Industrial manufacturer Standex (NYSE:SXI) reported Q2 CY2026 results exceeding the market’s revenue expectations, with sales up 2.8% year on year to $228.3 million. Its non-GAAP profit of $2.45 per share was 4.1% above analysts’ consensus estimates.
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Standex (SXI) Q2 CY2026 Highlights:
- Revenue: $228.3 million vs analyst estimates of $226.1 million (2.8% year-on-year growth, 1% beat)
- Adjusted EPS: $2.45 vs analyst estimates of $2.35 (4.1% beat)
- Adjusted EBITDA: $51.5 million vs analyst estimates of $52.73 million (22.6% margin, 2.3% miss)
- Operating Margin: 16.5%, in line with the same quarter last year
- Free Cash Flow Margin: 17.7%, up from 11.2% in the same quarter last year
- Market Capitalization: $3.33 billion
Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "We concluded our fiscal year with a strong performance in the fourth quarter. We delivered 7.7% organic growth with a book to bill of 1.18, led by our Electronics segment which grew 12.9% organically with a book to bill of 1.27. Sales from fast growth markets totaled approximately $72 million in the fiscal fourth quarter and approximately $264 million for the fiscal year. Adjusted earnings per share increased 7.4% to a record $2.45. Our net leverage ratio was reduced to 1.8x.
Company Overview
Holding over 500 patents globally, Standex (NYSE:SXI) is a manufacturer and distributor of industrial components for various sectors.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Regrettably, Standex’s sales grew at a mediocre 6.3% compounded annual growth rate over the last five years. This wasn’t a great result compared to the rest of the industrials sector, but there are still things to like about Standex.
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Standex’s annualized revenue growth of 11.2% over the last two years is above its five-year trend, suggesting its demand recently accelerated. 
This quarter, Standex reported modest year-on-year revenue growth of 2.8% but beat Wall Street’s estimates by 1%.
Looking ahead, sell-side analysts expect revenue to grow 5.4% over the next 12 months, a deceleration versus the last two years. This projection doesn’t excite us and implies its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health.
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Operating Margin
Standex has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 15.4%. This result isn’t surprising as its high gross margin gives it a favorable starting point.
Looking at the trend in its profitability, Standex’s operating margin rose by 3.1 percentage points over the last five years, as its sales growth gave it operating leverage.
In Q2, Standex generated an operating margin profit margin of 16.5%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.
Standex’s EPS grew at 13.7% compounded annual growth rate over the last five years, higher than its 6.3% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
We can take a deeper look into Standex’s earnings to better understand the drivers of its performance. As we mentioned earlier, Standex’s operating margin was flat this quarter but expanded by 3.1 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For Standex, its two-year annual EPS growth of 11.4% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future.
In Q2, Standex reported adjusted EPS of $2.45, up from $2.28 in the same quarter last year. This print beat analysts’ estimates by 4.1%. Over the next 12 months, Wall Street expects Standex’s full-year EPS to grow 13.8% from $8.73 to $9.93.
Key Takeaways from Standex’s Q2 Results
It was good to see Standex narrowly top analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its EBITDA missed. Overall, this was a mixed quarter. The stock remained flat at $287.25 immediately following the results.
Is Standex an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).