Fiscal first quarter 2027
Filed Oct 30, 2026Record Sales of $232.6 Million, Up 12.4% YOY Organically; Electronics Up 29.5% YOY Organically
Record sales, broad adjusted operating-margin expansion, 21.1% adjusted diluted EPS growth, record order intake of ~$273 million and a raised fiscal 2027 sales outlook outweighed the 14.9% revenue decline in Engraving & Hydraulics and lower free cash flow.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, fiscal first quarter 2027GAAP | $232.6M | 1.9% | 7.0% |
| Organic sales growth, fiscal first quarter 2027other | 12.4% | – | 12.4% |
| Gross profit, fiscal first quarter 2027GAAP | $103.2M | – | – |
| Gross margin, fiscal first quarter 2027GAAP | 44.4% | – | Up 240 bps YOY on Adj. Basis |
| Adjusted gross margin, fiscal first quarter 2027non-GAAP | 44.4% | – | Up 240 bps YOY on Adj. Basis |
| Operating income, fiscal first quarter 2027GAAP | $40.4M | 7.6% | 36.4% |
| Adjusted operating income, fiscal first quarter 2027non-GAAP | $47M | 3.6% | 13.1% |
| Operating margin, fiscal first quarter 2027GAAP | 17.4% | 90 bps | 380 bps |
| Adjusted operating margin, fiscal first quarter 2027non-GAAP | 20.2% | 30 bps | 110 bps |
| Net income from continuing operations, fiscal first quarter 2027GAAP | $24.2M | 2.6% | 53.1% |
| Adjusted net income from continuing operations, fiscal first quarter 2027non-GAAP | $29.3M | -1.6% | 21.8% |
| Net income, fiscal first quarter 2027GAAP | $24.17M | – | – |
| EBITDA, fiscal first quarter 2027non-GAAP | $48.9M | 1.8% | 23.2% |
| EBITDA margin, fiscal first quarter 2027non-GAAP | 21.0% | - 10 bps | 270 bps |
| Adjusted EBITDA, fiscal first quarter 2027non-GAAP | $51.2M | -0.6% | 8.7% |
| Adjusted EBITDA margin, fiscal first quarter 2027non-GAAP | 22.0% | - 60 bps | 30 bps |
| Diluted EPS from continuing operations attributable to Standex, fiscal first quarter 2027GAAP | $1.99 | 17.8% | 59.6% |
| Adjusted diluted EPS from continuing operations attributable to Standex, fiscal first quarter 2027non-GAAP | $2.41 | -1.6% | 21.1% |
| Dividends per share, fiscal first quarter 2027other | $0.34 | 0.0% | 6.3% |
| Free cash flow from continuing operations, fiscal first quarter 2027non-GAAP | $9.1M | -74.1% | -12.3% |
| Net cash provided by operating activities, continuing operations, fiscal first quarter 2027GAAP | $15.7M | – | – |
| Capital expenditures, fiscal first quarter 2027other | $6.6M | – | – |
| Net Debt to EBITDA, fiscal first quarter 2027non-GAAP | 2.0x | 11.1% | -16.7% |
| Net (cash) debt, September 30, 2026other | $401.2M | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $116.8M | – | – |
| Long-term debt, September 30, 2026GAAP | $518.1M | – | – |
| Record order intake, fiscal first quarter 2027other | ~$273 million | – | – |
| Book to bill, fiscal first quarter 2027other | 1.17 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Electronics, fiscal first quarter 2027Organic growth of 29.5% was driven by sales into fast growth markets, strong general industrial markets, and increased new product sales; foreign currency had a 2.4% impact. The segment recorded approximately $173 million of orders and a book-to-bill ratio of approximately 1.23. | $140.5M | – | 27.1% |
| Aerospace & Defense, fiscal first quarter 2027Organic growth from project activity in the space and defense end markets was partially offset by project timing. | $31.4M | – | 5.1% |
| Scientific, fiscal first quarter 2027Growth reflected pricing initiatives and a slight market recovery. | $19.8M | – | 1.8% |
| Engraving & Hydraulics, fiscal first quarter 2027An organic decline of 15.7% from softness in the North American automotive market was partially offset by a foreign currency benefit of 0.7%. | $40.9M | – | -14.9% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal Year 2027 and Fiscal Second Quarter 2027 outlook
- RevenueFiscal Year 2027: high-single digits total sales growth; organic sales to increase by more than $100 million. Fiscal Second Quarter 2027: moderately higher revenue year-on-year and slightly higher revenue sequentially.
- NoteFiscal Year 2027: adjusted earnings per share to grow high teens.
- NoteFiscal Year 2027: sales from fast growth markets expected to grow greater than 20% year-on-year to greater than $315 million.
- NoteFiscal Year 2027: more than 20 new products expected to contribute more than 300 bps of incremental growth.
- NoteFiscal Year 2027 capital expenditures: between $45 million and $55 million.
- NoteFiscal Second Quarter 2027: adjusted operating margin expected to be slightly higher year-on-year and similar sequentially.
- NoteFiscal Second Quarter 2027 interest expense: between $7.0 million and $7.5 million.
- NoteElectronics fiscal second quarter 2027: slightly higher revenue and similar adjusted operating margin sequentially; significantly higher revenue and slightly higher adjusted operating margin year-on-year.
- NoteAerospace & Defense fiscal second quarter 2027: significantly higher revenue and slightly higher adjusted operating margin sequentially.
- NoteScientific fiscal second quarter 2027: similar to slightly higher revenue and similar adjusted operating margin sequentially.
- NoteEngraving & Hydraulics fiscal second quarter 2027: slightly lower revenue and adjusted operating margin sequentially.
Capital returns
- The Company did not repurchase shares under its share repurchase program during the fiscal first quarter of 2027.
- On October 27, 2026, the Board authorized repurchases of up to $100 million of common stock, replacing and superseding the approximately $23.5 million remaining under the prior authorization.
- On October 22, 2026, the Company declared a quarterly cash dividend of $0.36 per share, an approximately 5.9% year-on-year increase. The dividend is payable November 20, 2026, to shareholders of record on November 6, 2026.
- Cash dividend paid was $ 4,029 (In thousands) for the three months ended September 30, 2026, compared with $ 3,836 (In thousands) in the prior-year quarter.
- Purchase of treasury stock and other was $ 4,285 (In thousands) for the three months ended September 30, 2026, compared with $ 4,072 (In thousands) in the prior-year quarter.
What drove it
- Electronics delivered 29.5% organic growth, led by fast growth markets, general industrial demand and new product sales.
- Management cited demand from electrification, data center and defense needs, new products from ongoing growth investments, and a recovery in general industrial markets.
- New product sales grew 56%.
- Sales into fast growth markets grew 25%, and were approximately $78 million in the quarter.
- Adjusted operating margin expanded across each segment, according to management.
- Electronics adjusted operating income increased approximately $9.4 million or 29.6% due to higher volume and pricing initiatives, partially offset by growth investments and higher variable compensation expenses.
- Aerospace & Defense adjusted operating income increased approximately $1.2 million or 24.6% on higher volume and project mix.
Concerns
- Engraving & Hydraulics revenue decreased approximately $7.2 million or 14.9% year-on-year, reflecting an organic decline of 15.7% from softness in the North American automotive market.
- Engraving & Hydraulics adjusted operating income decreased approximately $1.0 million or 12.8% year-on-year.
- Free cash flow decreased 12.3% year-on-year to $9.1 million.
- Adjusted net income from continuing operations decreased 1.6% sequentially to $29.3 million, and adjusted diluted EPS decreased 1.6% sequentially to $2.41.
- Cash and cash equivalents declined to $ 116,840 (In thousands) at September 30, 2026, from $ 178,734 (In thousands) at June 30, 2026.
- Net Debt to EBITDA was 2.0x, compared with 1.8x in the prior quarter.
What to watch
- Conversion of record order intake of ~$273 million and the 1.17 book-to-bill ratio into fiscal second-quarter revenue.
- Whether Electronics sustains its approximately 1.23 book-to-bill ratio, approximately $173 million of record orders and 29.5% organic growth.
- The expected fiscal second-quarter sequential decline in Engraving & Hydraulics revenue and adjusted operating margin amid North American automotive softness.
- Delivery of more than 20 new products expected to contribute more than 300 bps of incremental growth in fiscal 2027.
- Progress toward fiscal 2027 fast growth market sales greater than $315 million and greater than 20% year-on-year growth.
- Fiscal 2027 capital expenditures between $45 million and $55 million, primarily for capacity expansion within Standex Electronics Grid.
Balance sheet and cash flow
- Net (cash) debt was $401.2 million on September 30, 2026, compared to $446.0 million at the end of fiscal first quarter 2026.
- September 30, 2026 long-term debt was $518.1 million and cash and equivalents were $116.8 million.
- Net cash provided by operating activities from continuing operations was $15.7 million, compared with $16.8 million in the prior-year quarter.
- Free cash flow after capital expenditures was $9.1 million, compared with $10.4 million in the fiscal first quarter of 2026.
- Capital expenditures were $6.6 million, compared with $6.4 million in the fiscal first quarter of 2026.
- Cash and cash equivalents were $ 116,840 (In thousands) at September 30, 2026, versus $ 178,734 (In thousands) at June 30, 2026.
- Net changes in cash and cash equivalents were $ (61,894) (In thousands) for the three months ended September 30, 2026.
- Purchase of/distribution to non-controlling interests was $ (64,000) (In thousands) for the three months ended September 30, 2026.
Analysis
Standex opened fiscal 2027 with record net sales of $232.6 million, up 7.0% year-on-year and 1.9% sequentially. Management reported 12.4% organic growth, with demand tied to electrification, data center and defense needs, growth investments in new products and a recovery in general industrial markets. Record order intake of ~$273 million and a 1.17 book-to-bill ratio support management's description of an expanding backlog.
Electronics was the clear growth engine. Revenue rose 27.1% to $140.5 million, with 29.5% organic growth, approximately $173 million of record orders and an approximately 1.23 book-to-bill ratio. Aerospace & Defense and Scientific also grew, while Engraving & Hydraulics declined 14.9% as North American automotive softness drove a 15.7% organic decline. The company expects that segment to post slightly lower revenue and adjusted operating margin sequentially in fiscal second quarter 2027.
Profitability improved materially. GAAP operating income rose 36.4% to $40.4 million and GAAP operating margin expanded 380 bps to 17.4%. Adjusted operating income increased 13.1% to $47.0 million, while adjusted operating margin expanded 110 bps to 20.2%; management said every segment contributed margin expansion. GAAP diluted EPS increased 59.6% to $1.99 and adjusted diluted EPS increased 21.1% to $2.41. The release also reported GAAP and adjusted gross margin of 44.4%, with adjusted gross margin up 240 bps year-on-year.
Cash conversion was softer than the earnings result. Net cash provided by continuing operating activities was $15.7 million versus $16.8 million in the prior-year quarter, and free cash flow was $9.1 million versus $10.4 million. Net (cash) debt was $401.2 million and net leverage was 2.0x. The Board replaced the prior repurchase authorization with a new authorization of up to $100 million, while fiscal 2027 capital expenditures are expected to rise to between $45 million and $55 million, primarily for Standex Electronics Grid capacity expansion.
Management raised fiscal 2027 total sales growth outlook to high-single digits from mid-to-high single digits previously, now expects organic sales to increase by more than $100 million, and expects high teens adjusted EPS growth. It also expects fast growth market sales to exceed $315 million, with greater than 20% year-on-year growth. For fiscal second quarter, the company expects moderately higher revenue and adjusted operating margin year-on-year, and slightly higher revenue with similar adjusted operating margin sequentially.
Management, verbatim
We are off to a strong start to fiscal 2027. Our strategy with multiple independent growth drivers is accelerating growth and expanding margins.
David Dunbar, President and Chief Executive Officer
Strong end market demand driven by electrification, data center and defense needs, new products from our ongoing growth investments, and a recovery in general industrial market contributed to this growth.
David Dunbar, President and Chief Executive Officer
Considering first quarter results and our expanding backlog, we are raising our fiscal year 2027 outlook based on multiple growth engines.
David Dunbar, President and Chief Executive Officer
Not in the filing
stated, not guessed- Fiscal first-quarter GAAP gross margin prior-year and prior-quarter figures were not printed.
- Fiscal first-quarter adjusted gross margin prior-year and prior-quarter figures were not printed.
- Fiscal first-quarter selling, general and administrative expense percentage or margin was not printed.
- Fiscal 2027 numeric adjusted operating-margin guidance was not printed.
- Fiscal 2027 numeric gross-margin guidance was not printed.
- Fiscal 2027 tax-rate guidance was not printed.
- No previous release outlook was provided for comparison with reported results.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.