Standex(US:SXI)2025-10-31 17:47Financial 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].