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Core Viewpoint - Standex International Corporation will participate in the Melius Research Conference on December 10, 2025, with a presentation accessible on their Investor Relations website [1]. Group 1: Company Overview - Standex International Corporation operates in five broad business segments: Electronics, Engineering Technologies, Scientific, Engraving, and Specialty Solutions [2]. - The company has a global presence with operations in the United States, Europe, Canada, Japan, Singapore, Mexico, Turkey, India, and China [2]. Group 2: Financial Reporting - Standex International Corporation reported its financial results for the first quarter of fiscal year 2026, which ended on September 30, 2025 [3]. - The announcement of the first quarter fiscal 2026 financial results is scheduled for October 30, 2025 [4].

Group 1: Company Overview - O-I Glass (OI) is part of the Industrial Products group, which includes 186 companies and ranks 12 in the Zacks Sector Rank [2] - O-I Glass currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [3] Group 2: Performance Metrics - O-I Glass has seen an 8.3% increase in the Zacks Consensus Estimate for its full-year earnings over the past quarter, reflecting improved analyst sentiment [4] - Year-to-date, O-I Glass has returned approximately 17.2%, outperforming the Industrial Products sector's average return of 2.6% [4] - In comparison, Standex International (SXI) has returned 21.4% year-to-date and also holds a Zacks Rank of 2 (Buy) [5] Group 3: Industry Context - O-I Glass belongs to the Glass Products industry, which ranks 13 in the Zacks Industry Rank and has seen a decline of about 16.9% year-to-date, indicating O-I Glass's relative strength [6] - Standex International is part of the Manufacturing - General Industrial industry, which has returned +5.4% year-to-date and ranks 151 [6] Group 4: Investment Outlook - Investors interested in Industrial Products stocks should monitor O-I Glass and Standex International for their continued solid performance [7]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Standex International (SXI) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [3] - Standex has a historical EPS growth rate of 14.8%, with projected EPS growth of 13.7% this year, significantly surpassing the industry average of 8.1% [4] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, enabling them to expand without relying on external funding [5] - Standex's year-over-year cash flow growth stands at 17.6%, well above the industry average of 2.2% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 11.7%, compared to the industry average of 9.4% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - The current-year earnings estimates for Standex have increased, with the Zacks Consensus Estimate rising by 4.1% over the past month [8] Group 5: Overall Assessment - Standex has achieved a Zacks Rank of 2 and a Growth Score of B, indicating its potential as a solid choice for growth investors [10]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent risks and volatility [1] Group 1: Company Overview - Standex International (SXI) is identified as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 14.8%, with projected EPS growth of 10.7% this year, surpassing the industry average of 7% [5] Group 2: Financial Metrics - Standex's year-over-year cash flow growth is reported at 17.6%, significantly higher than the industry average of 2.1% [6] - The company's annualized cash flow growth rate over the past 3-5 years stands at 11.7%, compared to the industry average of 9% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Standex, with the Zacks Consensus Estimate for the current year increasing by 1.4% over the past month [9] - The combination of a Zacks Rank 2 and a Growth Score of B indicates that Standex is positioned as a potential outperformer for growth investors [10][11]

Financial Performance - Net sales for the first quarter of fiscal year 2026 increased by $47.0 million, or 27.6%, to $217.4 million compared to the prior year quarter, with acquisitions contributing $45.3 million, or 26.6%[111] - Gross profit margin improved to 41.6% in the first quarter of fiscal year 2026, up from 41.1% in the prior year, resulting in a gross profit of $90.4 million[112] - Income from operations increased by $5.5 million, or 23.0%, to $29.6 million in the first quarter of fiscal year 2026, driven by contributions from recent acquisitions[117] - Income from operations in Q1 FY 2026 increased by $11.3 million, or 66.1%, compared to the prior year quarter, driven by recent acquisitions, pricing initiatives, and product mix[126] Sales Growth by Segment - The Electronics Group reported a 42.2% increase in net sales to $110.6 million in the first quarter of fiscal year 2026, with acquisitions contributing $35.3 million[125] - Net sales in Q1 FY 2026 increased by $9.4 million, or 45.6%, attributed to the acquisition of McStarlite, which added $6.6 million to revenue, and an organic sales increase of $2.6 million, or 12.7%[129] - Scientific Group's net sales in Q1 FY 2026 increased by $1.8 million, or 9.9%, primarily due to an 18.6% benefit from the Custom Biogenic Systems acquisition[131] - Engraving Group's net sales in Q1 FY 2026 increased by $2.5 million, or 7.4%, with organic sales up by $1.8 million, or 5.6%, due to improved demand in Europe[134] - Specialty Solutions Group's net sales in Q1 FY 2026 increased by $0.5 million, or 2.6%, primarily due to slightly improved demand in the Hydraulics business[136] Expenses and Costs - Selling, General, and Administrative (SG&A) expenses rose to $54.4 million, representing 25.0% of sales, compared to $43.0 million, or 25.3% of sales in the prior year[113] - Corporate expenses in Q1 FY 2026 increased by 22.2% to $9.94 million, primarily due to higher variable compensation and employee medical costs[140] - Restructuring expenses for the first quarter of fiscal year 2026 totaled $6.0 million, primarily related to facility rationalization activities[114] Tax and Interest - The effective tax rate from continuing operations for the first quarter of fiscal year 2026 was 24.6%, up from 21.4% in the prior year, influenced by various tax-related items[119] - Interest expense increased to $8.9 million in the first quarter of fiscal year 2026, with an effective interest rate of 6.10%[118] Backlog and Future Expectations - Total backlog as of September 30, 2025, increased by $95.5 million, or 31.5%, to $302.5 million compared to $206.9 million in the prior year[122] - Backlog realizable under one year increased by $67.6 million, or 37.8%, to $246.3 million at September 30, 2025, primarily due to acquisitions in the Electronics and Engineering Technologies segments[122] - The company expects fiscal year 2026 capital spending to be between $33.0 million and $38.0 million[151] Cash and Leverage - Total cash balance as of September 30, 2025, was $98.7 million, with $78.9 million held by foreign subsidiaries[143] - Net cash provided by continuing operating activities for Q1 FY 2026 was $16.8 million, compared to $17.5 million in the prior year[144] - As of September 30, 2025, the leverage ratio was 2.62:1, below the maximum allowed of 3.5:1[149] Market Risks and Supply Chain - The company is exposed to fluctuating market prices for commodities, particularly steel, aluminum, rhodium, and copper, which are key materials in its manufacturing processes[168][169] - The company has experienced price fluctuations for materials and plans to implement price increases to offset these changes, subject to competitive acceptance[169] - The company monitors inflationary pressures on expenses such as wages, benefits, and raw materials, adjusting reserves as necessary[157] - The company does not enter into purchase contracts that extend beyond one operating cycle, maintaining flexibility in supply chain management[168] - The company has a good relationship with suppliers but acknowledges the risk of potential supply shortages[168] Financial Instruments and Hedging - The company employs financial instruments for hedging purposes to manage market risks related to interest rates, commodity prices, and foreign currency exchange[163] - The effective interest rate on borrowings was 6.10% as of September 30, 2025, with a potential annual interest expense increase of approximately $0.9 million for a 25-basis point rise in interest rates[166] - The company has $225 million in active floating to fixed rate swaps, converting interest payments from a SOFR-based rate to a fixed rate of 3.48%[166] - As of September 30, 2025, the fair value of open foreign exchange contracts was a liability of $0.5 million, with primary translation risks associated with the Euro, British Pound Sterling, Peso, Japanese Yen, and Chinese Yuan[164][165] Customer Base - No single customer accounted for more than 5% of consolidated outstanding receivables or sales as of September 30, 2025, indicating a diversified customer base[167]

Financial Performance - Net sales for Q1 FY26 increased by 27.6% year-on-year to $217.4 million, with new product sales contributing over 35% and fast growth markets contributing approximately 30% of total sales [3]. - GAAP operating income for Q1 FY26 was $29.6 million, a 23.0% increase from Q1 FY25, while adjusted operating income rose to $41.6 million, reflecting a 43.3% year-on-year growth [3]. - The company recorded a record quarterly order intake of approximately $226 million in Q1 FY26, with a book-to-bill ratio of 1.06 [5]. - Revenue from the Electronics segment increased by 42.2% year-on-year to $110.6 million, driven by acquisitions and pricing initiatives [9]. - Engineering Technologies segment revenue grew by 45.6% year-on-year to $29.9 million, with strong demand in space and defense markets [12]. - Total net sales for the three months ended September 30, 2025, reached $217,431,000, a 27.6% increase from $170,464,000 in 2024 [40]. - Income from operations for the same period was reported at $29,634,000, reflecting a 23.0% increase from $24,099,000 in 2024 [40]. - Adjusted income from operations increased by 43.3% to $41,594,000 compared to $29,030,000 in the previous year [40]. - Adjusted EBITDA for the three months ended September 30, 2025, was $47,139,000, a 38.2% increase from $34,114,000 in 2024 [40]. - The company's net income from continuing operations for the three months ended September 30, 2025, was $15.8 million, compared to $18.2 million in the prior year, reflecting a decrease of 7.5% [34]. - The company reported a net income from continuing operations of $15,822,000, down 13.0% from $18,188,000 in the previous year [40]. Market Growth - Fast growth market sales, including sectors like electrical grid and renewable energy, are expected to exceed $270 million in FY26, growing over 45% year-on-year [4]. - The company expects continued revenue growth in Q2 FY26, driven by new product sales and contributions from recent acquisitions [7]. Product Development - The company plans to release over 15 new products in FY26, which are expected to contribute approximately 300 basis points of incremental growth [8]. Financial Position - The company paid down approximately $8 million of debt in Q1 FY26, reducing the net debt to EBITDA ratio to 2.4x [5]. - As of September 30, 2025, the company reported net (cash) debt of $446.0 million, a significant increase from ($15.6) million at the end of the previous fiscal first quarter [26]. - The company's average diluted earnings per share for the three months ended September 30, 2025, was $1.25, compared to $1.53 in the same period of 2024 [34]. - The company expects interest expense for the fiscal second quarter of 2026 to be between $8 million and $8.5 million [26]. - Total assets as of September 30, 2025, were $1.55 billion, a decrease from $1.57 billion at the end of June 2025 [31]. - The company anticipates fiscal year 2026 capital expenditures to be between $33 million and $38 million, compared to $28.3 million in fiscal year 2025 [26]. - Capital expenditures for the fiscal first quarter of 2026 were $6.4 million, slightly down from $6.7 million in the same quarter of 2025 [26]. Shareholder Returns - The company declared a quarterly cash dividend of $0.34 per share, representing a year-on-year increase of approximately 6.3% [26]. Cash Flow - The company had net cash provided by continuing operating activities of $16.8 million, compared to $17.5 million in the prior year's quarter [26]. - Free cash flow from continuing operations was $10,388,000, slightly down from $10,822,000 in the same period last year [40]. Cost Management - The income from operations margin decreased to 13.6% in 2025 from 14.1% in 2024 [40]. - Restructuring charges amounted to $5,997,000 in 2025, compared to $1,086,000 in 2024 [40]. - The company incurred acquisition-related costs of $433,000 in 2025, down from $1,840,000 in 2024 [40].

Financial Data and Key Metrics Changes - Total revenue increased approximately 27.6% year-on-year to $217.4 million, reflecting a 26.6% benefit from recent acquisitions, organic growth of 0.6%, and a 0.4% benefit from foreign currency [11] - Adjusted operating margin increased 210 basis points year-on-year to 19.1% [11] - Adjusted earnings per share increased 8.2% year-on-year to $1.99 [11] - Net cash provided by operating activities was $16.8 million, compared to $17.5 million a year ago [11] - Free cash flow for the first quarter was $10.4 million compared to $10.8 million a year ago [11] Business Line Data and Key Metrics Changes - Electronics segment revenue increased 42.2% year-on-year to $110.6 million, driven by a 45.5% benefit from acquisitions, partially offset by an organic decline of 3.1% [12] - Engineering Technologies revenue increased 45.6% to $29.9 million, driven by a 32.4% benefit from the recent MechStarLite acquisition and organic growth of 12.7% [14] - Scientific revenue increased 9.9% to $19.5 million, due to an 18.6% benefit from a recent acquisition, partially offset by an organic decline of 8.7% [15] - Engraving revenue increased 7.4% to $35.8 million, driven by organic growth of 5.6% from improved demand in Europe [16] - Specialty Solution segment revenue increased 2.6% year-on-year to $21.7 million, primarily due to slightly improved demand in Hydraulics [16] Market Data and Key Metrics Changes - Sales into fast-growth markets were approximately $62 million, or 30% of total sales [5] - New product sales grew more than 35% to approximately $14.5 million [4] - Fast-growth markets are expected to grow over 45% year-on-year and exceed $270 million [7] Company Strategy and Development Direction - The company is raising its Fiscal Year 2026 sales outlook to over $110 million, driven by strong momentum from new product sales and fast-growth markets [6] - The Amran Narain Group, now renamed Standex Electronics Grid, is expected to grow more than 20% year-on-year in Fiscal 2026 [19] - The company plans to launch more than 15 new products in Fiscal 2026, with expectations of significant contributions to sales growth [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid to high single-digit organic growth in electronics for Fiscal 2026 despite a decline in the electronics segment [5] - The company is optimistic about the continued demand driven by electrification, grid modernization, and data center markets, with no signs of slowdown [26] - Management highlighted the importance of new product development and repositioning into faster-growing markets as key to future growth [21] Other Important Information - The company declared its 245th consecutive cash dividend of $0.34 per share, reflecting a 6.3% increase year-on-year [17] - The net leverage ratio currently stands at 2.4, with plans to continue paying down debt [17][18] Q&A Session Summary Question: Focus areas for optimization journey - Management indicated ongoing portfolio work and realizing the potential of organic growth initiatives as key focus areas [21] Question: Notable new products for the year - Management highlighted new products in Electronics for relays and test and measurement applications, as well as an ultra-low temperature freezer in Scientific [24] Question: Growth outlook for Amran Narain Group - Management confirmed no slowdown in growth and highlighted strong demand in electrification and grid modernization [26] Question: Momentum in legacy electronics business - Management noted strong bookings across various segments, including defense and test and measurement, with a positive outlook for organic growth [31][33] Question: Impact of government shutdown on business - Management stated no immediate changes in business prospects due to the government shutdown, but acknowledged some uncertainty in North American businesses [44] Question: Plans for cash repatriation and tax implications - Management clarified that there were no significant tax events related to cash repatriation [48]

Financial Performance - Sales increased by 27.6% to $217.4 million compared to Q1 FY25[6, 12] - Adjusted operating margin increased by 210 bps YOY to 19.1%[6, 12] - Adjusted gross margin increased by 90 bps YOY to 42%[6] - Adjusted net income from continuing operations increased 9.9% to $24 million[12] Sales Growth & Outlook - New product sales grew over 35% to approximately $14.5 million[6] - Fast growth markets contributed approximately 30% of total sales[6] - The company is raising FY26 sales outlook, now expecting revenue to grow by over $110 million, compared to the prior expectation of over $100 million[6] - Expect sales from fast growth markets to now grow over 45% YOY to over $270 million[6] Segment Performance - Electronics segment revenue increased by 42.2% YOY to $110.6 million[14, 35] - Engineering Technologies segment revenue increased by 45.6% YOY to $29.9 million[16, 35] - Scientific segment revenue increased by 9.9% YOY to $19.5 million[16, 35]

Core Insights - Standex International (SXI) reported revenue of $217.43 million for the quarter ended September 2025, marking a year-over-year increase of 27.6% and an EPS of $1.99 compared to $1.71 a year ago [1] - The revenue reported was slightly below the Zacks Consensus Estimate of $217.57 million, resulting in a revenue surprise of -0.06%, while the EPS exceeded the consensus estimate of $1.94, yielding an EPS surprise of +2.58% [1] Financial Performance Metrics - Net sales in the Scientific segment reached $19.45 million, exceeding the average estimate of $18.35 million, reflecting a year-over-year increase of +9.9% [4] - Specialty Solutions net sales were reported at $21.69 million, below the average estimate of $23.9 million, with a year-over-year change of +2.6% [4] - Electronics segment net sales amounted to $110.55 million, slightly below the average estimate of $112.2 million, but showing a significant year-over-year increase of +42.2% [4] - Engraving segment net sales were $35.84 million, surpassing the average estimate of $32.35 million, with a year-over-year change of +7.4% [4] - Engineered Technologies net sales reached $29.89 million, slightly above the average estimate of $29.6 million, reflecting a year-over-year increase of +45.6% [4] Stock Performance - Standex shares have returned +15.8% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]