Standex International reported adjusted earnings per share of $2.08 for the quarter ended December 31, 2025, surpassing the consensus estimate of $2.00 and up 8.9% year-over-year. GAAP net income from continuing operations surged to $20.6 million, a 1,502% increase over the prior year period. On an organic basis, sales grew 6.4%, driven by robust demand in the Electronics segment, which posted 11.1% organic growth and a book-to-bill ratio of 1.08, indicating strong order intake relative to shipments.

Total net sales rose 16.6% year-over-year to $221.3 million, reflecting a 7% contribution from new products and a 28% contribution from fast growth markets such as defense, aviation and electrical grid applications. GAAP operating margin expanded by 1,160 basis points to 16.1%, while adjusted operating margin improved 30 basis points to 19.0%, driven by higher volumes, pricing initiatives and favorable product mix. EBITDA margin increased to 20.4%, up 1,190 basis points year-over-year.

In Electronics (52% of sales), revenue increased 20.6% to $115.7 million, with adjusted operating income up 25.7% to $33.3 million. Engineering Technologies delivered 35.3% sales growth to $30.6 million, boosted by the McStarlite acquisition, and saw adjusted operating income climb 56.6%. The Engraving segment recorded 13.6% revenue growth to $35.7 million and a 52.4% increase in adjusted operating income, reflecting productivity gains. Scientific and Specialty Solutions segments experienced more modest performance, with Scientific revenue up 5.5% and Specialty Solutions down 7.2%, due primarily to lower academic spending.

Standex reiterated its fiscal 2026 revenue outlook, forecasting over $110 million in incremental sales driven by mid-to-high single-digit organic growth and contributions from recent acquisitions. The company expects fast growth market revenues to exceed $270 million (up more than 45% year-over-year) and plans to launch over 15 new products, adding roughly 300 basis points of growth. Adjusted operating margin expansion is anticipated through higher volume and mix benefits, partly offset by growth investments. Net debt was reduced to 2.3x EBITDA following a $10 million debt repayment, and interest expense in the third quarter is expected between $7.0 million and $7.5 million.