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Kewaunee Scientific Reports Impressive Q1 Results for FY 2026

Kewaunee Scientific Corporation, a leading manufacturer in the laboratory and healthcare furniture sector, has announced remarkable results for the first quarter of its fiscal year 2026, which ended on July 31, 2025. Reporting an impressive 46.9% increase in sales over the previous year's first quarter, the company underscored its strong market position and growth trajectory.

The total sales during this quarter were $71,104,000, a significant rise from $48,393,000 in the same period last year. This growth is primarily attributed to the integration of the recently acquired subsidiary, Nu Aire, steady manufacturing volumes, enhanced productivity, and decisive cost management strategies.

Financial Highlights:

The company's pre-tax earnings surged to $3,920,000, reflecting a robust 61.3% increase compared to $2,430,000 from the prior year. Moreover, net earnings reached $3,093,000, compared to $2,193,000 last year, showcasing the overall financial health of the company. The EBITDA also highlighted this growth, moving from $3,325,000 last year to $6,320,000 this fiscal year. Diluted earnings per share climbed to $1.04, compared to $0.74 in the previous year.

Growing Order Backlog

Another noteworthy aspect is the company's order backlog, which stood at $205 million as of July 31, 2025. This is a marked increase from $159.4 million the previous year, although slightly down from $214.6 million at the end of April 2025. The domestic segment showed a 53.0% rise in sales to $54,352,000, boosted by strong contributions from Nu Aire’s results and optimized production processes.

Domestic and International Segments

Kewaunee's domestic segment reported net earnings of $4,722,000, a significant increase from $2,871,000 a year prior. EBITDA for the domestic segment also rose markedly to $7,576,000 from $4,738,000. Meanwhile, the international segment exhibited a 30.2% increase in sales, generating $16,752,000, with net earnings climbing to $643,000 from $463,000 last year. This growth was fueled by a decrease in previous customer site delays, thus propelling higher deliveries and billings.

Corporate Segment Performance

On the other hand, the corporate segment reported a pre-tax net loss of $3,058,000, an increase from $1,992,000 the prior year. Despite bearing some costs related to strategic investments in compliance initiatives and corporate platform enhancements, the company's resolve to foster long-term growth remains unwavering.

Total cash positions improved, with $20,441,000 on hand compared to $17,164,000 in April 2025. Kewaunee's working capital rose significantly from $56,012,000 to $66,662,000, indicating a solid liquidity position.

Future Outlook

Thomas D. Hull III, President and CEO of Kewaunee Scientific, articulated confidence in the company's growth strategy, even amid uncertain market conditions. He noted that while project delivery timelines may experience volatility, Kewaunee is committed to leveraging strategic investments to achieve sustainable growth. Despite challenges, Kewaunee anticipates delivering improved unadjusted EBITDA for FY 2026 compared to FY 2025, fostering confidence among stakeholders regarding the company's long-term health.

In conclusion, Kewaunee Scientific's fiscal results highlight a remarkable period of growth and resilience, setting a solid foundation for future success in a competitive market landscape.