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]

Core Insights - Standex International (SXI) reported quarterly earnings of $1.99 per share, exceeding the Zacks Consensus Estimate of $1.94 per share, and up from $1.71 per share a year ago, representing an earnings surprise of +2.58% [1] - The company posted revenues of $217.43 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.06%, but up from $170.46 million year-over-year [2] - Standex shares have increased approximately 30.7% year-to-date, outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.94 on revenues of $215.65 million, and for the current fiscal year, it is $8.83 on revenues of $902.35 million [7] - The estimate revisions trend for Standex was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Manufacturing - General Industrial industry, to which Standex belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Core Insights - Standex International Corporation reported strong financial results for the first quarter of fiscal year 2026, with net sales increasing by 27.6% year-on-year to $217.4 million, driven by new product launches and growth in fast-growing markets [2][3][4] - The company achieved record quarterly order intake of $226 million, indicating robust demand across its segments [3][4] - Adjusted operating income rose by 43.3% year-on-year, reflecting effective pricing strategies and productivity improvements [2][4] Financial Performance - Net Sales: $217.4 million in Q1 FY26, up from $170.5 million in Q1 FY25, representing a 27.6% increase [2] - Operating Income (GAAP): $29.6 million, a 23.0% increase from $24.1 million in the previous year [2] - Adjusted Operating Income: $41.6 million, up 43.3% from $29.0 million in Q1 FY25 [2] - Net Income from Continuing Operations (GAAP): $15.8 million, down 13.0% from $18.2 million in Q1 FY25 [2] - EBITDA: $39.7 million, a 27.3% increase year-on-year [2] Segment Performance - Electronics: Revenue increased by 42.2% year-on-year to $110.6 million, with adjusted operating income rising by 73.0% [8][10] - Engineering Technologies: Revenue grew by 45.6% to $29.9 million, driven by strong demand in space, defense, and aviation markets [10][11] - Scientific: Revenue increased by 9.9% to $19.5 million, despite a decline in organic demand due to NIH funding cuts [12] - Engraving: Revenue rose by 7.4% to $35.8 million, supported by improved demand in Europe [14] Outlook - The company raised its fiscal year 2026 sales outlook, now expecting revenue growth of over $110 million, primarily driven by organic growth and new product launches [7][5] - Fast growth market sales are projected to exceed $270 million, with an expected growth rate of over 45% year-on-year [7][4] - The company anticipates continued adjusted operating margin expansion in fiscal year 2026 [7] Capital Allocation and Cash Flow - Capital expenditures for Q1 FY26 were $6.4 million, with expectations for total capital expenditures between $33 million and $38 million for the fiscal year [21] - Free cash flow after capital expenditures was $10.4 million, slightly down from $10.8 million in the prior year [21] - The company paid down approximately $8 million of debt, reducing its net debt to EBITDA ratio to 2.4x [4][21]

Core Viewpoint - Standex International Corporation will announce its first quarter fiscal 2026 financial results on October 30, 2025, and will hold a conference call on October 31, 2025, to discuss these results and the company's outlook [1][2]. Financial Results Announcement - The financial results will be released after the market closes on October 30, 2025 [1]. - A live conference call will take place at 8:30 a.m. ET on October 31, 2025, featuring David Dunbar, President & CEO, and Ademir Sarcevic, CFO & Treasurer [2]. Webcast Information - Investors can access the webcast and slide presentation through the "Investors" section of Standex's website [3]. - A replay of the webcast will be available shortly after the presentation concludes [3]. Company Overview - Standex International Corporation operates in five business segments: Electronics, Engineering Technologies, Scientific, Engraving, and Specialty Solutions [4]. - The company has a global presence with operations in the United States, Europe, Canada, Japan, Singapore, Mexico, Turkey, India, and China [4].

Group 1 - Standex International Corporation announced a quarterly cash dividend of $0.34 per share, representing an approximately 6.3% year-on-year increase [1] - The dividend is payable on November 21, 2025, to shareholders of record on November 7, 2025 [1] - This marks the company's 245th consecutive quarterly cash dividend, having paid dividends each quarter since becoming a public corporation in November 1964 [1] Group 2 - 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]

Core Insights - Standex Electronics has launched a refreshed brand identity that signifies its evolution in engineering excellence and collaborative innovation [2][4][5] - The rebranding aligns with Standex International Corporation's broader brand refresh, emphasizing agile development and lean principles to enhance time-to-market while ensuring precision and quality [3][4] - The new brand architecture introduces three aligned divisions under Standex Electronics, simplifying customer access to expertise and resources [5][6] Company Overview - Standex Electronics is headquartered in Fairfield, Ohio, operating eighteen manufacturing facilities across seven countries, employing approximately 1,500 people, and generating annual sales of USD 400 million [7] - The company positions itself as a trusted partner for high-quality, custom-engineered solutions, focusing on electrification and digitalization [4][6] - Standex International Corporation operates in five business segments: Electronics, Engineering Technologies, Scientific, Engraving, and Specialty Solutions, with a global presence [8]

Core Insights - The article compares Luxfer (LXFR) and Standex International (SXI) to determine which stock is a better undervalued investment option for investors interested in Manufacturing - General Industrial stocks [1] Valuation Metrics - Luxfer has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to Standex International, which has a Zacks Rank of 3 (Hold) [3] - Luxfer's forward P/E ratio is 13.71, significantly lower than Standex International's forward P/E of 23.49, suggesting that Luxfer may be undervalued [5] - The PEG ratio for Luxfer is 1.71, while Standex International's PEG ratio is 2.61, indicating that Luxfer's expected earnings growth is more favorable relative to its valuation [5] - Luxfer's P/B ratio is 1.59, compared to Standex International's P/B of 3.47, further supporting the notion that Luxfer is undervalued [6] - These metrics contribute to Luxfer's Value grade of A and Standex International's Value grade of D, reinforcing the conclusion that Luxfer is the better investment option for value investors [6]