Kewaunee Scientific Reports Impressive Sales Growth in Q2 FY 2026

Kewaunee Scientific Corporation, a leader in laboratory and healthcare furniture solutions, has released its financial results for the second quarter of fiscal year 2026, marking a significant period of growth. For the quarter ending October 31, 2025, Kewaunee reported sales of $70.1 million, which reflects a remarkable increase of 46.8% compared to the same quarter last year, when sales stood at $47.8 million. This surge in revenue is indicative of the company's strong market presence and expanding clientele.

Despite this substantial sales growth, Kewaunee experienced a slight decline in pre-tax earnings, which amounted to $3.5 million, down from $3.9 million in the previous year. Additionally, net earnings decreased to $2.4 million from $3.0 million, primarily attributed to increasing operational costs and corporate investments. The company's earnings per diluted share also showed a decline, falling from $1.01 to $0.82 year-over-year.

One of the highlights for the quarter was the notable increase in the company's order backlog, which reached $192.9 million as of October 31, 2025. This is an improvement from $184.4 million at the same time last year, emphasizing the ongoing demand for Kewaunee's products and services.

Domestic and International Performance

Kewaunee's domestic segment played a significant role in driving growth, with domestic sales reaching $55.2 million, representing a striking increase of 51.7% compared to $36.4 million in Q2 FY 2025. However, net earnings from this segment declined to $3.6 million from $4.5 million in the prior year period. The reduction in profitability despite increased sales was largely impacted by lower manufacturing volumes in the laboratory construction segment, compounded by strategic investments in the newly acquired subsidiary, Nu Aire, Inc.

The international segment also saw promising results, with revenues climbing by 31% to $14.9 million, compared to $11.4 million in the same period last year. This growth reflects the successful delivery of ongoing large-scale projects that were secured in previous quarters. Substantial improvements in net earnings from the international segment were also noted, rising to $641,000, up from $356,000.

Corporate Developments

In terms of corporate performance, Kewaunee reported a pre-tax net loss in its corporate segment amounting to $2.5 million, slightly higher than the loss of $2.4 million recorded in Q2 FY 2025. However, improvements in the corporate segment's operational metrics were observed; the EBITDA for this segment showed a year-over-year positive trend, moving from a loss of $2.5 million to a lesser loss of $1.8 million.

Kewaunee’s financial health remains stable, with total cash on hand recorded at $13.7 million as of October 31, 2025, down from $17.2 million in April 2025. Furthermore, the company's working capital has seen an increase from $60 million to $67.8 million.

Looking Ahead

President and CEO Thomas D. Hull III expressed optimism regarding the company's future despite acknowledging potential volatility in project delivery timelines for the remainder of the fiscal year. The company’s strong backlog and robust quoting activity provide a sense of confidence heading into the future. Hull reaffirmed their strategic focus on enhancing their Corporate platform and expanding their product offerings through targeted acquisitions, particularly the integration of Nu Aire, which continues to perform positively within the company’s portfolio.

Overall, Kewaunee Scientific's latest quarter demonstrates a successful trajectory, combining growth in sales and a commitment to strategic development, positioning the company favorably for fiscal year 2027 and beyond. Investors and analysts will be closely monitoring the ongoing performance and strategic initiatives as Kewaunee aims to enhance value in its offerings and market reach.