Standex(US:SXI) Prnewswire·2025-01-30 21:01Core Insights - Standex International Corporation reported a net sales increase of 6.4% year-over-year for the second quarter of fiscal year 2025, reaching $189.8 million, marking the highest sales since the divestment of the Refrigeration business in April 2020 [2][3] - The company achieved a record adjusted operating margin of 18.7%, reflecting solid operational performance and contributions from the recent Amran/Narayan acquisition [3][4] - Despite the sales growth, GAAP operating income decreased by 67.2% year-over-year to $8.5 million, primarily due to increased acquisition-related costs and restructuring expenses [2][3] Financial Performance - Net Sales: $189.8 million in 2Q25 compared to $178.4 million in 2Q24, a 6.4% increase [2] - Operating Income: GAAP operating income fell to $8.5 million from $25.8 million year-over-year, while adjusted operating income rose to $35.5 million, a 15.4% increase [2][3] - Net Income: Net income from continuing operations decreased by 93.2% to $1.3 million [2][3] - EBITDA: EBITDA dropped by 50.4% to $16.1 million, with an EBITDA margin of 8.5% [2][3] Segment Performance - Electronics: Revenue increased by 20.8% year-over-year to $95.9 million, driven by acquisitions, although there was a 10.7% organic decline due to softness in automotive markets [5][7] - Engraving: Revenue decreased by 23.0% to $31.5 million, primarily due to a 22.2% organic decline [10] - Scientific: Revenue grew by 13.4% to $18.5 million, supported by the Custom Biogenic Systems acquisition [13] - Engineering Technologies: Revenue increased by 13.9% to $22.6 million, driven by favorable project timing [15] - Specialty Solutions: Revenue decreased by 2.9% to $21.3 million, reflecting market softness [17] Outlook - The company expects moderately to significantly higher revenue in the fiscal third quarter of 2025, driven by the Amran/Narayan acquisition and improving demand in Electronics [4][9] - Adjusted operating margins are anticipated to increase slightly to moderately, despite higher investments in selling, marketing, and R&D [4][9] Capital Allocation and Cash Flow - The company declared a quarterly cash dividend of $0.32 per share, a 6.7% increase year-over-year [23] - Free cash flow after capital expenditures was $2.2 million, down from $19.5 million in the prior year [23] - Standex's net debt increased to $413.2 million, compared to $6.2 million at the end of the previous fiscal year [23]