Kewaunee Scientific (KEQU) Q3 2026 earnings summary

Executive summary

• Completed acquisition of Nu Aire, Inc. on November 1, 2024, expanding product offerings and market reach, and contributing to diversification and offsetting construction market weakness.

• Sales for the quarter ended January 31, 2026, increased to $69.4M from $67.2M year-over-year, a 3.3% rise; nine-month sales rose to $210.6M from $163.3M.

• International sales grew 21.4% for the quarter and 27.0% for the nine months, driven by higher billings, especially in India.

• Domestic sales for the quarter were flat or down 2.0% year-over-year to $51.0M, but up 29.6% for the nine months due to the Nu Aire acquisition.

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

Financial highlights

• Gross profit margin for the quarter was 26.7% (down from 27.4%); gross profit was $18.5M; nine-month margin was 28.1% (up from 27.4%).

• Operating expenses for the quarter were $16.0M (23.0% of sales), flat year-over-year; nine-month operating expenses rose to $47.7M (22.6% of sales) from $35.6M (21.8%).

• Net earnings for the quarter were $692K ($0.23 per diluted share), down from $1.35M ($0.45); nine-month net earnings were $6.23M ($2.09), down from $6.56M ($2.20).

• EBITDA for the quarter was $3.8M, nearly flat year-over-year; adjusted EBITDA was $3.98M, reflecting integration costs for the Nu Aire acquisition.

• Operating cash flow for nine months was $13.2M, up from $5.4M year-over-year; cash on hand at quarter-end was $10.3M, down from $17.2M at the start of the fiscal year.

Outlook and guidance

• Demand visibility remains limited due to the company’s subcontractor role and project-based business; management expects continued softness in construction-related business due to seasonal and macroeconomic factors.

• Third quarter results reflect typical seasonal volatility and were further impacted by geopolitical and economic uncertainty.

• Growth and diversification strategy validated by Nu Aire’s contribution, offsetting softness in construction-related business.

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