STATESVILLE, N.C., Dec. 10, 2025 /PRNewswire/ — Kewaunee Scientific Corporation (NASDAQ: KEQU) today announced results for its second quarter ended October 31, 2025.
Fiscal Year 2026 Second Quarter Results:
Sales during the second quarter of fiscal year 2026 were $70,096,000, an increase of 46.8% compared to sales of $47,764,000 from the prior year’s second quarter. Pre-tax earnings for the quarter were $3,453,000 compared to $3,931,000 for the prior year quarter, a decrease of 12.2%. Net earnings were $2,445,000 compared to net earnings of $3,008,000 for the prior year quarter. EBITDA1 for the quarter was $5,790,000 compared to $4,883,000 for the prior year quarter. Diluted earnings per share were $0.82 compared to diluted earnings per share of $1.01 in the prior year quarter.
The Company’s order backlog was $192.9 million on October 31, 2025, as compared to $184.4 million on October 31, 2024, and $214.6 million on April 30, 2025.
Domestic Segment – Domestic sales for the quarter were $55,224,000, an increase of 51.7% from sales of $36,409,000 in the prior year quarter. Domestic segment net earnings were $3,597,000 compared to $4,524,000 in the prior year quarter. Domestic segment EBITDA was $6,712,000 compared to $6,838,000 for the prior year quarter. Segment profitability was impacted during the period by lower manufacturing volumes across the laboratory construction portion of the business, offset by the addition of Nu Aire, Inc. (“Nu Aire”), who had a strong quarter.
International Segment – International sales for the quarter were $14,872,000, an increase of 31.0% from sales of $11,355,000 in the prior year quarter. International segment net earnings were $641,000 compared to $356,000 in the prior year quarter. International segment EBITDA was $860,000 compared to $592,000 for the prior year quarter. International sales increased when compared to the prior year period due to the continued delivery of large projects that were booked in prior periods, a trend that continues from the Company’s first quarter fiscal year 2026 results.
Corporate Segment – Corporate segment pre-tax net loss was $2,515,000 for the quarter, as compared to a pre-tax net loss of $2,444,000 in the prior year quarter. Corporate segment EBITDA for the quarter was ($1,782,000) compared to corporate segment EBITDA of ($2,547,000) for the prior year quarter. Corporate segment EBITDA improved year over year, largely driven by the inclusion of $1,540,000 of costs in the prior year period results directly related to the acquisition of Nu Aire, Inc., which closed on November 1, 2024. In the current year period, the Company also incurred costs related to its strategic investment in its Corporate platform. These ongoing strategic investments in people, processes, and technology are intended to continue building out the Company’s Corporate platform to support future anticipated growth.
Total cash on hand on October 31, 2025, was $13,679,000, as compared to $17,164,000 on April 30, 2025. Working capital was $67,830,000, as compared to $59,965,000 at the end of the second quarter last year and $64,651,000 on April 30, 2025.
The Company had short-term debt of $4,914,000 as of October 31, 2025, as compared to $4,773,000 on April 30, 2025. Long-term debt was $58,164,000 on October 31, 2025, as compared to $60,730,000 on April 30, 2025. The building lease from the Company’s December 2021 sale-leaseback transaction accounts for $26,205,000 of the long-term debt on October 31, 2025, and $26,632,000 of the long-term debt on April 30, 2025. Long-term debt, net of the sale-leaseback transaction, was $31,959,000 on October 31, 2025, as compared to $34,098,000 on April 30, 2025. The Company’s debt-to-equity ratio on October 31, 2025, was 0.88-to-1, as compared to 0.99-to-1 on April 30, 2025. The Company’s debt-to-equity ratio, net of the sale-leaseback transaction, on October 31, 2025, was 0.50-to-1, as compared to 0.57-to-1 on April 30, 2025.
“As discussed in our prior earnings release, we expect volatility in project delivery timelines for the balance of the fiscal year and we saw that begin in quarter 2,” said Thomas D. Hull III, Kewaunee’s President and Chief Executive Officer. “Our quoting and booking activity remain strong, which is reflected in our backlog that remains near record levels, specifically for our Domestic segment. Nu Aire had strong financial performance in the quarter, which helped to offset this volatility in the legacy business, which is more tied to the construction market. This dynamic illustrates our strategy, which we recently launched with the acquisition of Nu Aire, to diversify through well-targeted acquisitions. This strategy will also allow us to provide a broader set of laboratory solutions to the market.”
“While we still expect volatility in project delivery timing for the balance of this fiscal year,” Hull continued, “we remain confident in the demand for our products and the strength of the markets we serve. Our current quoting activity gives us confidence that our backlog will remain strong through the end of the fiscal year, setting the company up for continuing success in fiscal 2027. Kewaunee’s early repayment of the Seller Notes strengthens our balance sheet, positions us for further inorganic growth, and underscores our commitment to long-term value creation.”
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___________________ |
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1 EBITDA is a non-GAAP financial measure. See the table below for a reconciliation of EBITDA and segment EBITDA to net earnings (loss), the most directly comparable GAAP measure. |
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EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA Reconciliation (Unaudited) ($ in thousands)
|
||||||||
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Quarter Ended October 31, 2024 |
Domestic |
International |
Corporate |
Consolidated |
||||
|
Net Earnings (Loss) |
$ 4,524 |
$ 356 |
$ (1,872) |
$ 3,008 |
||||
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Add/(Less): |
||||||||
|
Interest Expense |
413 |
19 |
10 |
442 |
||||
|
Interest Income |
— |
(133) |
(156) |
(289) |
||||
|
Income Taxes |
1,241 |
247 |
(572) |
916 |
||||
|
Depreciation and Amortization |
660 |
103 |
43 |
806 |
||||
|
EBITDA |
$ 6,838 |
$ 592 |
$ (2,547) |
$ 4,883 |
||||
|
Professional Fees2 |
— |
— |
1,540 |
1,540 |
||||
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Adjusted EBITDA |
$ 6,838 |
$ 592 |
$ (1,007) |
$ 6,423 |
||||
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Quarter Ended October 31, 2025 |
Domestic |
International |
Corporate |
Consolidated |
||||
|
Net Earnings (Loss) |
$ 3,597 |
$ 641 |
$ (1,793) |
$ 2,445 |
||||
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Add/(Less): |
||||||||
|
Interest Expense |
311 |
10 |
740 |
1,061 |
||||
|
Interest Income |
(2) |
(180) |
(29) |
(211) |
||||
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Income Taxes |
1,347 |
290 |
(722) |
915 |
||||
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Depreciation and Amortization |
1,459 |
99 |
22 |
1,580 |
||||
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EBITDA |
$ 6,712 |
$ 860 |
$ (1,782) |
$ 5,790 |
||||
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Professional & Other Fees3 |
— |
— |
350 |
350 |
||||
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Adjusted EBITDA |
$ 6,712 |
$ 860 |
$ (1,432) |
$ 6,140 |
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Year to Date October 31, 2024 |
Domestic |
International |
Corporate |
Consolidated |
||||
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Net Earnings (Loss) |
$ 7,395 |
$ 819 |
$ (3,013) |
$ 5,201 |
||||
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Add/(Less): |
||||||||
|
Interest Expense |
854 |
40 |
20 |
914 |
||||
|
Interest Income |
— |
(307) |
(329) |
(636) |
||||
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Income Taxes |
2,005 |
526 |
(1,423) |
1,108 |
||||
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Depreciation and Amortization |
1,322 |
210 |
89 |
1,621 |
||||
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EBITDA |
$ 11,576 |
$ 1,288 |
$ (4,656) |
$ 8,208 |
||||
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Professional & Other Fees2 |
— |
— |
2,270 |
2,270 |
||||
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Adjusted EBITDA |
$ 11,576 |
$ 1,288 |
$ (2,386) |
$ 10,478 |
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Year to Date October 31, 2025 |
Domestic |
International |
Corporate |
Consolidated |
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Net Earnings (Loss) |
$ 8,319 |
$ 1,284 |
$ (4,065) |
$ 5,538 |
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Add/(Less): |
||||||||
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Interest Expense |
624 |
23 |
1,472 |
2,119 |
||||
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Interest Income |
(2) |
(311) |
(39) |
(352) |
||||
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Income Taxes |
2,460 |
724 |
(1,508) |
1,676 |
||||
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Depreciation and Amortization |
2,887 |
195 |
47 |
3,129 |
||||
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EBITDA |
$ 14,288 |
$ 1,915 |
$ (4,093) |
$ 12,110 |
||||
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Professional & Other Fees3 |
— |
— |
574 |
574 |
||||
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Adjusted EBITDA |
$ 14,288 |
$ 1,915 |
$ (3,519) |
$ 12,684 |
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___________________ |
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2 Professional and other fees incurred during the three and six months ended October 31, 2024 related to the Company’s acquisition of Nu Aire, Inc. (“Nu Aire”), which closed on November 1, 2024 |
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3 Professional and other fees incurred during the three and six months ended October 31, 2025 related to the Company’s integration of its newly acquired subsidiary, Nu Aire |
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Adjusted Consolidated Statement of Operations Reconciliation (Unaudited) ($ in thousands, except per share amounts)
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Three Months Ended October 31, |
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As Reported |
Professional |
Adjusted |
Adjusted |
||||
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Net sales |
$ 70,096 |
$ — |
$ 70,096 |
$ 47,764 |
|||
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Cost of products sold |
50,376 |
— |
50,376 |
33,812 |
|||
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Gross profit |
19,720 |
— |
19,720 |
13,952 |
|||
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Operating expenses |
15,613 |
350 |
15,263 |
8,302 |
|||
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Operating profit |
4,107 |
350 |
4,457 |
5,650 |
|||
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Other income, net |
407 |
— |
407 |
263 |
|||
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Interest expense |
(1,061) |
— |
(1,061) |
(442) |
|||
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Profit before income taxes |
3,453 |
350 |
3,803 |
5,471 |
|||
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Income tax (benefit) expense |
915 |
81 |
996 |
1,267 |
|||
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Net earnings |
2,538 |
269 |
2,807 |
4,204 |
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Less: Net earnings attributable to the non-controlling interest |
93 |
— |
93 |
7 |
|||
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Net earnings attributable to Kewaunee Scientific Corporation |
$ 2,445 |
$ 269 |
$ 2,714 |
$ 4,197 |
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Net earnings per share attributable to Kewaunee Scientific Corporation stockholders |
|||||||
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Basic |
$ 0.85 |
$ 0.09 |
$ 0.95 |
$ 1.46 |
|||
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Diluted |
$ 0.82 |
$ 0.09 |
$ 0.91 |
$ 1.41 |
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Six Months Ended October 31, |
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As Reported |
Professional |
Adjusted |
Adjusted |
||||
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Net sales |
$ 141,200 |
$ — |
$ 141,200 |
$ 96,157 |
|||
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Cost of products sold |
100,550 |
— |
100,550 |
69,717 |
|||
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Gross profit |
40,650 |
— |
40,650 |
26,440 |
|||
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Operating expenses |
31,733 |
574 |
31,159 |
17,485 |
|||
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Operating profit |
8,917 |
574 |
9,491 |
8,955 |
|||
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Other income, net |
575 |
— |
575 |
590 |
|||
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Interest expense |
(2,119) |
— |
(2,119) |
(914) |
|||
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Profit before income taxes |
7,373 |
574 |
7,947 |
8,631 |
|||
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Income tax (benefit) expense |
1,676 |
130 |
1,806 |
1,626 |
|||
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Net earnings |
5,697 |
444 |
6,141 |
7,005 |
|||
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Less: Net earnings attributable to the non-controlling interest |
159 |
— |
159 |
52 |
|||
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Net earnings attributable to Kewaunee Scientific Corporation |
$ 5,538 |
$ 444 |
$ 5,982 |
$ 6,953 |
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Net earnings per share attributable to Kewaunee Scientific Corporation stockholders |
|||||||
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Basic |
$ 1.94 |
$ 0.16 |
$ 2.09 |
$ 2.43 |
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Diluted |
$ 1.86 |
$ 0.15 |
$ 2.01 |
$ 2.34 |
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___________________ |
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4 Professional and other fees incurred during the three and six months ended October 31, 2025 related to the Company’s integration of its newly acquired subsidiary, Nu Aire, including the estimated tax impact |
About Non-GAAP Measures
The Company includes non-GAAP financial measures such as adjusted net earnings and adjusted net earnings per share, in the information provided with this press release as supplemental information relating to its operating results. Adjusted net earnings represents GAAP net earnings adjusted for professional and other fees related to the integration of the Company’s newly acquired subsidiary, Nu Aire, Inc., and the corresponding tax impact. This financial information is not in accordance with, or an alternative for, GAAP-compliant financial information and may be different from the operating or non-GAAP financial information used by other companies. The Company believes that this presentation of adjusted net earnings and adjusted net earnings per share provides useful information to investors regarding certain additional financial and business trends relating to its financial condition and results of operations.
EBITDA and Segment EBITDA are calculated as net earnings (loss), less interest expense and interest income, income taxes, depreciation, and amortization. Adjusted EBITDA and Adjusted Segment EBITDA are calculated as EBITDA or Segment EBITDA less the impact of the professional and other fees related to the Company’s integration of its newly acquired subsidiary, Nu Aire, Inc., as discussed in more detail above. We believe EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA allow management and investors to compare our performance to other companies on a consistent basis without regard to interest expense and interest income, income taxes, depreciation, amortization or the costs incurred related to the integration of Nu Aire, Inc., which can vary significantly between companies depending upon many factors. EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA are not calculations based upon generally accepted accounting principles, and the method for calculating EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA can vary among companies. The amounts included in the EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA calculations, however, are derived from amounts included in the historical consolidated statements of operations. EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA should not be considered as alternatives to net earnings (loss) or operating earnings (loss) as an indicator of the Company’s operating performance, or as an alternative to operating cash flows as a measure of liquidity.
About Kewaunee Scientific
Founded in 1906, Kewaunee Scientific Corporation is a recognized global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products. The Company’s products include steel and wood casework, fume hoods, adaptable modular systems, moveable workstations, stand-alone benches, biological safety cabinets, and epoxy resin work surfaces and sinks. The Company’s corporate headquarters are located in Statesville, North Carolina. Sales offices are located in the United States, India, Saudi Arabia, and Singapore. Three manufacturing facilities are located in Statesville serving the domestic and international markets, and one manufacturing facility is located in Bangalore, India serving the local, Asian, and African markets.
Kewaunee Scientific’s newly acquired subsidiary, Nu Aire, is a leading manufacturer of biological safety cabinets, CO2 incubators, ultralow freezers, and other essential laboratory products that complement the Kewaunee Scientific portfolio. Founded in 1971, Nu Aire’s headquarters and manufacturing facilities are located in Plymouth, Minnesota, with additional manufacturing capabilities located in Long Lake, Minnesota. The Company also maintains a warehouse partnership in the Netherlands and OEM partnerships in China.
Learn more at the companies’ websites, located at https://www.kewaunee.com and https://www.nuaire.com/.
This press release contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the Company’s future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “predict,” “believe” and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors that could significantly impact results or achievements expressed or implied by such forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to: our ability to realize the benefits anticipated as a result of the Nu Aire acquisition; competitive and general economic conditions, including disruptions from government mandates, both domestically and internationally, as well as supplier constraints and other supply disruptions; changes in customer demands; technological changes in our operations or in our industry; dependence on customers’ required delivery schedules; risks related to fluctuations in the Company’s operating results from quarter to quarter; risks related to international operations, including foreign currency fluctuations; changes in the legal and regulatory environment; changes in raw materials and commodity costs; acts of terrorism, war, governmental action, and natural disasters and other Force Majeure events. The cautionary statements made pursuant to the Reform Act herein and elsewhere by us should not be construed as exhaustive. We cannot always predict what factors would cause actual results to differ materially from those indicated by the forward-looking statements. Over time, our actual results, performance, or achievements will likely differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, and such difference might be significant and harmful to our stockholders’ interest. Many important factors that could cause such a difference are described under the caption “Risk Factors,” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended April 30, 2025, which you should review carefully, and in our subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. These reports are available on our investor relations website at www.kewaunee.com and on the SEC website at www.sec.gov. These forward-looking statements speak only as of the date of this document. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.
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Kewaunee Scientific Corporation Condensed Consolidated Statements of Operations (Unaudited) ($ and shares in thousands, except per share amounts)
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Three Months Ended October 31, |
Six Months Ended October 31, |
||||||
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2025 |
2024 |
2025 |
2024 |
||||
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Net sales |
$ 70,096 |
$ 47,764 |
$ 141,200 |
$ 96,157 |
|||
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Cost of products sold |
50,376 |
33,812 |
100,550 |
69,717 |
|||
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Gross profit |
19,720 |
13,952 |
40,650 |
26,440 |
|||
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Operating expenses |
15,613 |
9,518 |
31,733 |
19,431 |
|||
|
Operating profit |
4,107 |
4,434 |
8,917 |
7,009 |
|||
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Other income, net |
407 |
(61) |
575 |
266 |
|||
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Interest expense |
(1,061) |
(442) |
(2,119) |
(914) |
|||
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Profit before income taxes |
3,453 |
3,931 |
7,373 |
6,361 |
|||
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Income tax expense |
915 |
916 |
1,676 |
1,108 |
|||
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Net earnings |
2,538 |
3,015 |
5,697 |
5,253 |
|||
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Less: Net earnings attributable to the non-controlling interest |
93 |
7 |
159 |
52 |
|||
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Net earnings attributable to Kewaunee Scientific Corporation |
$ 2,445 |
$ 3,008 |
$ 5,538 |
$ 5,201 |
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Net earnings per share attributable to Kewaunee Scientific Corporation stockholders |
|||||||
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Basic |
$ 0.85 |
$ 1.05 |
$ 1.94 |
$ 1.82 |
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Diluted |
$ 0.82 |
$ 1.01 |
$ 1.86 |
$ 1.75 |
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Weighted average number of common shares outstanding |
|||||||
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Basic |
2,866 |
2,872 |
2,859 |
2,861 |
|||
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Diluted |
2,990 |
2,974 |
2,977 |
2,971 |
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Kewaunee Scientific Corporation Condensed Consolidated Balance Sheets ($ in thousands)
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October 31, 2025 |
April 30, 2025 |
||
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(Unaudited) |
|||
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Assets |
|||
|
Cash and cash equivalents |
$ 12,594 |
$ 14,942 |
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Restricted cash |
1,085 |
2,222 |
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Receivables, less allowances |
59,017 |
62,384 |
|
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Inventories |
35,499 |
32,849 |
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Prepaid expenses and other current assets |
5,445 |
5,966 |
|
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Total Current Assets |
113,640 |
118,363 |
|
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Net property, plant and equipment |
23,155 |
23,174 |
|
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Right of use assets |
11,459 |
12,965 |
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Deferred income taxes |
3,831 |
3,994 |
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Net intangible assets |
17,063 |
17,831 |
|
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Goodwill |
12,487 |
12,487 |
|
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Other assets |
7,440 |
5,840 |
|
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Total Assets |
$ 189,075 |
$ 194,654 |
|
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Liabilities and Stockholders’ Equity |
|||
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Short-term borrowings |
$ 1,117 |
$ 986 |
|
|
Current portion of lease obligations |
3,448 |
3,371 |
|
|
Current portion of financing liability |
827 |
788 |
|
|
Current portion of term loan |
2,903 |
2,903 |
|
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Accounts payable |
22,660 |
27,033 |
|
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Other current liabilities |
14,855 |
18,631 |
|
|
Total Current Liabilities |
45,810 |
53,712 |
|
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Long-term portion of lease obligations |
7,592 |
8,946 |
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Long-term portion of financing liability |
26,205 |
26,632 |
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Long-term portion of seller note |
22,681 |
23,537 |
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Long-term portion of term loan |
8,960 |
10,412 |
|
|
Other non-current liabilities |
6,110 |
5,170 |
|
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Total Liabilities |
117,358 |
128,409 |
|
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Kewaunee Scientific Corporation Equity |
69,852 |
64,457 |
|
|
Non-controlling interest |
1,865 |
1,788 |
|
|
Total Stockholders’ Equity |
71,717 |
66,245 |
|
|
Total Liabilities and Stockholders’ Equity |
$ 189,075 |
$ 194,654 |
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Contact: |
Donald T. Gardner III |
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704/871-3274 |
SOURCE Kewaunee Scientific Corporation