Core Viewpoint - Kewaunee Scientific Corporation experienced a decline in share price despite significant revenue growth, indicating potential challenges in profitability and operational efficiency [1][2][10]. Earnings & Revenue Performances - For the quarter ended October 31, 2025, Kewaunee reported net sales of $70.1 million, a 46.8% increase from $47.8 million in the same period last year [2]. - Net earnings attributable to Kewaunee decreased to $2.4 million from $3 million year-over-year, with diluted earnings per share falling to 82 cents from $1.01 [2]. Profitability Metrics - Pre-tax earnings declined 12.2% year-over-year to $3.5 million, while EBITDA increased to $5.8 million from $4.9 million, reflecting improved operating scale despite margin pressures [3][10]. Key Business Metrics - Order backlog was $192.9 million as of October 31, 2025, up from $184.4 million a year earlier but down from $214.6 million at the end of fiscal 2025 [4]. - Total cash on hand decreased to $13.7 million from $17.2 million at April 30, 2025, while working capital improved to $67.8 million from $60 million year-over-year [4]. Debt and Balance Sheet - Long-term debt decreased to $58.2 million from $60.7 million, and the debt-to-equity ratio improved to 0.88-to-1 from 0.99-to-1, indicating a strengthening balance sheet [5]. Segment Performance - Domestic sales increased 51.7% year-over-year to $55.2 million, driven by the acquisition of Nu Aire, Inc., although net earnings in the domestic segment fell to $3.6 million from $4.5 million due to lower manufacturing volumes [6]. - International sales rose 31% year-over-year to $14.9 million, with net earnings improving to $0.6 million from $0.4 million [6]. Management Commentary - Management noted volatility in project delivery timing but emphasized strong quoting and booking activity, which supports a robust backlog [7][11]. - The performance of Nu Aire was highlighted as a key factor offsetting weaknesses in the legacy construction-driven business [8]. Factors Influencing Results - Revenue growth was attributed to higher sales volumes in both Domestic and International segments, with the Nu Aire acquisition contributing significantly [9]. - Profitability pressures stemmed from lower manufacturing volumes in the Domestic business and increased operating expenses related to integration and corporate investments [10]. Future Outlook - Management expects continued volatility in project delivery timing but remains confident in strong backlog levels and sustained demand into fiscal 2027 [11]. - Early repayment of seller notes was noted as a positive development for the balance sheet and potential future acquisitions [11]. Other Developments - The quarter reflected ongoing integration of Nu Aire, with related fees impacting results but at lower levels than the previous year [12].

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]

Core Insights - Harvard Bioscience has expanded its distribution agreement with Fisher Scientific to include the U.S. market, enhancing customer reach and access to its products [1][2][3] - The collaboration aims to improve customer experience through streamlined ordering, faster delivery, and localized support [3] - This strategic move aligns with Harvard Bioscience's mission to provide high-performance instruments that facilitate scientific discovery [2] Company Overview - Harvard Bioscience is a leading developer and manufacturer of technologies and products for life science applications, serving a diverse customer base including academic institutions and pharmaceutical companies [4] - The company operates in the U.S., Europe, and China, utilizing both direct and distribution channels for global sales [4]

Core Insights - Kewaunee Scientific Corporation will participate in the 2025 Arablab Live tradeshow and conference in Dubai from September 23-25 [1] - The company will showcase its integrated expertise in laboratory infrastructure, biosafety, and healthcare environments, alongside its newly acquired subsidiary NuAire and healthcare brand EVERHUTCH [2][4] Company Overview - Kewaunee Scientific Corporation, founded in 1906, is a global leader in designing, manufacturing, and installing laboratory and healthcare furniture products [5] - The company operates manufacturing facilities in Statesville, North Carolina, and Bangalore, India, serving both domestic and international markets [5] Product Offerings - Kewaunee's product range includes steel and wood casework, fume hoods, biological safety cabinets, and epoxy resin work surfaces [5] - The company will highlight its new Revit design tools at the Arablab tradeshow, aimed at enhancing lab planning and architectural precision [3] Subsidiary Information - NuAire, acquired by Kewaunee, specializes in biological safety cabinets and other essential laboratory products, with manufacturing facilities in Minnesota and partnerships in the Netherlands and China [6]

Financial Performance - Revenue decreased by 1% to $59.5 million in FY25 compared to FY24[24] - Net Profit After Tax (NPAT) increased by 17% to $10.4 million in FY25 compared to FY24[24] - The company achieved a record quarterly profit before tax of $4.3 million from revenue of $16.8 million during June Q4[24] - Earnings Per Share (EPS) reached 7.4 cents, and a fully franked dividend of 4.5 cents per share was declared[24] Balance Sheet - Cash and cash equivalents increased by 2% to $12.2 million in 2025[25] - Total assets increased by 7% reaching $72.8 million in 2025[25] - Total equity increased by 8% reaching $60.2 million in 2025[25] Acquisitions - The company acquired the remaining 50% of Orbis Mining on 26 July 2024 for $3.91 million upfront consideration[20] - The company acquired 100% of Labfit on 13 December 2024 for $1.16 million upfront consideration[20] Segment Performance - Consumables sales revenue increased by 2% to $19.3 million in FY25[28] - Precious Metals sales revenue remained flat at $21.5 million in FY25[31] - Capital Equipment sales revenue increased by 4% to $22.6 million in FY25[35]

Core Viewpoint - Kewaunee Scientific Corporation (KEQU) has received an upgrade to "Outperform" due to strong acquisition execution, sustained margin improvement, a record backlog providing revenue visibility, and partial insulation from macroeconomic challenges through healthcare exposure [1]. Acquisition Execution & Strategic Fit - The acquisition of Nu Aire, Inc. in November 2024 has resulted in a 30.7% year-over-year increase in domestic segment sales, reaching $179.4 million in fiscal 2025 [2]. - This acquisition has expanded KEQU's product portfolio to include higher-margin products like biological safety cabinets, CO2 incubators, and ultralow freezers, while also establishing new distribution partners in previously underpenetrated markets [3]. - Integration progress has exceeded expectations, creating early cross-selling opportunities and reinforcing KEQU's position as a full-spectrum laboratory solutions provider [3]. Gross Margin Expansion & Profitability Gains - KEQU's gross margin has expanded by 310 basis points to 28.6% in fiscal 2025 from 25.5% in fiscal 2024, driven by Nu Aire's favorable product mix, operational efficiencies, and disciplined cost control, despite incurring $6 million in one-time integration and purchase accounting expenses [4]. - Adjusted EBITDA increased by 28.4% to $26.5 million, representing 10.9% of sales, indicating the company's ability to convert top-line gains into higher operating leverage [5]. - The annuitization of the company's pension obligation in fiscal 2024 has reduced earnings volatility, providing a cleaner base for future margin expansion [5]. Record Backlog & Revenue Visibility - KEQU has a record backlog of $214.6 million at the end of fiscal 2025, up 37.9% from the previous year, providing exceptional near-term revenue visibility, with management expecting 93% of orders to convert into revenues in fiscal 2026 [6]. - The backlog includes diverse end markets such as healthcare, pharmaceuticals, and education, which helps mitigate cyclicality often seen in the broader construction and industrial sectors [6]. - The healthcare and life sciences sectors, enhanced by Nu Aire's capabilities, have shown greater resilience against macroeconomic uncertainty, providing KEQU with a degree of macro immunity [7]. Conclusion - Kewaunee's transformation following the Nu Aire acquisition, along with strong domestic performance, expanding margins, record backlog, and attractive valuation, supports an Outperform rating [10]. - The company is positioned to deliver above-market returns over the next 12 months, with key catalysts including backlog conversion and incremental synergies from the Nu Aire integration [10].

Financial Data and Key Metrics Changes - Sales for the quarter were $983 million, representing a 2% increase in local currency and a 4% increase on a U.S. dollar reported basis [11] - Adjusted EPS for the quarter was $10.9, a 5% increase over the prior year [15] - Gross margin was 59%, a decrease of 70 basis points due to tariff costs and lower volume [13] Business Line Data and Key Metrics Changes - Laboratory sales increased by 1%, while industrial sales increased by 4%, with core industrial up 2% and product inspection up 8% [12] - Food retail sales were flat for the quarter [28] - Service business grew by 4% in the quarter and 5% year-to-date [30] Market Data and Key Metrics Changes - Local currency sales increased by 3% in The Americas, were flat in Europe, and increased by 3% in Asia Rest of the World [12] - Local currency sales in China declined by 2% during the quarter [12] Company Strategy and Development Direction - The company is focused on leveraging its innovative product portfolio and strategic programs to navigate uncertain market conditions [8] - There is an emphasis on capitalizing on onshoring investments and the demand for automation and productivity solutions [27][32] - The company anticipates growth opportunities from the replacement cycle of aging equipment as market conditions stabilize [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in mitigating tariff impacts and expects to fully offset these costs next year [10][20] - The outlook for the second half of the year remains cautious, with expectations of stable demand in China and mixed conditions in the laboratory sector [44] - Management noted that geopolitical tensions and trade disputes continue to create uncertainty in the market [20] Other Important Information - The company expects local currency sales to grow approximately 3% to 4% for the full year 2025 [21] - Adjusted EPS guidance for 2025 is in the range of $10.55 to $10.75, reflecting a growth rate of 3% to 5% [22] - The effective tax rate is expected to remain at 19% for 2025 [24] Q&A Session Summary Question: Impact of Swiss tariffs on EPS guidance - Management indicated that the gross headwind from the Swiss tariffs is approximately $0.40, and they are working on mitigation actions for next year [36][38] Question: Demand visibility in China - Management noted that while there is some stabilization, underlying market conditions remain soft, and they have not factored in potential stimulus [40][45] Question: Strength in product inspection - Management highlighted that new product innovations have led to market share gains and they expect continued growth in this segment [48][51] Question: Service business timing issues - Management explained that timing issues in Q2 were project-related, but they remain optimistic about growth in the second half of the year [75][78] Question: Replacement cycle dynamics - Management discussed pent-up demand for equipment replacement and indicated that while there may not be a snapback, there will be an acceleration as market confidence returns [99][101]

Core Insights - Scientific Industries, Inc. reported a 5% revenue growth in its Benchtop Lab Equipment Operations for Q1 2025, driven by the Genie and Torbal Divisions, with a notable increase in US-based customers [4][5][6] - Overall revenue for the first quarter decreased by 3% due to a significant decline in international sales, which fell by 33% [4][6] - The company secured $1.5 million in equity financing and reported a decreased net loss of $1.78 million, improving from a loss of $2.05 million in the same period last year [5][9] Financial Overview - Net revenues for Q1 2025 totaled $2.41 million, down from $2.48 million in Q1 2024, primarily due to a $182,600 decrease in Bioprocessing Systems Operations revenues [6][17] - Benchtop Laboratory Equipment revenues increased to $2.3 million, a 5% rise compared to $2.2 million in the prior year [5][17] - Bioprocessing Systems Operations revenues decreased by 58% to $133,500 from $316,100 in the previous year [5][17] Profitability Metrics - Gross profit for Q1 2025 was $1.02 million, slightly down from $1.04 million in Q1 2024, with a gross margin of 42.2%, up from 41.9% [7][17] - Operating expenses decreased by 9.7% to $2.83 million, attributed to cost-cutting measures implemented in fiscal 2024 [8][17] - The company reported a basic and diluted loss per share of $0.16, an improvement from $0.20 in the same quarter last year [9][17] Strategic Developments - The company is planning to scale its DOTS platform with the launch of a new optical pH sensor and high-performance liquid injection system in the second half of 2025 [4] - A peer-reviewed publication validated the DOTS Multiparameter platform, confirming its sensitivity and reliability compared to industry standards [4][5]

Core Points - Scientific Industries, Inc. will file a Form 10Q and issue a press release regarding its first quarter financial results for the period ending March 31, 2025, after the market close on May 13, 2025 [1] - A conference call is scheduled for May 14, 2025, at 11:00 AM Eastern Time to discuss the financial results [2] Company Overview - Scientific Industries, Inc. is a life science tool provider that designs, manufactures, and markets laboratory equipment, including the Vortex-Genie 2 Mixer and Torbal balances, as well as bioprocessing systems under the product name DOTS [4] - The company's products are primarily used for research purposes in laboratories across universities, hospitals, pharmaceutical companies, medical device manufacturers, and pharmacies [4] Subsidiary Information - Scientific Bioprocessing, Inc. (SBI), a subsidiary of Scientific Industries, focuses on digitally simplified bioprocessing, offering bioprocess sensors, actuators, and data analytics software to help monitor and control critical process parameters and product quality [5]