On August 1, 2024, Standex International Corp (SXI, Financial) released its 8-K filing reporting financial results for the fourth quarter and fiscal year 2024, which ended on June 30, 2024. Standex International Corp is a U.S.-based firm engaged in manufacturing a variety of products and services for several commercial and industrial markets. The company operates through five segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions. The Electronics segment, which primarily includes the manufacturing and selling of electronic components, contributes the most to the company's revenues.
Performance Overview
Standex International Corp (SXI, Financial) reported net sales of $180.2 million for Q4 2024, a 4.3% decrease from $188.3 million in Q4 2023. The company's GAAP operating income was $27.1 million, down 4.7% from $28.5 million in the same period last year. Adjusted operating income also saw a slight decline of 1.0% year-over-year to $28.7 million. Despite these declines, the company managed to achieve a sequential increase in operating income and margins.
Financial Achievements
Standex International Corp (SXI, Financial) achieved several financial milestones in fiscal year 2024, including record highs in adjusted gross margin, adjusted operating income, adjusted operating margin, adjusted earnings per share, and free cash flow. The company reported an adjusted gross margin of 38.7% and an adjusted operating margin of 16.0% for Q4 2024, both showing improvements year-over-year and sequentially.
Income Statement Highlights
| Metric | 4Q24 | 4Q23 | 3Q24 | Y/Y Change | Q/Q Change |
|---|---|---|---|---|---|
| Net Sales ($M) | 180.2 | 188.3 | 177.3 | -4.3% | 1.6% |
| Operating Income GAAP ($M) | 27.1 | 28.5 | 21.8 | -4.7% | 24.3% |
| Net Income from Continuing Ops GAAP ($M) | 19.7 | 20.2 | 15.9 | -2.5% | 23.9% |
| Diluted EPS GAAP ($) | 1.66 | 1.68 | 1.35 | -1.2% | 23.0% |
| Free Cash Flow ($M) | 22.2 | 32.8 | 19.3 | -32.3% | 15.0% |
Segment Performance
The Electronics segment, which accounts for 45% of sales, saw a slight revenue increase of 0.6% year-over-year to $80.4 million. However, GAAP operating income for this segment decreased by 4.0% to $16.1 million. The Engraving segment experienced a significant decline in revenue, down 22.8% year-over-year to $32.7 million, primarily due to delays in new platform rollouts in North America.
The Scientific segment reported a 4.1% decrease in revenue to $17.5 million, while operating income increased by 5.7% to $4.9 million. The Engineering Technologies segment saw a 15.7% increase in revenue to $25.3 million, driven by improvements in the aviation end markets and favorable project timing. The Specialty Solutions segment experienced a 6.3% decline in revenue to $24.2 million, reflecting normalization in the Display Merchandising business.
Commentary
"We concluded our fiscal year with yet another solid operational performance in the fourth quarter, which demonstrates the resilient character of our employees to adapt and execute on initiatives under our control, despite continued softness in general market conditions," said David Dunbar, President and CEO.
Analysis
Standex International Corp (SXI, Financial) has shown resilience in the face of market softness, achieving several financial milestones despite a slight decline in overall revenue and operating income. The company's focus on fast-growth markets such as electric vehicles, renewable energy, and smart grid applications has contributed positively to its performance. However, challenges in the Engraving and Specialty Solutions segments indicate areas that may require strategic adjustments moving forward.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Standex International Corp for further details.
