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Standex Q3 2025 Earnings Report
Standex reported strong financial results for the third quarter of fiscal year 2025, achieving record sales, adjusted gross margin, and adjusted operating margin.
Key Takeaways
Standex International Corporation reported a significant increase in sales by 17.2% to $207.8 million in the third quarter of fiscal year 2025, driven by acquisitions, despite an organic decline. The company achieved record adjusted gross margin of 42.3% and record adjusted operating margin of 19.4%, reflecting solid operational performance and contributions from recent acquisitions.
Sales increased by 17.2% year-over-year, reaching $207.8 million, primarily due to contributions from acquisitions.
Achieved a record adjusted gross margin of 42.3%, up 230 basis points year-over-year, and a record adjusted operating margin of 19.4%, up 280 basis points year-over-year.
Diluted EPS was $1.81, with adjusted diluted EPS at $1.95, showing a 3.7% increase year-over-year.
Fast growth end markets now constitute 29% of total sales, with strong performance from the Amran/Narayan Group and the recent McStarlite acquisition.
Revenue by Segment
Forward Guidance
For the fiscal fourth quarter 2025, Standex expects slightly to moderately higher revenue, driven by recent acquisitions, increased sales into fast-growth end markets, and pricing initiatives. Adjusted operating margin is also expected to be slightly to moderately higher, benefiting from increased revenue and productivity actions, partially offset by higher tariff costs and strategic investments.
Positive Outlook
- Slightly to moderately higher revenue expected due to recent acquisitions.
- Increased sales into fast growth end markets.
- Realization of pricing initiatives contributing to revenue growth.
- Slightly to moderately higher adjusted operating margin expected.
- Benefits from higher revenue and realization of productivity actions.
Challenges Ahead
- Higher tariff costs partially offsetting margin improvements.
- Targeted investments in selling, marketing, and R&D may impact short-term profitability.
- Soft demand from academic and research institutions affected by NIH funding cuts.
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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