Standex Raises Fiscal 2027 Outlook After Organic Growth Reacceleration

The Tip Desk · October 30, 2026 · 3 min read

First-quarter sales hit a record $232.6 million as organic growth reached 12.4% and Electronics organic growth hit 29.5%.

Standex International Corporation (SXI) reported record first-quarter sales of $232.6 million for the period ended September 30, 2026, with organic growth of 12.4% after 7.7% organic growth in the fiscal fourth quarter.

The multi-industry manufacturer said the acceleration was driven by electrification, data-center and defense demand, new products, and a recovery in general industrial markets. GAAP net sales were up 7.0% year over year.

GAAP operating income was $40.4 million, and GAAP operating margin was 17.4%. Adjusted operating income was $47.0 million, and adjusted operating margin was 20.2%, up 110 basis points year over year. GAAP diluted earnings were $1.99 a share; adjusted diluted earnings were $2.41 a share.

Electronics accounted for 60% of sales and 69% of segment adjusted operating income. Segment revenue was $140.5 million, reflecting 29.5% organic growth offset by a 2.4% foreign-currency impact. Electronics organic growth had been 12.9% in the prior quarter. Adjusted operating income in Electronics was $41.3 million, and adjusted operating margin was 29.4%. The company said organic growth in the segment came from fast-growth markets, general industrial markets, and new products. Electronics book-to-bill was 1.23, with record orders of about $173 million.

Sales from fast-growth markets were about $78 million, up 25%. New-product sales grew 56%. Companywide order intake was a record about $273 million, with a book-to-bill of 1.17.

Aerospace & Defense revenue was $31.4 million. Adjusted operating income was $6.3 million, and adjusted operating margin was 19.9%. Scientific revenue was $19.8 million; adjusted operating income was $5.8 million, and adjusted operating margin was 29.5%.

Engraving & Hydraulics revenue was $40.9 million, down 14.9% year over year, reflecting a 15.7% organic decline the company attributed to North American automotive softness, partially offset by a 0.7% foreign-currency benefit. Adjusted operating income was $6.7 million.

Free cash flow was $9.1 million. Net debt to EBITDA was 2.0 times. Net debt was $401.2 million on September 30, 2026.

Considering first-quarter results and expanding backlog, Standex raised its fiscal 2027 outlook to high-single-digit total sales growth from mid-to-high single digits previously. The company now anticipates organic sales to increase by more than $100 million and expects high-teens growth in adjusted earnings per share, with higher sales and adjusted operating-margin expansion. It is on track to release more than 20 new products expected to contribute more than 300 basis points of incremental growth, and sales from fast-growth markets are now expected to grow greater than 20% year on year to greater than $315 million.

For the fiscal second quarter of 2027, the company expects moderately higher revenue and adjusted operating margin year on year, and slightly higher revenue and similar adjusted operating margin sequentially. Electronics is expected to post significantly higher revenue and slightly higher adjusted operating margin year on year. Aerospace & Defense is expected to post significantly higher revenue sequentially. Engraving & Hydraulics is expected to post slightly lower revenue and adjusted operating margin sequentially.

The board authorized a new $100 million share-repurchase program on October 27, 2026, replacing about $23.5 million remaining under the prior authorization. No shares were repurchased in the fiscal first quarter of 2027. The company declared a quarterly cash dividend of $0.36 a share. Fiscal 2027 capital expenditures are expected between $45 million and $55 million.