SALEM, N.H. – – October 30, 2026 -- Standex International (NYSE: SXI) posted record first-quarter fiscal 2027 sales of $232.6 million, up 12.4% organically, and raised its full-year outlook. The board also authorized a new $100 million share repurchase program.
Electronics drives growth as orders reach about $273 million
Electronics grew 29.5% organically, led by fast growth markets, general industrial demand and new products. Company-wide order intake hit a record of about $273 million, for a book-to-bill ratio of 1.17. New product sales rose 56%, and sales into fast growth markets rose 25% to about $78 million.
Adjusted gross margin reached a record 44.4%, up 240 basis points year on year. GAAP operating margin was 17.4%. Adjusted operating margin was 20.2%, up 110 basis points, with expansion in every segment.
CEO David Dunbar credited "multiple independent growth drivers," including electrification, data center and defense demand.
Standex lifts FY27 sales growth guidance to high single digits
Total sales growth is now expected in the high single digits, up from mid-to-high single digits. Organic sales should rise by more than $100 million, and adjusted earnings per share should grow at a high-teens rate.
Standex plans to release more than 20 new products, expected to add more than 300 basis points of growth. Fast growth market sales are projected to exceed $315 million, growth of more than 20%.
For the second quarter, the company expects moderately higher revenue and adjusted operating margin year on year. Sequentially, it expects slightly higher revenue and a similar margin. Interest expense is guided to $7.0 million to $7.5 million.
Electronics revenue rises 27.1% while Engraving & Hydraulics falls 14.9%
Electronics, 60% of sales, added $29.9 million in revenue, up 27.1% after a 2.4% currency drag. Adjusted operating income rose $9.4 million, or 29.6%. Record segment orders of about $173 million gave a book-to-bill of 1.23.
Aerospace & Defense revenue rose 5.1% and adjusted operating income rose 24.6%. Scientific revenue grew 1.8% and adjusted operating income grew 18.7%.
Engraving & Hydraulics revenue fell $7.2 million, or 14.9%, on a 15.7% organic decline tied to softness in the North American automotive market. Adjusted operating income dropped 12.8%.
Net debt falls to $401.2 million as capex set to roughly double
Net debt declined to $401.2 million from $446.0 million a year earlier. It consisted of long-term debt of $518.1 million and cash of $116.8 million, and net leverage stood at 2.0x. Operating cash flow was $15.7 million, against $16.8 million a year earlier. Free cash flow after capex was $9.1 million, against $10.4 million.
Fiscal 2027 capital expenditures are guided to $45 million to $55 million, up from $25.2 million in fiscal 2026. The increase mainly funds capacity expansion at Standex Electronics Grid.
The new $100 million buyback, authorized October 27, replaces about $23.5 million remaining under the prior program. No shares were repurchased in the quarter. The board also declared a quarterly dividend of $0.36 per share, up about 5.9%, payable November 20 to holders of record on November 6.