Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 11

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 1
Chunk 11
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 Any future pandemics or other global health crises could similarly have an adverse effect on our revenues, operating results, cash flow and financial condition. The ultimate extent to which any such circumstance impacts our business will depend on the severity, location and duration of the issue, the actions undertaken in response by local and world governments and health officials, and the success of medical efforts to address and mitigate the threat.

A deterioration in the domestic and international economic environment, whether by way of inflationary conditions or recessionary conditions, could adversely affect our operating results, cash flow and financial condition.

We are subject to inflationary impacts across the world which could materially increase our costs of materials, labor and transportation. We attempt to maintain our profit margins by anticipating such inflationary pressures and increasing our prices where possible in accordance with contractual requirements and competitive conditions. While we thus far have been largely successful in mitigating the impact of such inflationary conditions, we may be unable to continue to increase our own prices sufficiently to offset cost increases, and, to the extent that we are able to do so, we may not be able to maintain existing operating margins and profitability. Additionally, competitors operating in regions with less inflationary pressure may be able to compete more effectively which could further impact our ability to increases prices and/or result in lost sales. 

Recessionary economic conditions, with or without a tightening of credit, could adversely impact major markets served by our businesses, including cyclical markets such as automotive, aviation, energy and power, heavy construction vehicle, general industrial, consumer appliances and food service. An economic recession could adversely affect our business by:

      • 
      reducing demand for our products and services, particularly in markets where demand for our products and services is cyclical; 

      • 
      causing delays or cancellations of orders for our products or services; 

      • 
      reducing capital spending by our customers; 

      • 
      increasing price competition in our markets; 

      • 
      increasing difficulty in collecting accounts receivable; 

      • 
      increasing the risk of excess or obsolete inventories; 

      • 
      increasing the risk of impairment to long-lived assets due to reduced use of manufacturing facilities; 

      • 
      increasing the risk of supply interruptions that would be disruptive to our manufacturing processes; and 

      • 
      reducing the availability of credit and spending power for our customers. 

We rely on our credit facility to provide us with sufficient capital to operate our businesses and to fund