Exhibit 99

 

standex.jpg
NEWS RELEASE

 

STANDEX INTERNATIONAL CORPORATION ■ SALEM, NH 03079 ■ TEL (603) 893-9701 ■ WEB www.standex.com

 

STANDEX REPORTS FISCAL THIRD QUARTER 2026 FINANCIAL RESULTS

 

 

In Q3 FY26, Sales Increased 8.1% YOY to $224.6 Million; New Products Sales Grew ~40% and Sales into Fast Growth Markets Contributed >30% of Total Sales

 

In Q3 FY26, Sales Increased 6.5% YOY Organically; Electronics Increased 6.8% YOY Organically

 

Book to Bill of 1.05; Electronics Book to Bill of 1.14

 

Q3 FY26 GAAP Operating Margin of 40.4%; Adjusted Operating Margin of 19.7%, Up 30 bps YOY

 

Continued Portfolio Simplification with Federal Industries Divestiture; Leverage Ratio Reduced to 1.9x

 

Expect ~$100 Million of Incremental Sales in FY26 After Federal Divestiture; Fast Growth Market Sales to Grow ~45% to ~$270 Million; Plan to Release >15 New Products Contributing ~300bps of Growth

 

SALEM, NH April 30, 2026Standex International Corporation (NYSE: SXI) today reported financial results for the third quarter of fiscal year 2026 ended March 31, 2026.

 

Summary Financial Results - Total

                                       

($M except EPS and Dividends)

 

3Q26

   

3Q25

   

2Q26

   

Y/Y

   

Q/Q

 

Net Sales

  $ 224.6     $ 207.8     $ 221.3       8.1 %     1.5 %

Operating Income – GAAP

  $ 90.8     $ 26.3     $ 35.6       246.0 %     155.3 %

Operating Income – Adjusted

  $ 44.2     $ 40.3     $ 42.2       9.5 %     4.8 %

Operating Margin % - GAAP

    40.4 %     12.6 %     16.1 %  

2780 bps

   

2430 bps

 

Operating Margin % - Adjusted

    19.7 %     19.4 %     19.0 %  

30 bps

   

70 bps

 

Net Income from Continuing Ops – GAAP

  $ 68.6     $ 22.8     $ 20.6       201.3 %     232.6 %

Net Income from Continuing Ops – Adjusted

  $ 26.7     $ 23.5     $ 25.1       13.5 %     6.5 %
                                         

EBITDA

  $ 99.4     $ 35.7     $ 45.1       178.7 %     120.7 %

EBITDA margin

    44.3 %     17.2 %     20.4 %  

2710 bps

   

2390 bps

 

Adjusted EBITDA

  $ 48.4     $ 45.3     $ 47.2       6.9 %     2.6 %

Adjusted EBITDA margin

    21.6 %     21.8 %     21.3 %  

- 20 bps

   

30 bps

 
                                         

Diluted EPS – GAAP

  $ 5.56     $ 1.81     $ 0.17       207.3 %     3170.6 %

Diluted EPS – Adjusted

  $ 2.21     $ 1.95     $ 2.08       13.5 %     6.3 %

Dividends per Share

  $ 0.34     $ 0.32     $ 0.34       6.3 %     0.0 %
                                         

Free Cash Flow

  $ 6.3     $ 3.5     $ 13.0       81.5 %     -51.6 %

Net Debt to EBITDA

 

1.9x

   

3.0x

   

2.3x

      -36.7 %     -17.4 %

 

Commenting on the quarter’s results, President and Chief Executive Officer David Dunbar said, “We delivered another quarter with year-on-year organic growth and strong operating performance. Our sales increased 8.1% year-on-year to $224.6 million driven by 8% contribution from new products and more than 30% contribution from sales into fast growth markets. We realized 6.5% organic growth with a book to bill of 1.05. Our Electronics segment grew 6.8% organically with a book to bill of 1.14. We are well positioned to deliver mid-to-high single-digit organic growth again in the fiscal fourth quarter, primarily driven by new product launches, and strong tailwinds in the electrical grid, space, defense and aviation end markets. Sales from fast growth markets totaled approximately $69 million in the fiscal third quarter and are expected to reach approximately $270 million for the full fiscal year 2026.

 

1

 

Adjusted operating margin expanded by 30 basis points year-on-year to 19.7%. We paid down approximately $62 million of debt in the fiscal third quarter, and our net leverage ratio was reduced to 1.9x.

 

On March 6th, we completed the divestiture of Federal Industries at an enterprise value of approximately $70 million. The divestiture supports continued portfolio simplification and enables us to focus on larger businesses and fast growth end market opportunities. As such, we will now report under the four operating segments of Electronics, Aerospace & Defense (formerly Engineering Technologies), Scientific, and Engraving & Hydraulics.”

 

Fiscal Fourth Quarter 2026 Outlook

 

In fiscal fourth quarter 2026, on a year-on-year basis, the Company expects slightly to moderately higher revenue, driven by mid-to-high single digit organic growth from higher sales into fast growth end markets and increased new product sales, partially offset by the impact on revenue from the recently completed divestiture of Federal Industries. The Company expects slightly lower adjusted operating margin as contributions from organic growth and realization of productivity actions are more than offset by growth investments, higher medical costs, and increased variable compensation expenses.

 

On a sequential basis, the Company expects slightly higher revenue, driven by increased contributions from fast growth end markets and new product sales, and slightly to moderately higher adjusted operating margin due to higher volume and pricing and productivity initiatives, partially offset by growth investments.

 

Fiscal Year 2026 Outlook

 

The Company’s prior fiscal year 2026 sales outlook included a full year contribution from Federal Industries. Considering the divestiture of Federal Industries and barring any unforeseen economic, global trade, or tariffs related disruptions, the Company now expects revenue to grow by approximately $100 million in fiscal year 2026, which will continue to be driven by mid-to-high single digit organic growth in Electronics and double-digit organic growth in Aerospace & Defense. The Company remains on course to release over fifteen new products that it expects will contribute approximately 300 bps of incremental growth. Sales from fast growth markets are on track to grow approximately 45% year-on-year and reach approximately $270 million.

 

Third Quarter Segment Operating Performance

 

The Engineering Technologies segment has been re-named as the Aerospace & Defense segment. The Company believes this name change will improve understanding of the business and its end markets. The Hydraulics business has been combined with the Engraving business under Engraving & Hydraulics segment. As a result, the Company will now report under the four operating segments of Electronics, Aerospace & Defense, Scientific, and Engraving & Hydraulics.

 

Electronics (53% of sales; 66% of segment adjusted operating income)

 

   

3Q26

   

3Q25

   

% Change

 

Electronics ($M)

                       

Revenue

    119.7       111.3       7.6 %

GAAP Operating Income

    31.7       25.5       24.3 %

GAAP Operating Margin %

    26.4       22.9          

Adjusted Operating Income

    35.1       33.2       5.9 %

Adjusted Operating Margin %

    29.3       29.8          

 

Revenue increased approximately $8.4 million or 7.6% year-on-year, reflecting organic growth of 6.8% and a foreign currency benefit of 0.8%. Organic growth was driven by sales into fast growth markets and increased new product sales. Adjusted operating income increased approximately $1.9 million or 5.9% year-on-year due to higher volume, pricing initiatives, and product mix, partially offset by growth investments.

 

The segment had a book-to-bill ratio of approximately 1.14 in the fiscal third quarter, with orders of approximately $136 million.

 

2

 

In fiscal fourth quarter 2026, on a sequential basis, the Company expects slightly to moderately higher revenue, reflecting higher sales into fast growth end markets and increased new product sales. The Company expects slightly higher adjusted operating margin due to higher revenue, partially offset by continued growth investments.

 

Aerospace & Defense (16% of sales; 12% of segment adjusted operating income)

 

   

3Q26

   

3Q25

   

% Change

 

Aerospace & Defense ($M)

                       

Revenue

    36.6       27.4       33.7 %

GAAP Operating Income

    5.8       3.4       70.9 %

GAAP Operating Margin %

    16.0       12.5          

Adjusted Operating Income

    6.6       5.1       29.4 %

Adjusted Operating Margin %

    18.0       18.6          

 

Revenue increased approximately $9.2 million or 33.7% year-on-year reflecting organic growth of 20.8%, a 12.2% benefit from the McStarlite acquisition, and a foreign currency benefit of 0.7%. Organic growth was primarily driven by increased projects activity in the commercialization of space end market. Adjusted operating income increased approximately $1.5 million or 29.4% year-on-year reflecting higher volume.

 

In fiscal fourth quarter 2026, on a sequential basis, the Company expects slightly to moderately higher revenue due to growth in new product sales and more favorable project timing, and slightly to moderately higher adjusted operating margin due to higher volume and realization of productivity initiatives.

 

Scientific (8% of sales; 7% of segment adjusted operating income)

 

   

3Q26

   

3Q25

   

% Change

 

Scientific ($M)

                       

Revenue

    18.0       18.3       -1.7 %

GAAP Operating Income

    3.7       3.9       -4.8 %

GAAP Operating Margin %

 

20.6

      21.3          

Adjusted Operating Income

    3.9       4.1       -4.8 %

Adjusted Operating Margin %

    21.9       22.6          

 

Revenue decreased approximately $0.3 million or 1.7% year-on-year reflecting an organic decline of 1.7% from lower demand at academic and research institutions that were impacted by NIH funding cuts. Adjusted operating income decreased approximately $0.2 million or 4.8% year-on-year due to lower sales.

 

In fiscal fourth quarter 2026, on a sequential basis, the Company expects slightly higher revenue and similar adjusted operating margin due to product mix.

 

3

 

Engraving & Hydraulics (20% of sales; 12% of segment adjusted operating income)

 

   

3Q26

   

3Q25

   

% Change

 

Engraving & Hydraulics ($M)

                       

Revenue

    44.8       43.8       2.2 %

GAAP Operating Income

    6.1       5.0       22.0 %

GAAP Operating Margin %

    13.6       11.3          

Adjusted Operating Income

    6.4       5.3       20.1 %

Adjusted Operating Margin %

    14.3       12.2          

 

Revenue increased approximately $1.0 million or 2.2% year-on-year reflecting a foreign currency benefit of 4.0%, partially offset by an organic decline of 1.8%. The organic decline was primarily driven by general market weakness for hydraulics cylinders. Engraving services had organic growth of 4.0%, driven by slightly improved demand in North America and Asia. Adjusted operating income increased approximately $1.1 million or 20.1% year-on-year due to higher sales and the realization of previously executed restructuring actions.

 

In fiscal fourth quarter 2026, on a sequential basis, the Company expects slightly lower revenue and similar to slightly higher adjusted operating margin from realization of productivity initiatives.

 

Capital Allocation

 

 

Interest: In fiscal fourth quarter 2026, the Company expects interest expense of approximately $6.8 to $7.0 million.

 

 

Share Repurchase: During the fiscal third quarter of 2026, the Company did not repurchase shares. There was approximately $28 million remaining on the Company’s current share repurchase authorization at the end of the fiscal third quarter 2026.

 

 

Capital Expenditures: In fiscal third quarter 2026, the Company’s capital expenditures were $5.6 million compared to $6.1 million in the fiscal third quarter of 2025. The Company expects fiscal year 2026 capital expenditures between $27 million and $30 million. Capital expenditures were $28.3 million in fiscal year 2025.

 

 

Dividend: On April 23, 2026, the Company declared a quarterly cash dividend of $0.34 per share, an approximately 6.3% year-on-year increase. The dividend is payable May 22, 2026, to shareholders of record on May 8, 2026.

 

Balance Sheet and Cash Flow Highlights

 

 

Net Debt: Standex had net (cash) debt of $369.1 million on March 31, 2026, compared to $470.4 million at the end of fiscal third quarter 2025. Net (cash) debt for the third quarter of 2026 consisted primarily of long-term debt of $472.8 million and cash and equivalents of $103.7 million.

 

 

Cash Flow: Net cash provided by continuing operating activities for the three months ended March 31, 2026, was $11.9 million compared to $9.6 million in the prior year’s quarter. Free cash flow after capital expenditures was $6.3 million compared to free cash flow after capital expenditures of $3.5 million in the fiscal third quarter of 2025. 

 

Conference Call Details

 

Standex will host a conference call for investors tomorrow, May 1, 2026, at 8:30 a.m. ET. On the call, David Dunbar, President and CEO, and Ademir Sarcevic, CFO, will review the Company’s financial results and business and operating highlights. Investors interested in listening to the webcast and viewing the slide presentation should log on to the “Investors” section of Standex’s website under the subheading, “Events and Presentations,” located at www.standex.com.

 

A replay of the webcast will also be available on the Company’s website shortly after the conclusion of the presentation online through May 1, 2027. To listen to the teleconference playback, please dial in the U.S. (888) 660-6345 or (646) 517-4150 internationally; the passcode is 06832#. The audio playback via phone will be available through May 8, 2026. The webcast replay can be accessed in the “Investor Relations” section of the Company’s website, located at www.standex.com.

 

4

 

Use of Non-GAAP Financial Measures

 

In addition to the financial measures prepared in accordance with generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures, including non-GAAP adjusted income from operations, non-GAAP adjusted net income from continuing operations, free operating cash flow, EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted EBITDA, adjusted EBITDA to net debt, and adjusted earnings per share. The attached financial tables reconcile non-GAAP measures used in this press release to the most directly comparable GAAP measures. The Company believes that the use of non-GAAP measures which exclude the impact of restructuring charges, purchase accounting, amortization from acquired intangible assets, insurance recoveries, discrete tax events, gain or loss on sale of a business unit, acquisition costs, and litigation costs help investors to obtain a better understanding of our operating results and prospects, consistent with how management measures and forecasts the Company's performance, especially when comparing such results to previous periods. An understanding of the impact in a particular quarter of specific restructuring costs, acquisition expenses, or other gains and losses, on net income (absolute as well as on a per-share basis), operating income or EBITDA can give management and investors additional insight into core financial performance, especially when compared to quarters in which such items had a greater or lesser effect, or no effect. Non-GAAP measures should be considered in addition to, and not as a replacement for, the corresponding GAAP measures, and may not be comparable to similarly titled measures reported by other companies.

 

About Standex

 

Standex International Corporation is a multi-industry manufacturer in four broad business segments: Electronics, Aerospace and Defense, Scientific, and Engraving & Hydraulics with operations in the United States, Europe, Canada, Japan, Singapore, Mexico, Turkey, India, and China. For additional information, visit the Company's website at http://standex.com/.

 

5

 

Forward-Looking Statements

 

Statements contained in this Press Release that are not based on historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as should, could, may, will, expect, believe, estimate, anticipate, intend, continue, or similar terms or variations of those terms or the negative of those terms. There are many factors that affect the Companys business and the results of its operations and that may cause the actual results of operations in future periods to differ materially from those currently expected or anticipated. These factors include, but are not limited to: the impact of global crises or catastrophic events on employees, our supply chain, and the demand for our products and services around the world; materially adverse or unanticipated legal judgments, fines, penalties or settlements; conditions in the financial and banking markets, including fluctuations in exchange rates and the inability to repatriate foreign cash; domestic and international economic conditions, including the impact, length and degree of economic downturns on the customers and markets we serve and more specifically conditions in the electrical grid, automotive, construction, aerospace, defense, transportation, food service equipment, consumer appliance, energy, oil and gas and general industrial markets; lower-cost competition; the relative mix of products which impact margins and operating efficiencies in certain of our businesses; the impact of higher raw material and component costs, particularly steel, certain materials used in electronics parts, petroleum based products, and refrigeration components; the impact of higher transportation and logistics costs, especially with respect to transportation of goods from Asia; the impact of inflation on the costs of providing our products and services; an inability to realize the expected cost savings from restructuring activities including effective completion of plant consolidations, cost reduction efforts including procurement savings and productivity enhancements, capital management improvements, strategic capital expenditures, and the implementation of lean enterprise manufacturing techniques; the potential for losses associated with the exit from or divestiture of businesses that are no longer strategic or no longer meet our growth and return expectations; the inability to achieve the savings expected from global sourcing of raw materials and diversification efforts in emerging markets; the impact on cost structure and on economic conditions as a result of actual and threatened increases in trade tariffs; the inability to attain expected benefits from acquisitions and the inability to effectively consummate and integrate such acquisitions and achieve synergies envisioned by the Company; increased costs from acquisitions to improve and coordinate managerial, operational, financial, and administrative systems, including internal controls over financial reporting and compliance with the Sarbanes-Oxley Act of 2002, and other costs related to such systems in connection with acquired businesses; market acceptance of our products; our ability to design, introduce and sell new products and related product components; the ability to redesign certain of our products to continue meeting evolving regulatory requirements; the impact of delays initiated by our customers; our ability to increase manufacturing production to meet demand including as a result of labor shortages; the impact on our operations of any successful cybersecurity attacks; and potential changes to future pension funding requirements. For a more comprehensive discussion of these and other factors, see the Risk Factors section of the Companys most recent annual report on Form 10-K filed with the SEC and available on the Companys website. In addition, any forward-looking statements represent management's estimates only as of the day made and should not be relied upon as representing management's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, the Company and management specifically disclaim any obligation to do so, even if management's estimates change.

 

 

 

Contact:

Christopher Howe

Director of Investor Relations                           

(773) 754-5394

e-mail: InvestorRelations@Standex.com

 

6

 

Standex International Corporation

Condensed Consolidated Balance Sheets

(unaudited)

 

   

March 31,

   

June 30,

 

(In thousands)

 

2026

   

2025

 
                 

ASSETS

               

Current assets:

               

Cash and cash equivalents

  $ 103,725       104,542  

Accounts receivable, net

    179,695       172,702  

Inventories

    129,563       129,994  

Prepaid expenses and other current assets

    69,736       73,641  

Total current assets

    482,719       480,879  
                 

Property, plant, equipment, net

    152,581       160,364  

Intangible assets, net

    204,855       225,757  

Goodwill

    585,503       610,338  

Deferred tax asset

    9,786       11,971  

Operating lease right-of-use asset

    45,812       47,998  

Other non-current assets

    45,521       29,573  

Total non-current assets

    1,044,058       1,086,001  
                 

Total assets

  $ 1,526,777     $ 1,566,880  
                 

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY

         
                 

Current liabilities:

               

Accounts payable

  $ 77,361       88,001  

Accrued liabilities

    64,180       63,204  

Income taxes payable

    16,864       15,770  

Total current liabilities

    158,405       166,975  
                 

Long-term debt

    472,841       552,515  

Operating lease long-term liabilities

    36,586       40,057  

Accrued pension and other non-current liabilities

    60,539       67,743  

Total non-current liabilities

    569,966       660,315  
                 

Redeemable non-controlling interest

    44,227       27,913  
                 

Stockholders' equity:

               

Common stock

    41,976       41,976  

Additional paid-in capital

    142,396       136,082  

Retained earnings

    1,198,976       1,126,851  

Accumulated other comprehensive loss

    (198,941 )     (164,765 )

Treasury shares

    (430,228 )     (428,467 )

Total stockholders' equity

    754,179       711,677  
                 

Total liabilities, redeemable noncontrolling interest and stockholders' equity

  $ 1,526,777     $ 1,566,880  

 

7

 

Standex International Corporation

 

Consolidated Statement of Operations

 

(unaudited)

 

   

Three Months Ended

   

Nine Months Ended

 
   

March 31,

   

March 31,

   

March 31,

   

March 31,

 

(In thousands, except per share data)

 

2026

   

2025

   

2026

   

2025

 
                                 

Net sales

  $ 224,595       207,780     $ 663,346     $ 568,058  

Cost of sales

    132,663       125,350       388,749       344,108  

Gross profit

    91,932       82,430       274,597       223,950  
                                 

Selling, general and administrative expenses

    48,067       47,564       149,063       130,796  

(Gain) loss on sale of business

    (56,837 )     -       (56,837 )     -  

Restructuring costs

    2,989       1,976       9,425       3,982  

Amortization of acquired intangible assets

    4,374       4,485       13,350       9,965  

Acquisition related costs

    2,513       2,152       3,562       20,392  
                                 

Income from operations

    90,826       26,253       156,034       58,815  
                                 

Interest expense

    7,328       8,363       24,154       14,915  

Other non-operating (income) expense, net

    828       309       1,054       1,171  

Total

    8,157       8,672       25,208       16,086  
                                 

Income from continuing operations before income taxes

    82,669       17,581       130,826       42,729  

Provision for income taxes

    14,037       (5,197 )     25,738       475  

Net income from continuing operations

    68,632       22,778       105,088       42,254  
                                 

Income (loss) from discontinued operations, net of tax

    (115 )     (52 )     (94 )     (56 )
                                 

Net income

    68,517       22,726       104,994       42,198  

Less: net income attributable to redeemable noncontrolling interest

    755       846       2,076       1,264  

Less: change of redeemable noncontrolling interest to redemption value

    784       -       18,763       -  

Net income attributable to Standex International

  $ 66,978     $ 21,880     $ 84,155     $ 40,934  
                                 

Basic earnings per share:

                               

Income (loss) from discontinued operations

    (0.01 )     -       (0.01 )     -  

Total income (loss) attributable to Standex International

  $ 5.57     $ 1.83     $ 7.00     $ 3.44  
                                 

Diluted earnings per share:

                               

Income (loss) from discontinued operations

    (0.01 )     -       (0.01 )     -  

Total income (loss) attributable to Standex International

  $ 5.56     $ 1.81     $ 6.99     $ 3.41  
                                 

Average Shares Outstanding

                               

Basic

    12,048       11,986       12,033       11,906  

Diluted

    12,062       12,059       12,053       11,997  

 

8

 

Standex International Corporation and Subsidiaries

Statements of Consolidated Cash Flows

(unaudited)

 

   

Nine Months Ended

 
   

March 31,

 

(In thousands)

 

2026

   

2025

 
                 

Cash Flows from Operating Activities

               

Net income

  $ 104,994       42,198  

Income (loss) from discontinued operations

    (94 )     (56 )

Income from continuing operations

    105,088       42,254  
                 

Adjustments to reconcile net income to net cash provided by operating activities:

         

Depreciation and amortization

    29,249       25,310  

Stock-based compensation

    6,578       7,878  

Non-cash portion of restructuring charge

    575       (401 )

(Gain) loss on sale of business

    (56,837 )     -  

Contributions to defined benefit plans

    (5,352 )     (6,153 )

Net changes in operating assets and liabilities

    (29,884 )     (32,675 )

Net cash provided by operating activities - continuing operations

    49,417       36,213  

Net cash provided by (used in) operating activities - discontinued operations

    (286 )     (42 )

Net cash provided by (used in) operating activities

    49,131       36,171  

Cash Flows from Investing Activities

               

Capital Expenditures

    (19,674 )     (19,762 )

Expenditures for acquisitions, net of cash acquired

    -       (477,381 )

Proceeds from the sale of business

    68,299       -  

Other investing activities

    (423 )     3,800  

Net cash provided by (used in) investing activities

    48,202       (493,343 )

Cash Flows from Financing Activities

               

Proceeds from borrowings

    -       792,313  

Payments of debt

    (80,000 )     (362,109 )

Contingent consideration payment

    (330 )     -  

Activity under share-based payment plans

    1,775       2,019  

Purchase of treasury stock

    (3,800 )     (9,582 )

Distributions to non-controlling interests

    (2,324 )     -  

Cash dividends paid

    (12,135 )     (11,197 )

Other financing activities

    -       -  

Net cash provided by (used in) financing activities

    (96,814 )     411,444  
                 

Effect of exchange rate changes on cash

    (1,336 )     1,335  
                 

Net changes in cash and cash equivalents

    (817 )     (44,393 )

Cash and cash equivalents at beginning of year

    104,542       154,203  

Cash and cash equivalents at end of period

  $ 103,725     $ 109,810  

 

9

 

Standex International Corporation

Selected Segment Data

(unaudited)

 

   

Three Months Ended

   

Nine Months Ended

 
   

March 31,

   

March 31,

 

(In thousands)

 

2026

   

2025

   

2026

   

2025

 

Net Sales

                               

Electronics

  $ 119,707     $ 111,283     $ 345,928     $ 284,939  

Aerospace & Defense

    36,591       27,375       97,121       70,555  

Scientific

    17,979       18,292       56,931       54,462  

Engraving & Hydraulics

    44,780       43,815       139,913       132,321  

Other

    5,538       7,015       23,453       25,781  

Total

  $ 224,595     $ 207,780     $ 663,346     $ 568,058  
                                 

Income from operations

                               

Electronics

  $ 31,656     $ 25,471     $ 89,705     $ 59,918  

Aerospace & Defense

    5,841       3,417       13,836       11,120  

Scientific

    3,708       3,895       12,874       13,362  

Engraving & Hydraylics

    6,138       4,974       20,959       18,178  

Other

    762       1,362       4,046       5,214  

Restructuring

    (2,989 )     (1,976 )     (9,425 )     (3,982 )

Gain (loss) on sale of business

    56,837       -       56,837       -  

Acquisition related costs

    (2,513 )     (2,152 )     (3,562 )     (20,392 )

Corporate

    (8,614 )     (8,738 )     (29,236 )     (24,603 )

Total

  $ 90,826     $ 26,253     $ 156,034     $ 58,815  

 

10

 

Standex International Corporation

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited)

 

   

Three Months Ended

           

NineMonths Ended

         
   

March 31,

           

March 31,

         

(In thousands, except percentages)

 

2026

   

2025

   

% Change

   

2026

   

2025

   

% Change

 

Adjusted income from operations and adjusted net income from continuing operations:

                                               

Net Sales

  $ 224,595     $ 207,780       8.1 %   $ 663,346     $ 568,058       16.8 %

Income from operations, as reported

  $ 90,826     $ 26,253       246.0 %   $ 156,034     $ 58,815       165.3 %

Income from operations margin

    40.4 %     12.6 %             23.5 %     10.4 %        

Adjustments:

                                               

Restructuring charges

    2,989       1,976               9,425       3,982          

Acquisition-related costs

    2,513       2,152               3,562       20,392          

Amortization of acquired intangible assets

    4,374       4,485               13,350       9,965          

Litigation (settlement refund) charge

    -       -               100       -          

(Gain) loss on sale of business

    (56,837 )     -               (56,837 )     -          

Purchase accounting expenses

    331       5,479               2,316       11,676          

Adjusted income from operations

  $ 44,196     $ 40,345       9.5 %   $ 127,950     $ 104,830       22.1 %

Adjusted income from operations margin

    19.7 %     19.4 %             19.3 %     18.5 %        

Interest and other income (expense), net

    (8,157 )     (8,672 )             (25,208 )     (16,086 )        

Foreign currency related (gain) loss on acquisition and divestiture activities

    -       -               -       554          

Provision for income taxes

    (14,037 )     5,197               (25,738 )     (475 )        

Discrete and other tax items

    -       (9,321 )             -       (8,946 )        

Tax impact of above adjustments

    5,458       (3,173 )             892       (10,314 )        

Net income from continuing operations, as adjusted

    27,461       24,375               77,896       69,563          

Less: net income attributable to redeemable noncontrolling interest

    1,539       846               20,839       1,264          
Add back: change of redeemable noncontrolling interest to redemption value per the acquisition agreement     (784 )     -               (18,763 )     -          

Net income from continuing operations attributable to Standex, as adjusted

  $ 26,706     $ 23,530       13.5 %   $ 75,820     $ 68,299       11.0 %
                                                 

EBITDA and Adjusted EBITDA:

                                               

Net income (loss) from continuing operations, as reported

  $ 68,632     $ 22,778       201.3 %   $ 105,088     $ 42,254          

Net income from continuing operations margin

    30.6 %     11.0 %             15.8 %     7.4 %        

Add back:

                                               

Provision for income taxes

    14,037       (5,197 )             25,738       475          

Interest expense

    7,328       8,363               24,154       14,915          

Depreciation and amortization

    9,448       9,744               29,249       25,310          

EBITDA

  $ 99,446     $ 35,688       178.7 %   $ 184,229     $ 82,954       122.1 %

EBITDA Margin

    44.3 %     17.2 %             27.8 %     14.6 %        

Adjustments:

                                               

Restructuring charges

    2,989       1,976               9,425       3,982          

Acquisition-related costs

    2,513       2,152               3,562       20,392          

Litigation (settlement refund) charge

    -       -               100       -          

(Gain) loss on sale of business

    (56,837 )     -               (56,837 )     -          

Purchase accounting expenses

    331       5,479               2,316       11,676          

Adjusted EBITDA

  $ 48,441     $ 45,295       6.9 %   $ 142,795     $ 119,004       20.0 %

Adjusted EBITDA Margin

    21.6 %     21.8 %             21.5 %     20.9 %        
                                                 

Free operating cash flow:

                                               

Net cash provided by operating activities - continuing operations, as reported

  $ 11,904     $ 9,551             $ 49,417     $ 36,213          

Less: Capital expenditures

    (5,590 )     (6,072 )             (19,674 )     (19,762 )        

Free cash flow from continuing operations

  $ 6,314     $ 3,479             $ 29,743     $ 16,451          

 

11

 

Standex International Corporation

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited)

 

   

Three Months Ended

           

NineMonths Ended

         

 

 

March 31,

           

March 31,

         
Adjusted earnings per share from continuing operations  

2026

   

2025

   

%
Change

   

2026

   

2025

   

% Change

 
                                                 

Diluted earnings per share from continuing operations attributable to Standex, as reported

  $ 5.56     $ 1.81       207.3 %   $ 6.99     $ 3.41       105.0 %

Adjustments:

                                               

Restructuring charges

    0.19       0.13               0.59       0.25          

Acquisition-related costs

    0.16       0.14               0.23       1.36          

Amortization of acquired intangible assets

    0.28       0.29               0.84       0.63          

Litigation (settlement refund) charge

    -       -               0.01       -          

(Gain) loss on sale of business

    (4.06 )     -               (4.06 )     -          

Foreign currency related (gain) loss on acquisition and divestiture activities

    -       -               -       0.04          

Discrete tax items

    -       (0.77 )             -       (0.74 )        

Purchase accounting expenses

    0.02       0.35               0.15       0.74          

Change of redeemable noncontrolling interest to redemption value per the acquisition agreement

    0.06       -               1.56       -          

Diluted earnings per share from continuing operations attributable to Standex, as adjusted

  $ 2.21     $ 1.95       13.5 %   $ 6.29     $ 5.69       10.6 %

 

12