Kewaunee Scientific (KEQU) Q1 2027 earnings summary

Executive summary

• Net sales for the quarter ended July 31, 2026, were $66.3 million, down 6.7% year-over-year, reflecting softer demand in both domestic and international markets.

• Net earnings attributable to shareholders were $1.7 million ($0.58 per diluted share), down from $3.1 million ($1.04 per diluted share) in the prior year quarter.

• Order backlog stood at $169.0 million, down from $205.0 million a year ago but up from $165.9 million at the prior fiscal year-end.

• Cost management and operating efficiencies helped offset lower manufacturing volumes, though additional compensation expense from cash settlement of long-term incentives impacted results as a non-recurring item.

Financial highlights

• Gross profit margin was 29.6%, up slightly from 29.4% in the prior year quarter, driven by improved international segment margins.

• EBITDA for the quarter was $4.5 million, down from $6.3 million year-over-year.

• Operating expenses were $16.5 million (24.9% of sales), relatively flat in dollar terms but higher as a percentage of sales compared to 22.7% last year.

• Working capital at quarter-end was $56.7 million, down from $66.7 million a year ago.

• Cash provided by operating activities was $2.0 million; capital expenditures were $0.8 million; net cash used in financing activities was $2.5 million.

Outlook and guidance

• Management expects continued uncertainty in project award and release timelines due to geopolitical and economic factors but notes strong customer engagement and quoting activity.

• The company remains focused on operational improvements, commercial capability enhancements, and continued investment in business capabilities to position for future growth.