Standex Q3 Sales Rise 8.1%, Adjusted Margin Hits 19.7% After Divestiture
Standex International delivered Q3 FY26 net sales of $224.6 million, up 8.1% year-on-year with 6.5% organic growth and $69 million (over 30%) from fast-growth markets. Adjusted operating margin rose 30 basis points to 19.7%, net leverage fell to 1.9× following a $70 million divestiture, and management forecasts about $100 million incremental FY26 revenue.
1. Q3 Financial Highlights
Standex International recorded net sales of $224.6 million in Q3 FY26, an 8.1% increase year-on-year driven by 6.5% organic growth; book-to-bill was 1.05 and fast-growth market sales contributed over $69 million (30% of revenue).
2. Margin Expansion and Leverage Reduction
GAAP operating margin surged to 40.4% while adjusted operating margin improved by 30 basis points to 19.7%. The company paid down $62 million of debt during the quarter, reducing its net debt to EBITDA ratio to 1.9×.
3. Divestiture and Outlook
Standex completed the $70 million Federal Industries divestiture to simplify its portfolio and focus on larger businesses. It expects approximately $100 million of incremental FY26 sales driven by mid-to-high single-digit organic growth, more than 15 new product launches and robust demand in defense, space and electrical grid markets.