Standex’s third quarter results for 2025 came in above Wall Street’s expectations for both revenue and adjusted earnings per share, but the market responded negatively, with the stock declining after the announcement. Management pointed to robust growth from newly launched products and continued expansion in fast-growth markets as key drivers. CEO David Dunbar highlighted a record order intake and strong performance from the recently acquired Standex Electronics Grid business, but also acknowledged that organic growth in the core electronics segment was challenged by customer project delays and a facility closure.
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Standex (SXI) Q3 CY2025 Highlights:
- Revenue: $217.4 million vs analyst estimates of $216 million (27.6% year-on-year growth, 0.7% beat)
- Adjusted EPS: $1.99 vs analyst estimates of $1.91 (4.4% beat)
- Adjusted EBITDA: $47.14 million vs analyst estimates of $47.95 million (21.7% margin, 1.7% miss)
- Operating Margin: 16.6%, in line with the same quarter last year
- Market Capitalization: $2.83 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Standex’s Q3 Earnings Call
- Christopher Moore (CJS Securities) questioned further steps in Standex’s business optimization journey. CEO David Dunbar said momentum in new products and fast-growth markets means “we’re almost there,” but portfolio simplification may continue if the right opportunities arise.
- Ross Sparenblek (William Blair) asked about the drivers behind recent order momentum in legacy Electronics. Dunbar and Sarcevic explained that order growth was broad-based across sensors, switches, and magnetics, with strength in defense and general end markets.
- Michael Shlisky (D.A. Davidson) requested clarification on the brand transition to “Grid” and how it fits within the broader electronics segment. Dunbar described the rebranding as a move to unify product lines and enable future acquisitions and product development.
- Gary Prestopino (Barrington Research) inquired about the spread of growth in fast-growth markets and the production capacity of the new Croatia facility. Dunbar cited a diversified end-market mix and projected Croatia could reach $60 million in sales over the next 3–5 years.
- Matt Koranda (ROTH Capital) probed about order trends and the rationale behind the rebranding of Amran/Narayan. Dunbar said the book-to-bill ratio supports robust growth and the rebranding is meant to clarify the global nature of the Grid business and open up new product opportunities.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will be tracking (1) the pace and success of new product launches, (2) ramp-up and utilization of the new Croatia and Mexico facilities to meet regional demand, and (3) cost savings materializing from recent restructuring in the Engraving segment. We’ll also watch for signs of recovery in Scientific and Specialty Solutions as funding and demand trends evolve.
Standex currently trades at $233.63, down from $239.11 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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