Kewaunee Scientific Reports Results for Second Quarter of Fiscal Year 2026

Core Insights - Kewaunee Scientific Corporation reported a significant increase in sales for the second quarter of fiscal year 2026, with total sales reaching $70.1 million, a 46.8% increase from $47.8 million in the same quarter of the previous year [2] - Despite the sales growth, pre-tax earnings decreased by 12.2% to $3.5 million, and net earnings fell to $2.4 million compared to $3.0 million in the prior year quarter [2] - The company’s order backlog was $192.9 million as of October 31, 2025, showing an increase from $184.4 million a year earlier, but a decrease from $214.6 million as of April 30, 2025 [3] Domestic Segment - Domestic sales increased by 51.7% to $55.2 million from $36.4 million in the prior year quarter [4] - Net earnings for the domestic segment were $3.6 million, down from $4.5 million in the previous year [4] - EBITDA for the domestic segment was $6.7 million, slightly down from $6.8 million in the prior year quarter, impacted by lower manufacturing volumes in laboratory construction [4] International Segment - International sales rose by 31.0% to $14.9 million from $11.4 million in the prior year quarter [5] - Net earnings for the international segment increased to $641,000 from $356,000 in the previous year [5] - EBITDA for the international segment improved to $860,000 from $592,000 in the prior year quarter, driven by the delivery of large projects booked in prior periods [5] Corporate Segment - The corporate segment reported a pre-tax net loss of $2.5 million, compared to a loss of $2.4 million in the prior year [6] - Corporate segment EBITDA improved to ($1.8 million) from ($2.5 million) in the previous year, aided by the exclusion of prior year costs related to the acquisition of Nu Aire, Inc. [6] - Ongoing strategic investments in the corporate platform are aimed at supporting future growth [6] Financial Position - Total cash on hand was $13.7 million as of October 31, 2025, down from $17.2 million on April 30, 2025 [7] - Working capital increased to $67.8 million from $60.0 million a year earlier [7] - Short-term debt was $4.9 million, and long-term debt decreased to $58.2 million from $60.7 million on April 30, 2025 [8] Management Commentary - The CEO noted expected volatility in project delivery timelines but expressed confidence in strong quoting and booking activity, reflected in the robust backlog, particularly in the domestic segment [9][10] - The acquisition of Nu Aire is seen as a strategic move to diversify and enhance the company's laboratory solutions offerings [10]