Standex Raises Fiscal 2027 Sales Growth Outlook to High Double Digits

Key Facts

Standex International raised its fiscal 2027 outlook, forecasting high double-digit growth in total sales and high double-digit growth in adjusted EPS. The company announced the outlook on October 29, alongside results for the fiscal first quarter ended September 30, 2026. It said higher sales and an expansion in adjusted operating margin would support EPS growth. It also expects organic sales to increase by more than $100 million during the fiscal year. The outlook revision followed a quarter in which sales and EPS exceeded their levels in the year-earlier period.

First-quarter sales were $232.6 million, up 7% year over year from $217.4 million in the same quarter of the previous fiscal year. Organic growth was 12.4%, while sales increased 1.9% from the previous quarter. Adjusted diluted EPS rose to $2.41 from $1.99 a year earlier, an annual increase of 21.1%. EPS also beat analysts’ estimate of $2.34 by $0.07, while revenue exceeded the average forecast of $228.81 million. Adjusted operating income rose 13.1% to $47 million, and GAAP operating income increased 36.4% to $40.4 million.

Adjusted operating margin improved to 20.2%, up 110 basis points from the year-earlier period, while gross margin reached a record 44.4%, up 240 basis points year over year on an adjusted basis. The company recorded record orders of nearly $273 million during the quarter, with a book-to-bill ratio of 1.17. The orders figure is for the fiscal first quarter, not the current backlog. Standex raised its total sales growth outlook from the previous range of mid- to high double digits to high double digits. Its July outlook had pointed to organic growth in the high- to low-double-digit range, with an expected offset from the sale of Federal Industries and unfavorable foreign exchange.

The company attributed order growth to demand from power, data centers and defense, as well as new products and a recovery in the general industrial market. Chief Executive David Dunbar said strong demand in these markets, together with products stemming from ongoing growth investments, contributed to performance. Sales of new products grew 56% in the quarter, while sales in fast-growing markets increased 25%. Sales in those markets were about $78 million during the quarter, and the company expects them to exceed $315 million in fiscal 2027, an annual increase of more than 20%. Sales in fast-growing markets were about $264 million in fiscal 2026, after the company posted 7.7% organic growth and a book-to-bill ratio of 1.18 in the fourth quarter.

Performance varied across the company’s businesses during the quarter: organic sales in the Electronics segment rose 29.5%, while the Engraving and Hydraulics segment fell 15.7%. Electronics revenue was $140.5 million, compared with $110.6 million a year earlier, while its adjusted operating income increased 29.6% to $41.3 million. The company linked the decline in Engraving and Hydraulics to weakness in the North American automotive market. The divergence puts strong growth in Electronics alongside continued pressure in the automotive-related business. In fiscal 2026, the company’s sales rose by more than $100 million, with 5.5% organic growth and record adjusted EPS of $8.74.

For the fiscal second quarter of 2027, Standex expects modestly higher revenue and a modestly higher adjusted operating margin year over year. Compared with the first quarter, it expects slightly higher revenue and a similar adjusted operating margin. It said it is on track to launch more than 20 new products during the fiscal year, with an expected contribution of more than 300 basis points to incremental growth. It also expects capital expenditures of between $45 million and $55 million in fiscal 2027, explaining that the increase from the previous year is mainly tied to expanding production capacity in its Electronics network business. The board authorized the repurchase of up to $100 million of common stock on October 27.

The company declared a quarterly cash dividend of $0.36 per share, an annual increase of about 5.9%. The dividend is payable on November 20 to shareholders of record on November 6, 2026. The company was scheduled to host an investor call on October 30 at 8:30 a.m. Eastern time to review results and business performance. The stock closed at $248.19 on October 29, compared with $244.55 the previous day. Investing.com reported that the stock had fallen 16.29% over three months but risen 3.97% over 12 months through October 29.