Kewaunee Scientific (KEQU) - 2026 Q3 - Quarterly Results

Financial Performance - Sales for the third quarter of fiscal year 2026 were $69,399,000, a 3.3% increase from $67,167,000 in the prior year quarter[3] - Pre-tax earnings increased by 25.8% to $1,604,000 compared to $1,275,000 in the prior year quarter[3] - Net earnings decreased to $692,000 from $1,354,000 in the prior year quarter[3] - Net sales for the three months ended January 31, 2026, were $69.399 million, an increase from $67.167 million in the same period of 2025, representing a growth of approximately 3.1%[20] - Operating profit for the three months ended January 31, 2026, was $2.582 million, up from $2.250 million in the prior year, indicating a growth of about 14.7%[20] - Net earnings attributable to Kewaunee Scientific Corporation for the three months ended January 31, 2026, were $692,000, a decrease from $1.354 million in the same period of 2025, representing a decline of approximately 48.9%[20] Sales Breakdown - Domestic sales decreased by 2.0% to $50,953,000, while international sales increased by 21.4% to $18,446,000[4][5] Assets and Liabilities - Total assets as of January 31, 2026, were $175.961 million, down from $194.654 million as of April 30, 2025, indicating a decrease of about 9.5%[22] - Total liabilities decreased to $103.433 million as of January 31, 2026, from $128.409 million as of April 30, 2025, reflecting a reduction of approximately 19.5%[22] Cash and Debt - Total cash on hand decreased to $10,347,000 from $17,164,000 on April 30, 2025[8] - Cash and cash equivalents decreased to $8.153 million as of January 31, 2026, from $14.942 million as of April 30, 2025, a decline of about 45.5%[22] - Short-term debt increased to $7,351,000 from $4,773,000 on April 30, 2025, while long-term debt decreased to $42,316,000 from $60,730,000[9] - The debt-to-equity ratio improved to 0.68-to-1 from 0.99-to-1 on April 30, 2025[9] Acquisition and Integration - The company completed the acquisition of Nu Aire and is focusing on integrating it to enhance growth and EBITDA contribution[10] - The company has integrated its newly acquired subsidiary, Nu Aire, which is expected to enhance its product offerings in laboratory equipment[16] - The third quarter results were impacted by seasonal factors and geopolitical uncertainties, but the addition of Nu Aire's products helped offset some softness in construction-related business[10] - The company anticipates potential risks related to the integration of Nu Aire and other operational uncertainties that could impact future performance[18] Operating Expenses - Kewaunee Scientific's operating expenses for the nine months ended January 31, 2026, were $47.696 million, compared to $35.560 million for the same period in 2025, an increase of approximately 34.1%[20] Order Backlog - The company's order backlog was $183.2 million as of January 31, 2026, down from $221.6 million a year earlier[3]