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Sep 30, 2024
Standex Q1 2025 Earnings Report
Reported solid operational performance with record gross margin.
Key Takeaways
Standex reported a 7.7% decrease in sales, but achieved record GAAP and adjusted gross margin of 41.1%. The company also completed the acquisition of Amran Instrument Transformers & Narayan Powertech Pvt., Ltd.
Sales declined 7.7% due to organic decline offset by acquisitions.
Record GAAP and Adjusted Gross Margin of 41.1%, up 240 bps sequentially and 160 bps YOY.
GAAP Operating Margin of 14.1%; Adjusted Operating Margin of 15.9%.
Acquired Amran Instrument Transformers & Narayan Powertech Pvt., Ltd., expanding presence in the electrical grid market.
Revenue by Segment
Forward Guidance
The Company expects moderately to significantly higher revenue, driven by the impact of the recent Amran/Narayan Group acquisition, more favorable project timing in Engraving, and improving overall demand in Electronics and Specialty. On a sequential basis, the Company expects slightly to moderately higher adjusted operating margin, benefiting from higher sales partially offset by increased investments in selling, marketing, and R&D. The Company also expects the Amran/Narayan Group acquisition to be slightly accretive to adjusted earnings per share in the fiscal second quarter 2025.
Positive Outlook
- Moderately to significantly higher revenue expected.
- Driven by Amran/Narayan Group acquisition.
- Favorable project timing in Engraving.
- Improving demand in Electronics and Specialty.
- Slightly to moderately higher adjusted operating margin expected.
Challenges Ahead
- Increased investments in selling, marketing, and R&D will partially offset higher sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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