US Stocks
US Options
Emerging Asia
GBP Cash Savings
Charts & Tools
Paper Trading
Extended Hours
Wall Street JournalBased on the provided financial report, the title of the article is likely to be: "Standex International Corp. Reports Second Quarter 2025 Financial Results" This title is inferred from the following information: * The report is for a company called Standex International Corp. (0000310354) * The report is for the second quarter of 2025 (Q2 2025) * The report includes financial results, such as revenue, net income, and earnings per share, which are typical of a quarterly earnings report.
Based on the provided financial report, the title of the article is likely to be: "Standex International Corp. Reports Second Quarter 2025 Financial Results" This title is inferred from the following information: * The report is for a company called Standex International Corp. (0000310354) * The report is for the second quarter of 2025 (Q2 2025) * The report includes financial results, such as revenue, net income, and earnings per share, which are typical of a quarterly earnings report.
Standex International Corp. (STAN) reported its financial results for the second quarter of 2025, with net sales of $3,170 million, a 3% increase from the same period last year. The company’s gross profit margin was 60%, and its operating income was $15.998 million. STAN’s net income was $11.986 million, or $0.32 per diluted share, compared to $11.761 million, or $0.30 per diluted share, in the same period last year. The company’s cash and cash equivalents were $27.984 million, and its total debt was $60 million. STAN’s CEO, David A. Dunbar, stated that the company is focused on executing its strategic plan and driving growth through innovation and operational excellence.
Overview
We are a diversified industrial manufacturer with leading positions in a variety of products and services that are used in diverse commercial and industrial markets. Headquartered in Salem, New Hampshire, we have six operating segments aggregated into five reportable segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions. Our long-term business strategy is to create, improve, and enhance shareholder value by building more profitable, focused industrial platforms through our Standex Value Creation System.
Results from Continuing Operations
| Metric | Three Months Ended December 31 | Six Months Ended December 31 | ||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Net sales | $189,814 | $178,400 | $360,278 | $363,174 |
| Gross profit margin | 37.6% | 40.2% | 39.3% | 39.7% |
| Income from operations | $8,463 | $25,832 | $32,562 | $52,749 |
Net sales increased in the second quarter of fiscal year 2025 by 6.4%, driven by recent acquisitions which offset organic sales declines. Gross profit margin decreased due to lower organic sales, acquisition costs, and inflationary pressures. Income from operations declined 67.2% due to lower organic sales and acquisition costs.
Gross Profit
Gross profit decreased in the second quarter and first six months of fiscal year 2025 compared to the prior year periods. This was driven by lower organic sales, acquisition costs, and inflationary impacts, partially offset by productivity initiatives and contributions from recent acquisitions.
Selling, General, and Administrative Expenses
SG&A expenses increased in the second quarter and first six months of fiscal year 2025 compared to the prior year periods, primarily due to the impact of recent acquisitions.
Restructuring Costs
The company incurred $0.9 million in restructuring expenses in the second quarter and $2.0 million in the first six months of fiscal year 2025, primarily related to facility closures and headcount reductions in the Engraving segment.
Acquisition Related Costs
The company incurred $16.4 million in acquisition related expenses in the second quarter and $18.2 million in the first six months of fiscal year 2025.
Income from Operations
Income from operations decreased 67.2% in the second quarter and 38.3% in the first six months of fiscal year 2025 compared to the prior year periods, primarily due to lower organic sales and acquisition costs.
Interest Expense
Interest expense increased significantly in the second quarter and first six months of fiscal year 2025 compared to the prior year periods, due to higher borrowing levels.
Income Taxes
The effective tax rate was 35.5% in the second quarter and 22.6% in the first six months of fiscal year 2025, compared to 22.1% and 23.0% in the prior year periods. The increase was due to various discrete tax items.
Backlog
| Segment | As of December 31, 2024 | As of December 31, 2023 | ||
|---|---|---|---|---|
| Total Backlog | Backlog under 1 year | Total Backlog | Backlog under 1 year | |
| Electronics | $174,720 | $156,881 | $126,127 | $111,977 |
| Engraving | $19,088 | $18,690 | $28,828 | $25,333 |
| Scientific | $4,561 | $4,561 | $3,000 | $3,000 |
| Engineering Technologies | $54,189 | $42,200 | $67,386 | $52,348 |
| Specialty Solutions | $16,623 | $16,545 | $16,908 | $16,641 |
| Total | $269,181 | $238,877 | $242,249 | $209,299 |
Total backlog realizable under one year increased 14.1% year-over-year, driven by the recent acquisitions in the Electronics segment.
Segment Analysis
Electronics Group
- Net sales increased 20.8% in Q2 and 7.8% in H1, driven by recent acquisitions which offset organic sales declines.
- Income from operations increased 9.9% in Q2 and 7.0% in H1, due to contributions from acquisitions, productivity initiatives, and product mix.
Engraving Group
- Net sales decreased 23.0% in Q2 and 20.6% in H1, due to fewer new platform rollouts in North America and Europe.
- Income from operations decreased 53.7% in Q2 and 39.7% in H1, due to lower demand and project mix.
Scientific Group
- Net sales increased 13.4% in Q2 and 4.9% in H1, driven by the Custom Biogenic Systems acquisition and higher volume from new products.
- Income from operations increased 11.1% in Q2 and 3.1% in H1, due to the acquisition and productivity initiatives.
Engineering Technologies Group
- Net sales increased 13.9% in Q2 and 13.3% in H1, driven by favorable project timing in the space end market.
- Income from operations increased 8.4% in Q2 and 19.9% in H1, due to higher sales volume.
Specialty Solutions Group
- Net sales decreased 2.9% in Q2 and 11.2% in H1, due to softness in the Display Merchandising and Hydraulics businesses.
- Income from operations decreased 10.2% in Q2 and 25.8% in H1, due to lower volume.
Liquidity and Capital Resources
The company had $121.1 million in cash as of December 31, 2024, with $106.0 million held by foreign subsidiaries. Net cash provided by operating activities was $26.7 million in the first six months of fiscal year 2025, compared to $40.2 million in the prior year period.
The company has a $825 million revolving credit facility, with $94.0 million available to borrow as of December 31, 2024. The company’s leverage ratio was 2.65:1 at the end of the quarter, within the 3.5:1 covenant limit.
The company expects fiscal year 2025 capital spending to be between $30.0 million and $35.0 million, and depreciation and amortization expense to be between $32.0 million and $36.0 million.
Outlook
Looking forward, the company expects continued improvement in key financial metrics, supported by productivity initiatives. The company anticipates increased exposure to the high-growth electrical grid end market from the Amran/Narayan Group acquisition, as well as growth in commercial aviation, defense, hybrid/electric vehicle, and scientific cold storage markets. The company also expects softness to continue in the automotive and general industrial end markets.