Kewaunee Scientific (KEQU) - 2025 Q4 - Annual Report

Sales Performance - Sales for fiscal year 2025 were $240.5 million, an increase of 18.0% compared to fiscal year 2024 sales of $203.8 million[108]. - Domestic Segment sales for fiscal year 2025 were $179.4 million, an increase of 30.7% compared to fiscal year 2024 sales of $137.2 million, primarily due to the acquisition of Nu Aire[108]. - International Segment sales for fiscal year 2025 were $61.1 million, a decrease of 8.2% from fiscal year 2024 sales of $66.5 million, attributed to customer site delays in India[108]. Financial Metrics - The order backlog was $214.6 million at April 30, 2025, compared to $155.6 million at April 30, 2024[109]. - Gross profit margin increased to 28.6% in fiscal year 2025 from 25.5% in fiscal year 2024, driven by improved manufacturing productivity and the Nu Aire acquisition[109]. - Operating expenses increased to $51.1 million in fiscal year 2025 from $33.8 million in fiscal year 2024, largely due to the acquisition of Nu Aire[110]. - Net earnings for fiscal year 2025 were $11.4 million, or $3.83 per diluted share, down from $18.8 million, or $6.38 per diluted share, in fiscal year 2024[116]. - The effective income tax rate for fiscal year 2025 was 21.7%, compared to an income tax benefit of 45.3% in fiscal year 2024[114]. Acquisition Details - The Company completed the acquisition of Nu Aire for $55.0 million on November 1, 2024, funded through a combination of seller notes and cash[101]. - In November 2024, the company acquired Nu Aire, enhancing its position in laboratory and biosafety solutions[130]. Cash Flow and Investments - Cash used in investing activities for fiscal year 2025 was $30.9 million, primarily for the acquisition of Nu Aire, with capital expenditures of $2.2 million[124]. - Working capital increased to $64.7 million at April 30, 2025, up from $56.0 million at April 30, 2024, with a current assets to current liabilities ratio of 2.2-to-1.0[126]. - The term loan balance was $13.8 million at April 30, 2025, with interest rates on a floating basis, and no advances under the revolving credit facility[132]. Dividend Policy - The company did not declare or pay any dividends during the last two fiscal years, with future dividends dependent on various factors including earnings and capital requirements[127]. Market Outlook - The company's financial outlook is limited by its role as a subcontractor, with demand dependent on laboratory and healthcare construction projects and raw material costs[129]. - Fiscal year 2025 results reflect strong execution and relationships with dealers, supported by a healthy backlog and improved manufacturing capabilities[131]. Currency Exposure - For fiscal year 2025, 23% of net sales were derived from currencies other than U.S. dollars, indicating exposure to foreign currency exchange risks[133]. - Cash balances of $8.4 million were held by subsidiaries in currencies other than U.S. dollars as of April 30, 2025[135].