Q2 2025 Standex International Corp Earnings Call
Good morning, ladies and gentlemen, and welcome to the Standex International physical check in quarter 2025 financial results Conference call. At this time all lines are in listen only mode. Following the presentation. We will conduct a question and answer session. If at any time during this call will be quite you needed assistance.
Operator: Good morning, ladies and gentlemen, and welcome to the Standex International Fiscal Check and Quarter 2025 Financial Results Conference Call. At this time, all lines are in listen-only mode.
Operator: For the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator.
Speaker Change: B supposed stars they wrote for the operator. This call is being recorded on Friday January 31st 2025, I would now like to turn the conference over to Mr. Christopher Howe Director of Investor Relations. Please go ahead.
Operator: This call is being recorded on Friday, January 31st, 2025.
Christopher Howe: I would now like to turn the conference over to Mr. Christopher Howe, Director of Investor Relations. Please go ahead.
Christopher Howe: Thank you operator and good morning. Please note that the presentation accompanying management's remarks can be found on the investor relations portion of the company's website at www Dot <unk> Dot com.
Christopher Howe: Thank you, operator and good morning. Please note that the presentation accompanying management's remarks can be found on the investor relations portion of the company's website at www.standex.com. please refer to Standex's safe harbor statement on slide.
Christopher Howe: Please refer to <unk> Safe Harbor statement on slide two.
Christopher Howe: Matters that Standex Management will discuss on today's conference. include predictions, estimates, expectations, and other forward-looking. These statements are subject to risks and uncertainties that could cause actual results to differ materially. You should refer to Standex's most recent annual report on Form 10-K, as well as other SEC filings and public announcements. detailed list of risk factors.
Christopher Howe: Matters that Standex management will discuss on today's conference call include predictions estimates expectations and other forward looking statements.
Christopher Howe: These statements are subject to risks and uncertainties that could cause actual results to differ materially.
Christopher Howe: You should refer to <unk>. Most recent annual report on Form 10-K, as well as other SEC filings and public announcements for a detailed list of risk factors.
Christopher Howe: In addition, I'd like to remind you that today's discussion will include Earnings Before Interest and Taxes. Dada, which is Earnings Before Interest, Taxes, Depreciation, and Amortization. Adjusted EBITDA, EBITDA Margin, and Adjusted EBITDA Margin. We will also refer to other non-GET. including Adjusted Net Income, Adjusted Operating Income, Adjusted net income from continuing operations. Adjusted earnings per share. Adjusted operating margin. Pre-operating Cash Flow and Pro Forma Net Debt Adjusted measures exclude the impact of restructuring, purchase accounting, amortization from acquired intangible assets. Acquisition-Related Expenses, and one time These non-GAAP financial measures are intended to serve as a complement to results provided in accordance with accounting principles generally accepted in the United States.
Christopher Howe: In addition, I'd like to remind you that today's discussion will include references to the non-GAAP measures of EBIT, which is earnings before interest and taxes adjusted EBIT.
Christopher Howe: <unk>, which is earnings before interest taxes depreciation and amortization.
Christopher Howe: Adjusted EBITDA EBITDA margin and adjusted EBITDA margin, we will also refer to other non-GAAP measures, including adjusted net income adjusted operating income adjusted net income from continuing operations adjusted earnings per share adjusted operating.
Christopher Howe: Margin.
Christopher Howe: Free operating cash flow and pro forma net debt to EBITDA.
Christopher Howe: Adjusted measures exclude the impact of restructuring purchase accounting amortization from acquired intangible assets acquisition related expenses and onetime items.
Christopher Howe: These non-GAAP financial measures are intended to serve as a complement to results provided in accordance with accounting principles generally accepted in the United States.
David Dunbar: Standex believes that such information provides an additional measure A Consistent Historical Comparison of the Company's Financial Performance On the call today is Standex's Chairman, President, and Chief Executive Officer, David Dunbar.
Speaker Change: <unk> believes that such information provides an additional measurement and consistent historical comparison of the company's financial performance.
David Dunbar: On the call today is standex is chairman, President and Chief Executive Officer, David Dunbar, and Chief Financial Officer, and Treasurer at <unk>.
Ademir Sarcevic: Chief Financial Officer and Treasurer, Ademir Sarcevic.
Speaker Change: Thank you Chris.
David Dunbar: Thank you, Chris. Good morning, and welcome to our fiscal second quarter 2025 conference call. Following strong operating performance in the fiscal first quarter, we delivered record adjusted operating margin in the fiscal second quarter, supported by the highest sales since the divestiture of the refrigeration business in April 2020. Our sales in the fast-growing end markets continue to expand as a percent of the total. Our new product sales are increasing above our projections, and our team's focus on price and productivity continues to deliver strong operating margins. For the remainder of the year, based on increasing order rates and customer activity, we continue to expect our end markets to improve with the recent Amran Narayan Group acquisition providing an additional tailwind.
Speaker Change: Good morning, and welcome to our fiscal second quarter 2025 conference call. Following strong operating performance in the fiscal first quarter, we delivered record adjusted operating margin in the fiscal second quarter supported by the highest sales since the divestiture of the refrigeration business in April 2020.
Speaker Change: Our sales into SaaS growing end markets continue to expand as a percent of the total or new product sales are increasing above our projections and our team's focus on price and productivity continues to deliver strong operating margins.
Speaker Change: For the remainder of the year based on increasing order rates and customer activity. We continue to expect our end markets to improve with the recent Ameren and Orion group acquisition, providing an additional tailwind.
David Dunbar: Today we will provide significant updates to our fast growth market sales as well as revised and improved 2028 financial expectations. Now, if everyone can turn to slide three, key messages. In the second quarter, sales increased to 6.4% with contributions from acquisitions partially offset by organic decline. Sales from the Amra and Narayan Group exceeded our expectations. Though organic sales were down in electronics due to softness in automotive and general industrial end markets in Europe and North America, our book-to-bill was 1.02, indicating that markets are improving and that our commercial strategy is taking hold. With two months of Amarin Orion sales into the electrical grid and the market, our fiscal second quarter sales into fast growth markets were over 20% of total company sales.
Speaker Change: Today, we will provide significant updates to our fast growth market sales as well as revised and approved 2028 financial expectations.
Speaker Change: Now if everyone can turn to slide three key messages in.
Speaker Change: In the second quarter sales increased six 4% with contributions from acquisitions, partially offset by organic decline sales from the Ameren Orion group exceeded our expectations.
Speaker Change: The organic sales were down in electronics due to softness in automotive and general industrial end markets in Europe, and North America. Our book to Bill was one point or two indicating that markets are improving and that our commercial strategy is taking hold.
Speaker Change: With two months of Ameren Orion sales into the electrical grid and market our fiscal second quarter sales into SaaS growth markets were over 20% of total company sales.
David Dunbar: Sales into fast growth markets were primarily driven by the electrical grid, commercialization of space, and defense applications. I will share more detail on our view of fast growth markets later in the call. New product sales totaled $14.5 million in the fiscal second quarter, which increased approximately $3.5 million sequentially, and more than doubled year-on-year. I'm especially pleased that we continue to demonstrate resilient operating performance from the execution of our price and productivity initiatives and from inorganic investment. As a result, we achieved a record adjusted operating margin of 18.7%, up 170 basis points sequentially, and up 150 basis points year on year, led by adjusted operating margin of 27.6% in the electronics business segment.
Speaker Change: Sales in the fast growth markets were primarily driven by the electrical grid commercialization of space and defense applications.
Speaker Change: We'll share more detail on our view of fast growth markets later in the call.
Speaker Change: New product sales totaled $14 $5 million in the fiscal second quarter, which increased approximately $3 $5 million sequentially and more than doubled year on year.
Speaker Change: Im, especially pleased that we continued to demonstrate resilient operating performance from the execution of our price and productivity initiatives and from inorganic investments.
Speaker Change: As a result, we achieved a record adjusted operating margin of 18, 7% up 170 basis points sequentially and up 150 basis points year on year led by adjusted operating margin of 27, 6% in the electronics business segment.
David Dunbar: The integration of Emrin and Orion is progressing well and ahead of plan. On a sequential basis in fiscal third quarter 2025, we expect moderately to significantly higher revenue driven by the impact of the recent Amra and Narayan group acquisition in improving overall demand in electronics. We expect slightly to moderately higher adjusted operating margin due to higher revenue partially offset by higher investments in selling, marketing, and R&D. For the remainder of the fiscal year, we continue to expect our end markets to improve with the electrical grid end market providing an additional tailwind.
The integration of Ameren Orion is progressing well and ahead of plan.
Speaker Change: On a sequential basis in fiscal third quarter 2025, we expect moderately to significantly higher revenue driven by the impact of the recent Ameren Orion group acquisition and improving overall demand in electronics we.
Speaker Change: We expect slightly to moderately higher adjusted operating margin due to higher revenue, partially offset by higher investments in selling marketing and R&D.
Speaker Change: For the remainder of the fiscal year, we continue to expect our end markets to improve with the electrical grid and market, providing an additional tailwind.
David Dunbar: With seven new products just released in the fiscal second quarter, we remain positioned to release more than a dozen new products in fiscal 2025. Sales from new products are tracking ahead of expectations and are expected to now contribute approximately 200 basis points of incremental growth.
Speaker Change: With seven new products, just released in the fiscal second quarter, we remain positioned to release more than a dozen new products in fiscal 2025.
Speaker Change: Sales from new products are tracking ahead of expectations and are expected to now contribute approximately 200 basis points of incremental growth.
Speaker Change: Now if everyone can turn to slide for an update on our recent acquisition.
David Dunbar: Now, if everyone can turn to slide four, an update on a recent acquisition. The acquisition of the Ameren Narayan Group last October was the largest transaction in the company's history. Considering the magnitude of the transaction, I'm extremely pleased with how our teams have adapted. A testament to the cultural fit of this acquisition. The integration is progressing well, and we have achieved all major integration milestones in the areas of finance, HR, and IT. When we announced this acquisition, we estimated calendar year sales in 2024 of approximately $100 million. We are happy to report that the Ameren Orion Group exceeded this target with fiscal second quarter results higher than anticipated.
Speaker Change: The acquisition of the Ameren Orion Group last October was the largest transaction in the company's history, considering the magnitude of the transaction I am extremely pleased with how our teams have adapted.
Speaker Change: Testament to the cultural fit of this acquisition.
Speaker Change: The integration is progressing well and we've achieved all major integration milestones in the areas of finance HR and it.
Speaker Change: When we announced this acquisition, we estimated calendar year sales in 2024 of approximately $100 million.
Speaker Change: We are happy to report that the Ameren Orion group exceeded this target with fiscal second quarter results higher than anticipated in fact, the month of December was the highest revenue month in its history.
David Dunbar: In fact, the month of December was the highest revenue month in its history. Their contribution led to sales into fast growth markets exceeding 20% of total company sales for the first time. The growth of Enamirin Orion is being driven by three powerful forces to increase global electrical capacity. Increasing living standards in all countries of the world, modernization of existing aging grid infrastructure, and incremental demand from data centers. We anticipate the Ameren Orion Group to continue growing revenue at a healthy double-digit rate in calendar year 2025.
Speaker Change: Their contribution led to sales into faster growth markets exceeding 20% of total company sales for the first time.
Speaker Change: The growth within Ameren Orion is being driven by three powerful forces to increase global electrical capacity increasing levels living standards in all countries of the world modernization of existing aging grid infrastructure and.
Speaker Change: And incremental demand from data centers, we anticipate the Ameren Orion group to continue growing revenue at a healthy double digit rate in calendar year 2025.
Speaker Change: Now if everyone can turn to slide five fast growth markets redefined.
David Dunbar: Now, if everyone can turn to slide five, fast growth markets redefined. Three years ago, we identified end markets driven by long-term secular trends that provide above-average growth opportunities. Of these markets, those that provided Standex the best growth opportunities were renewable energy, electric vehicles, soft trim, commercialization of space, and the electronics defense market. Aggregating these sales into a single number provided a shorthand to explain the growth potential of our company. Our fast growth market sales has become an important number for our shareholders as well as for our management as we review priorities. In those three years, our fast growth market sales have grown from $40 million to nearly $100 million.
Speaker Change: Three years ago, we identified end markets driven by long term secular trends that provide above average growth opportunities of these markets those that provide <unk>, the best growth opportunities, where renewable energy electric vehicles soft trim commercialization of space and the electronics defense market.
Speaker Change: In aggregate these sales into a single number provided a shorthand to explain the growth potential of our company or.
Speaker Change: Our fast growth market sales has become an important number for our shareholders as well as for our management, because we review priorities.
Speaker Change: In those three years, our fast growth market sales have grown from $40 million to nearly $100 million.
David Dunbar: Space, defense, and electric vehicles have been the primary drivers of the growth and remain attractive. Electric vehicle sales have decelerated but are still growing around the world and combined with our increased content per vehicle still represent an above market growth opportunity for us. Other markets like 5G and soft trim have not provided the lift we expect. Our recent acquisition makes a step-jump change to our growth profile. 100% of the sales of the Amer & Orion Group are into the fast-growing market of the electrical grid, doubling our fast-growth sales. Considering this acquisition and the degree to which the global environment has shifted versus three years ago, we were taking a fresh look to more accurately reflect the company's faster-growing markets and to show how we continue to pivot towards markets with above-average growth.
Speaker Change: Space and defense and electric vehicles have been the primary drivers of the growth and remain attractive.
Speaker Change: Electric vehicles sales have decelerated, but are still growing around the world and combined with our increased content per vehicles still represent an above market growth opportunity for us.
Speaker Change: Other markets like tea and soft trim have not provided the lift we expected.
Speaker Change: Our recent acquisition makes a step jump change to our growth profile, 100% of the sales of the Ameren Orion group are into the fast growing market of the electrical grid doubling our fast growth sales.
Speaker Change: Considering this acquisition and the degree to which the global environment has shifted versus three years ago. We were taking a fresh look to more accurately reflect the company's faster growing markets and to show how we continue to pivot towards markets with above average growth.
David Dunbar: As the company is comprised today, our new fast growth markets are the electrical grid, renewable energy, electric and hybrid vehicles, commercialization of space, and defense. We removed soft trim in 5G, but of course we still serve customers in these spaces. We have added the electrical grid and defense sails in engineering technologies. In the fiscal second quarter, sales into these redefined fast growth markets were approximately $43 million. In fiscal 2025, we anticipate approximately $170 million from sales into fast growth markets. By fiscal 2028, we anticipate sales into fast growth markets to be greater than $340 million in sales, which would represent greater than 30% of total sales.
Speaker Change: As the company is comprised today, our new fast growth markets or the electrical grid renewable energy electric and hybrid vehicles commercialization of space and defense, we remove soft trim and five G. But of course, we still serve customers in these spaces we.
Speaker Change: We have added the electrical grid and defense sales in engineering technologies.
Speaker Change: In the fiscal second quarter sales into these redefined fast growth markets were approximately $43 million in fiscal 2025, we anticipate approximately $170 million from sales into faster growth markets by fiscal 2028, we anticipate sales into fast growth markets to be greater than $340 million in <unk>.
Speaker Change: Sales, which would represent greater than 30% of total sales.
Ademir Sarcevic: I will now turn the call over to Ademir to discuss our financial performance in greater detail. Thank you, David, and good morning, everyone. Let's turn to slide 6, second quarter 2025 summary. On a consolidated basis, total revenue increased approximately 6.44% year-on-year to $189.8 million. This reflected a 15.3% benefit from recent acquisitions, partially offset by an organic revenue decline of 8.2%, and 0.7% impact for foreign exchange. With the recent acquisition of the Amara Narayan Group, the largest in the company's history, non-GAAP measures will now exclude amortization of acquired intangible assets, which affects our electronics, engraving, and scientific business segments.
Speaker Change: I will now turn the call over to Adam here to discuss our financial performance in greater detail. Thank.
Adam: Thank you David and good morning, everyone.
Adam: Blackstone to slide six second quarter 2025 summary.
On a consolidated basis total revenue increased approximately six 4% year on year to kind of $89 8 million.
Adam: This reflected a 15, 3% benefit from recent acquisitions.
Adam: We offset by an organic revenue decline of eight 2% and 0.7% impact portfolio exchange.
Adam: With the recent acquisition of the Amazon Orion group the largest in the company's history non-GAAP measure so now exclude amortization of acquired intangible assets.
Adam: That's how it electronics engraving and scientific business segments, you may refer to our appendix slide in the presentation for historical reconciliation.
Ademir Sarcevic: You may refer to our appendix slide in the presentation for historical reconciliation. Second quarter 2025 Adjusted Operating Margin increased 150 basis points year-on-year to a record 18.7%. In the fiscal second quarter, Adjusted Operating Income increased 15.4% on 6.4% consolidated revenue increase year-on-year. Adjusted earnings per share remains flat year-on-year at $1.91. Net cash provided by operating activities was $9.1 million in the second quarter of fiscal 2025 compared to $23.8 million a year ago. capital expenditures for $7 million compared to $4.3 million a year ago. As a result, we generated fiscal second quarter free cash flow of $2.1 million compared to $19.5 million a year ago.
Adam: Second quarter 2025, adjusted operating margin increased 50 basis points year on year to a record 18, 7% in the fiscal second quarter. Adjusted operating income increased 15, 4% on 654% consolidated revenue increase year on year.
Adam: Adjusted earnings per share remained flat year on year at $1 91.
Adam: Net cash provided by operating activities was $9 1 million in the second quarter of fiscal 2025 compared to $23 8 million a year ago.
Adam: Expenditures for $7 million compared to $4 3 million a year ago.
Adam: Result, we generated fiscal second quarter free cash flow of $2 1 million compared to $19 5 million a year ago.
Ademir Sarcevic: Our fiscal second quarter includes one-time payments of approximately $11 million for acquisition-related expenses.
Adam: Fiscal second quarter includes one time payments of approximately $11 million for acquisition related expenses.
Ademir Sarcevic: Now please turn to slide 7, and I will begin to discuss our segment performance and outlook, beginning with electronics. Segment revenue of $95.9 million increased 20.8% year-on-year as 32.3% benefit from recent acquisitions was partially offset by an organic decline of 10.7% and 0.9% impact from foreign currency. Adjusted operating margin of 27.6% in fiscal second quarter 2025 increased 560 basis points year-on-year as the contribution from recent Amra and Narayan Group acquisition, productivity initiatives, and product mix were partially offset by lower volume. Excluding recent Amra and Narayan Group acquisition, our New Business Opportunity Funnel increased approximately 32% year-on-year and is currently at approximately $100 million.
Adam: Now please turn to slide seven and I will begin to discuss our segment performance and outlook beginning with electronics.
Adam: Segment revenue of $95 9 million increased 28% year on year is 32, 3% benefit from recent acquisitions was partially offset by an organic decline of 10, 7% and 0.9% impact from foreign currency.
Adam: Adjusted operating margin of 27, 6% in fiscal second quarter of 2025 increased 560 basis points year on year as the contribution from recent Amazon Orion group acquisition productivity initiatives and product mix were partially offset by lower volume.
Adam: Excluding recent I'm, Brian Orion Group acquisition.
Adam: New business opportunity funnel increased approximately 32% year on year and is currently at approximately $100 million.
Adam: Our book to Bill in fiscal second quarter was one <unk> with orders of approximately $98 million driven by order strengthening in core business and contribution from the recent Amazon Orion Group acquisition.
Ademir Sarcevic: Our book to bill in fiscal second quarter was $1.02 with orders of approximately $98 million driven by order strengthening in core business and contribution from the recent Amra Narayan Group acquisition. Sequentially, in fiscal third quarter 2025, we expect significantly higher revenue driven by the recent Amran Narayan Group acquisition, accelerating new product sales and higher sales into fast growth and markets, and moderately higher adjusted operating margin as contribution from recent acquisition and pricing and productivity initiatives are partially offset by higher investments in selling, marketing, and R&D.
Adam: Sequentially in fiscal third quarter of 2025, we expect significantly higher revenue driven by the recent I'm, Brian Orion Group acquisition.
<unk>, new product sales and higher sales into fast growth end markets.
Adam: And moderately higher adjusted operating margin contribution.
Adam: Contribution from recent acquisition and pricing and productivity initiatives, partially offset by higher investments in selling marketing and R&D.
Adam: Please turn to slide eight for a discussion of the engraving and scientific segments.
Ademir Sarcevic: Please turn to slide 8 for discussion of the engraving and scientific segment. Engraving revenue decreased 23% to $31.5 million, driven by organic decline of 22.2%, and a 0.8% impact from foreign currency. Adjusted operating margin of 14.3% in fiscal second quarter 2025. Decreased 850 basis points year-on-year due to lower revenue. In our next fiscal quarter, on a sequential basis, we expect slightly to moderately low revenue and adjusted operating margin due to continued softness in the automotive end markets in North America and Europe, and less favorable project timing in Asia due to Chinese New Year. To address the continued softness in end markets served by this segment, the company initiated additional restructuring actions that project to yield $4 million in annualized savings once fully implemented, starting in fiscal four-quarter 2025.
Engraving revenue decreased 23% to $31 $5 million driven by organic decline of 22, 2% and the 0.8% impact from foreign currency.
Adam: Adjusted operating margin of 14, 3% in fiscal second quarter 2025.
Adam: Decreased 850 basis points year on year due to lower revenue.
Adam: In our next fiscal quarter on a sequential basis, we expect slightly to moderately low revenue and adjusted operating margin due to continued softness in the automotive end markets in North America, and Europe, and less favorable project timing in Asia due to Chinese new year.
Adam: The address the continued softness in end markets served by this segment the company initiated additional restructuring actions the projected yield $4 million in annualized savings once fully implemented starting in fiscal fourth quarter 2025.
Ademir Sarcevic: At the same time, we are starting to see some encouraging signs that the market is slowly recovering in North America based on recent visits to one of the largest tool shops in the region and large amount of tools currently being worked. Scientific revenue increased 13.4% to $18.5 million due to the recent acquisition and organic growth of 3.9%, mostly due to higher volume from new product sales, partially offset by lower demand from retail pharmacies. Adjusted operating margin of 26.9% decreased 80 basis points year-on-year due to the impact of the recent custom biogenic systems acquisition. Sequentially, we expect slightly to moderately higher revenue and slightly to moderately lower adjusted operating margin due to higher contribution to revenue from the recent acquisition, additional R&D investments, and higher freight costs.
Adam: At the same time, we are starting to see some encouraging signs that the market is slowly recovering in North America based on recent visit one of the largest store shops in the region and a large amount of tools currently being worked on.
Adam: Scientific revenue increased 13, 4% to $18 5 million due to the recent acquisition and organic growth of three 9%, mostly due to higher volume from new product sales.
Adam: Actually offset by lower demand from retail pharmacies.
Adam: Adjusted operating margin of 26, 9% decreased 80 basis points year on year due to the impact of the restart recent custom biogenic systems acquisition.
Adam: Sequentially, we expect slightly to moderately higher revenue and slightly to moderately lower adjusted operating margin due to higher contribution to revenue from the recent acquisition additional R&D investments and higher freight costs now.
Ademir Sarcevic: Now turn to slide 9 for discussion of the engineering technologies and specialty solutions segment. Engineering technologies revenue increased 13.9% to $22.6 million, driven by organic growth of 14.5%, slightly offset by 0.6% impact from foreign currency. This strong organic growth was due to more favorable project timing in the space and market and growth in sales from new products. Operating margin of 16.3% decreased 80 basis points year-on-year as higher development work was partially offset by higher sales. Sequentially, we expect slightly lower revenue due to project timing and slightly higher operating margin due to product mix.
Adam: Now I'll turn to slide nine for a discussion a discussion of the engineering technologies and specialty solutions segments.
Adam: Engineering technologies revenue increased 13, 9% to $22 6 million driven by organic growth of 14, 5% slightly offset by 0.6% impact from foreign currency.
Adam: This strong organic growth was due to more favorable project timing in the space end market and growth in sales from new products.
Adam: Operating margin of 16, 3% decreased 80 points year to 80 basis points year on year as higher development work was partially offset by higher sales.
Adam: Essentially we expect slightly lower revenue due to project timing and slightly higher operating margin due to product mix.
Ademir Sarcevic: Specialty solution segment revenue of $21.3 million decreased 2.9% year-on-year, primarily due to the general market softness in display merchandising and hydraulics businesses. operating margin of 16.7% decreased 140 basis points year-on-year. Sequentially, we expect similar revenue and slightly higher operating margin.
Adam: Specialty solutions segment revenue of $21 3 million decreased two 9% year on year, primarily due to the general market softness in display merchandising in hydraulics businesses.
Adam: Operating margin of 16, 7% decreased 140 basis points year on year.
Adam: Actually we expect similar revenue and slightly higher operating margin.
Ademir Sarcevic: Next, please turn to slide 10 for a summary of Standex's liquidity statistics and capitalization structure. Our current available liquidity is approximately $185 million. At the end of the second quarter, Standex had net debt of $413.2 million, compared to $6.2 million at the end of fiscal second quarter 2024. Our net leverage ratio currently stands at 2.9. In fiscal third quarter 2025, we expect interest expense to be between $7 million and $7.5 million. Standex's long-term debt at the end of the fiscal second quarter 2025 was $534.3 million. Cash and cash equivalents totaled $121.1 million. We declared our 242nd quarterly consecutive cash dividend of $0.32 per share, an approximately 6.7% increase year-on-year.
Adam: Next please turn to slide 10 for a summary of status this liquidity statistics and capitalization structure.
Adam: Our current available liquidity is approximately $185 million at the end of the second quarter Standex had net debt of $413 2 million.
Adam: The $6 2 million at the end of fiscal second quarter 2024, our net leverage ratio currently stands at two nine.
Fiscal third quarter of 2025, we expect interest expense to be between 7 million and $7 5 million.
Adam: <unk> has long term debt at the end of the fiscal second quarter 2025 was $534 3 million.
Adam: Cash and cash equivalents totaled $121 1 million.
Adam: We declared our 242nd quarterly consecutive cash dividend of <unk> 32 cents per share and approximately six 7% increase year on year.
Ademir Sarcevic: In fiscal 2025, we expect capital expenditures to be between $30 and $35 million.
Adam: In fiscal 2025, we expect capital expenditures to be between 30 and $35 million.
Adam: Let's turn to slide 11 that highlights our updated long term targets by fiscal 2028.
Ademir Sarcevic: Let's turn to slide 11 that highlights our updated long-term targets by fiscal 2028. We communicated our long-term financial targets by fiscal 2028, two years ago, during our fiscal second quarter 2023 earnings call. This prior outlook excluded the impact of potential acquisitions and divestiture. Since then, we have acquired Ventronics, Sanyo Switch, Amra Narayan Group, and Custom Biogenic Systems and Divested Procon. As such, the composition of the company is meaningfully different. We now target reaching greater than $1.15 billion in sales by fiscal year 2028 versus the prior target of greater than $1 billion in sales. We now target adjusted operating margin of higher than 23% by fiscal year 2028 versus our prior target of greater than 19% margin.
Adam: We communicated our long term financial targets by fiscal 2028, two years ago during our fiscal second quarter of 2023 earnings call.
Adam: This outlook excludes the impact of potential acquisitions and divestitures.
Adam: Since then we have acquired electronics Sanya switch Amazon Orion group, and custom biogenic systems and divested procon.
Adam: As such the composition of the company's meaningfully different.
Adam: We now target, reaching greater than one to one $5 billion in sales by fiscal year 2028 versus the prior target of greater than $1 billion in sales.
Adam: We now target adjusted operating margin of higher than 23% by fiscal year 2028 versus our prior target of greater than 19% margin.
Ademir Sarcevic: We expect to continue to ramp up our R&D investments with a target over 3%. It is now our expectation that with this financial performance, we will increase our return on invested capital to greater than 15.5% versus the prior target of greater than 15%. We expect our free cash flow conversion target ratio to remain at approximately 100% of GAAP net income. Our financial targets apply to our current portfolio of businesses and exclude the impact of any future acquisition or divestiture.
Adam: We expect to continue to ramp up our R&D investments with a target over 3%.
Adam: It is now our expectation that with this financial performance, we will increase our return to invest we will increase our return on invested capital greater than 15, 5% versus the prior target of greater than 15%.
Adam: We expect our free cash flow conversion target ratio to remain at approximately 100% of GAAP net income.
Adam: Our financial targets apply to our current portfolio of businesses and exclude the impact of any future acquisition or divestiture.
David Dunbar: I will now turn the call over to David for concluding remarks. I'm very proud of our team for their continued operational execution and for their efforts in integrating the largest acquisition in the company's history, both of which helped us achieve our record-adjusted operating margin in the fiscal second quarter. We remain optimistic about the long-term secular trends that will benefit from infrastructure upgrades, capacity expansion, and data center demand within the electrical grid, the evolution of space exploration, defense applications, and from the transition from internal combustion to hybrid and electric vehicles in automotive.
Adam: I will now turn the call over to David for concluding remarks. Thank you Ed Amir Please turn to slide 12 I.
Adam: I am very proud of our team for their continued operational execution and for their efforts and integrating the largest acquisition in the company's history, both of which helped us achieve a record adjusted operating margin in the fiscal second quarter we.
David Dunbar: We remain optimistic about the long term secular trends that will benefit from infrastructure upgrades capacity expansion in data center demand within the electrical grid the evolution of space exploration defense applications and from the transition from internal combustion to hybrid and electric vehicles in automotive.
David Dunbar: For the remainder of fiscal 2025, we expect our end markets to improve with sales in the electrical grid and market providing an additional tailwind. To support our future growth, we continue to invest in new product development and new applications across markets with growth potential. We are on track to release over a dozen new products this fiscal year across our businesses, which are now expected to contribute approximately 200 basis points of incremental growth.
David Dunbar: For the remainder of fiscal 2025, we expect our end markets to improve with sales into the electrical grid and market, providing an additional tailwind.
David Dunbar: To support our future growth, we continue to invest in new product development and new applications across markets with growth potential.
David Dunbar: We are on track to release over a dozen new products. This fiscal year across our businesses, which are now expected to contribute approximately 200 basis points of incremental growth.
David Dunbar: With the acquisition of the Amer & Orion Group, we intend to use our cash flows to reduce debt while we maintain flexibility to fund an active pipeline of organic and inorganic growth opportunities that support future growth.
David Dunbar: With the acquisition of the Ameren Orion group, we intend to use our cash flows to reduce debt, while we maintain flexibility to fund an active pipeline of organic and inorganic growth opportunities that support future growth.
David Dunbar: We are increasing our fiscal 2028 long-term targets to sales of greater than $1.15 billion, adjusted operating margin of greater than 23%, and ROIC of greater than 15.5%.
David Dunbar: We are increasing our fiscal 2028 long term targets to sales of greater than one $1 5 billion.
David Dunbar: Adjusted operating margin of greater than 23% and ROIC of greater than 15, 5%.
David Dunbar: We will now open the line for questions. Thank you.
David Dunbar: We will now open the line for questions.
Thank you ladies and gentlemen, we will now begin the question and answer session.
Operator: Ladies and gentlemen, we will now begin the question and answer. Did you have a question? Please press star followed by the one on your telephone. You will hear a prompt that your hand has been raised, and should you wish to cancel your request, please press star followed by the number you see on your screen. If you are using a speakerphone, please leave the handset before pressing the button.
Speaker Change: Did you have a question.
Speaker Change: Press Star followed by the one on your telephone keypad, you've been hearing from the Johanna has been raised and should you wish to cancel your request. Please press star followed by the team.
Speaker Change: Thank you speaker phone please lift the handset before pressing any one moment. Please for your first question.
Operator: One moment, please, for your first question.
Gary Prestopino: Your first question comes from the line of Gary Prestopino from Barrington Research. Please go ahead.
Speaker Change: Your first question comes from the line of Gary <unk> from Barrington Research. Please go ahead.
David Dunbar: Hey, good morning, Dave, Ademir. Morning, Gary. Couple of questions here. First of all, I just want to make sure we clarify this with these new targets. is the sales number and the adjusted operating Margin number, is that an exit rate in Q4-28 or is that for the full year? That will be, Gary, that will be for the full years or exit rate at the end of FY27. But, so either full year 28 or exiting FY27. Ademir, I know you gave us what the interest expense is going to be quarterly going forward. Could you maybe give us an idea of what the DNA is going to be when you have a full three months of the acquisition under your belt on a quarterly basis?
Speaker Change: Hey, good morning, Dave Adam here, Gary Good morning couple of questions here first of all I just want to make sure. We clarify this with these new targets.
Speaker Change: Is the sales number and the adjusted operating.
Speaker Change: Margin number is that an exit rate in Q4 28.
Speaker Change: Or is that for the full year.
Speaker Change: That will be Gary there will be for the full year or exit rate at the end of FY 'twenty seven, but so either full year 28 are exiting FY 'twenty seven.
Speaker Change: Okay. So full year, okay great.
Adam: And then Adam could you.
Speaker Change: I know you gave us what the interest expense is going to be quarterly going forward.
Speaker Change: Could you maybe give us an idea of what the DNA is going to be.
Speaker Change: When you have a full three months of the acquisition under your belt on a quarterly basis.
Ademir Sarcevic: Yeah, sure. So our historic amortization expense before the Amaran Orion acquisition was about $2 million per quarter. We think that's probably going to be around $4 to $5 million going forward once we have three months of Amaran Orion in our run rate. So that will be for the amortization. And then for depreciation, $20 to $22 million per year. So $22 million for depreciation. And what did you say was the amortization, $4 million per quarter? Yeah, four to five. Okay.
Speaker Change: Yes.
Speaker Change: Yes, sure so our historic amortization expense before the Orion acquisition was about $2 million per quarter, we think that's probably going to be around $4 million to $5 million going forward kind of in a fully once once we have three months of Ameren Orion and our run rate.
So that will be for the amortization and depreciation $20 to $22 million per year.
Speaker Change: Okay, so $22 million for depreciation and what did you say was the amortization of $4 million per quarter.
Speaker Change: Yes, four to five.
Speaker Change: Okay.
Gary Prestopino: Recorder. Great. Um, and then, um, When you made the acquisition of Amron, you said it had about a 40% adjusted EBITDA margin, and I would assume that that holds for what they did in calendar 24? Yes.
Speaker Change: For the quarter great.
Speaker Change: Great.
Speaker Change: And then.
Speaker Change: Given the.
Speaker Change: When you made the acquisition of Ameron, you said it had about a 40% adjusted EBITDA margin and I would assume.
Speaker Change: That that holds that holds for.
Speaker Change: What they did in calendar 'twenty four.
Speaker Change: Yes.
Speaker Change: Okay.
Gary Prestopino: And then last question, and I'll jump off. With this potential stargazer. Who would be your main competition there and what you supply, you know, if this project gets off the ground? Yeah, so we would we would get into those facilities in a couple ways. If you think about Amra and Narayan with the instrument transformers, those sales would be into the OEM equipment providers like Eaton, GE, Schneider, depending on who gets the contract. So we're actually agnostic about who gets it because they're all customers of ours. Okay, so I guess the inference from that is that if this gets off.
Speaker Change: And then last question and I'll jump off.
Speaker Change: With this potential Star Gate project.
Speaker Change: Who would be your main competition, there and what your supply.
Speaker Change: Yes.
Speaker Change: If this project gets off the ground.
Speaker Change: Yes, so we would we would get into those facilities in a couple of ways. If you think about Ameren Orion with the instrument Transformers those sales would be into.
Speaker Change: The OEM.
Speaker Change: Equipment providers like Eaton.
Speaker Change: Jay.
Speaker Change: Schneider, depending on who gets the contracts.
Speaker Change: So we're not we're actually agnostic about who gets it because they're all customers of ours.
Speaker Change: Okay. So I guess the.
Inference from that is that if this gets off the ground.
Gary Prestopino: These companies would be supplying most of the products and you would be in a great position to be supplying what you supply to each of these companies. Yeah, so they'll provide the switchgear, the transformers, and the substations to support the power there. And in each of those pieces of equipment would be the instrument transformers from our business.
Speaker Change: These companies would be supplying most of the products and you would be in a great position to be supplying what you supply to each of these companies.
Speaker Change: So they'll provide the switchgear transformers in the Substations to support the power they are and in each of those pieces of equipment would be the instrument transformers from from our business.
Gary Prestopino: Okay, thank you very much. Thank you, Gary. Thank you.
Speaker Change: Okay. Thank you very much.
Gary Barrington: Yes, Thank you Gary Thanks, Gary.
Speaker Change: Yes.
Speaker Change: Thank you and your next question comes from the line of Chris <unk> from CGS Securities. Please go ahead.
Chris Moore: And your next question comes from the line of Chris Moore from CGA-ASK-SecureItYouthList. Hey, good morning, guys. Thanks for taking a couple of proof. Uh, yeah, maybe just talk a little bit about the puts and takes. for organic growth in 2H. Is Q4 more likely than Q3? Just what kind of visibility you have towards organic growth at this stage?
Chris: Hey, good morning, guys. Thanks for taking a couple of Chris.
Chris: Maybe just talk a little bit about the puts and takes.
Chris: For organic growth.
Chris: In Q H.
Chris: Is Q4 more likely is in Q3.
What kind of visibility you have towards organic growth at this stage.
David Dunbar: I'll say a couple words to turn it over to Ademir. If you look at the first half, the second half, the first half, kind of a downside surprise for us was the softness in the engraving business from the from the auto OEMs with their delays and cancellations of programs. So they're at. They were at a low point in Q2. Their Q3 is always soft. As Ademir mentioned in the prepared remarks, though, the tool shops are getting very busy. So we do anticipate that by Q4 and into Q1 next year, engraving will pick up. In all other businesses, order trends are good.
Chris: I'll say a couple of words I turn it over to Adam here.
Speaker Change: If you look first half to second half the first half and then kind of a down downside surprise for US was the softness in the engraving business from the from the auto Oems with their delays and cancellations of programs.
Chris: So they are at.
Chris: They were at a low point.
Chris: In Q2 Q3 is always soft as Adam you mentioned in the in the prepared remarks, though.
The tool shops are getting very busy so we do anticipate that by Q4 and into Q1 next year engraving will pick up in all other businesses order trends are good and we see we see a ramp.
Ademir Sarcevic: We see a ramp. I think that's right. We're very pleased with the order rates we are seeing in electronics, and both in the core business as well as in the Amara and Orion Group, and we think that's going to provide us a nice tailwind as we kind of get into this core, especially when we get into our fiscal Q4 and beyond. So we feel pretty optimistic about general trends we are seeing, minus Dean Graven.
Chris: Yes.
Chris: I think thats right now we're very pleased with the order order rates, we are seeing in electronics and both in the core business as well as in the Amazon Orion Group and we think that's going to provide us a nice tailwind as we kind of get into this quarter, especially when we when you get into when you get into our fiscal Q4 and beyond so we feel pretty pretty optimistic about general trends we have seen.
Chris: Must be agreement.
Chris Moore: All right, I appreciate it. So I just want to make sure I'm looking at Amaranth correctly. I mean, when you closed, you had talked about a hundred million revenue. You know, in two months, it looks like. You said it was a record December. It looks like they did closer to 25 million. Is there any seasonality here? Can sales be lumpy, quarter to quarter, you know, just with some big quarters that happen to be in December? Just any thoughts there? Yeah, sure, Chris. There's really not much seasonality. And, you know, just as a reminder, we had Amaran Orion in our portfolio as part of Standex Company for two months.
Chris: Alright, I appreciate that.
Chris: Just wanted to make sure I am looking at Ameren correctly.
Chris: When you closed you had talked about $100 million revenue.
Chris: In two months it looks like.
Chris: You said it was a record December it looks like they closer to $25 million.
Chris: Is there any seasonality here is can sales be lumpy quarter to quarter.
Chris: Big quarters that happened to be in December.
Chris: Any thoughts there.
Christopher Howe: Yes, sure Chris there is really not much seasonality.
Christopher Howe: Just as a reminder, we had Amazon Orion in our portfolio as part of standards company for two months.
Chris Moore: And in those two months, the sales for the Amaran Orion Group were about $19.5 million. So, you know, it's about $10 million per month run rate right now. So you can annualize that and see that, you know, that $100 million is not $100 million anymore. It's more like $120. Okay, got it.
Christopher Howe: And in those two months to sales for the Ameren Orion group were about $19 $5 million. So it's about $10 million per month run rate right. Now so you can annualize that and see that.
Christopher Howe: That $100 million is it's not $100 million anymore, its more like 120.
Christopher Howe: Okay got it and in terms of moving forward.
Chris Moore: And in terms of moving forward... The 30% that they did, that's aggressive, but double-digit is what we're talking about, you know, more in the, somewhere in the teens. Yeah, so I'd say that their current run rate, their current growth continues to be at that same momentum we showed last year, the 20-30%. But if you look out over a year or two, we're still we're still recommending a 15% model, we need some more time with this business as we get to know the customers and the customers plans. We think 15% is a very solid expectation could be higher than that.
Christopher Howe: The 30% that they did that's aggressive but double digit is what we're talking about more than that.
Christopher Howe: Somewhere in the teens.
Christopher Howe: Yes, so I'd say that the current run rate. The current growth continues to be at that same momentum. We showed last year that 20%, 30%, but if you look out over a year or two we're still we're still gonna recommending a 15% model we need some more time with this business as we get to know the customers and the customers plans.
Christopher Howe: We think 15% is.
Christopher Howe: It is a very solid expectation could be higher than that they certainly are growing faster than that at this moment.
Chris Moore: They certainly are growing faster than that at this moment.
David Dunbar: Ademir Sarcevic, Ross Sparenblek, Christopher Moore, Michael Legg, Christopher Howe, Ademir Sarcevic, Ross Sparenblek, Standex International Corp. Is that is that something that can be done over the next year or? Any sense as to, you know, kind of what that evolution looks like? Yeah, no question. Our plan is to have a footprint in Europe in the calendar year. It's receiving a lot of attention now. We put some of our European management team on this, working with the Narayan team out of India. And we've already had many discussions with customers to sort out the planning of which particular products need to be ramped up first.
Christopher Howe: Got it and maybe just one more big picture on Ameren in terms of the integration.
Christopher Howe: Just trying to get a sense of.
Christopher Howe: How long it takes for example, you talked about them needing to create the footprint in Europe.
Christopher Howe: Hum.
Christopher Howe: Is that is that something that can be done over the next year or.
Christopher Howe: Just any sense as to kind of what that evolution looks like.
Christopher Howe: Yes, no question our plan is to have a footprint in Europe in the calendar year.
Christopher Howe: So receiving a lot of a lot of attention now we've put some of our European management team on this working with the <unk> team out of India.
Christopher Howe: And we've already had many.
Christopher Howe: Discussions with customers.
Christopher Howe: Sort of the planning of which particular products need to be ramped up first.
David Dunbar: So this is very much a live project. got it.
Christopher Howe: So this is very much alive project.
Christopher Howe: Got it and maybe just last one for me the engraving restructuring it's $4 million is there is that.
Chris Moore: And maybe just the last one for me. The engraving restructuring $4 million is there is that People, is that facilities and any insight there? It is, Chris, it's both. It's both facilities, consolidation, and, you know, headcount reduction for the roles. We don't plan to replace it. I will leave it there.
Christopher Howe: People was that facilities.
Christopher Howe: Any insight there.
Chris: It is Chris it's both it's both facilities consolidation and.
Chris: Head count reduction for the roles, we don't plan to replace.
Speaker Change: Got it I'll leave it there I appreciate it guys.
Chris Moore: I appreciate it. Thank you.
Chris: Thank you. Thank you.
Speaker Change: Thank you and your next question comes from the line of Cross Pavlock from William Blair. Please go ahead.
Ross Sparenblek: And your next question comes from the line of Ross Sparenblek from William Blair.
Ross Sparenblek: Please go ahead.
David Dunbar: Hey, good morning, gentlemen. I mean, Ross- Hey guys, can you maybe remind us where capacity stands for the Amron asset and then just maybe what the margin profile was a couple years back before we saw the Well, the margin, let me start with the last question first, the margin before COVID was, they were in the mid to upper 30s, and they've kind of ramped into the 40s, primarily on leverage and, but it's always been a healthy margin profile. So I think, we think where they're running now is representative. In terms of capacity, they were running their plants at one shift.
Cross Pavlock: Hey, good morning, gentlemen.
Speaker Change: Morning Ross.
Speaker Change: Hey, guys can you, maybe remind us where capacity stands for the Ameron asset and then just maybe what the margin profile was a couple of years back before we saw the <unk>.
Speaker Change: Celebration and orders.
Speaker Change: With a margin let me start with the last question first the margin before Covid was they were in the mid to upper Thirty's and.
Speaker Change: It kind of ramped into the 40 is primarily on leverage.
Speaker Change: But that has always been a healthy margin profile. So I think we think where they're running now is representative in terms of capacity they were running their plants at one one shift.
David Dunbar: And so we're working with them now to add a second shift and even a third shift.
Speaker Change: And so we're working with them now to add a second shift and even a third shift so there is.
David Dunbar: So there is So what would that mean? There may be at 60% capacity with the expansion that those shifts can give us. And then, as we just mentioned before, we're looking at this European side to add additional capacity. Yeah, that's right.
Speaker Change: So what would that mean, there may be at 60% capacity with the expansion.
Speaker Change: But those ships can give us and then as we just mentioned before we're looking at this European side too.
Speaker Change: Add additional capacity that's right.
David Dunbar: Yeah, that's very helpful. And then a good segue there, we think about kind of, you know, the coming capacity expansion in Europe. I mean, what does that imply for the 23% margin walk? I know you guys also have, you know, a growing productivity pipeline for the core business. Because, you know, at first glance it looks like that 23% is largely just a mix of Amran and the Amort exclusion. Yeah, I mean, I think, you know, obviously, Amaran margins are extremely healthy. And, you know, we do expect we're going to get, you know, leverage on the sales on the order or the setup we're going to have in Europe, you know, and, you know, you know, but we also think we can get a very healthy margin expansion on our core businesses.
Speaker Change: Got it that's very helpful. And then a good segue there we think about kind of the coming capacity expansion in Europe, I mean, what does that imply for the 23% margin walk.
Speaker Change: Guys also have.
Speaker Change: Growing productivity pipelines for the core business.
Speaker Change: First glance it looks like that 23% is largely just the mix of amarin and the amyloid.
Speaker Change: <unk>.
Speaker Change: Yes, I mean I think.
Speaker Change: Obviously, ameren margin say extremely healthy and we do expect we're going to get leverage on the sales on the other on the set up we're going to have in Europe.
Speaker Change: Right.
Speaker Change: Do you also think we can get a very healthy margin expansion on our core business I think historically Ross, we have proven that through price and productivity, we know how to how to drive margin improvement and we do expect as we get into the later part of this fiscal year into next year that you're going to start seeing a healthy organic growth in electronics core business, which also should help us drive that drive the margin expansion.
David Dunbar: I think historically, Ross, we have proven between price and productivity. You know, we know how to, you know, how to drive margin improvement. And we do expect as we get into the later part of this fiscal year, into next year, that we're going to start seeing a healthy organic growth in our electronics core business, which also should help us, you know, drive the margin expansion because it's, you know, and scientific also has been very, very healthy. And those are the two segments that drive, you know, the overall margin expansion for the company. And as you have seen, you know, engraving has given us a little bit of a headwind this quarter.
Speaker Change: And because its.
Speaker Change: In scientific also has been very very healthy and those are those are the two segments that drive.
Speaker Change: The overall margin expansion for the company and as you have seen in engraving has given us a little bit of a headwind this quarter.
David Dunbar: You know, we think as we get into the next fiscal year, that's going to obey that and get a little bit easier from a comp standpoint as well.
Speaker Change: And as we get into the next fiscal year, that's going to be that and get a little bit a little bit easier from a comp standpoint as well.
Ross Sparenblek: Okay, if I can, you know, two more here on scientific with the pharmacy decline, can you maybe help us size what that, you know, acceleration was versus kind of the growth in the research and industrial, I believe it's like a third of that business, and maybe just remind us where we are in the down cycle for pharmacy at scientific. Well, maybe maybe a way to look at I think if Ademir is looking up the numbers at a peak back in COVID, I think the pharmacies were running with just over $20 million a year. I think now it's about 2 million.
Speaker Change: Okay.
Speaker Change: If I can just two more here on scientific with the pharmacy decline can you maybe help us size what that.
Speaker Change: Deceleration was versus kind of the growth in the research and industrial I believe it's like a third of that business and maybe just remind us where we are in the down cycle for pharmacy at scientific.
Speaker Change: Well, maybe maybe a way to look at I think Adam is looking up the numbers at a peak back in Colby I think pharmacies were running with just over $20 million a year I think now it's about $2 million right, Yes, Thats right.
David Dunbar: That's right. Yeah, that's right. You can maybe back in there. So we have had kind of a strengthening in the other parts of the business. You can kind of do the math there. But we're really at a trough level here, so it's all well.
Speaker Change: So.
Speaker Change: You can maybe backend or so until we have had kind of a strengthening in the other parts of the business you can kind of do the math there.
Speaker Change: So we're really at a trough level here so that's all upside.
Ademir Sarcevic: And then just last one, on electronics, book the bill, you know, it was, you know, slightly positive. But what were the organic orders for electronics? Yes, the organic quarters, the book to bill for the core business was about one and Amaran Orion was at about 1.2, so that gets us to about 1.02 average. Perfect.
Speaker Change: And then just lastly on electronics book to Bill it.
Speaker Change: Was slightly positive, but what was the organic orders for electronics.
Speaker Change: Yes, suraj, the organic or the <unk>.
Speaker Change: Book to Bill for the core business was about one and Amazon are Brian was at about one point tool. So that gets us to about one point or two average.
Ross Sparenblek: All right.
Speaker Change: Perfect Alright, thank you gentlemen.
Ross Sparenblek: Thank you, gentlemen.
Ross Sparenblek: Thank you.
Speaker Change: Thank you.
Speaker Change: Thank you once again should you have a question. Please press star one on your telephone keypad.
Operator: Once again, should you have a question, please press star, followed by the one on your telephone keypad.
Mike Shlisky: Your next question comes on the line of Mike Shlisky from the A.
Speaker Change: Next question comes from the line of Mike <unk> from D. A Davidson. Please go ahead.
Mike Shlisky: Davidson, please go ahead. Hey there, good morning. Thanks for taking my questions.
Mike: Hey, there good morning, Thanks for taking my questions.
Speaker Change: Hi.
Mike Shlisky: Hey, David, I wanted to talk about maybe your thoughts on... The New Product Launches and the Pipeline there. I was kind of curious as to what might happen after Christmas 2025, which is really only. a few months away at this point.
Speaker Change: Hey, David I wanted to talk about maybe your thoughts on.
Speaker Change: The new product launches.
Speaker Change: And on the pipeline there.
Speaker Change: I'm curious as to what might happen after fiscal 2020.
Speaker Change: A few months away at this point.
David Dunbar: Do you have a similar cadence for next year, or? celebration ahead. Just give us some thoughts as to what the next wave do product discussions. Yeah, so we do have, if we look at FY26, I think we've got roughly the same. Well, you know, it's 18 months out to the to the end of fiscal year 25, but the fiscal 26. The products that are queued up to be released in fiscal year 26, about the same order of magnitude as those in FY25. So we've got, you know, we started the new product development three or four years ago.
Speaker Change: And looking into next year.
Speaker Change: Maybe you being an exploration.
Speaker Change: Just give us some thoughts as to what the next wavelength Paul.
Speaker Change: Discussions might look like.
Speaker Change: Yes, so we do have really good FY 'twenty six I think we've got roughly the same.
Speaker Change: Well.
Speaker Change: It's 18 months out to the through the end of fiscal year 'twenty five but the.
Speaker Change: Fiscal 'twenty six.
Speaker Change: The products that are queued up to be released in fiscal year 'twenty six about the same.
Speaker Change: Order of magnitude of those FY 'twenty five so we've got we started we started the new product development three or four years ago. It takes a while for these things to start coming out but the pipelines are full so we anticipate a stream of new products every year going forward and this is the first full year.
David Dunbar: Takes a while for these things to start coming up, but the pipelines are full. So we anticipate a stream of new products every year going forward.
David Dunbar: And this is the first full year, the first year the pipelines have been full in launching new products.
Speaker Change: For your first year, the pipelines have been full and launching new products.
Speaker Change: Great.
David Dunbar: My other question, there have been some successful space launches over the last month or two here from some newer players or players expanding greatly in what they're doing in the Submerged Systems Space Initiative. Can you comment on, are there any major chunky pieces of business coming in the next couple of quarters that we should be aware of for our models? to see more of a smooth delivery pipeline. Um Let's see, first of all, our, you know, our Our content in space is on the larger vehicles. So some of the newer players you've heard about have smaller vehicles, and we don't make the domes for them.
Speaker Change: My other question.
And then having some successful space launches over the last one.
Speaker Change: I wanted to hear from some some newer players or players expanding lately and what they're doing.
Speaker Change: Our systems initiatives.
Speaker Change: Can you comment on are there any like major chunky pieces of business coming in the next couple of quarters that we should be aware of for our models.
Speaker Change: More of a.
Speaker Change: A smooth delivery pipeline ahead.
Speaker Change: Let's see first of all our.
Speaker Change: Yes.
Speaker Change: Our.
Speaker Change: Our content and space is on the larger vehicles. So some of the newer plays you've heard about have smaller smaller vehicles and we don't make we don't make the domes for them. So if.
David Dunbar: So if you listen to the launch announcements from ULA, the larger vehicles from everybody, that's what drives our business. is still ramping into next year and the year after and then should be kind of on a gradual and steady increase as we get to 26, 27, 28.
Speaker Change: If you listen to the launch announcements from <unk> and from the larger players the larger the larger vehicles from everybody, that's what drives our business and that.
Speaker Change: Is it still ramping into next year and the year after and then should be.
Speaker Change: Kind of on a gradual and steady increase as we get to 'twenty six 'twenty 728.
Speaker Change: Great.
Mike Shlisky: I'll leave it there.
Speaker Change: I'll leave it there thanks so much.
Mike Shlisky: Thanks so much.
Operator: All right, thank you, Mike.
Speaker Change: Alright, Thank you Mike.
Operator: Thank you.
Speaker Change: Thank you there are no further questions at this time I would now like to turn the call over to Mr. David Dunbar for any closing remarks.
Operator: There are no further questions at this time.
David Dunbar: I would now like to turn the call over to Mr. David Dunbar for any closing remarks. I want to thank everybody for listening to the call today. We enjoy reporting on our progress at Standex.
David Dunbar: Thank you everybody for listening to the call today, we enjoy reporting on our progress at Standex and finally I want to thank our employees the board of directors and shareholders for your continued support and contributions and we look forward to speaking with you again in our fiscal third quarter 2025 call.
David Dunbar: And finally, I want to thank our employees, the board of directors, and shareholders for your continued support and contributions. We look forward to speaking with you again in our fiscal third quarter 2025 call.
Operator: Thank you, and this concludes today's call. Thank you for participating, and we all disconnect.
David Dunbar: Thank you and this concludes today's call. Thank you for participating you may all disconnect.
David Dunbar: Okay.