Standex made a lot more money this year, and not all of it came from making more things.
For the twelve months ended June 30, revenue rose 12.8% to $891.6 million, while operating income jumped 106.9% to $193.6 million. Gross margin moved from 39.9% to 41.7%, and operating margin nearly doubled to 21.7%.
The large receipt sits in corporate results: Standex reported a $57.1 million gain on the sale of a business, after none in the comparable year. That gain represented roughly 57% of the $100.1 million increase in operating income. The company also spent less on deal-related costs, though restructuring costs rose.
Standex described the broader operating improvement this way:
"The operating income increase was the result of higher volume, pricing initiatives and product mix, partially offset by growth investments."
10-K 2026-08-14
That is a real operating explanation, but it does not account for the entire headline number. Revenue grew by about one-eighth, and gross profit grew faster than sales. The jump in reported operating profit was amplified by the business sale.
The portfolio itself was uneven. Electronics Products Group revenue rose 18.7% to $475.0 million, while Aerospace and Defense grew 31.6% to $135.0 million. The smaller lines were mixed, with one segment’s revenue falling 34.3% to $23.5 million because of divestiture timing.
The company’s segment disclosure makes that transaction effect explicit:
"Net sales in fiscal year 2026 decreased by $12.2 million, or 34.3%, when compared to the prior year quarter primarily due to divestiture timing."
10-K 2026-08-14
The wording refers to the segment comparison in the annual filing. The important point is that portfolio moves affected both sales and profit presentation, not just the corporate gain line.
Cash provides a second reading. Operating cash flow rose 28.7% to $89.6 million, and cash increased 71.0% to $178.7 million. Inventory was essentially flat at $129.0 million, receivables were also nearly unchanged at $172.9 million, and capex fell 11.1% to $25.2 million. Yet operating cash flow converted only 0.86 times net income, down from 1.25 times, because earnings grew much faster than cash from operations.
That distinction matters for a company carrying $448.0 million of net debt. The latest close was $326.99 on August 13, after a 1.3% daily decline. At that price, the stock carries a 70.5x trailing P/E and a 1.4% earnings yield, so the filing leaves investors weighing reported operating results against a profit figure containing a sizeable transaction-related lift.
Standex’s next annual disclosure leaves one factual question open: how much operating income remains after the $57.1 million gain on sale is removed?
Source: Standex International Corporation Form 10-K filed August 14, 2026, for the twelve months ended June 30, 2026.