Kewaunee Scientific (KEQU) investor relations material

Executive summary

• Net sales for the quarter ended July 31, 2025, were $71.1 million, up 47% year-over-year, driven by the Nu Aire acquisition and strong international project deliveries.

• Net earnings rose to $3.1 million ($1.04 per diluted share), up 41% from the prior year, with EBITDA nearly doubling to $6.3 million.

• The Nu Aire acquisition, completed November 1, 2024, expanded product offerings and market reach, contributing $19.7 million in revenue and $0.7 million in net earnings this quarter.

• Order backlog reached $205 million, up from $159.4 million a year ago, though slightly down from $214.6 million at the prior quarter end.

• Growth was supported by improved productivity and cost management despite challenging market conditions.

Financial highlights

• Gross profit margin improved to 29.4% from 25.8% year-over-year, reflecting acquisition synergies and productivity gains.

• Operating expenses increased to $16.1 million (22.7% of sales), mainly due to the Nu Aire acquisition and higher SG&A costs.

• Pre-tax earnings increased 61.3% year-over-year to $3.92 million.

• Adjusted EBITDA for the quarter was $6.54 million, up from $4.06 million in the prior year.

• Cash from operations was $5.8 million; capital expenditures were $0.8 million; net cash used in financing activities was $1.5 million.

Outlook and guidance

• Management expects uneven quarterly performance for the remainder of FY2026 due to project delivery volatility.

• Full-year unadjusted EBITDA is expected to exceed FY2025 levels despite near-term earnings pressure from strategic investments.

• Long-term growth anticipated from ongoing investments in people, processes, and technology.

• Backlog remains strong at $205 million, supporting future revenue.