Financial Data and Key Metrics Changes - Total revenue increased approximately 17.2% year on year to $207.8 million, reflecting a 26.3% benefit from recent acquisitions, partially offset by an organic revenue decline of 8.1% [15][16] - Adjusted operating margin increased 280 basis points year on year to a record 19.4% [15][16] - Adjusted earnings per share increased 3.7% year on year to $1.95 [16] Business Line Data and Key Metrics Changes - **Electronics Segment**: Revenue increased 38.4% year on year to $111.3 million, with a 48.1% benefit from acquisitions, partially offset by an organic decline of 8.9% [17] - **Engraving Segment**: Revenue decreased 15.7% to $30.6 million, driven by an organic decline of 12.6% [19] - **Scientific Segment**: Revenue increased 8.1% to $18.3 million, due to a 16.1% benefit from recent acquisitions, partially offset by an organic decline of 8% [20] - **Engineering Technologies Segment**: Revenue increased 36.2% to $27.4 million, driven by a 26.3% benefit from recent acquisitions and organic growth of 9.9% [21] - **Specialty Solutions Segment**: Revenue decreased 13.9% year on year to $20.2 million, primarily due to general market softness [23] Market Data and Key Metrics Changes - Sales into fast growth markets increased to 29% of total company sales, primarily driven by electrical grid, commercialization of space, defense applications, and renewable energy [7][25] - Electronics organic bookings were up more than 10% year on year, with a book to bill of 0.98 indicating stable markets [5][17] Company Strategy and Development Direction - The company plans to continue investing in key growth priorities and new product developments while navigating tariff impacts through pricing and productivity actions [12][27] - Expansion plans in India, Europe, and the USA are underway, with significant customer commitments extending years into the future [6][12] - The company aims to achieve long-term targets of sales greater than $1.15 billion, adjusted operating margin greater than 23%, and ROIC greater than 15.5% by fiscal 2028 [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's agility and resilience to navigate current economic challenges, emphasizing strong customer relationships and regional operations [10][12] - The company anticipates slightly to moderately higher revenue in the fiscal fourth quarter driven by recent acquisitions and higher sales into fast growth end markets [8][19] - Management remains optimistic about organic growth in fiscal 2026, particularly in the electronics segment, supported by strong order intake rates [35][51] Other Important Information - The company declared its 243rd consecutive quarterly cash dividend of $0.32 per share, reflecting a 6.7% increase year on year [24] - The integration of recent acquisitions, including McStarlight, is progressing well, expanding the addressable market within engineering technologies by over $300 million [13][14] Q&A Session Summary Question: Impact of tariffs on cost of goods sold - Management confirmed that approximately 6% of COGS is imported from China, split across electronics, specialty, and scientific segments [31] Question: Organic growth expectations for fiscal 2026 - Management indicated that they expect to see organic growth in electronics and engineering technologies, with a strong order book and positive market conditions [35][51] Question: Capacity utilization and margin impact from new plant in Europe - Current capacity utilization is around 60-70%, with no anticipated margin impact from the new plant in Europe [48][50] Question: Plans for new product releases in fiscal 2026 - The company plans to release a similar number of new products in fiscal 2026 as in fiscal 2025, with ongoing adoption expected from products released in 2025 [71] Question: Leverage and debt management strategies - Management emphasized the priority of paying down debt while also focusing on organic growth initiatives [53][56]

Financial Data and Key Metrics Changes - Total revenue increased approximately 17.2% year on year to $207.8 million, reflecting a 26.3% benefit from recent acquisitions, partially offset by an organic revenue decline of 8.1% [16][18] - Adjusted operating margin increased 280 basis points year on year to a record 19.4% [16] - Adjusted earnings per share increased 3.7% year on year to $1.95 [17] - Free cash flow for the third quarter was $3.5 million, down from $19.3 million a year ago, impacted by one-time transaction-related payments and longer customer credit terms [18] Business Line Data and Key Metrics Changes - **Electronics Segment**: Revenue increased 38.4% year on year to $111.3 million, with a 48.1% benefit from acquisitions, partially offset by an organic decline of 8.9% [19] - **Engraving Segment**: Revenue decreased 15.7% to $30.6 million, driven by an organic decline of 12.6% [21] - **Scientific Segment**: Revenue increased 8.1% to $18.3 million, due to a 16.1% benefit from recent acquisitions, partially offset by an organic decline of 8% [22] - **Engineering Technologies Segment**: Revenue increased 36.2% to $27.4 million, driven by a 26.3% benefit from recent acquisitions and organic growth of 9.9% [23] - **Specialty Solutions Segment**: Revenue decreased 13.9% year on year to $20.2 million, primarily due to general market softness [24] Market Data and Key Metrics Changes - Sales into fast growth markets increased to 29% of total company sales, primarily driven by electrical grid, commercialization of space, defense applications, and renewable energy [7][26] - Electronics organic bookings were up more than 10% year on year, with a book to bill ratio of 0.98, indicating stable markets [5][19] Company Strategy and Development Direction - The company plans to continue investing in new product development and applications across markets with growth potential, with 13 new products released year to date [26][28] - The company is expanding its footprint in Europe and the U.S. to support additional demand, with a greenfield site in Europe expected to be operational within six months [6][20] - The company anticipates achieving long-term targets of sales greater than $1.15 billion, adjusted operating margin greater than 23%, and ROIC greater than 15.5% by fiscal 2028 [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's agility and resilience to navigate through current economic challenges, emphasizing strong customer relationships and a disciplined approach to pricing and productivity actions [11][28] - The company expects slightly to moderately higher revenue and adjusted operating margin in the fiscal fourth quarter, driven by recent acquisitions and higher sales into fast growth end markets [9][21] Other Important Information - The company declared its 243rd consecutive cash dividend of $0.32 per share, representing a 6.7% increase year on year [25] - The company has a current liquidity of approximately $170 million and net debt of $470.4 million, with a leverage ratio of 2.8 [24][25] Q&A Session Summary Question: What is the impact of tariffs on the company's operations? - Approximately 6% of the cost of goods sold is due to imports from China, split across electronics, specialty, and scientific segments [32] - The company believes it can cover about 70% of the incremental tariff with price and productivity actions in the scientific segment, while other segments are expected to manage better [34][35] Question: What are the expectations for organic growth in fiscal 2026? - Management is optimistic about organic growth in electronics, with a robust order book and expected contributions from recent acquisitions [36][38] Question: What are the plans for new product releases in fiscal 2026? - The company plans to release a similar number of new products in fiscal 2026 as in fiscal 2025, with ongoing adoption expected from products released in 2025 [75] Question: How is the company managing its leverage and potential acquisitions? - The company aims to prioritize paying down debt while also focusing on organic growth initiatives, with a current leverage ratio of about 2.8 [56][58]

Core Viewpoint - Standex International (SXI) reported quarterly earnings of $1.95 per share, exceeding the Zacks Consensus Estimate of $1.93 per share, and showing an increase from $1.75 per share a year ago, indicating a positive earnings surprise of 1.04% [1] Financial Performance - The company achieved revenues of $207.78 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.33%, compared to $177.27 million in the same quarter last year [2] - Over the last four quarters, Standex has consistently surpassed consensus EPS estimates four times and topped revenue estimates two times [2] Stock Performance and Outlook - Standex shares have declined approximately 24.4% since the beginning of the year, contrasting with the S&P 500's decline of 5.3% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $2.33 on revenues of $220.56 million, and for the current fiscal year, it is $7.86 on revenues of $785.88 million [7] - The estimate revisions trend for Standex is currently mixed, resulting in a Zacks Rank 3 (Hold), 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 41% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Performance - Sales increased by 17.2% in Q3 FY25, driven by acquisitions, but partially offset by organic decline[6, 14] - Adjusted gross margin reached a record 42.3% in Q3 FY25, up 230 bps year-over-year[6, 38] - Adjusted operating margin also hit a record 19.4% in Q3 FY25, an increase of 280 bps year-over-year[6, 38] - Adjusted EPS was $1.95[14, 38] Segment Performance - Electronics segment sales increased 38.4% year-over-year, with acquisitions contributing significantly[16, 41] - Engraving segment revenue decreased by 15.7% year-over-year[19, 41] - Scientific segment revenue increased by 8.1% year-over-year[20, 41] - Engineering Technologies segment revenue increased by 36.2% year-over-year[27, 41] Acquisitions and Expansion - Amran/Narayan Group sales exceeded $33 million with a book-to-bill ratio of 1.04[6, 18] - McStarlite acquisition expands the addressable market by over $300 million[8] Outlook - Expect slightly to moderately higher revenue in Q4 FY25, driven by acquisitions and growth in fast-growing markets[6] - New products are expected to contribute over 200 bps of incremental growth in FY25[6, 38]

Core Viewpoint - Standex International Corporation reported strong financial results for the third quarter of fiscal year 2025, with record sales and operating margins, driven by acquisitions and solid performance in core businesses [1][3]. Financial Performance - Net sales increased to $207.8 million, a 17.2% year-over-year increase from $177.3 million [2]. - Operating income on a GAAP basis rose to $26.3 million, up 20.2% from $21.8 million [2]. - Adjusted operating income increased to $40.3 million, reflecting a 37.3% year-over-year growth [2]. - Net income from continuing operations on a GAAP basis was $21.9 million, a 37.6% increase from $15.9 million [2]. - Diluted EPS on a GAAP basis was $1.81, up 35.4% from $1.35 [2]. Segment Performance - Electronics segment revenue reached $111.3 million, a 38.4% increase year-over-year, with a GAAP operating income of $25.5 million [6][7]. - Engraving segment revenue decreased by 15.7% to $30.6 million, primarily due to softness in North America [10][17]. - Scientific segment revenue increased by 8.1% to $18.3 million, benefiting from the Custom Biogenic Systems acquisition [12]. - Engineering Technologies segment revenue grew by 36.2% to $27.4 million, driven by the McStarlite acquisition and organic growth [14]. - Specialty Solutions segment revenue decreased by 13.9% to $20.2 million, reflecting market softness [16]. Strategic Initiatives - The company launched three new products in the third quarter, achieving a total of 13 year-to-date, contributing over 2% to incremental sales [3]. - Standex is focused on managing costs and productivity while investing in strategic growth priorities [3]. - The acquisition of McStarlite is expected to be accretive to earnings in the first year and enhances capabilities in commercial aviation, space, and defense [3]. Outlook - For the fourth quarter of fiscal 2025, the company anticipates slightly to moderately higher revenue and adjusted operating margins, driven by recent acquisitions and pricing initiatives [4][9].

Financial Results Announcement - Standex International Corporation will announce its third quarter fiscal 2025 financial results on May 1, 2025, after market close [1] - A conference call will be held on May 2, 2025, at 8:30 a.m. ET, featuring President & CEO David Dunbar and CFO Ademir Sarcevic [1] Webcast Information - Investors can access the live 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] Company Overview - 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 Viewpoint - Standex International (SXI) is well-positioned to continue its earnings-beat streak in upcoming reports, having surpassed earnings estimates consistently in recent quarters [1][5]. Earnings Performance - In the last reported quarter, Standex achieved earnings of $1.91 per share, exceeding the Zacks Consensus Estimate of $1.68 per share by 13.69% [2]. - In the previous quarter, the company reported earnings of $1.71 per share against an expected $1.66 per share, resulting in a surprise of 3.01% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Standex, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for Standex is +1.14%, suggesting increased analyst optimism regarding its near-term earnings potential [8]. Statistical Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7].

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 243rd consecutive quarterly cash dividend, demonstrating a long-standing commitment to returning value to shareholders [1] - The dividend is scheduled to be payable on May 23, 2025, to shareholders of record on May 9, 2025 [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 activities in the United States, Europe, Canada, Japan, Singapore, Mexico, Turkey, India, and China [2]

Group 1 - Standex International Corporation announced participation in the 37th Annual ROTH Conference scheduled for March 16-18, 2025 [1] - Ademir Sarcevic, CFO and Treasurer of Standex, will represent the company at the conference [1] - The company's presentation will be accessible on its Investor Relations section of the website under Events and Presentations [1] Group 2 - Standex operates in five broad business segments: Electronics, Engraving, Scientific, Engineering Technologies, 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]

SALEM, N.H., Feb. 5, 2025 /PRNewswire/ -- Standex International Corporation (NYSE:SXI) today announced that it has acquired privately-held, California-based McStarlite Co., a leading provider of complex sheet metal aerospace components, for approximately $56.5 million in cash, financed from Standex's existing revolver. In its first year of ownership, the Company expects the acquisition to be accretive to its earnings. McStarlite Co. will be reported as part of Standex's Engineering Technologies Group busine ...