Kewaunee Scientific (KEQU) Q1 2026 earnings summary

Executive summary

• Achieved $240.5M in FY2025 revenue, reflecting strong global presence and nearly 120 years of manufacturing excellence.

• Largest laboratory furniture manufacturer worldwide, serving diverse end markets including life sciences, education, healthcare, and government.

• Q1 FY2026 sales rose 46.9% year-over-year to $71.1M, with net earnings up 41% to $3.1M and EBITDA nearly doubling to $6.3M, driven by the Nu Aire acquisition and strong international project deliveries.

• The Nu Aire acquisition, completed November 2024 for $53M, expanded product offerings and market reach, contributing $19.7M in revenue and $0.7M in net earnings in Q1 FY2026.

• Order backlog reached $205M, up from $159.4M a year ago, supporting future revenue visibility.

Financial highlights

• FY2025 revenue reached $240.5M, up from $219.5M in FY2024 and $214.6M in FY2023.

• FY2025 adjusted operating profit was $23.5M (9.8% of sales), with adjusted net earnings of $16.2M.

• Q1 FY2026 revenue grew to $71.1M from $48.4M in Q1 FY2025; Q1 FY2026 adjusted net earnings were $3.3M.

• Gross profit margin improved to 29.4% in Q1 FY2026, up from 25.8% year-over-year, reflecting acquisition synergies and productivity gains.

• Diluted EPS for FY2025 was $3.83, with adjusted EPS at $5.37; Q1 FY2026 diluted EPS was $1.04, adjusted to $1.10.

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.

• Strategic focus on customer proximity, operational excellence, and innovation, with continued pursuit of strategic acquisitions.

• Emphasis on disciplined capital allocation, debt reduction, and reinvestment in operations post-Nu Aire acquisition.

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