
Net cash provided by (used in) financing activities			411,443			(65,831)
Effect of exchange rate changes on cash			1,336			(1,231)
Net changes in cash and cash equivalents			(44,393)			(56,907)
Cash and cash equivalents at beginning of year			154,203			195,706
Cash and cash equivalents at end of period		$	109,810		$	138,799

 

Standex International Corporation
Selected Segment Data
(unaudited)
			Three Months Ended						Nine Months Ended
			March 31,						March 31,
(In thousands)			2025			2024			2025			2024
Net Sales
Electronics		$	111,283		$	80,431		$	284,939		$	241,538
Engraving			30,585			36,297			95,402			117,936
Scientific			18,292			16,925			54,462			51,410
Engineering Technologies			27,375			20,098			70,555			58,205
Specialty Solutions			20,245			23,516			62,700			71,352
Total		$	207,780		$	177,267		$	568,058		$	540,441
Income from operations
Electronics		$	25,471		$	15,700		$	59,918		$	47,884
Engraving			3,058			6,260			13,004			22,765
Scientific			3,895			4,896			13,362			14,074
Engineering Technologies			3,417			3,524			11,120			9,946
Specialty Solutions			3,278			4,668			10,388			14,250
Restructuring			(1,976)			(4,037)			(3,982)			(7,303)
Gain (loss) on sale of business			-			-			-			274
Acquisition related costs			(2,152)			(537)			(20,392)			(2,233)
Corporate			(8,738)			(8,522)			(24,603)			(24,956)
Other operating income (expense), net			-			(110)			-			(110)
Total		$	26,253		$	21,842		$	58,815		$	74,591

 

Standex International Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
				Three Months Ended								Nine Months Ended
				March 31,								March 31,
(In thousands, except percentages)				2025			2024		% Change			2025			2024		% Change
Adjusted income from operations and adjusted net income from continuing operations:
Net Sales			$	207,780		$	177,267		17.2 %		$	568,058		$	540,441		5.1 %
Income from operations, as reported			$	26,253		$	21,842		20.2 %		$	58,815		$	74,591		-21.2 %
	Income from operations margin			12.6 %			12.3 %					10.4 %			13.8 %
Adjustments:
	Restructuring charges			1,976			4,037					3,982			7,303
	Acquisition-related costs			2,152			537					20,392			2,233
	Amortization of acquired intangible assets			4,485			2,045					9,965			6,159
	(Gain) loss on sale of business			-			-					-			(274)
	Environmental remediation			-			110					-			110
	Purchase accounting expenses			5,479			818					11,676			1,463
Adjusted income from operations			$	40,345		$	29,389		37.3 %		$	104,830		$	91,585		14.5 %
	Adjusted income from operations margin			19.4 %			16.6 %					18.5 %			16.9 %
	Interest and other income (expense), net			(8,672)			(1,576)					(16,086)			(5,049)
	Foreign currency related (gain) loss on acquisition and divestiture activities			-			591					554			309
	Provision for income taxes			5,197			(4,327)					(475)			(15,639)
	Discrete and other tax items			(9,321)			-					(8,946)			100
	Tax impact of above adjustments			(3,173)			(1,794)					(10,314)			(3,953)
Net income from continuing operations, as adjusted				24,375			22,283		9.4 %			69,563			67,353		3.3 %
	Less: net income attributable to redeemable noncontrolling interest			846			-					1,264			-
Net income attributable to Standex International, as adjusted			$	23,530		$	22,283		5.6 %		$	68,299		$	67,353		1.4 %
EBITDA and Adjusted EBITDA:
Net income (loss) from continuing operations, as reported			$	22,778		$	15,939		42.9 %		$	42,254		$	53,903
	Net income from continuing operations margin			11.0 %			9.0 %					7.4 %			10.0 %
Add back:
	Provision for income taxes			(5,197)			4,327					475			15,639
	Interest expense			8,363			949					14,915			3,244
	Depreciation and amortization			9,744			7,177					25,310			21,146
EBITDA			$	35,688		$	28,392		25.7 %		$	82,954		$	93,932		-11.7 %
	EBITDA Margin			17.2 %			16.0 %					14.6 %			17.4 %
Adjustments:
	Restructuring charges			1,976			4,037					3,982			7,303
	Acquisition-related costs			2,152			537					20,392			2,233
	(Gain) loss on sale of business			-			-					-			(274)
	Foreign currency related (gain) loss on acquisition and divestiture activities			-			591					-			309
	Environmental remediation			-			110					-			110
	Purchase accounting expenses			5,479			818					11,676			1,463
Adjusted EBITDA			$	45,295		$	34,485		31.3 %		$	119,004		$	105,076		13.3 %
				21.8 %			19.5 %					20.9 %			19.4 %
Free operating cash flow:
Net cash provided by operating activities - continuing operations, as reported			$	9,551		$	24,442				$	36,213		$	64,609
Less: Capital expenditures				(6,072)			(5,178)					(19,762)			(13,765)
Free cash flow from continuing operations			$	3,479		$	19,264				$	16,451		$	50,844

 

Standex International Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
				Three Months Ended								Nine Months Ended
Adjusted earnings per share from continuing operations				March 31,								March 31,
				2025			2024		% Change			2025			2024		% Change
Diluted earnings per share from net income attributable to Standex, as reported			$	1.81		$	1.35		34.4 %		$	3.41		$	4.54		-24.8 %
Adjustments:
	Restructuring charges			0.13			0.26					0.25			0.48
	Acquisition-related costs			0.14			0.04					1.36			0.14
	Amortization of acquired intangible assets			0.29			0.13					0.63			0.40
	Gain on bargain purchase			-			-					-			-
	Litigation (settlement refund) charge			-			-					-			-
	(Gain) loss on sale of business			-			-					-			(0.02)
	Foreign currency related (gain) loss on acquisition and divestiture activities			-			0.04					0.04			0.02
	Environmental remediation			-			0.01					-			0.01
	Discrete tax items			(0.77)			-					(0.74)			0.01
	Purchase accounting expenses			0.35			0.05					0.74			0.09
Diluted earnings per share from net income attributeable to Standex, as adjusted			$	1.95		$	1.88		3.6 %		$	5.69		$	5.67		0.3 %

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/standex-reports-fiscal-third-quarter-2025-financial-results-302444459.html

SOURCE Standex International Corporation

FAQ

What were Standex's (SXI) key financial results for Q3 2025?

Standex reported sales of $207.8M (+17.2% YoY), GAAP Operating Income of $26.3M (+20.2% YoY), and Adjusted EPS of $1.95 (+3.7% YoY). The company achieved record adjusted gross margin of 42.3% and adjusted operating margin of 19.4%.

How did Standex's (SXI) Electronics segment perform in Q3 2025?

Electronics segment revenue increased 38.4% to $111.3M, with 48.1% benefit from acquisitions but an 8.9% organic decline. The segment showed market stability with a 0.98 book-to-bill ratio.

What is Standex's (SXI) outlook for Q4 2025?

Standex expects slightly to moderately higher revenue and adjusted operating margin, driven by recent acquisitions and fast growth end markets, partially offset by higher tariff costs.

What was the impact of the McStarlite acquisition on Standex (SXI)?

The McStarlite acquisition expanded Standex's capabilities in aerospace components for commercial aviation, space and defense applications. The company expects the acquisition to be accretive to earnings in the first year.

What is Standex's (SXI) current dividend policy?

Standex declared a quarterly cash dividend of $0.32 per share, representing a 6.7% year-on-year increase, payable May 23, 2025, to shareholders of record on May 9, 2025.