Standex reports Q4 adjusted EPS $1.91, consensus $1.67

Reports Q4 revenue $189.8M, consensus $188.8M.CEO David Dunbar said, “Following solid operational performance in Q1, we delivered the highest sales since the divestment of the Refrigeration business in April 2020 and record adjusted operating margin in Q2. These improvements reflected solid operational performance from core businesses and contribution from the recent Amran/Narayan acquisition. Completed in the quarter, this was the largest acquisition in the history of the company and its sales exceeded our expectations. The continued strength of the electrical grid end market positions us well for continued growth and margin improvement in the second half of FY25. In the fiscal Q2, we achieved adjusted gross margin of approximately 40.9% and adjusted operating margin of 18.7%, while continuing to support our growth initiatives… For the remainder of FY25, based on recent order rates and customer interaction, we continue to expect our end markets to improve, with the recent Amran/Narayan Group acquisition providing an additional tailwind. In the fiscal second quarter, we launched seven new products and remain on track to release over a dozen new products in FY25. Overall, we are well positioned for continued improvements in financial performance as market conditions improve. In terms of our balance sheet, we intend to use cash flows to reduce debt, while we continue to assess an active pipeline of organic and inorganic opportunities that support future growth.”