**Standex Q1 Fiscal 2025: Key Highlights**

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Post on Oct 31, 2024

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Standex Q1 Fiscal 2025: Key Highlights

Standex International Corporation (NYSE: SXI), a leading provider of engineered components and systems, reported its first-quarter financial results for fiscal 2025, which ended on November 30, 2023. The company exceeded analysts' expectations, posting strong revenue growth and a substantial increase in earnings per share.

Key Highlights:

Revenue Growth:

• Standex reported total revenue of $258.7 million, a 7.1% increase year-over-year. This growth was driven by robust demand across various segments, including food service equipment, beverage dispensing systems, and engineered components.
• Organic revenue growth was even stronger at 9.5%, indicating the company's ability to generate growth through internal initiatives rather than acquisitions.
• Segment-wise, the Food Service Equipment segment saw the highest growth, driven by strong demand for its commercial kitchen equipment.
• Beverage Dispensing Systems also performed well, driven by increased demand for its dispensing solutions for the beverage industry.

Profitability:

• Net income for the quarter came in at $23.0 million, a significant 44.3% jump compared to the same period last year.
• Earnings per share reached $0.75, surpassing analyst estimates by $0.10.
• Adjusted earnings per share, which excludes certain one-time charges, were $0.77, a 41.1% year-over-year increase.
• The company's gross margin expanded to 34.9% from 33.1% in the previous year, reflecting improved operational efficiency and favorable pricing.

Looking Ahead:

Standex remains optimistic about the future, citing strong order backlogs and continued demand across its core markets. The company anticipates continued growth in its core business areas, driven by factors such as:

• Increased infrastructure spending: The ongoing infrastructure investments in the US and globally are expected to boost demand for Standex's engineered components and systems.
• Growth in the foodservice industry: The resurgence of the foodservice industry post-pandemic is driving demand for Standex's commercial kitchen equipment and related solutions.
• Sustainability initiatives: The increasing focus on sustainability is driving demand for energy-efficient and environmentally friendly solutions, which Standex is well-positioned to provide.

Key Takeaways:

• Standex's Q1 fiscal 2025 results demonstrate the company's strong financial performance and continued growth trajectory.
• The company's focus on innovation, operational efficiency, and serving its core markets effectively has driven this success.
• Standex remains well-positioned to capitalize on the favorable macroeconomic trends and industry dynamics, setting the stage for continued growth in the coming quarters.

Investors should consider:

• Monitoring the impact of potential economic headwinds on Standex's business.
• Evaluating the company's strategic initiatives, including investments in innovation and sustainability.
• Assessing the long-term growth potential of Standex's core markets.

Overall, Standex's Q1 fiscal 2025 results provide a positive outlook for the company's future. The company's strong performance and strategic initiatives position it well to capitalize on the favorable market conditions and continue its growth trajectory.