Company: SXI
Filing Date: 2025-09-05
Form Type: DEF 14A
Source: 0001437749-25-028442
Chunk: 29

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-09-05
Form: DEF 14A
Chunk 29
---
 company. Our growth drivers have now reached an inflection point and are beginning to move the needle in a meaningful way.

We continued to invest in new product development and new applications. In the last year, we released 16 new products adding over 2% of incremental sales. Sales into the fast growing markets of electrical grid, data centers, commercialization of space and defense increased throughout the year, and boosted by recent acquisitions, constituted 28% of total sales in the fourth quarter of FY 2025. Together, new product sales and fast growth market presence provide strong momentum as we enter 2026.

During the second quarter of the year, we completed the largest acquisition in the history of the Company, the Amran/Narayan Group, and the performance of that business already is exceeding our expectations. We also added smaller acquisitions to our Engineering Technologies and Scientific Groups which provided those businesses with complementary technologies to drive further growth.

All in, net sales increased by 9.6% to $790.1 million despite a delay in global industrial market recovery, unprecedented delays in automotive platform rollouts, and by federal funding and tariff related concerns affecting the US economy.

We continued improving our operating disciplines, enabling us to react nimbly to changing economic environments. We achieved a gross profit margin of nearly 40% and income from operations of $93.5 million as compared to $101.7 million in FY 2024. After adjusting for the differential in acquisition-related costs ($21.4 million and $2.6 million in FY 2025 and FY 2024, respectively), income from operations reflected an increase of $10.6 million or 10.2%. From a balance sheet perspective, we leveraged our unsecured revolving credit facility to fund acquisitions and briefly touched slightly above a 3.0:1 leverage ratio. We continue to generate solid cash flow and, as a result, by fiscal year end, we had already reduced this ratio to 2.6:1.

As we enter our 2026 fiscal year, our growth engine, operating disciplines, and culture of collaboration and accountability make us more confident than ever in our future.

| Checklist of Compensation Practices                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                |   |                                                               |
| In addition to the principles and objectives discussed below, the Compensation Committee strives to design the Company’s compensation program to include what is considered good practices in the industry. Much like our corporate governance practices, we believe that good compensation practices increase shareholder value, strengthen our business and encourage us to manage