Kewaunee Scientific (KEQU) Q3 2026 earnings summary

Executive summary

• Achieved FY2025 revenue of $240.5M, reflecting growth from prior years and expansion through the Nu Aire acquisition, which closed on November 1, 2024.

• Q3 FY2026 sales rose 3.3% year-over-year to $69.4M, with pre-tax earnings up 25.8% to $1.6M, but net earnings declined to $692K due to higher expenses and integration costs.

• International sales grew 21.4% for the quarter and 27.0% for the nine months, driven by strong performance in India.

• Order backlog decreased to $183.2M from $221.6M year-over-year, indicating a slowdown in new orders.

• Expanded global presence with manufacturing in the US and India, and sales offices in Singapore and Saudi Arabia.

Financial highlights

• FY2025 net sales reached $240.5M, up from $219.5M in FY2024 and $203.8M in FY2023.

• FY2025 adjusted operating profit was $23.5M (9.8% of sales), and adjusted net earnings were $16.0M, up from $12.3M in FY2024.

• Q3 FY2026 revenue was $69.4M, with adjusted net earnings of $0.8M and adjusted diluted EPS of $0.28.

• Gross profit for Q3 FY2026 was $18.5M, with operating profit at $2.6M and EBITDA at $3.8M.

• Cash and equivalents as of Jan 31, 2026: $10.3M; working capital: $54.8M; total assets: $176.0M; total equity: $72.5M.

Outlook and guidance

• Management expects continued softness in construction-related business due to seasonal and macroeconomic factors, but anticipates growth from the Nu Aire acquisition and ongoing diversification.

• Strategic focus on customer proximity, operational excellence, and innovation.

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

• Investments in corporate infrastructure and readiness for SEC accelerated reporting to support future inorganic growth.

• Demand visibility remains limited due to the company’s subcontractor role and project-based business.