Standex International Q2 2026 Standex International Corp Earnings Call | AllMind AI Earnings | AllMind AI
Q2 2026 Standex International Corp Earnings Call
Speaker #2: Please refer to Standex's Safe Harbor statement on slide two. Matters that Standex management will discuss on today's conference call include predictions estimates expectations and other forward-looking statements.
Speaker #2: 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 for a detailed list of risk factors.
You should refer to Standex's most recent annual report on Form 10-K, as well as other SEC filings and public announcements for a detailed list of risk factors. 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, EBITDA, which is earnings before interest, taxes, depreciation, and amortization, adjusted EBITDA, EBITDA margin, and adjusted EBITDA margin.
Speaker #2: 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; EBITDA, which is earnings before interest, taxes, depreciation, and amortization; adjusted EBITDA; EBITDA margin; and adjusted EBITDA margin.
Speaker #2: 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 margin, pre-operating cash flow, and pro forma net debt to EBITDA.
Christopher Hale: 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 margin, free operating cash flow, and pro forma net debt to EBITDA. Adjusted measures exclude the impact of restructuring, purchase accounting, amortization from acquired intangible assets, acquisition-related expenses, and one-time items. 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. Standex believes that such information provides an additional measurement and consistent historical comparison of the company's financial performance. On the call today is Standex's Chairman, President, and Chief Executive Officer, David Dunbar, and Chief Financial Officer and Treasurer, Ademir Sarcevic.
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 margin, free operating cash flow, and pro forma net debt to EBITDA. Adjusted measures exclude the impact of restructuring, purchase accounting, amortization from acquired intangible assets, acquisition-related expenses, and one-time items.
Speaker #2: Adjusted measures exclude the impact of restructuring, purchase accounting, amortization from acquired intangible assets, acquisition-related expenses, and one-time items. 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.
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. Standex believes that such information provides an additional measurement and consistent historical comparison of the company's financial performance. On the call today is Standex's Chairman, President, and Chief Executive Officer, David Dunbar, and Chief Financial Officer and Treasurer, Ademir Sarcevic.
Speaker #2: Standex believes that such information provides an additional measurement and consistent historical comparison of the company's financial performance, on the call today is Standex's Chairman, President, and Chief Executive Officer David Dunbar, and Chief Financial Officer and Treasurer Ademir Sarcevic.
Speaker #2: Standex believes that such information provides an additional measurement and consistent historical comparison of the company's financial performance. On the call today is Standex's Chairman, President, and Chief Executive Officer, David Dunbar, and Chief Financial Officer and Treasurer, Ademir Sarcevic.
Speaker #3: 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.
David Dunbar: Thank you, Chris. Good morning, and welcome to our fiscal Q2 2025 conference call. Following strong operating performance in the fiscal Q1, we delivered record-adjusted operating margin in the fiscal Q2, 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. Today, we will provide significant updates to our fast growth market sales, as well as revised and improved 2028 financial expectations.
David Dunbar: Thank you, Chris. Good morning, and welcome to our fiscal Q2 2025 conference call. Following strong operating performance in the fiscal Q1, we delivered record-adjusted operating margin in the fiscal Q2, 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.
Speaker #3: Our sales into 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.
Speaker #3: 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 Amaran Narayan Group acquisition providing an additional tailwind.
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. Today, we will provide significant updates to our fast growth market sales, as well as revised and improved 2028 financial expectations.
Speaker #3: Today, we will provide significant updates to our fast-growth market sales as well as revise and improve 2028 financial expectations. Now, if everyone can turn to slide three, key messages.
David Dunbar: Now, if everyone can turn to slide three, key messages. In the second quarter, sales increased 6.4%, with contributions from acquisitions partially offset by organic decline. Sales from the Amran/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 Amran/Narayan sales into the electrical grid end market, our fiscal second quarter sales into fast growth markets were over 20% of total company sales. 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.
Now, if everyone can turn to slide three, key messages. In the second quarter, sales increased 6.4%, with contributions from acquisitions partially offset by organic decline. Sales from the Amran/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.
Speaker #3: In the second quarter, sales increased to $6.4%, with contributions from acquisitions partially offset by organic decline. Sales from the Amaran Narayan Group exceeded our expectations.
Speaker #3: Though organic sales were down in electronics due to softness in automotive and general industrial end markets in Europe and North America, our book bill was $1.02, indicating that markets are improving and that our commercial strategy is taking hold.
Speaker #3: With two months of Amaran Narayan sales into the electrical grid end market, our fiscal second quarter sales into fast-growth markets were over 20% of total company sales.
With two months of Amran/Narayan sales into the electrical grid end market, our fiscal second quarter sales into fast growth markets were over 20% of total company sales. 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.
Speaker #3: 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.
Speaker #3: 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 investments.
David Dunbar: New product sales totaled $14.5 million in the fiscal Q2, 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 investments. As a result, we achieved 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. The integration of Amran/Narayan is progressing well and ahead of plan. On a sequential basis, in fiscal Q3 2025, we expect moderately to significantly higher revenue, driven by the impact of the recent Amran/Narayan Group acquisition and improving overall demand in electronics.
New product sales totaled $14.5 million in the fiscal Q2, 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 investments.
Speaker #3: As a result, we achieved 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.
As a result, we achieved 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. The integration of Amran/Narayan is progressing well and ahead of plan. On a sequential basis, in fiscal Q3 2025, we expect moderately to significantly higher revenue, driven by the impact of the recent Amran/Narayan Group acquisition and improving overall demand in electronics.
Speaker #3: The integration of Amaran Narayan 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 Amaran Narayan Group acquisition and improving overall demand in electronics.
Speaker #3: We expect slightly to moderately higher adjusted operating margin due to higher revenue, partially offset by higher investments, and 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.
David Dunbar: 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. With 7 new products just released in the fiscal Q2, 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. Now, if everyone can turn to slide 4, an update on our recent acquisition. The acquisition of the Amran/Narayan Group last October was the largest transaction in the company's history.
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. With 7 new products just released in the fiscal Q2, we remain positioned to release more than a dozen new products in fiscal 2025...
Speaker #3: 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 #3: Sales from new products are tracking ahead of expectations, and are now expected to contribute approximately 200 basis points of incremental growth. Now, if everyone can turn to slide four, I'll update on our recent acquisition.
Sales from new products are tracking ahead of expectations and are expected to now contribute approximately 200 basis points of incremental growth. Now, if everyone can turn to slide 4, an update on our recent acquisition. The acquisition of the Amran/Narayan Group last October was the largest transaction in the company's history.
Speaker #3: The acquisition of the Amaran 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.
David Dunbar: 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 Amran/Narayan Group exceeded this target with fiscal Q2 results higher than anticipated. In fact, the month of December was the highest revenue month in its history. Their contribution led to sales in the fast growth markets exceeding 20% of total company sales for the first time.
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 Amran/Narayan Group exceeded this target with fiscal Q2 results higher than anticipated. In fact, the month of December was the highest revenue month in its history.
Speaker #3: 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.
Speaker #3: When we announced this acquisition, we estimated calendar year sales in 2024 of approximately $100 million. We are happy to report that the Amaran Narayan Group exceeded this target with fiscal second quarter results higher than anticipated.
Speaker #3: 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.
Their contribution led to sales in the fast growth markets exceeding 20% of total company sales for the first time. The growth within the Amran/Narayan Group is being driven by three powerful forces to increase global electrical capacity, increasing levels of living standards in all countries of the world, modernization of existing aging grid infrastructure, and incremental demand from data centers. We anticipate the Amran/Narayan Group to continue growing revenue at a healthy double-digit rate in calendar year 2025.
Speaker #3: The growth within Amaran Narayan 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.
David Dunbar: The growth within the Amran/Narayan Group is being driven by three powerful forces to increase global electrical capacity, increasing levels of living standards in all countries of the world, modernization of existing aging grid infrastructure, and incremental demand from data centers. We anticipate the Amran/Narayan Group to continue growing revenue at a healthy double-digit rate in calendar year 2025. Now, if everyone can turn to slide 5, 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.
Speaker #3: We anticipate the Amaran Narayan Group to continue growing revenue at a healthy double-digit rate in calendar year 2025. Now, if everyone can turn to slide
Speaker #1: Five fast growth markets redefined three years ago , we identified end markets driven by long term markets driven by secular term long trends that trends growth provide above average opportunities .
Now, if everyone can turn to slide 5, 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.
Speaker #1: Of these markets , those that provide a the best growth opportunities were renewable energy , electric vehicles , soft trim , commercialization of space and the electronics defense market .
Speaker #1: Aggregating these sales into a single number provided a shorthand to explain the growth potential of our company. Our fast-growth market sales have become an important number for our shareholders, as well as for our management.
David Dunbar: 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 3 years, our fast growth market sales have grown from $40 million to nearly $100 million. 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 expected. Our recent acquisition makes a step jump change to our growth profile. 100% of the sales of the Amran/Narayan Group are into the fast-growing market of the electrical grid, doubling our fast growth sales.
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 3 years, our fast growth market sales have grown from $40 million to nearly $100 million. 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.
Speaker #1: As we review priorities in those three years , our fast growth market sales have grown from $40 million to nearly $100 million . Space defense and electric vehicles have been the primary drivers of the growth and remain attractive .
Speaker #1: Electric vehicle have sales desegregated 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 expected. Our recent acquisition makes a step jump change to our growth profile. 100% of the sales of the Amran/Narayan 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 3 years ago, we are 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 #1: Other markets like 5G and soft trim have not provided the lift we expected. Ours makes a step—chump change—recent growth profile to our acquisition.
Speaker #1: 100% of the sales of the Orion Group are into the fast-growing market of the electrical grid, doubling our fast-growth sales.
David Dunbar: Considering this acquisition and the degree to which the global environment has shifted versus 3 years ago, we are 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. 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 and 5G, but of course, we still serve customers in these spaces. We have added the electrical grid and defense sales 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.
Speaker #1: Considering this acquisition and the degree to which the global environment has shifted versus three years ago , we are 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 .
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 and 5G, but of course, we still serve customers in these spaces. We have added the electrical grid and defense sales 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.
Speaker #1: company As the is comprised today , our new fast growth markets are the electrical grid , renewable energy , electric and hybrid vehicles .
Speaker #1: 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 in defense sales in engineering technologies , in the fiscal second quarter .
Speaker #1: into these Sales fast redefined growth markets were approximately $43 million in fiscal 2025 . We anticipate approximately $170 million from sales into fast growth markets by fiscal 2028 .
David Dunbar: 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. I will now turn the call over to Ademir to discuss our financial performance in greater detail.
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. I will now turn the call over to Ademir to discuss our financial performance in greater detail.
Speaker #1: Sales be greater than $340 million in sales, which would represent greater than 30% of total sales. I will now turn the call over to Ademir to discuss our financial performance in greater detail.
Ademir Sarcevic: Thank you, David, and good morning, everyone. Let's turn to slide six, Q2 2025 summary. On a consolidated basis, total revenue increased approximately 6.44% year-over-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 from foreign exchange. With the recent acquisition of the Amran/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. You may refer to our appendix slide in the presentation for historical reconciliation. Q2 2025 adjusted operating margin increased 150 basis points year-over-year to a record 18.7%.
Ademir Sarcevic: Thank you, David, and good morning, everyone. Let's turn to slide six, Q2 2025 summary. On a consolidated basis, total revenue increased approximately 6.44% year-over-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 from foreign exchange.
Speaker #2: Thank you , David , and good morning , everyone . Let's turn to slide six . Second quarter 2025 summary . On a consolidated basis , total revenue increased approximately 6.44% year on year to $189.8 million .
Speaker #2: This reflected a 15.3% benefit from recent acquisitions , partially offset by an organic revenue decline of 8.2% and 0.7% impact from foreign exchange .
With the recent acquisition of the Amran/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. You may refer to our appendix slide in the presentation for historical reconciliation. Q2 2025 adjusted operating margin increased 150 basis points year-over-year to a record 18.7%.
Speaker #2: acquisition recent With the of the Amr and Orion 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 segments .
Speaker #2: business scientific 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 .
Ademir Sarcevic: In the fiscal Q2, 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 Q2 of fiscal 2025, compared to $23.8 million a year ago. Capital expenditures were $7 million, compared to $4.3 million a year ago. As a result, we generated fiscal Q2 free cash flow of $2.1 million, compared to $19.5 million a year ago. Our fiscal Q2 includes one-time payments of approximately $11 million for acquisition-related expenses. Now, please turn to slide 7, and I will begin to discuss our segment performance and outlook, beginning with electronics.
In the fiscal Q2, 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 Q2 of fiscal 2025, compared to $23.8 million a year ago. Capital expenditures were $7 million, compared to $4.3 million a year ago. As a result, we generated fiscal Q2 free cash flow of $2.1 million, compared to $19.5 million a year ago.
Speaker #2: Adjusted operating income increased 15.4% on 6.4% consolidated revenue increase year on year . Adjusted earnings per share remained flat year on year at $1.91 .
Speaker #2: 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 .
Speaker #2: Capital expenditures for 7 million , compared to 4.3 million a year ago . As a we result , generated fiscal second quarter free cash flow of 2.1 million compared to 19.5 million a year ago .
Speaker #2: Our fiscal second quarter includes one time payments of approximately $11 million for acquisition related expenses please . Now , turn to slide seven 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 Orion Group acquisition productivity initiatives and product mix were partially offset by lower volume , excluding recent Omron Orion Group acquisition , our new business Opportunity Fund increased approximately 32% year on year , and is currently at approximately $100 million .
Our fiscal Q2 includes one-time payments of approximately $11 million for acquisition-related expenses. 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.
Ademir Sarcevic: 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 Q2 2025 increased 560 basis points year-on-year, as the contribution from recent Amran/Narayan Group acquisition, productivity initiatives, and product mix were partially offset by lower volume. Excluding recent Amran/Narayan Group acquisition, our new business opportunity funnel increased approximately 32% year-on-year and is currently at approximately $100 million. Our book-to-bill in fiscal Q2 was 1.02, with orders of approximately $98 million, driven by order strengthening in core business and contribution from the recent Amran/Narayan Group acquisition.
Adjusted operating margin of 27.6% in fiscal Q2 2025 increased 560 basis points year-on-year, as the contribution from recent Amran/Narayan Group acquisition, productivity initiatives, and product mix were partially offset by lower volume. Excluding recent Amran/Narayan Group acquisition, our new business opportunity funnel increased approximately 32% year-on-year and is currently at approximately $100 million.
Our book-to-bill in fiscal Q2 was 1.02, with orders of approximately $98 million, driven by order strengthening in core business and contribution from the recent Amran/Narayan Group acquisition. Sequentially, in fiscal Q3 2025, we expect significantly higher revenue, driven by the recent Amran/Narayan Group acquisition, accelerating new product sales and higher sales into fast-growth end 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.
Speaker #2: book to Our 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 Omron Orion Group acquisition .
Speaker #2: Sequentially in fiscal third quarter 2025 , we expect significantly higher revenue driven by the recent Omron Orion Group acquisition , accelerating new product sales and higher sales into fast growth end markets and moderately higher adjusted operating margin as contribution from recent acquisition and pricing and productivity initiatives are offset partially by higher selling investments in , marketing and R&D .
Ademir Sarcevic: Sequentially, in fiscal Q3 2025, we expect significantly higher revenue, driven by the recent Amran/Narayan Group acquisition, accelerating new product sales and higher sales into fast-growth end 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. Please turn to slide 8 for a discussion of the Engraving and Scientific segments. 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 Q2 2025 decreased eight hundred and fifty basis points year-on-year due to lower revenue.
Please turn to slide 8 for a discussion of the Engraving and Scientific segments. 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 Q2 2025 decreased eight hundred and fifty basis points year-on-year due to lower revenue.
Speaker #2: Please turn slide eight for a to the engraving and discussion of scientific segments . 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 year on points year due to lower revenue in our next fiscal quarter .
Ademir Sarcevic: 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 fourth quarter 2025. 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 to one of the largest tool shops in the region and large amount of tools currently being worked on.
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 fourth quarter 2025.
Speaker #2: On a sequential basis , we expect slightly to moderately lower 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 .
Speaker #2: To address the continued softness in end markets served by the segment, the company initiated additional restructuring actions that project to yield $4 million in annualized savings.
Speaker #2: Once fully implemented . Starting in fiscal fourth quarter 2025 . At the same time , we are starting to see some encouraging signs that the market is slowly recovering in North America .
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 to one of the largest tool shops in the region and large amount of tools currently being worked on. 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.
Speaker #2: Based on recent shops in tool visit the to one of the largest region and large amount of tools being currently worked on scientific revenue increased 13.4% to 18.5 million due to the recent acquisition and organic growth of 3.9% , mostly due to higher sales volume from new product , partially offset by lower demand from retail pharmacies .
Ademir Sarcevic: 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. Now turn to slide 9 for discussion of the Engineering Technologies and Specialty Solutions segments. 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.
Speaker #2: 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 .
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. Now turn to slide 9 for discussion of the Engineering Technologies and Specialty Solutions segments.
Speaker #2: Additional R&D investments, and higher freight costs. Now, turn to slide nine for a discussion. Discussion of the Engineering Technologies and Specialty Solutions segments.
Speaker #2: Engineering Technologies revenue increased 13.9% to $22.6 million, driven by organic growth of 14.5%, slightly offset by a 0.6% impact from foreign currency.
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.
Speaker #2: This strong organic growth was due to more favorable project timing and the space and market and growth in sales products from new . Operating margin of decreased 16.3% 80 points , year on 80 basis points year , as higher development work was partially higher offset by sales we slightly lower expect revenue due to project timing and slightly higher operating margin due to product mix .
Ademir Sarcevic: 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. Specialty Solutions 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. 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.
Speaker #2: Specialty Solutions segment revenue of $21.3 million decreased 2.9% year on year, primarily due to the general market softness in display, merchandising, and hydraulics.
Specialty Solutions 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. 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.
Speaker #2: Business operating margin of 16.7% decreased 140 basis points year-on-year. Sequentially, we expect similar revenue and a slightly higher operating margin.
Speaker #2: Next , please turn to slide ten for a summary of liquidity statistics and capitalization structure . Our current available liquidity is approximately $185 million .
Speaker #2: 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.
Ademir Sarcevic: 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 and approximately 6.7% increase year-on-year. In fiscal 2025, we expect capital expenditures to be between $30 million and $35 million. Let's turn to slide 11, that highlights our updated long-term targets by fiscal 2028.
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.
Speaker #2: leverage ratio Our net currently stands at 2.9 . In fiscal third quarter 2025 , we expect interest expense to be between $7,000,007.5 million , ten long term debt at the end of the fiscal second quarter of 2025 was 534.3 million .
Speaker #2: Cash and cash equivalents totaled 121.1 million . We declared our 242nd quarterly consecutive cash dividend of $0.32 per share , and approximately 6.7% increase year on year in fiscal 2025 .
We declared our 242nd quarterly consecutive cash dividend of $0.32 per share and approximately 6.7% increase year-on-year. In fiscal 2025, we expect capital expenditures to be between $30 million and $35 million. 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 Q2 2023 earnings call.
Speaker #2: We expect capital expenditures to be between 30 and $35 million . 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 .
Ademir Sarcevic: We communicated our long-term financial targets by fiscal 2028 two years ago during our fiscal Q2 2023 earnings call. This prior outlook excluded the impact of potential acquisitions and divestitures. Since then, we have acquired Minntronix, Sanyu Switch, Amran/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. We expect to continue to ramp up our R&D investments with a target over 3%.
Speaker #2: This prior outlook excluded the impact of potential acquisitions and divestitures . Since then , we have acquired Mantronix , Sanyo , switch , Omron , Orion Group and Custom Biogenic Systems and divested Procon .
This prior outlook excluded the impact of potential acquisitions and divestitures. Since then, we have acquired Minntronix, Sanyu Switch, Amran/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.
Speaker #2: 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 .
Speaker #2: now We target adjusted operating margin of higher than 23% by fiscal year 2028 versus our prior target of greater than 19% margin . We expect to continue to ramp up our R&D investments with a target of over 3% .
We now target adjusted operating margin of higher than 23% by fiscal year 2028, versus our prior target of greater than 19% margin. 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.
Speaker #2: It is now expectation that with this financial will performance, we increase our return to invest. We will increase our return on invested capital to greater than 15.5% versus the prior target of greater than 15%.
Ademir Sarcevic: 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. I will now turn the call over to David for concluding remarks.
Speaker #2: We expect our free cash flow conversion target remain at ratio to approximately 100% of GAAP net income . Our financial targets to our apply current exclude the businesses portfolio and impact of any future acquisition or divestiture .
Our financial targets apply to our current portfolio of businesses and exclude the impact of any future acquisition or divestiture. I will now turn the call over to David for concluding remarks.
Speaker #2: I will now turn the call over to David for concluding remarks.
Speaker #1: Thank you . Ademir . Please turn to slide 12 . 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 .
David Dunbar: Thank you, Ademir. Please turn to slide 12. 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 Q2. 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. For the remainder of fiscal 2025, we expect our end markets to improve, with sales into the electrical grid end 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.
David Dunbar: Thank you, Ademir. Please turn to slide 12. 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 Q2.
Speaker #1: 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 .
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. For the remainder of fiscal 2025, we expect our end markets to improve, with sales into the electrical grid end market providing an additional tailwind.
Speaker #1: The evolution of space exploration , defense applications and from the transition from internal combustion to hybrid and electric vehicles in automotive 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 to support our future growth .
Speaker #1: We continue to product invest in new 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 .
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. With the acquisition of the Amran/Narayan 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 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. With the acquisition of the Amran/Narayan 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. 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%. We will now open the line for questions.
Speaker #1: With the acquisition of the Amr and 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.
Speaker #1: 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%.
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%. We will now open the line for questions.
Speaker #1: We will now open the line for questions .
Speaker #3: Thank you , ladies and gentlemen . We will now begin the question and answer session . Should you have a question , please press star followed by the one on your telephone You keypad .
Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the one on your telephone keypad. You will hear a prompt that your hand has been raised, and should you wish to cancel the request, please press star followed by the two. If you are using a speakerphone, please leave the handset before pressing any keys. One moment, please, for your first question. Your first question comes from the line of Gary Prestopino from Barrington Research. Please go ahead.
Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the one on your telephone keypad. You will hear a prompt that your hand has been raised, and should you wish to cancel the request, please press star followed by the two. If you are using a speakerphone, please leave the handset before pressing any keys. One moment, please, for your first question. Your first question comes from the line of Gary Prestopino from Barrington Research. Please go ahead.
Speaker #3: will hear a prompt that your hand has been raised and should you wish to cancel the press star request , please followed by the two .
Speaker #3: If you are using a speakerphone, please leave the handset before pressing any keys. One moment, please, for your first question.
Speaker #3: Your first question comes from the line of Gary Prestopino from Barrington Research . Please go ahead .
Speaker #4: morning Hey , good Dave . Adam here . Gary . Good morning . A couple of questions here . First of all , I just want to make sure we clarify this with these new targets .
Gary Prestopino: Hey, good morning, Dave, Ademir.
Gary Prestopino: Hey, good morning, Dave, Ademir.
David Dunbar: Morning, Gary.
David Dunbar: Morning, Gary.
Ademir Sarcevic: Good morning.
Ademir Sarcevic: Good morning.
Gary Prestopino: A 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 2028, or is that for the full year?
Gary Prestopino: A 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 2028, or is that for the full year?
Speaker #4: 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?
Speaker #4: ?
Speaker #2: That will be Gary . That will be for the full year or exit rate at the end of FY 27 . But so either full year 28 or exiting FY 27 .
Ademir Sarcevic: That will be, Gary, that'll be for the full year or exit rate at the end of FY 2027. But so either full year 2028 or exiting FY 2027.
Ademir Sarcevic: That will be, Gary, that'll be for the full year or exit rate at the end of FY 2027. But so either full year 2028 or exiting FY 2027.
Speaker #4: Okay . So full year okay . Great . And then Adam , could you I know you gave us what the interest expense is going to be quarterly going forward .
Gary Prestopino: Okay, so full year. Okay, great. And then, Ademir, could you-- I know you gave us what, what the interest expense is gonna be quarterly going forward. Could you maybe give us an idea of what the D&A is gonna be, when you have a full three months of the acquisition under your belt on a quarterly basis?
Gary Prestopino: Okay, so full year. Okay, great. And then, Ademir, could you-- I know you gave us what, what the interest expense is gonna be quarterly going forward. Could you maybe give us an idea of what the D&A is gonna be, when you have a full three months of the acquisition under your belt on a quarterly basis?
Speaker #4: 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 #2: Yeah . So so yeah , sure . So our historic amortization expense before the Amran acquisition was about $2 million per quarter . We think that's probably going to be around 4 to 5 million going forward .
Ademir Sarcevic: Yeah. So yeah, sure. So our historic amortization expense before the Amran acquisition was about $2 million per quarter. We think that's probably gonna be around $4 to 5 million going forward, kind of on a fully, you know, once we have 3 months of Amran in our run rate. So that will be for the amortization, and then for depreciation, $20 to 22 million per year.
Ademir Sarcevic: Yeah. So yeah, sure. So our historic amortization expense before the Amran acquisition was about $2 million per quarter. We think that's probably gonna be around $4 to 5 million going forward, kind of on a fully, you know, once we have 3 months of Amran in our run rate. So that will be for the amortization, and then for depreciation, $20 to 22 million per year.
Speaker #2: Kind of on a fully , you know , once once we have three months of Orion in our run rate . So that will be for the amortization .
Speaker #2: And then for depreciation, $20 to $22 million per year.
Speaker #4: Okay. So, $22 million for depreciation. And what did you say was the amortization? $4 million per quarter.
Gary Prestopino: Okay. So $22 million for depreciation, and what did you say was the amortization? $4 million per quarter?
Gary Prestopino: Okay. So $22 million for depreciation, and what did you say was the amortization? $4 million per quarter?
Speaker #2: Yeah 4 to 5 .
Speaker #4: Okay . Per quarter . Great . And then . Given the when you made the acquisition of Ameren , you said it had about a 40% adjusted EBITDA margin .
Ademir Sarcevic: Yeah, 4 to 5.
Ademir Sarcevic: Yeah, 4 to 5.
Gary Prestopino: Okay. Per quarter. Great. And then, given the, when you made the acquisition of Amran, you said it had about a 40% adjusted EBITDA margin, and I would assume that that hold, that holds for, what they did in calendar 2024?
Gary Prestopino: Okay. Per quarter. Great. And then, given the, when you made the acquisition of Amran, you said it had about a 40% adjusted EBITDA margin, and I would assume that that hold, that holds for, what they did in calendar 2024?
Speaker #4: And I would assume that that holds for what they did in calendar '24.
Speaker #2: Yes .
Speaker #4: Okay . And then last question , I'll jump off with this potential Stargate project . Who who would be your main competition there and what you supply .
Ademir Sarcevic: Yes.
Ademir Sarcevic: Yes.
Gary Prestopino: Okay. And then, last question, and I'll jump off. With this potential Stargate project, who would be your main competition there and what you supply, you know, if this project gets off the ground?
Gary Prestopino: Okay. And then, last question, and I'll jump off. With this potential Stargate project, who would be your main competition there and what you supply, you know, if this project gets off the ground?
Speaker #4: You know, if this project gets off the ground.
Speaker #1: So we Yeah . would we would get into those facilities in ways . If you think about a couple of Amazon and Orion with the instrument transformers , those sales would be into the OEM equipment providers like Eaton , GE .
David Dunbar: Yeah. So we would, we would get into those facilities in a couple of ways. If you think about Amran Orion, with the instrument transformers, those sales would be into the OEM, the equipment providers like Eaton, GE, Schneider, depending on who gets the contracts.
David Dunbar: Yeah. So we would, we would get into those facilities in a couple of ways. If you think about Amran Orion, with the instrument transformers, those sales would be into the OEM, the equipment providers like Eaton, GE, Schneider, depending on who gets the contracts. So we're actually agnostic about who gets it, because they're all customers of ours.
Speaker #1: If Schneider , depending on who gets the contracts . So we're we're actually agnostic about who gets it because they're all customers of ours .
Gary Prestopino: Mm-hmm.
David Dunbar: So we're actually agnostic about who gets it, because they're all customers of ours.
Speaker #4: Okay . So I guess the inference from that is that if this gets off the ground , these companies would be most of the supplying products and you would be in a great position to be supplying what you supply to each of these companies .
Gary Prestopino: Okay. So I guess the inference from that is that if this gets off the ground, 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-
Gary Prestopino: Okay. So I guess the inference from that is that if this gets off the ground, 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 #1: 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 , from our business .
David Dunbar: 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.
David Dunbar: 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 #4: Okay . Thank you very much .
Speaker #1: Yeah. Thank you, Gary.
Speaker #2: Thanks , Gary .
Gary Prestopino: Okay, thank you very much.
Gary Prestopino: Okay, thank you very much.
David Dunbar: Yeah. Thank you, Gary.
David Dunbar: Yeah. Thank you, Gary.
Speaker #3: Thank you. And your next question comes from the line of Chris Moore from CG Securities. Please go ahead.
Ademir Sarcevic: Thanks, Gary.
Ademir Sarcevic: Thanks, Gary.
Operator: Thank you. And your next question comes from the line of Chris Moore from CJS Securities. Please go ahead.
Operator: Thank you. And your next question comes from the line of Chris Moore from CJS Securities. Please go ahead.
Speaker #5: Hey , good morning guys . Thanks for taking a couple . Chris . Yeah , maybe just talk a little bit about the puts and takes for organic growth in in two H is is Q4 more likely than Q3 ?
Chris Moore: Hey, good morning, guys. Thanks for taking a couple.
Chris Moore: Hey, good morning, guys. Thanks for taking a couple.
David Dunbar: Chris.
David Dunbar: Chris.
Chris Moore: Yeah, maybe just talk a little bit about the puts and takes for organic growth in 2H. You know, is Q4 more likely than Q3? Just, you know, what kind of visibility you have towards organic growth at this stage?
Chris Moore: Yeah, maybe just talk a little bit about the puts and takes for organic growth in 2H. You know, is Q4 more likely than Q3? Just, you know, what kind of visibility you have towards organic growth at this stage?
Speaker #5: Just what kind of visibility you have towards organic growth at this stage ?
Speaker #1: I'll say a couple words to turn it over to to Adam here . If you look first half to second half , the first half , 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 they're at .
David Dunbar: I'll say a couple of words and turn it over to Ademir. If you look at first half to second half, the first half, the downside surprise for us was the softness in the engraving business from the auto OEMs with their delays and cancellations of programs. So 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. We see a ramp.
David Dunbar: I'll say a couple of words and turn it over to Ademir. If you look at first half to second half, the first half, the downside surprise for us was the softness in the engraving business from the auto OEMs with their delays and cancellations of programs. So 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. We see a ramp.
Speaker #1: So they were at a low point in , in Q2 . Their Q3 is always soft as Adam mentioned in the in the prepared remarks , though , the tool shops are getting very busy .
Speaker #1: So we do anticipate that by Q4 and into Q1 next year , engraving will pick up in all other businesses . Order trends are good .
Speaker #1: We see a ramp.
Speaker #2: Yeah . No , I think I think that's right . We're very pleased with the order order seeing in rates . We are electronics .
Ademir Sarcevic: Yeah, no, I think, I, I think that's right. You know, 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 Amran/Narayan Group, and we think that's gonna provide us a nice tailwind as we kind of get into this quarter, especially when we, when we get into, when we get into our fiscal Q4 and, and beyond. So we feel pretty, pretty optimistic about general trends we are seeing, minus the engraving.
Ademir Sarcevic: Yeah, no, I think, I, I think that's right. You know, 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 Amran/Narayan Group, and we think that's gonna provide us a nice tailwind as we kind of get into this quarter, especially when we, when we get into, when we get into our fiscal Q4 and, and beyond. So we feel pretty, pretty optimistic about general trends we are seeing, minus the engraving.
Speaker #2: And both in the core business as well as in the Armor and Orion Group , and we think that's provide us going to a nice tailwind as we kind of get into this quarter , especially when we when we get into when we get into our Q4 fiscal and beyond .
Speaker #2: So we feel pretty, pretty optimistic about general trends. We are seeing, minus the engraving.
Speaker #5: Right. I appreciate that. So I just want to make sure I'm looking at Amaranth correctly. I mean, when you closed, you talked about $100 million in revenue.
Chris Moore: All right. I appreciate that. So I just wanna make sure I'm looking at Amran correctly. I mean, when you closed, you had talked about $100 million in revenue. You know, in two months, it looks like you said it was a record December. It looks like they, they're closer to $25 million. Is there any seasonality here? Can sales be lumpy quarter to quarter? You know, just worth some big quarters that happen to be in December. Just any thoughts there?
Chris Moore: All right. I appreciate that. So I just wanna make sure I'm looking at Amran correctly. I mean, when you closed, you had talked about $100 million in revenue. You know, in two months, it looks like you said it was a record December. It looks like they, they're closer to $25 million. Is there any seasonality here? Can sales be lumpy quarter to quarter? You know, just worth some big quarters that happen to be in December. Just any thoughts there?
Speaker #5: You know in two months it looks like it was a record December . It looks you said like they did closer to 25 million .
Speaker #5: Is there any seasonality here ? Is can sales be lumpy ? Quarter to quarter ? You just with some big orders that happen to be in December ?
Speaker #5: Just any thoughts there ?
Speaker #2: Yeah , sure . Chris , there's really not much seasonality . And you know , just just as a reminder , we we had Amazon Orion in our portfolio as part of standards company for two months .
Ademir Sarcevic: Yeah, sure, Chris. There's really not much seasonality. You know, just as a reminder, we had Amran Narayan in our portfolio as part of Standex's company for 2 months. And in those 2 months, the sales for the Amran Narayan 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.
Ademir Sarcevic: Yeah, sure, Chris. There's really not much seasonality. You know, just as a reminder, we had Amran Narayan in our portfolio as part of Standex's company for 2 months. And in those 2 months, the sales for the Amran Narayan 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.
Speaker #2: And in those two months, the sales for the Orion Group were about $19.5 million. You know, so it's about a $10 million per month run rate right now.
Speaker #2: So you can annualize that and see that , you know , that 100 million is is is not 100 million anymore . It's more like 120 .
Speaker #5: Okay . Got it . And in terms of moving forward , the 30% that they did , that's aggressive . But double digit is what we're we're talking about more in the somewhere in the teens
Chris Moore: Okay, got it. 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?
Chris Moore: Okay, got it. 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?
Speaker #1: I'd say
Speaker #1: their current run rate . Yeah . So the current growth continues to be at that same momentum we showed last year . The 20 or 30% .
David Dunbar: Yeah. So, I'd say that the current run rate, the 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 only recommending a 15% model. We need some more time with this business as we get to know the customers and the customer's plans. We think 15% is a very solid expectation, could be higher than that. They certainly are growing faster than that at this moment.
David Dunbar: Yeah. So, I'd say that the current run rate, the 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 only recommending a 15% model. We need some more time with this business as we get to know the customers and the customer's plans. We think 15% is a very solid expectation, could be higher than that. They certainly are growing faster than that at this moment.
Speaker #1: 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 .
Speaker #1: We think 15% is is is a very solid expectation could be higher than that . They certainly are growing faster than that at this moment .
Speaker #5: Got it . And maybe just one more big picture of terms on the in on integration . You know , just trying to get a sense of how long it takes .
Chris Moore: Got it. And maybe just one more big picture on Amran in terms of the integration. You know, just trying to get a sense of how long it takes, right? I mean, for example, you talked about them needing to create a footprint in Europe.
Chris Moore: Got it. And maybe just one more big picture on Amran in terms of the integration. You know, just trying to get a sense of how long it takes, right? I mean, for example, you talked about them needing to create a footprint in Europe.
Speaker #5: I mean , for example , you talked about them needing to create a footprint in Europe . Is that is that something that can be done over the next year or , you know , just just any sense as to kind of what that evolution looks like ?
David Dunbar: Mm-hmm.
Chris Moore: Is that, is that something that can be done over the next year? Or, you know, just, just any sense as to, you know, kind of what that evolution looks like.
Chris Moore: Is that, is that something that can be done over the next year? Or, you know, just, just any sense as to, you know, kind of what that evolution looks like.
Speaker #1: Yeah . No question . Our plan is to have a footprint in Europe in the calendar year . It's a it's receiving a lot of , a of attention .
David Dunbar: Yeah, no, no question. Our plan is to have a footprint in Europe in the calendar year. It's receiving a lot of attention now. We've 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. So this is very much a live project.
David Dunbar: Yeah, no, no question. Our plan is to have a footprint in Europe in the calendar year. It's receiving a lot of attention now. We've 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. So this is very much a live project.
Speaker #1: Now we've put some of our European management team working on this, with the 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.
Speaker #1: First. So, this is very much a live project.
Speaker #5: Got it . And maybe last one for me , just the the engraving restructuring , it's $4 million . Is there . Is that people is that facilities and any there .
Chris Moore: Got it. And maybe just the last one for me. The engraving restructuring, it's $4 million. Is there -- is that people? Is that facilities? Any insight there?
Chris Moore: Got it. And maybe just the last one for me. The engraving restructuring, it's $4 million. Is there -- is that people? Is that facilities? Any insight there?
Speaker #5: insight
Speaker #2: Chris . both It's it's both is It consolidation . And you know , headcount reduction for the roles . We don't plan to replace .
Ademir Sarcevic: 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.
Ademir Sarcevic: 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.
Speaker #5: Got it. I will leave it there. I appreciate you guys.
Speaker #2: Thank you. Thank you.
Chris Moore: Got it. I will leave it there. I appreciate it, guys.
Chris Moore: Got it. I will leave it there. I appreciate it, guys.
Speaker #3: Thank you . And your next question comes from the line of Ross from William Blair . Please go ahead .
David Dunbar: Thank you.
David Dunbar: Thank you.
Ademir Sarcevic: Thank you.
Ademir Sarcevic: Thank you.
Operator: Thank you. Your next question comes from the line of Ross Sparenblek from William Blair. Please go ahead.
Operator: Thank you. Your next question comes from the line of Ross Sparenblek from William Blair. Please go ahead.
Speaker #6: Hey, good morning, gentlemen.
Speaker #1: Ross .
Ross Sparenblek: Hey, good morning, gentlemen.
Ross Sparenblek: Hey, good morning, gentlemen.
Speaker #6: Hey guys . Can you maybe remind us where capacity stands for the Amazon asset ? And then just maybe what the margin profile was a couple of years back before we saw the , you know , acceleration and orders .
David Dunbar: Good morning, Ross.
David Dunbar: Good morning, Ross.
Ademir Sarcevic: Morning.
Ademir Sarcevic: Morning.
Ross Sparenblek: Hey, guys. Can you maybe remind us where capacity stands for the Amran asset, and then just maybe what the margin profile was a couple of years back before we saw the, you know, acceleration in orders?
Ross Sparenblek: Hey, guys. Can you maybe remind us where capacity stands for the Amran asset, and then just maybe what the margin profile was a couple of years back before we saw the, you know, acceleration in orders?
Speaker #1: Well , the margin . Let me start with the First . The last question . margin before Covid was they were in the mid to upper 30s and they've kind of into the 40s primarily on leverage and and but but it's always been a healthy margin profile .
David Dunbar: 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. 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, and so we're working with them now to add a second shift and even a third shift. So there is... So what would that mean? There may be a 60% capacity with the expansion that those shifts can give us. And then, as we just mentioned before, we're looking at this European site to, you know, add additional capacity.
David Dunbar: 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. 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, and so we're working with them now to add a second shift and even a third shift. So there is... So what would that mean? There may be a 60% capacity with the expansion that those shifts can give us. And then, as we just mentioned before, we're looking at this European site to, you know, add additional capacity.
Speaker #1: So I think we think where they're running now is representative in terms of capacity . running their one plants at one shift . And so we're working with them now to add a second shift and even a So third shift .
Speaker #1: So what would that mean? They may be at 60% capacity with the expansion. Then those shifts can give us more output. And then, as we just mentioned before, we're looking at this European site to add additional capacity.
Speaker #2: Yeah . That's right .
Speaker #6: Got it . That's very helpful . And then a good segue there . We think about kind of , you know , the coming capacity expansion in I mean what imply for the 23% margin walk ?
Ademir Sarcevic: Yeah, that's right.
Ademir Sarcevic: Yeah, that's right.
Ross Sparenblek: Yeah, I know, 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, first glance, it looks like that 23% is largely just the mix of Amran and the amortization exclusion.
Ross Sparenblek: Yeah, I know, 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, first glance, it looks like that 23% is largely just the mix of Amran and the amortization exclusion.
Speaker #6: I know you guys also have a growing productivity pipeline for the core business because , you know , first glance , it looks like that 23% is largely just the mix of Amran and the Amort exclusion .
Speaker #2: Yeah , I mean , I think , you know , obviously Amazon margins are extremely healthy . And , you know , we do expect we're going to leverage on the setup we're get , you or the sales , or the going to have in Europe .
Ademir Sarcevic: ... Yeah, I mean, I think, you know, obviously, Amran margins are extremely healthy, and, you know, we do expect we're gonna get, you know, leverage on the sales on all the, all the setup we're gonna have in Europe. You know, and, you know, but we also think we can get a very healthy margin expansion on our core business. 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, you know, we do expect as we get into the later part of this fiscal year into next year, that we're gonna start seeing a healthy organic growth in our electronics core business, which also should help us, you know, drive the, drive the margin expansion because it's, you know...
Ademir Sarcevic: ... Yeah, I mean, I think, you know, obviously, Amran margins are extremely healthy, and, you know, we do expect we're gonna get, you know, leverage on the sales on all the, all the setup we're gonna have in Europe. You know, and, you know, but we also think we can get a very healthy margin expansion on our core business. 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, you know, we do expect as we get into the later part of this fiscal year into next year, that we're gonna start seeing a healthy organic growth in our electronics core business, which also should help us, you know, drive the, drive the margin expansion because it's, you know...
Speaker #2: You know , and , you know , you know , but we also think we can get a very healthy margin expansion on our core businesses .
Speaker #2: I think historically , Ross , we have proven between price and productivity . You know , we know how to you know , how to drive margin improvement .
Speaker #2: 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 healthier organic growth in our core business , which also should help us drive the drive .
Speaker #2: The margin expansion , because it's , you know , and scientific also has been very , very healthy . And those are those are the two segments that drive , you know , the overall margin expansion for the company .
Ademir Sarcevic: Scientific also has been very, very healthy, and those are, 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, of a headwind this quarter. You know, and we think as we get into the next fiscal year, that's gonna abate that and get a little bit, little bit easier from a comp standpoint as well.
Scientific also has been very, very healthy, and those are, 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, of a headwind this quarter. You know, and we think as we get into the next fiscal year, that's gonna abate that and get a little bit, little bit easier from a comp standpoint as well.
Speaker #2: And as you have seen in engraving , has given us a little bit of a of a headwind this quarter . You know , we think as we get into the next fiscal year , that's going to pay that and get a little bit , a little bit easier comp from a standpoint as well .
Speaker #6: Okay . If I can two more here on scientific with the pharmacy decline , can you maybe help us size what that , you know , 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 cycle are in the down for Scientific .
Ross Sparenblek: Okay. If I can, you know, just two more here. I mean, on scientific, with the pharmacy decline, can you maybe help us size what that, you know, deceleration was versus kind of the growth in the research and industrial? I believe it's like 1/3 of that business. And maybe just remind us where we are in the down cycle for pharmacy at scientific.
Ross Sparenblek: Okay. If I can, you know, just two more here. I mean, on scientific, with the pharmacy decline, can you maybe help us size what that, you know, deceleration was versus kind of the growth in the research and industrial? I believe it's like 1/3 of that business. And maybe just remind us where we are in the down cycle for pharmacy at scientific.
Speaker #1: Well , maybe maybe we look at I think , Adam , you're looking up the numbers at a peak back in Covid . I think the pharmacy was running just over $20 million a year .
David Dunbar: Well, maybe a way to look at it. I think if Ademir was looking up the numbers, at a peak back in COVID, I think the pharmacies were running just over $20 million a year. I think now it's about $2 million a year.
David Dunbar: Well, maybe a way to look at it. I think if Ademir was looking up the numbers, at a peak back in COVID, I think the pharmacies were running just over $20 million a year. I think now it's about $2 million a year.
Speaker #1: I think now it's about 2 million a year .
Speaker #2: Yeah , that's .
Speaker #1: Right . So you can maybe back into so we so we have had kind of a strengthening in the other parts of the business .
David Dunbar: So you can maybe back into... So we have had kind of a strengthening in the other parts of the business. You can kind of do the math there.
David Dunbar: So you can maybe back into... So we have had kind of a strengthening in the other parts of the business. You can kind of do the math there.
Speaker #1: You can kind of do the math there.
Speaker #6: So we're really at a trough level here . So it's all upside . And then just last one on electronics book the bill .
Ross Sparenblek: But we're really at a trough level here, so it's all upside.
Ross Sparenblek: But we're really at a trough level here, so it's all upside.
Speaker #6: You know slightly positive . But what were the organic orders for electronics .
David Dunbar: Yes.
David Dunbar: Yes.
Ross Sparenblek: And then just last one.
Ross Sparenblek: And then just last one.
David Dunbar: Yeah.
David Dunbar: Yeah.
Ross Sparenblek: On electronics, book-to-bill, you know, it was, you know, slightly positive, but what were the organic orders for electronics?
Ross Sparenblek: On electronics, book-to-bill, you know, it was, you know, slightly positive, but what were the organic orders for electronics?
Speaker #2: Yeah . So so the orders the book to bill for the core business was about one . And Amazon Orion was at about 1.2 .
Ademir Sarcevic: Yeah. So, Ross, the organic orders, the book-to-bill for the core business was about 1, and Amran and Narayan was at about 1.2.
Ademir Sarcevic: Yeah. So, Ross, the organic orders, the book-to-bill for the core business was about 1, and Amran and Narayan was at about 1.2.
Speaker #2: So us to about 1.02 average .
Speaker #6: Perfect. All right. Thank you, gentlemen.
Ross Sparenblek: Okay.
Ross Sparenblek: Okay.
Ademir Sarcevic: So that gets us to about 1.02 average.
Ademir Sarcevic: So that gets us to about 1.02 average.
Speaker #1: Thank you . Thanks .
Speaker #3: Thank you once again . Should you have a question one on your telephone followed by the star please press Your next question comes from the line of Mike Schlifske from the Davidson .
Ross Sparenblek: Perfect. All right. Thank you, gentlemen.
Ross Sparenblek: Perfect. All right. Thank you, gentlemen.
David Dunbar: Thank you.
David Dunbar: Thank you.
Ademir Sarcevic: Thanks.
Ademir Sarcevic: Thanks.
Operator: Thank you. Once again, should you have a question, please press star followed by the one on your telephone keypad. Your next question comes from the line of Mike Shlisky from D.A. Davidson. Please go ahead.
Operator: Thank you. Once again, should you have a question, please press star followed by the one on your telephone keypad. Your next question comes from the line of Mike Shlisky from D.A. Davidson. Please go ahead.
Speaker #3: Please go ahead .
Speaker #4: Hey there . Good morning . Thanks for taking my questions . Hey , David . I wanted to maybe your thoughts on your new product launches and the and the pipeline .
Mike Shlisky: Hey there. Good morning. Thanks for taking my questions.
Mike Shlisky: Hey there. Good morning. Thanks for taking my questions.
David Dunbar: Hi.
David Dunbar: Hi.
Mike Shlisky: Hey, David, I wanted to talk about maybe your thoughts on your new product launches, and the pipeline there. I was kind of curious as to what might happen after fiscal 2025, which is really only a few months away at this point.
Mike Shlisky: Hey, David, I wanted to talk about maybe your thoughts on your new product launches, and the pipeline there. I was kind of curious as to what might happen after fiscal 2025, which is really only a few months away at this point.
Speaker #4: There . I was kind of curious as to what might happen after fiscal 2025 , which is really only a few months away at this point .
Speaker #4: Do you . have a similar cadence for year or maybe even in acceleration ahead ? Just give us some thoughts as to what the next wave of of new product introductions might look like .
David Dunbar: Uh
David Dunbar: Uh
Mike Shlisky: Do you have a similar cadence for next year or, maybe even an acceleration ahead? Just give us some thoughts as to what the next wave of new product introductions might look like.
Mike Shlisky: Do you have a similar cadence for next year or, maybe even an acceleration ahead? Just give us some thoughts as to what the next wave of new product introductions might look like.
Speaker #1: Yeah , so we do have if we look at FY 26 , I think we've got roughly the same like , you know , it's 18 months out to the to the end of fiscal year 25 .
David Dunbar: Yeah. So we do have. If you look at FY 2026, I think we've got roughly the same. Well, you know, it's 18 months out to the end of fiscal year 2025, but the fiscal 2026, the products that are queued up to be released in fiscal year 2026, are about the same order of magnitude as those in FY 2025. So we've got. You know, we started the new product development 3 or 4 years ago. Takes a while for these things to start coming out, but the pipelines are full, so we anticipate a stream of new products, you know, every year going forward. And this is the first full year, the full year, first year the pipelines have been full in launching new products.
David Dunbar: Yeah. So we do have. If you look at FY 2026, I think we've got roughly the same. Well, you know, it's 18 months out to the end of fiscal year 2025, but the fiscal 2026, the products that are queued up to be released in fiscal year 2026, are about the same order of magnitude as those in FY 2025. So we've got. You know, we started the new product development 3 or 4 years ago. Takes a while for these things to start coming out, but the pipelines are full, so we anticipate a stream of new products, you know, every year going forward. And this is the first full year, the full year, first year the pipelines have been full in launching new products.
Speaker #1: But the fiscal '26—the products that are queued up to be year fiscal '26 is about in the order of magnitude of those in FY '25.
Speaker #1: So we've got you know , we started we started the new development 3 or 4 years ago . It takes a while for these things to start coming out .
Speaker #1: But the pipelines are full . So we anticipate a stream of new products every year going forward . And this is the first full year full year , first year , the pipelines have been full in launching products .
Speaker #4: Great . My other question , you know , there's been some successful space launches over the last month or two here from some some newer players or players expanding greatly in what they're doing in this space .
Mike Shlisky: Great. My other question, you know, 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 dispersed system space initiatives. 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, or do you see more of a smooth delivery pipeline ahead?
Mike Shlisky: Great. My other question, you know, 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 dispersed system space initiatives. 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, or do you see more of a smooth delivery pipeline ahead?
Speaker #4: Initiatives. Can you comment on whether there are any major, chunky pieces of business coming in the next couple of quarters that we should be aware of for our models, or do you see more of a smooth delivery pipeline ahead?
Speaker #1: Let's see our all , . First of , you know , our our content in space is on the larger vehicles . So some of the newer players you've heard about have , have , have smaller , smaller vehicles .
David Dunbar: Let's see. First of all, you know, our content in space is on the larger vehicles. So some of the newer players you've heard about have smaller vehicles, and, you know, we don't make the domes for them. So if you listen to the launch announcements from ULA, from the larger players, the larger vehicles from everybody, that's what drives our business. And that is, it's 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 2026, 2027, 2028.
David Dunbar: Let's see. First of all, you know, our content in space is on the larger vehicles. So some of the newer players you've heard about have smaller vehicles, and, you know, we don't make the domes for them. So if you listen to the launch announcements from ULA, from the larger players, the larger vehicles from everybody, that's what drives our business. And that is, it's 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 2026, 2027, 2028.
Speaker #1: And we don't make we don't make the domes for them . So if you if you listen to the , the launch announcements from ULA , from larger the larger the larger vehicles , from everybody .
Speaker #1: That's what drives our business . And that is is still ramping into the year after . And then should be kind of on a gradual and steady increase as we get to 26 , 27 , 28 .
Speaker #4: Great . I'll leave it there . Thanks so much .
Speaker #1: All right . Thank you . Mike .
Speaker #3: 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.
Mike Shlisky: Great. I'll leave it there. Thanks so much.
Mike Shlisky: Great. I'll leave it there. Thanks so much.
David Dunbar: All right. Thank you, Mike.
David Dunbar: All right. Thank you, Mike.
Operator: 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: 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.
Speaker #1: Thank you , everybody , for for listening to the call today . We enjoy reporting on our progress at Stand X . And finally , I want to thank the board of directors employees , support shareholders , continued our and contributions .
David Dunbar: I want to thank everybody for, for listening to the call today. We enjoy reporting on our progress at Standex. 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 Q3 of 2025 call.
David Dunbar: I want to thank everybody for, for listening to the call today. We enjoy reporting on our progress at Standex. 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 Q3 of 2025 call.
Speaker #1: We look forward to speaking with you again in our fiscal third quarter 2025 call .
Operator: Thank you. This concludes today's call. Thank you for participating. You may all disconnect.
Operator: Thank you. This concludes today's call. Thank you for participating. You may all disconnect.
