STATESVILLE, N.C., Aug. 27, 2025 /PRNewswire/ -- Kewaunee Scientific Corporation (NASDAQ: KEQU) today announced that the Company plans to release its first quarter fiscal year 2026 financial results on Wednesday, September 10, 2025 after the close of trading. This information will be available on the Company's website www.kewaunee.com after the release. Contact: Donald T. Gardner III 704/871-3274 Founded in 1906, Kewaunee Scientific Corporation is a recognized global leader in the design, manufacture, and i ...

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].