Standex International Corporation

Q4 FY26 revenue was $228.3 million, up 2.8% reported and 7.7% organically. Q4 adjusted EPS was a record $2.45, up 7.4% year over year, and Q4 adjusted operating margin was 19.9%, down 70 basis points year over year. For fiscal 2026, sales increased more than $100 million and 5.5% organically; adjusted gross margin was 42%, adjusted operating margin was 19.4%, and adjusted EPS was $8.74. Free cash flow was a record $35 million in Q4, and operating cash flow was $40.5 million versus $33.4 million a year ago. For Q1 FY27, Standex expects slightly higher revenue sequentially and similar adjusted operating margin; on a year-over-year basis, it expects moderately higher revenue and slightly to moderately higher adjusted operating margin. For fiscal 2027, the company expects mid- to high single-digit sales growth, high single-digit to low double-digit organic growth, and continued adjusted operating margin expansion.

David Dunbar framed fiscal 2026 as proof that Standex has become a growing engineered components company, citing stronger new product sales, fast-growth market exposure, and a higher mix of Engineered Components businesses. He emphasized that the company is leaning into large secular markets like power infrastructure, data centers, space, and defense, and said the acquisition strategy will continue to favor accretive margins and custom solutions. His tone was confident and forward-looking, with repeated references to momentum, record milestones, and a multi-year growth path.

Ademir Sarcevic focused on execution, capacity expansion, and financial discipline. He highlighted Q4 revenue of $228.3 million, adjusted EPS of $2.45, operating cash flow of $40.5 million, capex of $5.5 million, free cash flow of $35 million, cash and equivalents of $178.7 million, net debt of $339.2 million, and a net leverage ratio of 1.8. He also said fiscal 2027 capex should be between $45 million and $55 million, mainly for grid growth investments, and noted Q1 FY27 interest expense of about $7 million. On capital allocation, he pointed to the 248th consecutive quarterly dividend of $0.34 per share and said the early repurchase of Narayan shares at $64 million was done to simplify operations and support faster decision-making.

Analysts pressed management on how quickly grid capacity could ramp, whether growth would be sequential or lumpy, and whether the grid order book might outpace the company’s stated FY27 sales range. Management said a dedicated “tiger team” is managing multiple workstreams across India, Croatia, Mexico, Texas, and Japan, and estimated some of the FY27 grid capacity gains could come from India productivity, Croatia, Mexico, and added shifts in Houston and India. Analysts also asked about electronics growth beyond grid, and management said core businesses like Detect and Edge are also improving, while longer-term opportunities exist in 800-volt DC architectures and some legacy Edge products supporting grid monitoring. On the Narayan early repurchase, management said it paid about 15x trailing EBITDA for the 9.9% stake, citing management continuity and simpler accounting as reasons.