Standex International reported Q2 FY26 net sales of $221.3 million, a 16.6% year-over-year increase from $189.8 million in the prior year quarter. GAAP operating income climbed more than 300% to $35.6 million, driven by higher volumes and pricing initiatives across all segments. Adjusted operating income rose 18.9% to $42.2 million, resulting in an adjusted operating margin of 19.0%, up 30 basis points compared to Q2 FY25. Free cash flow surged to $13.0 million, a 506.5% improvement, while net debt to EBITDA fell to 2.3x from 2.9x a year earlier.

The Electronics segment led growth with revenue of $115.7 million, up 20.6% year-over-year, including 11.1% organic growth and a book-to-bill of 1.08. Adjusted operating margin in Electronics expanded to 28.8%. Engineering Technologies sales rose 35.3% to $30.6 million, boosted by the McStarlite acquisition, while its adjusted operating margin improved to 18.9%. Engraving revenue increased 13.6% to $35.7 million, benefiting from productivity initiatives that lifted its adjusted margin to 19.2%. Scientific and Specialty Solutions recorded more moderate increases and softening, respectively, reflecting academic funding headwinds and project timing shifts.

The company reiterated its fiscal year 2026 revenue target, expecting to add over $110 million versus FY25, driven by mid-to-high single-digit organic growth in Electronics, double-digit gains in Engineering Technologies, and contributions from recent acquisitions. Fast growth market sales are projected to exceed $270 million, up over 45%. Management plans to launch more than 15 new products, contributing approximately 300 basis points of incremental growth. For Q3 FY26, the company anticipates mid-to-high single-digit organic revenue growth, slightly higher adjusted margins, and interest expense of $7.0–$7.5 million, while maintaining disciplined debt reduction and opportunistic share repurchases.