STANDEX REPORTS FISCAL FIRST QUARTER 2026 FINANCIAL RESULTS

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]