STANDEX REPORTS FISCAL THIRD QUARTER 2026 FINANCIAL RESULTS
Rhea-AI Summary
Standex (NYSE: SXI) reported Q3 FY26 sales of $224.6M, up 8.1% YoY and 6.5% organic. GAAP operating margin was 40.4% and adjusted operating margin was 19.7% (up 30 bps YoY). GAAP diluted EPS was $5.56 and adjusted EPS was $2.21. Net debt to EBITDA fell to 1.9x after ~$62M debt paydown. The company completed the divestiture of Federal Industries (~$70M enterprise value), expects ~$100M incremental FY26 revenue impact, fast growth market sales to reach ~$270M, and plans >15 new products contributing ~300 bps of growth.
AI-generated analysis. Not financial advice.
Positive
- GAAP operating income +246% to $90.8M
- EBITDA margin expanded to 44.3% (2710 bps increase)
- Completed Federal Industries divestiture (~$70M enterprise value)
- Net leverage reduced to 1.9x (from 3.0x)
- Fast growth market sales expected +45% to ~$270M
- Over 15 new products expected to add ~300 bps
Negative
- Company expects slightly lower adjusted operating margin in Q4 FY26
- Scientific revenue declined 1.7% due to NIH funding cuts
- Engraving & Hydraulics organic revenue down ~1.8% amid weak hydraulics demand
- Higher medical costs and increased variable compensation expected to pressure margins
News Market Reaction – SXI
On the day this news was published, SXI declined 8.93%, reflecting a notable negative market reaction. Argus tracked a trough of -14.8% from its starting point during tracking. Our momentum scanner triggered 31 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $327M from the company's valuation, bringing the market cap to $3.34B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
SXI fell 5.97% while key peers like AMSC (-0.28%), ATS (-1.12%), EPAC (-3.71%), PSIX (-5.94%), and XMTR (-1.69%) also declined, but only one peer appeared in momentum scanners, indicating a more company-specific reaction than a broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 29 | Q2 2026 earnings | Positive | -2.5% | Q2 FY26 revenue growth, margin expansion, strong orders and lower net leverage. |
| Oct 30 | Q1 2026 earnings | Positive | -2.3% | Q1 FY26 double-digit sales growth, higher margins, raised FY26 outlook. |
| Jul 31 | Q4/FY25 earnings | Positive | +10.0% | Q4 FY25 strong sales, record margins, EPS growth and debt reduction. |
| Jul 25 | Earnings timing notice | Neutral | +2.0% | Announcement of date and call details for Q4 FY25 earnings release. |
| May 01 | Q3 2025 earnings | Positive | +9.8% | Q3 FY25 strong sales growth, record margins, and fast growth market strength. |
Earnings releases often showed mixed reactions: two recent FY26 earnings prints saw negative moves despite positive fundamentals, while prior FY25 earnings produced strong double-digit gains.
Over the past year, Standex has repeatedly highlighted strong growth from fast growth markets, new product launches, and margin expansion. Prior earnings reports on May 1, 2025, July 31, 2025, October 30, 2025, and January 29, 2026 emphasized rising sales, higher adjusted operating margins near or above 19%, and steady debt reduction. Today’s Q3 FY26 results, with higher net sales and expanded adjusted margins plus further leverage reduction, continue this trajectory of growth-focused execution and balance sheet improvement.
Historical Comparison
In the past five earnings-related releases, SXI’s average move was about 3.39%. Today’s -5.97% reaction to Q3 FY26 results is notably weaker than the typical post-earnings response.
Across recent earnings, Standex has emphasized consistent organic growth, expanding adjusted operating margins near the high teens to low 20s, rising fast growth market sales toward about $270M, and ongoing debt reduction, with the latest quarter adding a Federal Industries divestiture and updated FY26 outlook.
Market Pulse Summary
The stock moved -8.9% in the session following this news. A negative reaction despite solid Q3 FY26 revenue growth, higher adjusted EPS, and lower leverage fits prior instances where earnings strength was followed by short-term weakness, such as recent FY26 quarters. The move contrasts with earlier FY25 reports that saw strong gains. Factors like expectations around the Federal Industries divestiture, future margin guidance, or post-rally profit-taking could have amplified downside pressure.
Key Terms
book to bill financial
ebitda financial
adjusted ebitda financial
free cash flow financial
enterprise value financial
non-gaap financial
schedule 13g regulatory
rule 10b5-1 trading plan regulatory
AI-generated analysis. Not financial advice.
- In Q3 FY26, Sales Increased
8.1% YOY to$224.6 Million 40% and Sales into Fast Growth Markets Contributed >30% of Total Sales - In Q3 FY26, Sales Increased
6.5% YOY Organically; Electronics Increased6.8% YOY Organically - Book to Bill of 1.05; Electronics Book to Bill of 1.14
- Q3 FY26 GAAP Operating Margin of
40.4% ; Adjusted Operating Margin of19.7% , Up 30 bps YOY - Continued Portfolio Simplification with Federal Industries' Divestiture; Leverage Ratio Reduced to 1.9x
- Expect
~ of Incremental Sales in FY26 After Federal Divestiture; Fast Growth Market Sales to Grow ~$100 Million 45% to~ ; Plan to Release >15 New Products Contributing ~300bps of Growth$270 Million
Summary Financial Results - Total | |||||
($M except EPS and Dividends) | 3Q26 | 3Q25 | 2Q26 | Y/Y | Q/Q |
Net Sales | 8.1 % | 1.5 % | |||
Operating Income – GAAP | 246.0 % | 155.3 % | |||
Operating Income – Adjusted | 9.5 % | 4.8 % | |||
Operating Margin % - GAAP | 40.4 % | 12.6 % | 16.1 % | 2780 bps | 2430 bps |
Operating Margin % - Adjusted | 19.7 % | 19.4 % | 19.0 % | 30 bps | 70 bps |
Net Income from Continuing Ops – GAAP | 201.3 % | 232.6 % | |||
Net Income from Continuing Ops – Adjusted | 13.5 % | 6.5 % | |||
EBITDA | 178.7 % | 120.7 % | |||
EBITDA margin | 44.3 % | 17.2 % | 20.4 % | 2710 bps | 2390 bps |
Adjusted EBITDA | 6.9 % | 2.6 % | |||
Adjusted EBITDA margin | 21.6 % | 21.8 % | 21.3 % | - 20 bps | 30 bps |
Diluted EPS – GAAP | 207.3 % | 3170.6 % | |||
Diluted EPS – Adjusted | 13.5 % | 6.3 % | |||
Dividends per Share | 6.3 % | 0.0 % | |||
Free Cash Flow | 81.5 % | -51.6 % | |||
Net Debt to EBITDA | 1.9x | 3.0x | 2.3x | -36.7 % | -17.4 % |
Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "We delivered another quarter with year-on-year organic growth and strong operating performance. Our sales increased
Adjusted operating margin expanded by 30 basis points year-on-year to
On March 6th, we completed the divestiture of Federal Industries at an enterprise value of approximately
Fiscal Fourth Quarter 2026 Outlook
In fiscal fourth quarter 2026, on a year-on-year basis, the Company expects slightly to moderately higher revenue, driven by mid-to-high single digit organic growth from higher sales into fast growth end markets and increased new product sales, partially offset by the impact on revenue from the recently completed divestiture of Federal Industries. The Company expects slightly lower adjusted operating margin as contributions from organic growth and realization of productivity actions are more than offset by growth investments, higher medical costs, and increased variable compensation expenses.
On a sequential basis, the Company expects slightly higher revenue, driven by increased contributions from fast growth end markets and new product sales, and slightly to moderately higher adjusted operating margin due to higher volume and pricing and productivity initiatives, partially offset by growth investments.
Fiscal Year 2026 Outlook
The Company's prior fiscal year 2026 sales outlook included a full year contribution from Federal Industries. Considering the divestiture of Federal Industries and barring any unforeseen economic, global trade, or tariffs related disruptions, the Company now expects revenue to grow by approximately
Third Quarter Segment Operating Performance
The Engineering Technologies segment has been re-named as the Aerospace & Defense segment. The Company believes this name change will improve understanding of the business and its end markets. The Hydraulics business has been combined with the Engraving business under Engraving & Hydraulics segment. As a result, the Company will now report under the four operating segments of Electronics, Aerospace & Defense, Scientific, and Engraving & Hydraulics.
Electronics (53% of sales;
3Q26 | 3Q25 | % Change | |
Electronics ($M) | |||
Revenue | 119.7 | 111.3 | 7.6 % |
GAAP Operating Income | 31.7 | 25.5 | 24.3 % |
GAAP Operating Margin % | 26.4 | 22.9 | |
Adjusted Operating Income | 35.1 | 33.2 | 5.9 % |
Adjusted Operating Margin % | 29.3 | 29.8 |
Revenue increased approximately
The segment had a book-to-bill ratio of approximately 1.14 in the fiscal third quarter, with orders of approximately
In fiscal fourth quarter 2026, on a sequential basis, the Company expects slightly to moderately higher revenue, reflecting higher sales into fast growth end markets and increased new product sales. The Company expects slightly higher adjusted operating margin due to higher revenue, partially offset by continued growth investments.
Aerospace & Defense (
3Q26 | 3Q25 | % Change | ||
Aerospace & Defense ($M) | ||||
Revenue | 36.6 | 27.4 | 33.7 % | |
GAAP Operating Income | 5.8 | 3.4 | 70.9 % | |
GAAP Operating Margin % | 16.0 | 12.5 | ||
Adjusted Operating Income | 6.6 | 5.1 | 29.4 % | |
Adjusted Operating Margin % | 18.0 | 18.6 | ||
Revenue increased approximately
In fiscal fourth quarter 2026, on a sequential basis, the Company expects slightly to moderately higher revenue due to growth in new product sales and more favorable project timing, and slightly to moderately higher adjusted operating margin due to higher volume and realization of productivity initiatives.
Scientific (
3Q26 | 3Q25 | % Change | |
Scientific ($M) | |||
Revenue | 18.0 | 18.3 | -1.7 % |
GAAP Operating Income | 3.7 | 3.9 | -4.8 % |
GAAP Operating Margin % | 20.6 | 21.3 | |
Adjusted Operating Income | 3.9 | 4.1 | -4.8 % |
Adjusted Operating Margin % | 21.9 | 22.6 |
Revenue decreased approximately
In fiscal fourth quarter 2026, on a sequential basis, the Company expects slightly higher revenue and similar adjusted operating margin due to product mix.
Engraving & Hydraulics (
3Q26 | 3Q25 | % Change | |
Engraving & Hydraulics ($M) | |||
Revenue | 44.8 | 43.8 | 2.2 % |
GAAP Operating Income | 6.1 | 5.0 | 22.0 % |
GAAP Operating Margin % | 13.6 | 11.3 | |
Adjusted Operating Income | 6.4 | 5.3 | 20.1 % |
Adjusted Operating Margin % | 14.3 | 12.2 |
Revenue increased approximately
In fiscal fourth quarter 2026, on a sequential basis, the Company expects slightly lower revenue and similar to slightly higher adjusted operating margin from realization of productivity initiatives.
Capital Allocation
- Interest: In fiscal fourth quarter 2026, the Company expects interest expense of approximately
$6.8 $7.0 million - Share Repurchase: During the fiscal third quarter of 2026, the Company did not repurchase shares. There was approximately
$28 million - Capital Expenditures: In fiscal third quarter 2026, the Company's capital expenditures were
$2.7 million $6.1 million $27 million $30 million $28.3 million - Dividend: On April 23, 2026, the Company declared a quarterly cash dividend of
$0.34 6.3% year-on-year increase. The dividend is payable May 22, 2026, to shareholders of record on May 8, 2026.
Balance Sheet and Cash Flow Highlights
- Net Debt: Standex had net (cash) debt of
$369.1 million $470.4 million $472.8 million $103.7 million - Cash Flow: Net cash provided by continuing operating activities for the three months ended March 31, 2026, was
$9.0 million compared to$9.6 $6.3 million compared to free cash flow after capital expenditures of$3.5 million in the fiscal third quarter of 2025.
Conference Call Details
Standex will host a conference call for investors tomorrow, May 1, 2026, 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 1, 2027. To listen to the teleconference playback, please dial in the
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 four broad business segments: Electronics, Aerospace and Defense, Scientific, and Engraving & Hydraulics with operations in
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 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
Standex International Corporation | ||||||||||||
Consolidated Statement of Operations | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
March 31, | March 31, | March 31, | March 31, | |||||||||
(In thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||
Net sales | $ | 224,595 | 207,780 | $ | 663,346 | $ | 568,058 | |||||
Cost of sales | 132,663 | 125,350 | 388,749 | 344,108 | ||||||||
Gross profit | 91,932 | 82,430 | 274,597 | 223,950 | ||||||||
Selling, general and administrative expenses | 48,067 | 47,564 | 149,063 | 130,796 | ||||||||
(Gain) loss on sale of business | (56,837) | - | (56,837) | - | ||||||||
Restructuring costs | 2,989 | 1,976 | 9,425 | 3,982 | ||||||||
Amortization of acquired intangible assets | 4,374 | 4,485 | 13,350 | 9,965 | ||||||||
Acquisition related costs | 2,513 | 2,152 | 3,562 | 20,392 | ||||||||
Income from operations | 90,826 | 26,253 | 156,034 | 58,815 | ||||||||
Interest expense | 7,328 | 8,363 | 24,154 | 14,915 | ||||||||
Other non-operating (income) expense, net | 828 | 309 | 1,054 | 1,171 | ||||||||
Total | 8,157 | 8,672 | 25,208 | 16,086 | ||||||||
Income from continuing operations before income taxes | 82,669 | 17,581 | 130,826 | 42,729 | ||||||||
Provision for income taxes | 14,037 | (5,197) | 25,738 | 475 | ||||||||
Net income from continuing operations | 68,632 | 22,778 | 105,088 | 42,254 | ||||||||
Income (loss) from discontinued operations, net of tax | (115) | (52) | (94) | (56) | ||||||||
Net income | 68,517 | 22,726 | 104,994 | 42,198 | ||||||||
Less: net income attributable to redeemable noncontrolling interest | 755 | 846 | 2,076 | 1,264 | ||||||||
Less: change of redeemable noncontrolling interest to redemption value | 784 | - | 18,763 | - | ||||||||
Net income attributable to Standex International | $ | 66,978 | $ | 21,880 | $ | 84,155 | $ | 40,934 | ||||
Basic earnings per share: | ||||||||||||
Income (loss) from discontinued operations | (0.01) | - | (0.01) | - | ||||||||
Total income (loss) attributable to Standex International | $ | 5.57 | $ | 1.83 | $ | 7.00 | $ | 3.44 | ||||
Diluted earnings per share: | ||||||||||||
Income (loss) from discontinued operations | (0.01) | - | (0.01) | - | ||||||||
Total income (loss) attributable to Standex International | $ | 5.56 | $ | 1.81 | $ | 6.99 | $ | 3.41 | ||||
Average Shares Outstanding | ||||||||||||
Basic | 12,048 | 11,986 | 12,033 | 11,906 | ||||||||
Diluted | 12,062 | 12,059 | 12,053 | 11,997 | ||||||||
Standex International Corporation | ||||||
Condensed Consolidated Balance Sheets | ||||||
(unaudited) | ||||||
March 31, | June 30, | |||||
(In thousands) | 2026 | 2025 | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 103,725 | 104,542 | |||
Accounts receivable, net | 179,695 | 172,702 | ||||
Inventories | 129,563 | 129,994 | ||||
Prepaid expenses and other current assets | 69,736 | 73,641 | ||||
Total current assets | 482,719 | 480,879 | ||||
Property, plant, equipment, net | 152,581 | 160,364 | ||||
Intangible assets, net | 204,855 | 225,757 | ||||
Goodwill | 585,503 | 610,338 | ||||
Deferred tax asset | 9,786 | 11,971 | ||||
Operating lease right-of-use asset | 45,812 | 47,998 | ||||
Other non-current assets | 45,521 | 29,573 | ||||
Total non-current assets | 1,044,058 | 1,086,001 | ||||
Total assets | $ | 1,526,777 | $ | 1,566,880 | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 77,361 | 88,001 | |||
Accrued liabilities | 64,180 | 63,204 | ||||
Income taxes payable | 16,864 | 15,770 | ||||
Total current liabilities | 158,405 | 166,975 | ||||
Long-term debt | 472,841 | 552,515 | ||||
Operating lease long-term liabilities | 36,586 | 40,057 | ||||
Accrued pension and other non-current liabilities | 60,539 | 67,743 | ||||
Total non-current liabilities | 569,966 | 660,315 | ||||
Redeemable non-controlling interest | 44,227 | 27,913 | ||||
Stockholders' equity: | ||||||
Common stock | 41,976 | 41,976 | ||||
Additional paid-in capital | 142,396 | 136,082 | ||||
Retained earnings | 1,198,976 | 1,126,851 | ||||
Accumulated other comprehensive loss | (198,941) | (164,765) | ||||
Treasury shares | (430,228) | (428,467) | ||||
Total stockholders' equity | 754,179 | 711,677 | ||||
Total liabilities, redeemable noncontrolling interest and stockholders' equity | $ | 1,526,777 | $ | 1,566,880 | ||
Standex International Corporation and Subsidiaries | ||||||
Statements of Consolidated Cash Flows | ||||||
(unaudited) | ||||||
Nine Months Ended | ||||||
March 31, | ||||||
(In thousands) | 2026 | 2025 | ||||
Cash Flows from Operating Activities | ||||||
Net income | $ | 104,994 | 42,198 | |||
Income (loss) from discontinued operations | (94) | (56) | ||||
Income from continuing operations | 105,088 | 42,254 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 29,249 | 25,310 | ||||
Stock-based compensation | 6,578 | 7,878 | ||||
Non-cash portion of restructuring charge | 575 | (401) | ||||
(Gain) loss on sale of business | (56,837) | - | ||||
Contributions to defined benefit plans | (5,352) | (6,153) | ||||
Net changes in operating assets and liabilities | (32,837) | (32,675) | ||||
Net cash provided by operating activities - continuing operations | 46,464 | 36,213 | ||||
Net cash provided by (used in) operating activities - discontinued operations | (286) | (42) | ||||
Net cash provided by (used in) operating activities | 46,178 | 36,171 | ||||
Cash Flows from Investing Activities | ||||||
Capital Expenditures | (16,721) | (19,762) | ||||
Expenditures for acquisitions, net of cash acquired | - | (477,381) | ||||
Proceeds from the sale of business | 68,299 | - | ||||
Other investing activities | (423) | 3,800 | ||||
Net cash provided by (used in) investing activities | 51,155 | (493,343) | ||||
Cash Flows from Financing Activities | ||||||
Proceeds from borrowings | - | 792,313 | ||||
Payments of debt | (80,000) | (362,109) | ||||
Contingent consideration payment | (330) | - | ||||
Activity under share-based payment plans | 1,775 | 2,019 | ||||
Purchase of treasury stock | (3,800) | (9,582) | ||||
Distributions to non-controlling interests | (2,324) | - | ||||
Cash dividends paid | (12,135) | (11,197) | ||||
Other financing activities | - | - | ||||
Net cash provided by (used in) financing activities | (96,814) | 411,444 | ||||
Effect of exchange rate changes on cash | (1,336) | 1,335 | ||||
Net changes in cash and cash equivalents | (817) | (44,393) | ||||
Cash and cash equivalents at beginning of year | 104,542 | 154,203 | ||||
Cash and cash equivalents at end of period | $ | 103,725 | $ | 109,810 | ||
Standex International Corporation | ||||||||||||
Selected Segment Data | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
March 31, | March 31, | |||||||||||
(In thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||
Net Sales | ||||||||||||
Electronics | $ | 119,707 | $ | 111,283 | $ | 345,928 | $ | 284,939 | ||||
Aerospace & Defense | 36,591 | 27,375 | 97,121 | 70,555 | ||||||||
Scientific | 17,979 | 18,292 | 56,931 | 54,462 | ||||||||
Engraving & Hydraulics | 44,780 | 43,815 | 139,913 | 132,321 | ||||||||
Other | 5,538 | 7,015 | 23,453 | 25,781 | ||||||||
Total | $ | 224,595 | $ | 207,780 | $ | 663,346 | $ | 568,058 | ||||
Income from operations | ||||||||||||
Electronics | $ | 31,656 | $ | 25,471 | $ | 89,705 | $ | 59,918 | ||||
Aerospace & Defense | 5,841 | 3,417 | 13,836 | 11,120 | ||||||||
Scientific | 3,708 | 3,895 | 12,874 | 13,362 | ||||||||
Engraving & Hydraylics | 6,138 | 4,974 | 20,959 | 18,178 | ||||||||
Other | 762 | 1,362 | 4,046 | 5,214 | ||||||||
Restructuring | (2,989) | (1,976) | (9,425) | (3,982) | ||||||||
Gain (loss) on sale of business | 56,837 | - | 56,837 | - | ||||||||
Acquisition related costs | (2,513) | (2,152) | (3,562) | (20,392) | ||||||||
Corporate | (8,614) | (8,738) | (29,236) | (24,603) | ||||||||
Total | $ | 90,826 | $ | 26,253 | $ | 156,034 | $ | 58,815 | ||||
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) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||||||||
Adjusted income from operations and adjusted net income from | |||||||||||||||||
Net Sales | $ | 224,595 | $ | 207,780 | 8.1 % | $ | 663,346 | $ | 568,058 | 16.8 % | |||||||
Income from operations, as reported | $ | 90,826 | $ | 26,253 | 246.0 % | $ | 156,034 | $ | 58,815 | 165.3 % | |||||||
Income from operations margin | 40.4 % | 12.6 % | 23.5 % | 10.4 % | |||||||||||||
Adjustments: | |||||||||||||||||
Restructuring charges | 2,989 | 1,976 | 9,425 | 3,982 | |||||||||||||
Acquisition-related costs | 2,513 | 2,152 | 3,562 | 20,392 | |||||||||||||
Amortization of acquired intangible assets | 4,374 | 4,485 | 13,350 | 9,965 | |||||||||||||
Litigation (settlement refund) charge | - | - | 100 | - | |||||||||||||
(Gain) loss on sale of business | (56,837) | - | (56,837) | - | |||||||||||||
Purchase accounting expenses | 331 | 5,479 | 2,316 | 11,676 | |||||||||||||
Adjusted income from operations | $ | 44,196 | $ | 40,345 | 9.5 % | $ | 127,950 | $ | 104,830 | 22.1 % | |||||||
Adjusted income from operations margin | 19.7 % | 19.4 % | 19.3 % | 18.5 % | |||||||||||||
Interest and other income (expense), net | (8,157) | (8,672) | (25,208) | (16,086) | |||||||||||||
Foreign currency related (gain) loss on acquisition and divestiture | - | - | - | 554 | |||||||||||||
Provision for income taxes | (14,037) | 5,197 | (25,738) | (475) | |||||||||||||
Discrete and other tax items | - | (9,321) | - | (8,946) | |||||||||||||
Tax impact of above adjustments | 5,458 | (3,173) | 892 | (10,314) | |||||||||||||
Net income from continuing operations, as adjusted | 27,461 | 24,375 | 77,896 | 69,563 | |||||||||||||
Less: net income attributable to redeemable noncontrolling interest | 1,539 | 846 | 20,839 | 1,264 | |||||||||||||
Add back: change of redeemable noncontrolling interest to redemption | (784) | - | (18,763) | - | |||||||||||||
Net income from continuing operations attributable to Standex, as | $ | 26,706 | $ | 23,530 | 13.5 % | $ | 75,820 | $ | 68,299 | 11.0 % | |||||||
EBITDA and Adjusted EBITDA: | |||||||||||||||||
Net income (loss) from continuing operations, as reported | $ | 68,632 | $ | 22,778 | 201.3 % | $ | 105,088 | $ | 42,254 | ||||||||
Net income from continuing operations margin | 30.6 % | 11.0 % | 15.8 % | 7.4 % | |||||||||||||
Add back: | |||||||||||||||||
Provision for income taxes | 14,037 | (5,197) | 25,738 | 475 | |||||||||||||
Interest expense | 7,328 | 8,363 | 24,154 | 14,915 | |||||||||||||
Depreciation and amortization | 9,448 | 9,744 | 29,249 | 25,310 | |||||||||||||
EBITDA | $ | 99,446 | $ | 35,688 | 178.7 % | $ | 184,229 | $ | 82,954 | 122.1 % | |||||||
EBITDA Margin | 44.3 % | 17.2 % | 27.8 % | 14.6 % | |||||||||||||
Adjustments: | |||||||||||||||||
Restructuring charges | 2,989 | 1,976 | 9,425 | 3,982 | |||||||||||||
Acquisition-related costs | 2,513 | 2,152 | 3,562 | 20,392 | |||||||||||||
Litigation (settlement refund) charge | - | - | 100 | - | |||||||||||||
(Gain) loss on sale of business | (56,837) | - | (56,837) | - | |||||||||||||
Purchase accounting expenses | 331 | 5,479 | 2,316 | 11,676 | |||||||||||||
Adjusted EBITDA | $ | 48,441 | $ | 45,295 | 6.9 % | $ | 142,795 | $ | 119,004 | 20.0 % | |||||||
Adjusted EBITDA Margin | 21.6 % | 21.8 % | 21.5 % | 20.9 % | |||||||||||||
Free operating cash flow: | |||||||||||||||||
Net cash provided by operating activities - continuing operations, as | $ | 8,951 | $ | 9,551 | $ | 46,464 | $ | 36,213 | |||||||||
Less: Capital expenditures | (2,637) | (6,072) | (16,721) | (19,762) | |||||||||||||
Free cash flow from continuing operations | $ | 6,314 | $ | 3,479 | $ | 29,743 | $ | 16,451 | |||||||||
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, | |||||||||||||||
2026 | 2025 | % | 2026 | 2025 | % Change | ||||||||||||
Diluted earnings per share from continuing operations | $ | 5.56 | $ | 1.81 | 207.3 % | $ | 6.99 | $ | 3.41 | 105.0 % | |||||||
Adjustments: | |||||||||||||||||
Restructuring charges | 0.19 | 0.13 | 0.59 | 0.25 | |||||||||||||
Acquisition-related costs | 0.16 | 0.14 | 0.23 | 1.36 | |||||||||||||
Amortization of acquired intangible assets | 0.28 | 0.29 | 0.84 | 0.63 | |||||||||||||
Litigation (settlement refund) charge | - | - | 0.01 | - | |||||||||||||
(Gain) loss on sale of business | (4.06) | - | (4.06) | - | |||||||||||||
Foreign currency related (gain) loss on acquisition and | - | - | - | 0.04 | |||||||||||||
Discrete tax items | - | (0.77) | - | (0.74) | |||||||||||||
Purchase accounting expenses | 0.02 | 0.35 | 0.15 | 0.74 | |||||||||||||
Change of redeemable noncontrolling interest to | 0.06 | - | 1.56 | - | |||||||||||||
Diluted earnings per share from continuing operations | $ | 2.21 | $ | 1.95 | 13.5 % | $ | 6.29 | $ | 5.69 | 10.6 % | |||||||
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SOURCE Standex International Corporation