Earnings Recap — Q4 FY2026
CY Q3 2026 · Reported July 30, 2026 · Beat 5 of last 6 quarters
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Standex's grid business is directly tied to the buildout of power infrastructure for data centers and electrification, with management expecting Grid sales to grow from $148M to $340M–$440M by fiscal 2030. The company's capacity expansions across Croatia, Mexico, Texas, and India are designed to capture this demand, positioning Standex as a key supplier of instrument transformers for the AI-driven power grid buildout.
Standex reported Q4 FY2026 revenue of $228.3 million, up 7.7% organically, with record quarterly orders of approximately $270 million and a book-to-bill of 1.18. Electronics grew 12.9% organically to $129.1 million, while Aerospace & Defense grew 18.4% to $37.9 million. Adjusted operating margin was 19.9%, down 70 bps year-on-year, and adjusted EPS was a record $2.45. The company completed the acquisition of the remaining 9.9% interest in Narayan, now Standex Grid, and announced capacity expansion plans across multiple geographies to support grid demand.
Management guided fiscal Q1 2027 to moderately higher revenue year-on-year, driven by high single-digit to low double-digit organic growth from growing backlog in fast-growth markets and increased new product sales, partially offset by the Federal Industries divestiture. They expect slightly to moderately higher adjusted operating margin as organic growth and productivity actions offset growth investments. For fiscal 2027, they expect mid- to high single-digit sales growth with high single-digit to low double-digit organic growth and continued margin expansion. Grid capacity expansion is a top priority, with plans to grow Grid sales to $340M–$440M by fiscal 2030 through six capacity initiatives including a new Croatia facility, Mexico lines, Texas expansion, and India shifts. Management reaffirmed the fiscal 2028 target of greater than $1.1 billion in sales and greater than 23% adjusted operating margin, with margin progression expected through the year.
“We have demonstrated we are a growing engineered components company. Total sales grew 5.5% organically in the year, propelled by our growth initiatives.”
on FY2026 performance
“One of my top priorities as Electronics President is expanding capacity within our Standex Grid business. Since I joined Standex as CFO, we never have had such an incredible opportunity for organic growth.”
on Grid capacity expansion
“We are moving as quickly as we can, Ross. Some of these things take time as far as getting the machinery in, but we are optimistic that we can capture the market opportunity.”
on Grid demand and capacity ramp
Can you provide more detail on the grid capacity expansion plan—is there a sequential process, and how is the team structured across the different sites?
Ademir Sarcevic explained that a dedicated 'tiger team' is focused on grid expansion across sites, with weekly updates from David and himself. He detailed that productivity and automation efforts could deliver half of the $40 million capacity in FY27, Croatia and Mexico could add $10–15 million, a fourth shift in Houston adds $5 million, and India additional shifts add $5–10 million. Texas expansion is a FY28 event, followed by India footprint expansion.
Can you provide more detail on Electronics organic growth—is it all grid, or are you seeing increasing contribution from core electronics?
Ademir Sarcevic said it's not just grid; core businesses like Detect and Edge are seeing a nice uptick, with every business unit having a book-to-bill over 1.2 in the quarter. He noted sales progression from $110M in Q1 to $129M in Q4, and expects double-digit organic growth in FY27, potentially high teens to low 20% in Q1, driven by new products, APAC strength, and grid demand.
Can you help size the growth investments in the quarter and the impact of transitory operational issues in Electronics?
David Dunbar explained that the Edge business implemented an ERP system in December, which created visibility issues and impacted margins by a couple million dollars in the quarter, but it is transitory and turning the corner. Ademir Sarcevic added that growth investments are expected to normalize in upcoming quarters, and they see margin expansion opportunities in FY27, with an objective to reach 30% operating margin in Electronics soon.