- Record Sales of $232.6 Million, Up 12.4% YOY Organically; Electronics Up 29.5% YOY Organically

- New Product Sales Grew 56% and Sales into Fast Growth Markets Grew 25%

- Record Order Intake of ~$273 Million; Book to Bill of 1.17

- Record GAAP and Adjusted Gross Margin of 44.4%, Up 240 bps YOY on Adj. Basis

- GAAP Operating Margin of 17.4%; Adjusted Operating Margin of 20.2%, Up 110 bps YOY

- Raising FY27 Outlook; Organic Sales to Increase >$100 Million and Adjusted Earnings per Share to Grow High Teens

- Announced New $100 Million Share Repurchase Authorization Supported by Strong Balance Sheet and Liquidity Position

SALEM, N.H., Oct. 29, 2026 /PRNewswire/ -- Standex International Corporation (NYSE: SXI) today reported financial results for the first quarter of fiscal year 2027 ended September 30, 2026.

Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "We are off to a strong start to fiscal 2027. Our strategy with multiple independent growth drivers is accelerating growth and expanding margins. We delivered record sales of $232.6 million, driven by 12.4% organic growth. Strong end market demand driven by electrification, data center and defense needs, new products from our ongoing growth investments, and a recovery in general industrial market contributed to this growth. Our Electronics segment led the way with approximately 30% organic growth and a book-to-bill of 1.23. Sales from fast growth markets were approximately $78 million this quarter, and we are now on track to exceed $315 million in fiscal year 2027. Adjusted operating margin rose 110 basis points year over year to 20.2% with margin expansion across each of our segments. We ended the quarter with net leverage of 2.0x, providing flexibility to continue investing for future growth.

Considering first quarter results and our expanding backlog, we are raising our fiscal year 2027 outlook based on multiple growth engines."

Fiscal Second Quarter 2027 Outlook

In fiscal second quarter 2027, on a year-on-year basis, the Company expects moderately higher revenue and adjusted operating margin.

On a sequential basis, the Company expects slightly higher revenue and similar adjusted operating margin.

Fiscal Year 2027 Outlook

For fiscal year 2027, the Company is raising its outlook to high-single digits total sales growth, from mid-to-high single digits previously. The Company now anticipates organic sales to increase by more than $100 million in fiscal year 2027. The Company expects higher sales and adjusted operating margin expansion to drive high teens growth in adjusted earnings per share.

The Company is on track to release more than 20 new products, which are expected to contribute more than 300 bps of incremental growth. Sales from fast growth markets are now expected to grow greater than 20% year-on-year to greater than $315 million.

First Quarter Segment Operating Performance

Electronics (60% of sales; 69% of segment adjusted operating income)

Revenue increased approximately $29.9 million or 27.1% year-on-year, reflecting organic growth of 29.5%, partially offset by a foreign currency impact of 2.4%. Organic growth was driven by sales into fast growth markets, strong general industrial markets, and increased new product sales. Adjusted operating income increased approximately $9.4 million or 29.6% year-on-year due to higher volume and pricing initiatives, partially offset by growth investments and higher variable compensation expenses.

The segment had a book-to-bill ratio of approximately 1.23 in the fiscal first quarter, with record orders of approximately $173 million.

In fiscal second quarter 2027, on a sequential basis, the Company expects slightly higher revenue and similar adjusted operating margin. On a year-on-year basis, the Company expects significantly higher revenue and slightly higher adjusted operating margin.

Aerospace & Defense (14% of sales; 10% of segment adjusted operating income)

Revenue increased approximately $1.5 million or 5.1% year-on-year reflecting organic growth from project activity in the space and defense end markets, partially offset by project timing. Adjusted operating income increased approximately $1.2 million or 24.6% year-on-year reflecting higher volume and project mix.

In fiscal second quarter 2027, on a sequential basis, the Company expects significantly higher revenue and slightly higher adjusted operating margin.

Scientific (9% of sales; 10% of segment adjusted operating income)

Revenue increased approximately $0.3 million or 1.8% year-on-year reflecting organic growth from pricing initiatives and a slight market recovery. Adjusted operating income increased approximately $0.9 million or 18.7% year-on-year.

In fiscal second quarter 2027, on a sequential basis, the Company expects similar to slightly higher revenue and similar adjusted operating margin.

Engraving & Hydraulics (18% of sales; 11% of segment adjusted operating income)

Revenue decreased approximately $7.2 million or 14.9% year-on-year reflecting an organic decline of 15.7% from softness in the North American automotive market, partially offset by a foreign currency benefit of 0.7%. Adjusted operating income decreased approximately $1.0 million or 12.8% year-on-year.

In fiscal second quarter 2027, on a sequential basis, the Company expects slightly lower revenue and adjusted operating margin.

Capital Allocation

- Interest: In fiscal second quarter 2027, the Company expects interest expense between $7.0 million and $7.5 million.

- Share Repurchase: The Company did not repurchase shares under its share repurchase program during the fiscal first quarter of 2027. On October 27, 2026, the Company's Board of Directors authorized the repurchase of up to $100 million of the Company's common stock, replacing and superseding the approximately $23.5 million that remained available under the prior authorization.

- Capital Expenditures: In fiscal first quarter 2027, the Company's capital expenditures were $6.6 million compared to $6.4 million in the fiscal first quarter of 2026. The Company expects fiscal year 2027 capital expenditures between $45 million and $55 million. The increase over fiscal year 2026 is primarily due to capacity expansion within Standex Electronics Grid. Capital expenditures were $25.2 million in fiscal year 2026.

- Dividend: On October 22, 2026, the Company declared a quarterly cash dividend of $0.36 per share, an approximately 5.9% year-on-year increase. The dividend is payable November 20, 2026, to shareholders of record on November 6, 2026.

Balance Sheet and Cash Flow Highlights

- Net Debt: Standex had net (cash) debt of $401.2 million on September 30, 2026, compared to $446.0 million at the end of fiscal first quarter 2026. Net (cash) debt for the first quarter of 2027 consisted primarily of long-term debt of $518.1 million and cash and equivalents of $116.8 million.

- Cash Flow: Net cash provided by continuing operating activities for the three months ended September 30, 2026, was $15.7 million compared to $16.8 million in the prior year's quarter. Free cash flow after capital expenditures was $9.1 million compared to free cash flow after capital expenditures of $10.4 million in the fiscal first quarter of 2026.

Conference Call Details

Standex will host a conference call for investors tomorrow, October 30, 2026, at 8:30 a.m. ET. On the call, David Dunbar, President and CEO, and Ademir Sarcevic, CFO, will review the Company's financial results and business and operating highlights. Investors interested in listening to the webcast and viewing the slide presentation should log on to the "Investors" section of Standex's website under the subheading, "Events and Presentations," located at www.standex.com.

A replay of the webcast will also be available on the Company's website shortly after the conclusion of the presentation online through October 30, 2027. To listen to the teleconference playback, please dial in the U.S. (888) 660-6345 or (646) 517-4150 internationally; the passcode is 25368#. The audio playback via phone will be available through November 6, 2026. The webcast replay can be accessed in the "Investor Relations" section of the Company's website, located at www.standex.com.

Use of Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles ("GAAP"), the Company uses certain non-GAAP financial measures, including non-GAAP adjusted income from operations, non-GAAP adjusted net income from continuing operations, free operating cash flow, EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted EBITDA, adjusted EBITDA to net debt, and adjusted earnings per share. The attached financial tables reconcile non-GAAP measures used in this press release to the most directly comparable GAAP measures. The Company believes that the use of non-GAAP measures which exclude the impact of restructuring charges, purchase accounting, amortization from acquired intangible assets, insurance recoveries, discrete tax events, gain or loss on sale of a business unit, acquisition costs, and litigation costs help investors to obtain a better understanding of our operating results and prospects, consistent with how management measures and forecasts the Company's performance, especially when comparing such results to previous periods. An understanding of the impact in a particular quarter of specific restructuring costs, acquisition expenses, or other gains and losses, on net income (absolute as well as on a per-share basis), operating income or EBITDA can give management and investors additional insight into core financial performance, especially when compared to quarters in which such items had a greater or lesser effect, or no effect.