SXI · Standex International Corporation

Standex International Corporation reported strong fiscal third quarter 2026 results, with revenue increasing 8.1% year-over-year to $224.6 million, driven by 6.5% organic growth. Electronics segment organic growth was 6.8%, supported by new product sales and fast growth markets, which contributed over 30% of total sales. GAAP operating margin surged to 40.4% from 12.6% a year ago, primarily due to a large gain on the divestiture of Federal Industries. Adjusted operating margin improved 30 basis points to 19.7%, reflecting higher volume, pricing initiatives, and product mix, partially offset by growth investments. Adjusted diluted EPS rose 13.5% to $2.21, slightly below the consensus estimate of $2.22. Book-to-bill ratios were healthy at 1.05 overall and 1.14 in Electronics, indicating strong future demand. Management highlighted continued momentum in electrical grid, space, defense, and aviation end markets. The company completed the divestiture of Federal Industries for approximately $70 million, reducing net leverage to 1.9x. For the fiscal fourth quarter, Standex expects slightly to moderately higher revenue year-on-year, driven by mid-to-high single-digit organic growth, but slightly lower adjusted operating margin due to growth investments and higher costs. For full fiscal year 2026, revenue growth is expected to be approximately $100 million, with fast growth market sales reaching about $270 million. The company also declared a quarterly dividend of $0.34 per share, a 6.3% increase year-over-year.