Kewaunee Scientific (US:KEQU)2025-12-10 21:09Financial Performance - Sales for the second quarter of fiscal year 2026 were $70,096,000, a 46.8% increase from $47,764,000 in the prior year quarter[3] - Pre-tax earnings decreased by 12.2% to $3,453,000 compared to $3,931,000 in the prior year quarter[3] - Kewaunee Scientific reported net sales of $70,096,000 for the three months ended October 31, 2025, a 46.7% increase from $47,764,000 in the same period of 2024[20] - Gross profit for the three months ended October 31, 2025, was $19,720,000, representing a 41.5% increase compared to $13,952,000 in the prior year[20] - Operating profit decreased slightly to $4,107,000 for the three months ended October 31, 2025, down from $4,434,000 in the same period of 2024[20] - Net earnings attributable to Kewaunee Scientific Corporation for the three months ended October 31, 2025, were $2,445,000, a decrease of 18.7% from $3,008,000 in the prior year[20] Sales Breakdown - Domestic sales increased by 51.7% to $55,224,000 from $36,409,000 in the prior year quarter[4] - International sales rose by 31.0% to $14,872,000 from $11,355,000 in the prior year quarter[5] Assets and Liabilities - The company’s total assets as of October 31, 2025, were $189,075,000, down from $194,654,000 as of April 30, 2025[22] - Total liabilities decreased to $117,358,000 as of October 31, 2025, compared to $128,409,000 as of April 30, 2025[22] - Kewaunee Scientific's cash and cash equivalents were $12,594,000 as of October 31, 2025, down from $14,942,000[22] - Total cash on hand was $13,679,000, down from $17,164,000 on April 30, 2025[8] - Long-term debt decreased to $58,164,000 from $60,730,000 on April 30, 2025[9] - The debt-to-equity ratio improved to 0.88-to-1 from 0.99-to-1 on April 30, 2025[9] Acquisition and Strategy - The acquisition of Nu Aire, Inc. is part of the company's strategy to diversify and enhance its laboratory solutions offerings[10] - The company has integrated its newly acquired subsidiary, Nu Aire, which is expected to enhance its product offerings in laboratory equipment[16] - Kewaunee Scientific anticipates that the acquisition of Nu Aire will provide significant benefits, although it faces risks related to competitive conditions and supply chain disruptions[18] Inventory and Backlog - The company's order backlog was $192.9 million as of October 31, 2025, compared to $184.4 million a year earlier[3] - The company reported an increase in inventories to $35,499,000 as of October 31, 2025, compared to $32,849,000 as of April 30, 2025[22] - The company expects strong demand for its products and a robust backlog through the end of the fiscal year[10]