Standex International's Q2 2025 Earnings: EPS Misses Expectations, but Adjusted Operating Margin Soars

Standex International (SXI) reported its second quarter 2025 earnings on Thursday, January 30, 2025, with mixed results. While the company missed earnings per share (EPS) expectations, it achieved a record adjusted operating margin, driven by strong sales performance and the recent acquisition of the Amran/Narayan Group.



The company reported an EPS of $1.91, missing analysts' estimates of $1.67 by a wide margin. However, it is essential to note that this EPS figure is adjusted and excludes amortization expense from acquired intangible assets. Including this expense, the company's EPS for the quarter was $0.07. Despite the miss, Standex International's adjusted EPS remained flat year on year at $1.91.

Revenue for the quarter increased by 6.4% year on year to $189.8 million, driven by contributions from acquisitions partially offset by organic decline. The company's Electronics segment revenue increased by 20.8% year on year to $95.9 million, indicating continued market recovery and strong sales into the electrical grid end market, which is anticipated to provide a tailwind to the second half of FY25.



Standex International's adjusted operating margin reached a record 18.7% in the second quarter, up 150 basis points year on year. This impressive performance was supported by solid operational performance from core businesses and the contribution from the recent Amran/Narayan acquisition. The acquisition exceeded expectations, with sales surpassing initial projections and contributing significantly to the company's fast-growth market sales. Two months of Amran/Narayan's sales into the electrical grid end market represented over 20% of the company's total sales for the quarter.

The integration of the Amran/Narayan Group is progressing well, with all major integration milestones achieved ahead of plan. Looking ahead, Standex International expects the Amran/Narayan Group acquisition to provide an additional tailwind for future growth, as indicated by the company's outlook for the remainder of fiscal year 2025.

In conclusion, while Standex International missed EPS expectations in the second quarter of 2025, its adjusted operating margin reached a record high, driven by strong sales performance and the recent acquisition. The company's Electronics segment revenue growth and the positive impact of the Amran/Narayan Group acquisition bode well for future growth. As the global economy evolves, Standex International remains nimble and well-positioned to pivot towards end markets with above-average growth prospects.