From Steering Finance Through Volatility | Ademir Sarcevic, CFO, Standex International · · CFO THOUGHT LEADER
“We have expanded our R&D investment from less than 1% of sales five to six years ago to about 3% now, which is driving new product launches and entering adjacent markets.”
On , Ademir Sarcevic, Vice President, Chief Financial Officer & Treasurer at STANDEX INTERNATIONAL CORP, spoke about R&D investment during Steering Finance Through Volatility | Ademir Sarcevic, CFO, Standex International on CFO THOUGHT LEADER.
Ademir Sarcevic, CFO of Standex International, discussed the company's financial strategy and operational priorities in two podcast appearances in 2025. He stated that Standex's R&D investment had increased from less than 1% of sales five to six years ago to about 3%, and that new products contributed over 200 basis points of sales growth in the last fiscal year, with an expectation of more than 300 basis points in the current fiscal year. Sarcevic described the company's M&A process as disciplined, noting that acquisitions are evaluated for strategic fit, financial returns, and cultural alignment, and that the company runs "doomsday" scenarios to test deals. He also said Standex had implemented a system called OneStream to standardize reporting and was exploring AI applications in finance, led by the heads of FP&A and investor relations, while remaining cautious about data protection. Sarcevic outlined Standex's capital allocation methodology, prioritizing safety, organic growth, inorganic growth, debt repayment, and shareholder returns. He noted that the company's operating income had improved from about 9% to 16% since 2014aint, and that the top goal for 2025 was to successfully integrate the largest acquisition in company history. He emphasized the importance of forecasting and delivering results in a lower-margin-for-error environment, and said he encourages leaders to remain focused and creative under pressure, comparing their approach to top athletes in critical game moments.