Company: SXI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001437749-25-032584
Chunk: 2

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 3
Chunk 2
---
 is partially mitigated by our use of an interest rate swap agreement to modify our exposure to interest rate movements. At September 30, 2025, we have $225 million of active floating to fixed rate swaps with terms through August 2028.  These swaps convert our interest payments from a SOFR-based rate to a fixed rate of 3.48% on $225 million of debt.  At September 30, 2025, the fair value, in the aggregate, of the interest rate swaps was a liability of $1.1 million. A 25-basis point increase in interest rates would increase our annual interest expense by approximately $0.9 million.

Concentration of Credit Risk

We have a diversified customer base. As such, the risk associated with concentration of credit risk is inherently minimized. As of September 30, 2025, no one customer accounted for more than 5% of our consolidated outstanding receivables or of our sales.

Commodity Prices

We are exposed to fluctuating market prices for all commodities used in our manufacturing processes. Each of our segments is subject to the effects of changing raw material costs caused by the underlying commodity price movements.  In general, we do not enter into purchase contracts that extend beyond one operating cycle.  While Standex considers our relationship with our suppliers to be good, there can be no assurances that we will not experience any supply shortage.

The Engineering Technologies, Specialty Solutions, and Electronics segments are sensitive to price increases for steel and aluminum products, other metal commodities such as rhodium and copper, and petroleum-based products.  We have experienced price fluctuations for a number of materials including rhodium, steel, and other metal commodities.  These materials are some of the key elements in the products manufactured in these segments.  Wherever possible, we will implement price increases to offset the impact of changing prices.  The ultimate acceptance of these price increases, if implemented, will be impacted by our affected divisions’ respective competitors and the timing of their price increases.

       34

ITEM 4.     CONTROLS AND PROCEDURES

At the end of the period covered by this Report, the management of the Company, including the Chief Executive Officer and the Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended