Kewaunee Scientific (KEQU) Announces Earnings Results For Second Quarter Of Fiscal Year 2026

Kewaunee Scientific Corporation (KEQU) today announced its financial results for the most recent quarter. The company reported earnings per share of $0.82, surpassing analysts’ expectations by $0.82. However, Kewaunee’s revenue for the quarter came in at $70.1 million, falling short of the estimated $73.4 million.

Key Highlights:

• Sales for Q2 FY 2026 increased by 46.8% to $70.1 million compared to $47.8 million in Q2 FY 2025.
• Pre-tax earnings decreased by 12.2% to $3.45 million, while net earnings were $2.45 million, down from $3.01 million in the prior year.
• Domestic sales rose by 51.7% to $55.2 million, while international sales increased by 31.0% to $14.9 million.
• The company’s order backlog was $192.9 million, up from $184.4 million a year ago.
• The acquisition of Nu Aire, Inc. contributed positively to the financial performance, despite challenges in the laboratory construction segment.
• CEO Thomas D. Hull III noted ongoing volatility in project delivery timelines but expressed confidence in strong demand and quoting activity.

Kewaunee Scientific Corporation reported robust sales growth in its second quarter of fiscal year 2026, with total sales reaching $70.1 million, a significant increase from the previous year’s $47.8 million. The domestic segment saw a remarkable 51.7% rise in sales, attributed to strong performance from the recently acquired Nu Aire, Inc. However, the company faced a decline in pre-tax and net earnings, which were impacted by lower manufacturing volumes in the laboratory construction sector. The order backlog remains strong at $192.9 million, indicating a healthy pipeline for future projects.

In his remarks, CEO Thomas D. Hull III acknowledged the volatility in project delivery timelines but emphasized the company’s strong quoting and booking activity, which supports a positive outlook for the remainder of the fiscal year. He stated, “Our quoting and booking activity remain strong, which is reflected in our backlog that remains near record levels.” Hull also highlighted the strategic importance of the Nu Aire acquisition in diversifying Kewaunee’s offerings and enhancing its market position, reinforcing the company’s commitment to long-term growth and value creation.

Kewaunee Scientific Corporation (KEQU) has experienced a rollercoaster of price changes recently, with a notable 1.76% increase over the past week, suggesting a potential rebound after a challenging few months. However, the stock has seen a significant decline of 27.76% over the last three months, raising concerns among investors about its short-term performance. Despite these fluctuations, KEQU boasts a commendable price-to-earnings ratio of 9.80, indicating that the stock may be undervalued relative to its earnings potential. The company has demonstrated impressive growth with a two-year compound annual growth rate (CAGR) of 74.96% in earnings per share, alongside a solid revenue CAGR of 9.57%. Furthermore, Kewaunee’s return on invested capital stands at 14.87%, reflecting efficient use of capital to generate profits. However, the net profit margin of 4.74% suggests there is room for improvement in profitability. As the market digests these mixed signals, investors will be keenly watching how Kewaunee navigates its financial landscape in the coming quarters.

Kewaunee Scientific Corporation designs, manufactures, and installs laboratory, healthcare, and technical furniture and infrastructure products. It operates through two segments, Domestic and International. The company’s products include steel, wood, laminate furniture, fume hoods, biological safety cabinets, laminar flow and ductless hoods, adaptable modular and column systems, moveable workstations and carts, epoxy resin worksurfaces, sinks, and accessories and related design services. Its laboratory products are used in chemistry, physics, biology, and other general science laboratories in the pharmaceutical, biotechnology, industrial, chemical, commercial, educational, government, and health care markets; technical products are used in facilities manufacturing computers and light electronics and by users of computer and networking furniture; and laminate caseworks that are used in educational, healthcare, and industrial applications. The company sells its products primarily through dealers, its subidiaries, and a national distributor. Kewaunee Scientific Corporation was founded in 1906 and is headquartered in Statesville, North Carolina.