Standex International Reports 17.2% Revenue Growth in Third Quarter, Driven by Acquisitions

Standex International Corporation reported significant financial results for the third quarter and nine months ended March 31, 2025, showcasing a net sales increase of 17.2% to $207.8 million compared to $177.3 million in the same period last year. The company’s gross profit also rose to $82.4 million, reflecting a gross margin of 39.7%, up from 38.5% in the prior year. For the nine-month period, net sales reached $568.1 million, a 5.1% increase from $540.4 million, with gross profit margins remaining stable at 39.4%.

The financial performance was bolstered by recent acquisitions, which contributed $46.7 million to quarterly sales and $80.9 million year-to-date. However, organic sales experienced a decline of 8.1% in the third quarter and 9.3% for the nine months, primarily due to reduced demand in the automotive sector and general industrial markets. The company also faced foreign currency impacts that negatively affected sales by $1.7 million in the quarter and $3.1 million year-to-date.

Standex has been actively pursuing strategic acquisitions to enhance its market position. Notably, the company acquired McStarlite Co. for $56.7 million, a move aimed at expanding its capabilities in aerospace components. Additionally, the acquisition of the Amran/Narayan Group for approximately $467.5 million significantly enhances Standex's presence in the electrical grid market, particularly in India. These acquisitions are expected to drive future growth and profitability, although they have also led to increased acquisition-related costs, which totaled $20.4 million for the nine months.

Operationally, Standex reported a total backlog of $270.3 million as of March 31, 2025, a 20% increase from the previous year, driven by strong demand in the Electronics and Engineering Technologies segments. The company’s employee headcount has also increased, reflecting its growth strategy and the integration of new acquisitions. However, restructuring costs of $4.0 million for the nine months indicate ongoing efforts to streamline operations and improve efficiency.

Looking ahead, Standex anticipates continued improvement in key financial metrics, supported by productivity initiatives and the integration of recent acquisitions. The company expects to benefit from increased demand in the commercial aviation and defense markets, while also navigating challenges in the automotive sector. Overall, Standex remains focused on leveraging its acquisitions to enhance shareholder value and drive long-term growth.