10-Q · May 6, 2026
Standex International Corporation reported Q3 FY26 results with revenue of $224.6 million, a slight miss compared to estimates of $225.2 million, and EPS of $2.21, just below the estimate of $2.22. The company…
Earnings analysis · 10-K
SXI earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
Standex delivered a strong fiscal 2026, with revenue up 12.8%, gross margin expanding to 41.7%, backlog under one year increasing 29.7% to $318.5 million and diluted EPS rising to $8.67. Electronics and Aerospace &…
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Standex delivered a strong fiscal 2026, with revenue up 12.8%, gross margin expanding to 41.7%, backlog under one year increasing 29.7% to $318.5 million and diluted EPS rising to $8.67. Electronics and Aerospace & Defense drove the improvement, supported by acquisitions, pricing and productivity, while Scientific and Engraving & Hydraulics remained comparatively softer. The outlook is constructive, with expected fiscal 2027 mid- to high-single-digit sales growth, more than 20 product launches and approximately $45 million to $55 million of planned capital spending, but tariff, geopolitical shipping and leverage risks remain material.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $8.67
What stood out
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Organic growth returned and accelerated
Fiscal 2026 net sales increased 12.8% to $891.6 million from $790.1 million in fiscal 2025 and $720.6 million in fiscal 2024. Organic sales growth accelerated to $43.6 million, or 5.5%, after a $53.8 million organic decline in fiscal 2025.
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Margins and EPS improved materially
Gross margin expanded to 41.7% in fiscal 2026 from 39.9% in fiscal 2025 and 39.1% in fiscal 2024, driven by higher volume, pricing discipline and productivity actions. Diluted EPS was $8.67 versus $4.64 in fiscal 2025 and $6.14 in fiscal 2024, although fiscal 2026 operating income included a $57.1 million gain on the Federal Industries divestiture.
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Electronics and A&D led segment growth
Electronics was the primary growth engine, with revenue up 18.7% to $475.0 million and operating income up 38.0% to $121.3 million. Aerospace & Defense revenue rose 31.6% to $135.0 million, including a 14.1% organic increase from defense project activity.
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Backlog provides stronger visibility
Backlog realizable within one year increased 29.7% to $318.5 million at June 30, 2026 from $245.6 million, led by Electronics backlog of $194.3 million under one year and A&D backlog of $95.0 million.
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Product roadmap targets continued growth
Management plans to release more than 20 new products in fiscal 2027, expected to contribute approximately 300 basis points of incremental growth. Sales from fast-growth markets are expected to increase approximately 20% year over year to more than $310 million.
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Cash flow supported deleveraging
Capital allocation remained focused on deleveraging and shareholder returns: fiscal 2026 operating cash flow was $89.9 million, debt payments were $110.0 million, dividends paid were $16.2 million and share repurchases were $4.4 million. Net debt declined to $339.2 million from $448.0 million, while the company received $68.3 million from the Federal Industries sale.
What to watch
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Middle East conflict threatens logistics
The filing newly highlights that escalating Middle East conflict could disrupt the Strait of Hormuz and Suez Canal, causing rerouting, port congestion and higher freight and insurance costs. The company states it may be unable to fully offset these costs through pricing, creating a potential material adverse effect on results.
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Tariff and international exposure remain material
Tariffs on components and finished goods sourced from China and India could pressure margins and impair the value of the company's operations in those countries. Standex operates 37 locations outside the United States and reported $233.3 million of Asia Pacific revenue in fiscal 2026, or approximately 26% of total sales.
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Debt and covenant capacity constrain flexibility
The company remains dependent on its credit facility while carrying $518.2 million of borrowings at a 5.71% effective interest rate. Although its June 30, 2026 leverage ratio was 2.41:1 versus a 3.5:1 covenant limit, only $148.4 million remained available to borrow based on current EBITDA, and covenant breaches could restrict funding for working capital or acquisitions.
Management's outlook
The 10-K does not provide annual EPS or revenue guidance ranges. Management expects fiscal 2027 mid- to high-single-digit sales growth, driven by high-single-digit to low-double-digit organic growth, partially offset by the Federal divestiture and unfavorable foreign exchange. Fiscal 2027 capital spending is expected to be $45 million to $55 million.
Earlier filings 4
10-K · August 4, 2025
Standex’s 10-K emphasizes a clear, multi-pronged growth strategy (four key areas) and a diversified portfolio across five reportable segments (Electronics; Engineering Technologies; Scientific; Engraving; Specialty…
10-Q · May 2, 2025
Standex reported quarterly net sales of $207,780 (in thousands) vs $177,267 in the prior-year quarter, driving a higher gross margin of ~39.7% and operating margin of ~12.6%. Diluted EPS from continuing operations was…
10-Q · January 31, 2025
Standex reported quarterly net sales of $189,814 (thousands) and gross profit of $71,447 (thousands) for the three months ended December 31, 2024, while operating income collapsed to $8,463 (thousands) and diluted EPS…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.