Financial Performance - Net sales for fiscal year 2025 increased by $69.5 million, or 9.6%, to $790.1 million, with acquisitions contributing $123.6 million, or 17.2%[128]. - Gross profit for fiscal year 2025 rose to $315.2 million, reflecting a gross margin of 39.9%, compared to $282.0 million and 39.1% in the prior year[131]. - Income from operations for fiscal year 2025 was $93.5 million, a decrease of $8.2 million, or 8.0%, primarily due to increased acquisition costs and administrative expenses[139]. - Net sales for the year ended June 30, 2025, increased to $790,107,000, a rise of 9.6% compared to $720,635,000 in 2024[224]. - Total comprehensive income for 2025 was $74,696,000, compared to $48,595,000 in 2024, indicating a significant increase[225]. - Net income for the year ended June 30, 2025, was $57,684,000, a decrease of 21% compared to $73,074,000 in 2024[228]. Expenses and Costs - Selling, general, and administrative expenses for fiscal year 2025 were $193.4 million, or 24.5% of sales, compared to $169.9 million, or 23.5% of sales in the prior year[133]. - Interest expense for fiscal year 2025 was $23.9 million, an increase of $19.3 million due to higher debt levels for acquisitions[142]. - The company incurred restructuring expenses of $6.9 million in fiscal year 2025, mainly related to facility rationalization and global headcount reductions[135]. - Acquisition-related expenses totaled $21.4 million in fiscal year 2025, significantly higher than $2.6 million in the previous year[137]. - Cash flow from continuing operating activities for the year ended June 30, 2025, was $69.6 million, down from $93.3 million in the prior year[177]. Assets and Liabilities - Total assets increased to $1,566,880 thousand in 2025 from $1,005,057 thousand in 2024, representing a growth of approximately 56%[223]. - Long-term debt surged to $552,515 thousand in 2025, compared to $148,876 thousand in 2024, marking an increase of approximately 271%[223]. - The company reported a total current liabilities of $166,975 thousand in 2025, up from $127,565 thousand in 2024, which is an increase of about 31%[223]. - The allowance for credit losses at the end of 2025 was $3,985,000, an increase of 111.7% from $1,882,000 in 2024[236]. Market and Economic Conditions - The company experienced adverse effects on revenues and cash flow due to the COVID-19 pandemic, impacting global economic activity[69]. - Inflationary pressures have increased costs of materials, labor, and transportation, potentially affecting profit margins if price increases cannot be sustained[70]. - Economic recession could lead to reduced demand for products, order cancellations, and increased price competition, adversely impacting sales and profitability[72]. - Tariffs on components from China may lower net sales and profits, impacting the value of investments in Chinese operations[81]. - Natural disasters and geopolitical events, such as the war in Ukraine, could disrupt operations and adversely affect financial results[91][92]. Strategic Initiatives - New product development is critical for future growth, and difficulties in this area could impair competitive position and sales[77]. - The company intends to pursue acquisitions for growth, but challenges in identifying or completing these could limit future expansion[82]. - The Company plans to release over fifteen new products projected to contribute approximately 300 basis points of incremental growth in fiscal year 2026[152]. - The company plans to continue investing in key strategic growth priorities while managing costs and seeking alternate sources of supply to mitigate tariff impacts[194]. Competition and Risks - The company is subject to significant competition, and failure to effectively respond could lead to declines in net sales and profitability[76]. - The company faces risks from potential loss of key personnel, which could hinder business strategy execution and growth[93]. - Compliance with environmental regulations may incur significant costs, impacting profitability[86]. - The company has retained responsibility for known and unknown contingent liabilities related to divested businesses, which could adversely affect financial results[94]. Cybersecurity - The company has established a multilayered approach to cybersecurity risk management, including annual risk assessments and continuous monitoring[103]. - The company has a governance structure for cybersecurity oversight involving the board of directors and senior management, with quarterly updates provided[107]. - The company has engaged third parties for cybersecurity assessments and monitoring, including penetration testing and vulnerability assessments[104]. - The company has a required cybersecurity training program for all new employees and ongoing training for those with IT access, aimed at fostering a culture of cybersecurity awareness[109]. Shareholder Returns - The company has a stock buyback program authorized for up to $200 million, with 2,032 shares repurchased at an average price of $159 per share during the quarter ended June 30, 2025[115]. - The company declared dividends of $1.10 per share in 2023 and $0.94 per share in 2025, reflecting a focus on shareholder returns[226].

Financial Data and Key Metrics Changes - In the fourth quarter, 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] - Adjusted operating margin increased 350 basis points year on year to a record 20.6% [18] - Adjusted earnings per share increased 20.6% year on year to a record $2.28 [19] - Net cash provided by operating activities was $33.4 million compared to $28.7 million a year ago [19] - Free cash flow for the fourth quarter was $24.9 million compared to $22.2 million a year ago [19] 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% [19] - **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% [22] - **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% [23] - **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% [24] - **Specialty Solutions Segment**: Revenue decreased 1.2% year on year to $23.9 million, primarily due to general market softness [24] Market Data and Key Metrics Changes - Sales into fast growth markets were approximately $184 million, exceeding the fiscal year expectation of $170 million, driven by growth in data center demand and grid modernization [29] - In fiscal year 2026, sales into fast growth markets are expected to grow approximately 45% year on year and exceed $265 million [29] Company Strategy and Development Direction - The company is focusing on four sources of growth: new product sales, presence in fast growth markets, support for recent acquisitions, and winning new awards through commercial excellence [11][17] - The company plans to launch more than 15 new products in fiscal year 2026, which are expected to contribute over 300 basis points of incremental sales growth [10][29] - The company aims to achieve fiscal year 2028 targets of sales greater than $1.15 billion and adjusted operating margin greater than 23% [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving over $100 million in incremental sales for fiscal year 2026, driven by acquisitions, new products, and fast growth markets [9][29] - The company remains well-positioned in a fluid economic environment due to strong customer relationships and disciplined pricing strategies [30] - Management noted that the company has successfully navigated challenges in the past and is prepared for future uncertainties [76] Other Important Information - The company declared its 244th consecutive cash dividend of 32¢ per share, representing a 6.7% increase year on year [26] - The company paid down approximately $27 million in debt during the fiscal fourth quarter [26] Q&A Session Summary Question: Can you provide insights on the $100 million revenue increase in fiscal year 2026? - Management indicated that the full year impact of acquisitions could bring over $60 million, with new products contributing around $20 million, and fast growth markets adding approximately $38 million, suggesting potential upside to the $100 million estimate [35][37] Question: How is the EV business performing amid market challenges? - Management noted that while EV sales dipped slightly in 2025, they anticipate growth in 2026 due to new model introductions and a shift towards electric vehicles [38][39] Question: What is the expected ramp-up for the new facility in Croatia? - Management expects to ship single-digit millions in fiscal year 2026, with potential growth to over $30 million in three years as customer commitments are fulfilled [42][43] Question: What is the outlook for the electronics segment's demand? - Management reported a 16% year-on-year increase in orders, primarily driven by OEMs, indicating a sustainable demand trend [51][54] Question: How are scientific segment margins expected to perform? - Management expects scientific margins to hold steady due to pricing and productivity actions, despite the lower margin from recent acquisitions [102] Question: What is the company's approach to managing working capital and cash flow? - Management is focused on improving collections and working capital efficiency, aiming to reduce days sales outstanding (DSO) back to the low 60s [106]

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].