Standex reports Q1 adjusted EPS $1.99, consensus $1.70

Reports Q1 revenue $217.4M, consensus $215.96M. Commenting on the quarter’s results, President and Chief Executive Officer David Dunbar said, “Following record operating performance in fiscal year 2025, our fiscal first quarter performance provided a strong start to the fiscal year, positioning us well to surpass our previously provided outlook of greater than $100 million of incremental sales in fiscal year 2026. In the fiscal first quarter, we booked orders of $226 million, the highest quarterly order intake ever. On the top-line, sales increased 27.6% year-on-year to $217.4 million, comprised of a 7% contribution from new products and 30% contribution from sales into fast growth markets. We remain on track for organic growth in fiscal year 2026, primarily driven by new product launches, strong tailwinds in the electrical grid, defense and aviation end markets, and improving general industrial markets. Sales from fast growth markets, such as electrical grid, electric and hybrid vehicles, renewable energy, commercialization of space, and defense, totaled approximately $62 million in the fiscal first quarter and are now expected to exceed $270 million in fiscal year 2026. Adjusted gross margin expanded 90 basis points year-on-year to 42.0%, and adjusted operating margin expanded 210 basis points year-on-year to 19.1%. These results reflect the continued evolution of our portfolio and continued focus on pricing disciplines and productivity actions. We paid down approximately $8 million of debt in the fiscal first quarter, and our net leverage ratio was reduced to 2.4x.”