Standex International Reports 27.6% Revenue Growth in First Quarter of Fiscal Year 2026

Standex International Corporation reported a significant increase in financial performance for the first quarter of fiscal year 2026, ending September 30, 2025. The company achieved net sales of $217.4 million, a 27.6% increase from $170.5 million in the same period last year. This growth was primarily driven by acquisitions, which contributed $45.3 million, while organic sales rose by $1.0 million. Gross profit also improved, reaching $90.4 million with a gross margin of 41.6%, compared to $70.1 million and a margin of 41.1% in the prior year.

In terms of profitability, Standex reported income from continuing operations of $15.8 million, down from $18.2 million a year earlier. The decrease was attributed to higher selling, general, and administrative expenses, which rose to $54.4 million, reflecting costs associated with recent acquisitions and increased administrative expenses. Restructuring costs also surged to $6.0 million, primarily due to facility rationalization efforts, which are expected to yield benefits in the latter half of the fiscal year.

Operationally, Standex's total backlog increased significantly to $302.5 million, up from $207.0 million a year ago, with backlog realizable under one year rising to $246.3 million. This growth was bolstered by acquisitions in the Electronics and Engineering Technologies segments, which added $28.0 million and $25.4 million, respectively. The company’s workforce remained stable, with no significant changes in employee headcount reported during the quarter.

Standex's strategic developments included the acquisition of McStarlite, a provider of aerospace components, for $57.0 million, and the Amran/Narayan Group, which expanded its presence in the electrical grid market. These acquisitions are expected to enhance the company's capabilities and market share in high-margin sectors. Looking ahead, Standex anticipates continued growth driven by strong demand in the space, defense, and aviation markets, alongside ongoing productivity initiatives and strategic investments in new product development.

The company ended the quarter with total assets of $1.55 billion and total stockholders' equity of $707.7 million. Standex's long-term debt stood at $544.6 million, with an effective interest rate of 6.10%. The company remains focused on managing its capital structure and leveraging cash flow from operations to fund future growth initiatives while maintaining compliance with financial covenants under its credit facility.