Financial Data and Key Metrics Changes - Total revenue increased approximately 23.2% year on year to $222 million, reflecting a 23.4% benefit from recent acquisitions and a 1.2% benefit from foreign currency, partially offset by an organic revenue decline of 1.4% [18][20] - Adjusted operating margin increased 350 basis points year on year to a record 20.6%, with adjusted operating income increasing 48.8% on the revenue increase [20] - Adjusted earnings per share increased 20.6% year on year to a record $2.28 [20] Business Line Data and Key Metrics Changes - **Electronics Segment**: Revenue increased 43.2% year on year to $115.2 million, driven by a 41% benefit from acquisitions and organic growth of 0.3% [20][21] - **Engineering Technologies Segment**: Revenue increased 26.8% to $32 million, driven by a 25% benefit from the recent NexStarlight acquisition and organic growth of 0.9% [23] - **Scientific Segment**: Revenue increased 2.3% to $17.9 million, due to a 16.1% benefit from recent acquisition, partially offset by an organic decline of 13.9% [24] - **Engraving Segment**: Revenue increased 0.6% to $33 million, driven by a 1.2% benefit from foreign currency, partially offset by an organic decline of 0.6% [25] - **Specialty Solutions Segment**: Revenue decreased 1.2% year on year to $23.9 million, primarily due to general market softness [25] Market Data and Key Metrics Changes - Sales into fast growth markets were approximately $184 million, exceeding expectations of $170 million, driven by growth in data center demand and grid modernization [30] - Fast growth market sales are expected to grow approximately 45% year on year, exceeding $265 million in fiscal year 2026 [31] Company Strategy and Development Direction - The company is focused on new product development, with plans to launch more than 15 new products in fiscal year 2026, expected to contribute over 300 basis points of incremental growth [31] - The company aims to achieve fiscal year 2028 long-term targets of sales exceeding $1.15 billion and adjusted operating margin greater than 23% [32] - The company is positioned to benefit from long-term secular tailwinds in end markets, particularly in electrical grid, space, and defense [15][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving over $100 million in incremental sales growth in fiscal year 2026, driven by acquisitions, new products, and fast growth markets [10][31] - Management noted that the company is well-positioned in a fluid economic environment due to strong customer relationships and disciplined pricing strategies [32] Other Important Information - The company paid down approximately $27 million in debt during the fiscal fourth quarter, with a net leverage ratio currently at 2.6 [27][28] - The company declared a quarterly cash dividend of 32¢ per share, representing a 6.7% increase year on year [28] Q&A Session Summary Question: Potential for upside in the $100 million revenue increase for fiscal 2026 - Management indicated that the $100 million estimate could be conservative, with potential upside from acquisitions and organic growth [36][38] Question: Performance of the EV business - Management noted a slight dip in EV sales in 2025 but anticipates growth in 2026 with new model introductions [39][40] Question: Ramp-up of the Amarin business in Croatia - Management expects initial shipments of single-digit millions in fiscal 2026, with potential growth to over $30 million in three years [41][42] Question: Demand in the electronics segment - Management reported a 16% year-on-year increase in orders, primarily driven by OEMs [50][52] Question: Scientific segment margins and NIH funding impact - Management acknowledged the impact of NIH funding cuts but does not expect significant changes in demand from that channel [67] Question: Acquisition pipeline and appetite for new acquisitions - Management confirmed ongoing work in the acquisition pipeline and a willingness to pursue new opportunities as leverage improves [97]

Financial Performance - Sales increased by 23.2% to $222.0 million in Q4 FY25[5] - Adjusted operating margin reached a record 20.6% in Q4 FY25, a 350 bps year-over-year increase[5] - Adjusted EPS reached a record $7.98 in FY25, up 5.8% year-over-year[5] - The company reduced leverage to 2.6x in Q4 FY25[5] Growth and Outlook - Fast growth markets accounted for approximately 28% of total sales[5] - New products contributed 2.8% of incremental sales[5] - The company expects revenue to grow by over $100 million in FY26[5] - Sales from fast growth markets are projected to grow by approximately 45% year-over-year to over $265 million in FY26[5] - New product sales are expected to contribute approximately 300 bps of incremental growth in FY26[5] Segment Performance - Electronics segment sales increased by 43.2% in Q4 FY25, with organic growth of 0.3%[38] - Engineering Technologies segment sales increased by 26.8% in Q4 FY25, with organic growth of 0.9%[38]

Group 1 - Standex International (SXI) reported quarterly earnings of $2.28 per share, exceeding the Zacks Consensus Estimate of $2.1 per share, and showing an increase from $1.76 per share a year ago, representing an earnings surprise of +8.57% [1] - The company achieved revenues of $222.05 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.55%, and up from $180.19 million year-over-year [2] - Over the last four quarters, Standex has consistently surpassed consensus EPS estimates four times and revenue estimates three times [2] Group 2 - The stock has underperformed, losing about 11.7% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.90 on revenues of $207.02 million, and for the current fiscal year, it is $8.69 on revenues of $883.47 million [7] - The Zacks Industry Rank for Manufacturing - General Industrial is in the top 10% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Core Insights - Standex International Corporation reported a 23.2% year-over-year increase in net sales for Q4 FY25, reaching $222.0 million, driven by strong momentum from new products and fast growth markets [1][2][3] - The company achieved a GAAP operating margin of 15.6% and a record adjusted operating margin of 20.6%, reflecting a sequential increase of 120 basis points and a year-over-year increase of 350 basis points [1][2][3] - Fast growth market sales accounted for approximately 28% of total sales, totaling $61 million, exceeding expectations for the fiscal year [3][5] Financial Performance - Net sales for Q4 FY25 were $222.0 million, compared to $180.2 million in Q4 FY24, marking a 23.2% increase [2] - GAAP operating income rose to $34.7 million, a 27.9% increase year-over-year, while adjusted operating income increased by 48.7% to $45.8 million [2][7] - The diluted EPS on a GAAP basis was $1.23, down 25.9% from $1.66 in Q4 FY24, while adjusted diluted EPS increased by 20.6% to $2.28 [2][7] Segment Performance - The Electronics segment generated $115.2 million in revenue, a 43.2% increase year-over-year, with adjusted operating income rising by 84.7% to $32.9 million [8][12] - Engineering Technologies revenue increased by 26.8% to $32.0 million, with adjusted operating income up 11.8% [11][12] - The Scientific segment saw a modest revenue increase of 2.3% to $17.9 million, but adjusted operating income decreased by 16.1% due to lower demand [14][15] Strategic Initiatives - The company launched three new products in Q4 FY25, bringing the total to 16 for the fiscal year, contributing 2.5% to incremental sales [3][5] - Standex plans to release over 15 new products in FY26, expecting to contribute approximately 300 basis points of incremental growth [5][7] - The company is focused on reducing its net debt to EBITDA ratio, which stood at 2.6x, and aims to optimize its capital structure [3][5][7] Future Outlook - For Q1 FY26, the company anticipates significantly higher revenue year-over-year, driven by recent acquisitions and low-single-digit organic growth, but slightly lower sequential revenue due to project timing and seasonality [4][10] - In FY26, Standex expects revenue growth of over $100 million, with fast growth market sales projected to increase by approximately 45% year-over-year, exceeding $265 million [5][7] - The company remains optimistic about achieving its long-term financial targets by FY28, supported by positive trends in key markets such as electrical grid, renewable energy, and defense [3][5][7]

Group 1 - Standex International Corporation will announce its fourth quarter fiscal 2025 financial results on July 31, 2025, after market close [1] - A live conference call will be held on August 1, 2025, at 8:30 a.m. ET, featuring President & CEO David Dunbar and CFO Ademir Sarcevic [1] - The call will cover the company's fourth quarter financial results, business highlights, and outlook [1] Group 2 - Investors can access the webcast and slide presentation through the "Investors" section of Standex's website [2] - A replay of the webcast will be available shortly after the presentation concludes [2] Group 3 - Standex International Corporation operates in five business segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions [3] - The company has a global presence with operations in the United States, Europe, Canada, Japan, Singapore, Mexico, Turkey, India, and China [3]

Core Points - Standex International Corporation declared a quarterly cash dividend of $0.32 per share, marking a year-on-year increase of approximately 6.7% [1] - This dividend represents the Company's 244th consecutive quarterly cash dividend, with a history of paying dividends since becoming a public corporation in November 1964 [1] Company Overview - Standex International Corporation operates as a global multi-industry manufacturer across five business segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions [2] - The Company has a diverse operational presence in regions including the United States, Europe, Canada, Japan, Singapore, Mexico, Turkey, India, and China [2]

Core Insights - Standex International Corporation announced participation in the 19th Annual Barrington Research Virtual Spring Investment Conference on May 29, 2025 [1] - The presentation will be accessible through the Investor Relations section of Standex's website [1] Company Overview - Standex International Corporation operates as a global multi-industry manufacturer across five business segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions [2] - The company has a diverse operational footprint with locations in the United States, Europe, Canada, Japan, Singapore, Mexico, Turkey, India, and China [2]

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Standex International Corporation regarding possible breaches of fiduciary duties by its board of directors [1]. Group 1: Investigation Details - The investigation is focused on whether the board of directors of Standex International Corporation has acted in a manner that breaches their fiduciary responsibilities to the company [1]. - Stockholders of Standex are encouraged to reach out if they have information or questions regarding the claims [2]. Group 2: Law Firm Background - Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California, representing both individual and institutional investors in various types of litigation [3]. - The firm handles complex litigation in state and federal courts across the country [3].

Financial Performance - Net sales for Q3 FY2025 reached $207.8 million, a 17.2% increase year-over-year and a 9.5% increase quarter-over-quarter[3] - Adjusted operating income was $40.3 million, reflecting a 37.3% increase year-over-year and a 13.8% increase quarter-over-quarter[3] - The company achieved a record adjusted gross margin of 42.3%, up 140 basis points sequentially and 230 basis points year-over-year[5] - Net income from continuing operations for the fiscal third quarter of 2025 was $22.8 million, up 42.5% from $15.9 million in the same quarter of 2024[31] - GAAP diluted EPS increased by 35.4% year-over-year to $1.81, while adjusted diluted EPS rose by 3.7% to $1.95[3] - Diluted earnings per share from net income attributable to Standex reported at $1.81 for Q3 2025, a 34.4% increase from $1.35 in Q3 2024[42] - Adjusted diluted earnings per share increased by 3.6% to $1.95 in Q3 2025 compared to $1.88 in Q3 2024[42] - For the nine months ended March 31, 2025, diluted earnings per share from net income attributable to Standex decreased by 24.8% to $3.41 from $4.54 in the same period of 2024[42] Segment Performance - Fast growth market sales totaled $60.4 million, accounting for approximately 29% of total sales, on track to meet the fiscal year target of $170 million[4] - The Electronics segment reported revenue of $111.3 million, a 38.4% increase year-over-year, with a book-to-bill ratio of 0.98 indicating market stability[8] - The electronics segment saw a significant increase in net sales, rising by 17.2% to $284,939,000 for the nine months ended March 31, 2025, compared to $241,538,000 in 2024[38] - The acquisition of McStarlite is expected to be accretive to earnings in the first year and contributed to a 36.2% revenue increase in the Engineering Technologies segment[16] Cash Flow and Debt - Free cash flow decreased by 81.9% year-over-year to $3.5 million, reflecting a significant decline from $19.3 million in Q3 FY2024[3] - Net cash provided by continuing operating activities for the three months ended March 31, 2025, was $9.6 million, down from $24.4 million in the prior year's quarter[23] - The Company had net (cash) debt of $470.4 million as of March 31, 2025, compared to $10.0 million at the end of the fiscal third quarter of 2024[23] - Funded debt to EBITDA ratio increased to 2.8x, reflecting a 366.7% increase year-over-year, indicating a significant rise in leverage[3] - Interest expense for the fiscal third quarter of 2025 was $8.4 million, significantly higher than $0.9 million in the same quarter of 2024[31] - The Company expects interest expense to be approximately $9 million in the fiscal fourth quarter of 2025[23] Capital Expenditures and Investments - Capital expenditures in the fiscal third quarter of 2025 were $6.1 million, up from $5.2 million in the same quarter of 2024, with expectations for total capital expenditures in fiscal year 2025 to be between $25 million and $30 million[23] - The company incurred $477,381,000 in expenditures for acquisitions during the nine months ended March 31, 2025, compared to $47,696,000 in 2024[36] - The company reported a net cash used in investing activities of $493,343,000 for the nine months ended March 31, 2025, compared to $53,957,000 in 2024[36] Other Financial Metrics - Gross profit for the fiscal third quarter of 2025 was $82.4 million, compared to $68.3 million in the prior year, reflecting a gross margin improvement[31] - Average diluted shares outstanding increased to 12.1 million in the fiscal third quarter of 2025 from 11.8 million in the same quarter of 2024[31] - Adjusted income from operations for the nine months ended March 31, 2025, increased by 14.5% to $104,830,000 compared to $91,585,000 in 2024[40] - The adjusted EBITDA for the nine months ended March 31, 2025, increased by 13.3% to $119,004,000 compared to $105,076,000 in 2024[40] Restructuring and Acquisition Costs - Total restructuring charges amounted to $0.13 in Q3 2025, down from $0.26 in Q3 2024[42] - Acquisition-related costs increased significantly to $0.14 in Q3 2025 from $0.04 in Q3 2024[42] - Amortization of acquired intangible assets rose to $0.29 in Q3 2025, compared to $0.13 in Q3 2024[42] - Discrete tax items negatively impacted earnings by $(0.77) in Q3 2025, while there were no such items in Q3 2024[42] - Purchase accounting expenses increased to $0.35 in Q3 2025 from $0.05 in Q3 2024[42] Future Outlook - The company expects slightly to moderately higher revenue in Q4 FY2025, driven by recent acquisitions and higher sales into fast growth end markets[7]

Financial Performance - Net sales for the third quarter of fiscal year 2025 increased by $30.5 million or 17.2% compared to the prior year quarter, driven by acquisitions contributing $46.7 million or 26.3%[135] - Organic sales decreased by $14.4 million or 8.1% due to lower demand in the automotive end market in North America and Europe, partially offset by favorable project timing in the Engineering Technologies segment[135] - Gross profit for the third quarter of fiscal year 2025 increased to $82.4 million, with a gross margin of 39.7%, compared to $68.3 million and 38.5% in the prior year quarter[137] - Net sales for the nine months ended March 31, 2025 decreased by $27.6 million or 5.1% compared to the prior year period, with organic sales down $50.2 million or 9.3%[136] - Gross profit for the nine months ended March 31, 2025 increased to $223.9 million, with a gross margin of 39.4%, compared to $212.5 million and 39.3% in the prior year period[138] - Income from operations for Q3 fiscal year 2025 was $26.3 million, a 20.2% increase from $21.8 million in the prior year quarter, driven by recent acquisitions and productivity improvements[144] - For the nine months ended March 31, 2025, income from operations decreased by $15.8 million, or 21.2%, to $58.8 million, primarily due to lower organic sales[145] Expenses and Costs - Selling, General, and Administrative (SG&A) expenses for the third quarter of fiscal year 2025 were $52.0 million, or 25.1% of sales, up from $41.8 million or 23.6% of sales in the prior year quarter[139] - The company incurred restructuring expenses of $2.0 million in the third quarter of fiscal year 2025, with an expectation of approximately $1.0 million in restructuring costs for the remainder of the fiscal year[141] - Acquisition-related expenses totaled $2.2 million in the third quarter of fiscal year 2025 and $20.4 million in the first nine months of fiscal year 2025[142] - Interest expense for Q3 fiscal year 2025 was $8.4 million, up from $0.9 million in the prior year quarter, with an effective interest rate of 6.00% for the nine months ended March 31, 2025[146] Tax and Compliance - The effective tax rate from continuing operations for Q3 fiscal year 2025 was 29.6%, compared to 21.4% in the prior year quarter, influenced by a discrete tax benefit and jurisdictional mix of earnings[147] - The Company does not anticipate any material non-compliance with environmental laws that would affect future capital expenditures or earnings[198] Strategic Initiatives - The company completed several strategic acquisitions, including McStarlite Co. and Nascent Technology Manufacturing, enhancing its capabilities in aerospace and defense sectors[129] - The company continues to focus on both organic and inorganic growth initiatives to enhance shareholder value and operational efficiency[124] Sales Performance by Segment - Net sales in the Electronics Group for Q3 fiscal year 2025 increased by $30.9 million, or 38.4%, compared to the prior year quarter, with recent acquisitions contributing $38.7 million[153] - Net sales in the Engraving Group decreased by $5.7 million, or 15.7%, in Q3 fiscal year 2025, primarily due to organic sales declines from delays in new platform rollouts[159] - The Scientific Group's net sales increased by $1.4 million, or 8.1%, in Q3 fiscal year 2025, aided by a recent acquisition, despite an organic sales decrease due to NIH funding cuts[164] - Engineering Technologies Group's net sales increased by $7.3 million, or 36.2%, in Q3 fiscal year 2025, reflecting a $5.3 million benefit from a recent acquisition[168] Cash and Debt Management - Total cash balance as of March 31, 2025, was $109.8 million, with $88.8 million held by foreign subsidiaries[180] - Net cash provided by continuing operating activities for the nine months ended March 31, 2025, was $36.2 million, down from $64.6 million in the prior year[181] - As of March 31, 2025, the Company had borrowings of $579.4 million under its credit facility[188] - The Company's Interest Coverage Ratio was 9.42:1, and the leverage ratio was 2.78:1 as of March 31, 2025[186][187] - The Company's effective interest rate on borrowings was 5.63% as of March 31, 2025, with a potential 25-basis point increase in interest rates expected to raise annual interest expense by approximately $1.5 million[204] Risk Management - The Company is exposed to fluctuating market prices for commodities, particularly steel, aluminum, rhodium, and copper, which are critical to its manufacturing processes[206][207] - The Company has implemented proactive risk management techniques to mitigate exposure to market risks from interest rates, commodity prices, and foreign currency exchange[201] - The fair value of the Company's interest rate swaps was an asset of $0.1 million as of March 31, 2025[204] Customer and Supplier Relations - No single customer accounted for more than 5% of the Company's consolidated outstanding receivables or sales as of March 31, 2025, indicating a diversified customer base[205] - The Company does not enter into purchase contracts that extend beyond one operating cycle, minimizing long-term supply risks[206] Labor Relations - The Company has labor agreements with several union locals in the United States and European trade unions, indicating a structured employee relations framework[199]