Standex International Corporation · NYSE:SXI
Standex International — Q2 2025 Earnings Presentation
17 slides from Standex International's earnings presentation, Jan 31, 2025
Slide 1: Second Quarter Fiscal 2025 Earnings Call Presentation
Second Quarter Fiscal 2025 Earnings Call Presentation January 31, 2025
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Statements contained in this presentation that are not based on historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology s
Slide 3: Key Q2 Messages
KEY Q2 MESSAGES SALES PROFILE ▪ In Q2 FY25, sales increased 6.4% with contributions from acquisitions partially offset by organic decline; Highest sales quarter since divestiture of the Refrigeration Group in April 2020 ▪ Electronics Book to Bill of 1.02 indicating continued market recovery ▪ Includ
Slide 4: Amran/Narayan Group Acquisition Update
AMRAN/NARAYAN GROUP ACQUISITION UPDATE Electrical enclosure at Switchgear Closeup of Amran sub-station current transformers Switchgear components within a switchgear *Above images highlight instrument transformer landscape ▪ Achieved all major integration milestones post 90-day close in areas of Fin
Slide 5: Fast Growth Markets Redefined
FAST GROWTH MARKETS REDEFINED Electrical Grid - Electronics Sales - Fast Growth Markets The Amran/Narayan Group is well positioned in low ($ in millions) to medium voltage instrument transformers within $400 the grid, with future tailwinds from infrastructure upgrades, capacity expansion, and data c
Slide 6: Q2 FY25 Summary
Q2 FY25 SUMMARY Standex International Corporation Second Quarter Ended December 31 ($ in millions) Q2 FY25 Q2 FY24 Y/Y △% Comments Net sales 189.8 178.4 6.4% Organic growth: (8.2%) Acquisitions/Divestitures: 15.3% F/X: (0.7%) Adjusted operating income* 35.5 30.7 15.4% Interest expense 5.6 1.0 447.0%
Slide 7: Electronics
ELECTRONICS YOY Comparison $ in millions Q2 FY25 Q2 FY24 % Change Revenue 95.9 79.4 20.8% GAAP Operating Income 17.4 15.9 9.9% GAAP OI Margin % 18.2% 20.0% Adjusted Operating 26.5 17.5 51.3% Income* Adjusted OI Margin %* 27.6% 22.0% * Excludes the amortization of acquired backlog, the step-up of inv
Slide 8: Engraving and Scientific
ENGRAVING Q2 FY25 Summary YOY Comparison ▪ Revenue decreased reflecting an organic $ in millions Q2 FY25 Q2 FY24 % Change decline, primarily due to continued softness in North America and Europe from delays in new Revenue 31.5 40.8 (23.0%) platform rollouts, and a foreign currency impact GAAP Operat
Slide 9: Engineering Technologies and Specialty Solutions
ENGINEERING TECHNOLOGIES Q2 FY25 Summary YOY Comparison ▪ Revenue increased primarily driven by more $ in millions Q2 FY25 Q2 FY24 % Change favorable project timing in the space end market and growth in sales from new products Revenue 22.6 19.9 13.9% ▪ Operating income increased reflecting higher Op
Slide 10: Q2 FY25 Capitalization
Q2 FY25 CAPITALIZATION Standex International Corporation CAPITAL SPENDING AND D&A ($ in millions) 12/31/2024 9/30/2024 ▪ $7.0M of CAPEX in Q2 FY25 compared to $4.3M Debt including issuance costs 534.3 $150.0 in Q2 FY24 Cash 121.1 164.6 ▪ CAPEX expected to be between $30M to $35M Net (Cash) Debt 413.
Slide 11: Updated Long-Term Targets ~ FY28
UPDATED LONG-TERM TARGETS ~ FY28 Prior Targets ~ FY28 New Targets ~ FY28 Sales >$1B >$1.15B Adj. Operating Margin * >19% >23% FCF Conversion ~100% GAAP NI ~100% GAAP NI ROIC** >15% >15.5% Above targets assume current portfolio of businesses *Adjusted figures exclude the impact of restructuring charg
Slide 12: Key Takeaways
KEY TAKEAWAYS ▪ Q2 FY25 highlights: ▪ Adjusted gross margin of 40.9% increased 60 bps YOY ▪ Record adjusted operating margin of 18.7% increased 150 bps YOY ▪ Adjusted EPS of $1.91 ▪ Emerging, sustainable and secular global trends will continue to drive demand in fast growth markets ▪ Sales into elec
Slide 13: Appendix
APPENDIX
Slide 14: Q2 FY25 Segment Snapshot
Q2 FY25 SEGMENT SNAPSHOT Segment Breakdown (In millions, except percentages) Q2 FY25 Q2 FY24 Y/Y △% Comments Net Sales by Segment Electronics 95.9 79.4 20.8% Organic decline of 10.7%; Acquisitions: 32.3%; F/X: -0.9% Engraving 31.5 40.8 (23.0%) Organic decline of 22.2%; F/X: -0.8% Scientific 18.5 16.
Slide 15: Q2 FY25 Revenue Drivers
Q2 FY25 REVENUE DRIVERS Q2 FY25 Electronics Engraving Scientific Engineering Specialty Total YOY Change % Technologies Solutions Organic (10.7%) (22.2%) 3.9% 14.5% (2.9%) (8.2%) Divestiture 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Acquisitions 32.3% 0.0% 9.5% 0.0% 0.0% 15.3% Currency (0.9%) (0.8%) 0.0% (0.6%)
Slide 16: Q2 FY25 GAAP to Non-GAAP Income Bridge
Q2 FY25 GAAP TO NON-GAAP INCOME BRIDGE Standex International Q2 FY25 Q2 FY24 % Change Corporation Pre-tax Noncon Net Pre-tax Net Pre-tax Net Income Tax trolling Income EPS Income Tax Income EPS Income Income EPS Interest Reported - GAAP 2.0 (0.7) (0.4) 0.9 0.07 24.5 (5.4) 19.1 1.61 -82.0 -82.8 -83.2
Slide 17: Reconciliation of Adjusted Operating Income & Adjusted EPS
RECONCILIATION OF ADJUSTED OPERATING INCOME & ADJUSTED EPS Standex International Corporation (In millions, except percentages and EPS) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Prior adjusted operating income 29.4 28.7 27.3 28.7 114.2 Prior adjusted operating margin % 15.9% 16.1% 15.4% 16.0% 15.8% Amorti
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