Standex International Q4 Earnings Call Highlights

Standex International reported record fiscal 2026 performance, with fourth-quarter revenue rising 2.8% to $228.3 million and adjusted EPS increasing 7.4% to a record $2.45. Full-year adjusted EPS reached $8.74, supported by 7.7% quarterly organic growth and higher new-product sales. The company provided a positive fiscal 2027 outlook, expecting mid- to high-single-digit sales growth, continued margin expansion, and more than 20 new product launches. Sales to fast-growth markets such as grid infrastructure, defense, and space are projected to rise about 20% to more than $310 million. Standex completed its acquisition of the remaining Narayan stake and plans significant capacity additions in grid infrastructure. Grid revenue is expected to reach $180 million–$200 million in fiscal 2027, with a longer-term target of $340 million–$440 million by fiscal 2030. Fourth-quarter revenue totaled $228.3 million, up 2.8% from a year earlier. Organic sales growth was 7.7%, partly offset by a 4.5% impact from the Federal Industries divestiture and a 0.4% foreign-currency impact. Adjusted earnings per share increased 7.4% year over year to a record $2.45. Chairman, President and Chief Executive Officer David Dunbar stated the company’s fiscal 2026 results reflected its shift toward engineered components, which accounted for 73% of fourth-quarter sales. Sales to fast-growth markets reached about $72 million, or more than 30% of quarterly revenue. For the full fiscal year, Standex reported sales increased by more than $100 million and grew 5.5% organically. Adjusted gross margin reached 42%, adjusted operating margin was 19.4%, and adjusted earnings per share was a record $8.74. New product sales rose to $67 million from $40 million in the prior year, contributing $27 million, or 300 basis points, to sales growth. Standex recorded approximately $270 million in fourth-quarter orders, producing a consolidated book-to-bill ratio of 1.18. Electronics orders were about $165 million, resulting in a 1.27 book-to-bill ratio for that segment. Management expects fiscal 2027 sales to increase at a mid- to high-single-digit rate, including high-single-digit to low-double-digit organic growth, and anticipates continued adjusted operating-margin expansion. For the fiscal first quarter, Standex forecast moderately higher revenue from a year earlier, driven by backlog in fast-growth markets and new products, partly offset by the Federal Industries divestiture. Dunbar mentioned the company expects to launch more than 20 new products in fiscal 2027, following more than 15 launches in fiscal 2026. Pro forma for the Federal divestiture, management expects new-product sales to rise by $23 million to $90 million and contribute nearly 300 basis points of organic growth during the year. Sales to fast-growth markets, including space, defense, and grid infrastructure, are projected to increase about 20% to more than $310 million in fiscal 2027, representing more than 30% of total sales. Standex completed its acquisition of the remaining 9.9% interest in Narayan on July 2, completing its acquisition of the Amran/Narayan Group, now called Standex Grid.