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Kewaunee Scientific Reports Strong Financial Performance for FY 2026

Kewaunee Scientific Corporation, a prominent name in laboratory and healthcare products, recently unveiled its financial results for the fiscal year and fourth quarter that concluded on April 30, 2026. Despite facing a challenging operational landscape, the company marked notable achievements in revenue and strategic advancements.

Fiscal Year 2026 Overview

For the fiscal year 2026, Kewaunee Scientific reported total sales of approximately $282 million, reflecting a robust 17.3% increase from the $240 million reported in the previous year. However, the company's pre-tax earnings decreased slightly to $13.7 million from $14.8 million, and net earnings fell to $9.6 million compared to $11.4 million in the previous fiscal year. Diluted earnings per share stood at $3.22, down from $3.83, yet the company continued to generate an EBITDA of $22.4 million.

A significant identification for this fiscal year was the rebranding of its domestic segment to Lab Products Group (LPG), a move synchronized with its expanded business activities and strategy. Notably, this rebranding did not alter existing reportable segments or financial positions.

Segment Performance

1. Lab Products Group (LPG): This segment exhibited a remarkable sales increase of 19.8%, reaching $215 million compared to $179 million last year. Nonetheless, net earnings for LPG reduced from $15.4 million to $14.2 million. Factors like project delivery delays and heightened input costs posed challenges for the lab construction segment; however, disciplined cost management and increased productivity countered some adverse market conditions. The acquisition of Nu Aire diversified the product offerings and added significant value to the laboratory portfolio.

2. International Segment: International sales reflected a 9.9% growth, reaching $67.1 million. This increase led to improved net earnings of $4 million, showcasing the resilience of Kewaunee's international operations despite global geopolitical uncertainties. The segment effectively navigated logistical complexities and maintained a healthy project backlog, particularly in the Middle East and parts of Asia.

3. Corporate Segment: The corporate segment reported a net loss of $8.6 million, slightly increased from the previous year's $6.9 million. This result emphasized the company’s strategic investment in enhancing its operational capabilities to support its growth trajectory. Kewaunee is committed to building a scalable platform that facilitates future integrations and acquisition efforts.

Balance Sheet Strengthening

Throughout fiscal year 2026, Kewaunee successfully decreased its long-term debt by approximately $20 million, culminating in a debt-to-equity ratio improvement from 0.99-to-1 to 0.61-to-1. The total cash amounted to $11.6 million as of April 30, 2026. While this reflects a decrease from $17.2 million in the previous year, it was predominantly a result of the successful repayment of expenses related to its acquisition of Nu Aire.

At the close of the fiscal year, Kewaunee boasted a substantial order backlog of $165.9 million, including significant portions from both LPG and international segments. While the lab products backlog experienced a slight decrease, this performance signals robust demand despite challenges in project timelines.

Looking Ahead

Kewaunee's President and CEO, Thomas D. Hull III, expressed optimism about the company's direction: “Fiscal year 2026 was an excellent year for Kewaunee, especially given the challenging operational environment.” The continuous integration of Nu Aire into Kewaunee’s business model promises to enhance efficiency and strengthen market positioning as conditions in life sciences adapt.

As Kewaunee looks to fiscal year 2027, strategic focus remains on disciplined capital allocation and operational excellence. With a commitment to nurturing long-term value for shareholders, Kewaunee is poised to leverage its strong team and comprehensive lab solutions to navigate market complexities effectively. The overarching goal is to maintain customer service excellence while executing its growth strategy efficiently.

In conclusion, Kewaunee Scientific Corporation's impressive fiscal year 2026 results underscore its resilient business model, effective resource management, and strategic ambitions amid dynamic market challenges. As the company continues to evolve, it stands ready to capitalize on opportunities in the laboratory products sector and beyond.