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Dec 31, 2024
Standex Q2 2025 Earnings Report
Reported fiscal second quarter 2025 financial results, achieving the highest sales since the divestment of the Refrigeration business in April 2020 and record adjusted operating margin.
Key Takeaways
Standex International Corporation reported a 6.4% increase in sales, driven by acquisitions, which was partially offset by organic decline. The company achieved a record adjusted operating margin of 18.7%, up 150 bps year-over-year, and the Electronics segment's book-to-bill ratio was 1.02, indicating continued market recovery.
Sales increased 6.4% with contributions from acquisitions, partially offset by organic decline.
GAAP gross margin was 37.6%, with adjusted gross margin at 40.9%, up 60 bps year-over-year.
GAAP operating margin was 4.5%, with a record adjusted operating margin of 18.7%, up 150 bps year-over-year.
Electronics book-to-bill ratio was 1.02, indicating continued market recovery.
Revenue by Segment
Forward Guidance
The Company expects moderately to significantly higher revenue in fiscal third quarter 2025, driven by the Amran/Narayan Group acquisition and improving overall demand in Electronics. They also anticipate slightly to moderately higher adjusted operating margin, benefiting from improved revenue, partially offset by higher investments in selling, marketing, and R&D.
Positive Outlook
- Moderately to significantly higher revenue expected due to Amran/Narayan Group acquisition.
- Improving overall demand in Electronics.
- Slightly to moderately higher adjusted operating margin expected.
- Benefiting from improved revenue.
- Electrical Grid End Market Anticipated to Provide Tailwind to Second Half of FY25
Challenges Ahead
- Higher investments in selling, marketing, and R&D will partially offset margin improvement.
- Continued softness in the automotive end markets in North America and Europe
- Less favorable project timing in Asia due to the Chinese New Year.
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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