EX-99.1 2 prfy26q3earningsrelease.htm EX-99.1 Document

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Kewaunee Scientific Reports
Results for Third Quarter of Fiscal Year 2026

Exchange:    NASDAQ (KEQU)                Contact:    Donald T. Gardner III
                                    704/871-3274

STATESVILLE, N.C. March 11, 2026 – PRNewswire / Kewaunee Scientific Corporation (NASDAQ: KEQU) today announced results for its third quarter ended January 31, 2026.

Fiscal Year 2026 Third Quarter Results:

Sales during the third quarter of fiscal year 2026 were $69,399,000, an increase of 3.3% compared to sales of $67,167,000 from the prior year's third quarter. Pre-tax earnings for the quarter were $1,604,000 compared to $1,275,000 for the prior year quarter, an increase of 25.8%. Net earnings were $692,000 compared to net earnings of $1,354,000 for the prior year quarter. EBITDA1 for the quarter was $3,795,000 compared to $3,734,000 for the prior year quarter. Diluted earnings per share were $0.23 compared to diluted earnings per share of $0.45 in the prior year quarter.

The Company’s order backlog was $183.2 million on January 31, 2026, as compared to $221.6 million on January 31, 2025, and $214.6 million on April 30, 2025.

Domestic Segment - Domestic sales for the quarter were $50,953,000, a decrease of 2.0% from sales of $51,976,000 in the prior year quarter. Domestic segment net earnings were $2,290,000 compared to $2,876,000 in the prior year quarter. Domestic segment EBITDA was $4,096,000 compared to $5,249,000 for the prior year quarter. Segment profitability was impacted during the period by lower manufacturing volumes across the laboratory construction portion of the business.

International Segment - International sales for the quarter were $18,446,000, an increase of 21.4% from sales of $15,191,000 in the prior year quarter. International segment net earnings were $1,256,000 compared to $476,000 in the prior year quarter. International segment EBITDA was $1,963,000 compared to $760,000 for the prior year quarter. International profitability increased when compared to the prior year period due to higher billings, principally in the Indian market.

Corporate Segment – Corporate segment pre-tax net loss was $3,059,000 for the quarter, as compared to a pre-tax net loss of $3,025,000 in the prior year quarter. Corporate segment EBITDA for the quarter was ($2,264,000) compared to corporate segment EBITDA of ($2,275,000) for the prior year quarter. Corporate segment EBITDA remained relatively flat as the Company continues to make strategic investments in people, processes, and technology to further build out its Corporate platform and support continued growth.

1 EBITDA is a non-GAAP financial measure. See the table below for a reconciliation of EBITDA and segment EBITDA to net earnings (loss), the most directly comparable GAAP measure.

CORPORATE OFFICES ● P. O. BOX 1842, STATESVILLE, NORTH CAROLINA 28687-1842 ● 2700 WEST FRONT STREET, STATESVILLE, NORTH CAROLINA 28677-2927
PHONE 704-873-7202 ● FAX 704-873-1275

Total cash on hand on January 31, 2026, was $10,347,000, as compared to $17,164,000 on April 30, 2025. Working capital was $54,793,000, as compared to $58,441,000 at the end of the third quarter last year and $64,651,000 on April 30, 2025.

The Company had short-term debt of $7,351,000 as of January 31, 2026, as compared to $4,773,000 on April 30, 2025. Long-term debt was $42,316,000 on January 31, 2026, as compared to $60,730,000 on April 30, 2025. The building lease from the Company's December 2021 sale-leaseback transaction accounts for $25,988,000 of the long-term debt on January 31, 2026, and $26,632,000 of the long-term debt on April 30, 2025. Long-term debt, net of the sale-leaseback transaction, was $16,328,000 on January 31, 2026, as compared to $34,098,000 on April 30, 2025. The Company’s debt-to-equity ratio on January 31, 2026, was 0.68-to-1, as compared to 0.99-to-1 on April 30, 2025. The Company's debt-to-equity ratio, net of the sale-leaseback transaction, on January 31, 2026, was 0.31-to-1, as compared to 0.57-to-1 on April 30, 2025.

"Following the successful turnaround of the business, we embarked on a strategy that accelerated inorganic growth, which led to the successful completion of the Company's acquisition of Nu Aire," said Thomas D. Hull III, Kewaunee's President and Chief Executive Officer. "Since then, our teams have worked diligently to integrate Nu Aire into the Kewaunee family and position the business for meaningful growth and EBITDA contribution. We have also continued to invest in our corporate platform to support the next phase of our inorganic growth strategy. These investments include strengthening our corporate team, implementing a robust financial consolidation system, and enhancing our readiness to comply with the SEC's accelerated reporting requirements."

"As is traditionally the case," Hull continued, "our third quarter results often represent our softest quarter due to the impact of the holiday schedule in the United States, a general slowdown of construction schedules in the winter months, and customers looking to wrap up any construction projects before the calendar year-end. This trend was further exacerbated by significant geopolitical and economic uncertainty, and by the volatility in project delivery timelines that we have previously discussed. Although the construction-related portion of our business has been soft this fiscal year, the addition of Nu Aire's end-user containment products has helped offset that softness. This dynamic validates our growth and diversification strategy and underscores the strength and resilience of our now broader laboratory products portfolio."

"I am proud of how our team has responded to a year of challenging global dynamics. That our company was still able to deliver year-over-year growth on an as-reported basis underscores the value of our strategy and our commitment to long-term value creation."


EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA Reconciliation
(Unaudited)
($ in thousands)
Quarter Ended January 31, 2025DomesticInternationalCorporateConsolidated
Net Earnings (Loss)$2,876 $476 $(1,998)$1,354 
Add/(Less):
Interest Expense322 26 789 1,137 
Interest Income(1)(130)(81)(212)
Income Taxes638 281 (1,027)(108)
Depreciation and Amortization1,414 107 42 1,563 
EBITDA$5,249 $760 $(2,275)$3,734 
Professional Fees21,012 — 982 1,994 
Adjusted EBITDA$6,261 $760 $(1,293)$5,728 
Quarter Ended January 31, 2026DomesticInternationalCorporateConsolidated
Net Earnings (Loss)$2,290 $1,256 $(2,854)$692 
Add/(Less):
Interest Expense307 16 789 1,112 
Interest Income(2)(117)(15)(134)
Income Taxes22 711 (205)528 
Depreciation and Amortization1,479 97 21 1,597 
EBITDA$4,096 $1,963 $(2,264)$3,795 
Professional & Other Fees3— — 189 189 
Adjusted EBITDA$4,096 $1,963 $(2,075)$3,984 
Year to Date January 31, 2025DomesticInternationalCorporateConsolidated
Net Earnings (Loss)$10,271 $1,295 $(5,011)$6,555 
Add/(Less):
Interest Expense1,176 66 809 2,051 
Interest Income(1)(437)(410)(848)
Income Taxes2,643 807 (2,450)1,000 
Depreciation and Amortization2,736 317 131 3,184 
EBITDA$16,825 $2,048 $(6,931)$11,942 
Professional & Other Fees2
1,012 — 3,253 4,265 
Adjusted EBITDA$17,837 $2,048 $(3,678)$16,207 
Year to Date January 31, 2026DomesticInternationalCorporateConsolidated
Net Earnings (Loss)$10,609 $2,540 $(6,919)$6,230 
Add/(Less):
Interest Expense931 39 2,261 3,231 
Interest Income(4)(428)(54)(486)
Income Taxes2,482 1,435 (1,713)2,204 
Depreciation and Amortization4,366 292 68 4,726 
EBITDA$18,384 $3,878 $(6,357)$15,905 
Professional & Other Fees3
— — 763 763 
Adjusted EBITDA$18,384 $3,878 $(5,594)$16,668 

2 Professional and other fees incurred during the three and nine months ended January 31, 2025 related to the Company's acquisition of Nu Aire, Inc. ("Nu Aire"), which closed on November 1, 2024
3 Professional and other fees incurred during the three and nine months ended January 31, 2026 related to the Company's integration of its newly acquired subsidiary, Nu Aire


Adjusted Consolidated Statement of Operations Reconciliation
(Unaudited)
($ in thousands, except per share amounts)
 Three Months Ended January 31,
 As Reported 2026
Professional & Other Fees4
Adjusted
2026		Adjusted 2025
Net sales$69,399 $— $69,399 $67,167 
Cost of products sold50,854 — 50,854 47,934 
Gross profit18,545 — 18,545 19,233 
Operating expenses15,963 189 15,774 14,469 
Operating profit2,582 189 2,771 4,764 
Other income, net
134 — 134 162 
Interest expense(1,112)— (1,112)(1,137)
Profit before income taxes1,604 189 1,793 3,789 
Income tax (benefit) expense
528 44 572 502 
Net earnings1,076 145 1,221 3,287 
Less: Net earnings attributable to the non-controlling interest384 — 384 29 
Net earnings attributable to Kewaunee Scientific Corporation$692 $145 $837 $3,258 
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders
Basic$0.24 $0.05 $0.29 $1.13 
Diluted$0.23 $0.05 $0.28 $1.09 
 Nine Months Ended January 31,
 As Reported 2026
Professional & Other Fees4
Adjusted
2026		Adjusted 2025
Net sales$210,599 $— $210,599 $163,324 
Cost of products sold151,404 — 151,404 117,651 
Gross profit59,195 — 59,195 45,673 
Operating expenses47,696 763 46,933 31,954 
Operating profit11,499 763 12,262 13,719 
Other income, net
709 — 709 752 
Interest expense(3,231)— (3,231)(2,051)
Profit before income taxes8,977 763 9,740 12,420 
Income tax (benefit) expense
2,204 174 2,378 2,161 
Net earnings6,773 589 7,362 10,259 
Less: Net earnings attributable to the non-controlling interest543 — 543 81 
Net earnings attributable to Kewaunee Scientific Corporation$6,230 $589 $6,819 $10,178 
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders
Basic$2.18 $0.21 $2.38 $3.55 
Diluted$2.09 $0.20 $2.29 $3.42 
4 Professional and other fees incurred during the three and nine months ended January 31, 2026 related to the Company's integration of its newly acquired subsidiary, Nu Aire, including the estimated tax impact


About Non-GAAP Measures

The Company includes non-GAAP financial measures such as adjusted net earnings and adjusted net earnings per share, in the information provided with this press release as supplemental information relating to its operating results. Adjusted net earnings represents GAAP net earnings adjusted for professional and other fees related to the integration of the Company's newly acquired subsidiary, Nu Aire, Inc., and the corresponding tax impact. This financial information is not in accordance with, or an alternative for, GAAP-compliant financial information and may be different from the operating or non-GAAP financial information used by other companies. The Company believes that this presentation of adjusted net earnings and adjusted net earnings per share provides useful information to investors regarding certain additional financial and business trends relating to its financial condition and results of operations.

EBITDA and Segment EBITDA are calculated as net earnings (loss), less interest expense and interest income, income taxes, depreciation, and amortization. Adjusted EBITDA and Adjusted Segment EBITDA are calculated as EBITDA or Segment EBITDA less the impact of the professional and other fees related to the Company's integration of its newly acquired subsidiary, Nu Aire, Inc., as discussed in more detail above. We believe EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA allow management and investors to compare our performance to other companies on a consistent basis without regard to interest expense and interest income, income taxes, depreciation, amortization or the costs incurred related to the integration of Nu Aire, Inc., which can vary significantly between companies depending upon many factors. EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA are not calculations based upon generally accepted accounting principles, and the method for calculating EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA can vary among companies. The amounts included in the EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA calculations, however, are derived from amounts included in the historical consolidated statements of operations. EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA should not be considered as alternatives to net earnings (loss) or operating earnings (loss) as an indicator of the Company’s operating performance, or as an alternative to operating cash flows as a measure of liquidity.

About Kewaunee Scientific

Founded in 1906, Kewaunee Scientific Corporation is a recognized global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products. The Company’s products include steel and wood casework, fume hoods, adaptable modular systems, moveable workstations, stand-alone benches, biological safety cabinets, and epoxy resin work surfaces and sinks. The Company’s corporate headquarters are located in Statesville, North Carolina. Sales offices are located in the United States, India, Saudi Arabia, and Singapore. Three manufacturing facilities are located in Statesville serving the domestic and international markets, and one manufacturing facility is located in Bangalore, India serving the local, Asian, and African markets. 

Kewaunee Scientific's newly acquired subsidiary, Nu Aire, is a leading manufacturer of biological safety cabinets, CO2 incubators, ultralow freezers, and other essential laboratory products that complement the Kewaunee Scientific portfolio. Founded in 1971, Nu Aire's headquarters and manufacturing facilities are located in Plymouth, Minnesota, with additional manufacturing capabilities located in Long Lake, Minnesota. The Company also maintains a warehouse partnership in the Netherlands and OEM partnerships in China.

Learn more at the companies' websites, located at https://www.kewaunee.com and https://www.nuaire.com/.

This press release contains statements that the Company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All


statements other than statements of historical fact included in this press release, including statements regarding the Company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors that could significantly impact results or achievements expressed or implied by such forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to: our ability to realize the benefits anticipated as a result of the Nu Aire acquisition; competitive and general economic conditions, including disruptions from government mandates, both domestically and internationally, as well as supplier constraints and other supply disruptions; changes in customer demands; technological changes in our operations or in our industry; dependence on customers’ required delivery schedules; risks related to fluctuations in the Company’s operating results from quarter to quarter; risks related to international operations, including foreign currency fluctuations; changes in the legal and regulatory environment; changes in raw materials and commodity costs; acts of terrorism, war, governmental action, and natural disasters and other Force Majeure events. The cautionary statements made pursuant to the Reform Act herein and elsewhere by us should not be construed as exhaustive. We cannot always predict what factors would cause actual results to differ materially from those indicated by the forward-looking statements. Over time, our actual results, performance, or achievements will likely differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, and such difference might be significant and harmful to our stockholders’ interest. Many important factors that could cause such a difference are described under the caption “Risk Factors,” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended April 30, 2025, which you should review carefully, and in our subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. These reports are available on our investor relations website at www.kewaunee.com and on the SEC website at www.sec.gov. These forward-looking statements speak only as of the date of this document. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.



Kewaunee Scientific Corporation
Condensed Consolidated Statements of Operations
(Unaudited)
($ and shares in thousands, except per share amounts)

 Three Months Ended
January 31,		Nine Months Ended
January 31,
 2026202520262025
Net sales$69,399 $67,167 $210,599 $163,324 
Cost of products sold50,854 48,788 151,404 118,505 
Gross profit18,545 18,379 59,195 44,819 
Operating expenses15,963 16,129 47,696 35,560 
Operating profit2,582 2,250 11,499 9,259 
Other income, net
134 162 709 428 
Interest expense(1,112)(1,137)(3,231)(2,051)
Profit before income taxes1,604 1,275 8,977 7,636 
Income tax expense (benefit)
528 (108)2,204 1,000 
Net earnings1,076 1,383 6,773 6,636 
Less: Net earnings attributable to the non-controlling interest384 29 543 81 
Net earnings attributable to Kewaunee Scientific Corporation
$692 $1,354 $6,230 $6,555 
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders
Basic$0.24 $0.47 $2.18 $2.29 
Diluted$0.23 $0.45 $2.09 $2.20 
Weighted average number of common shares outstanding
Basic2,866 2,872 2,861 2,864 
Diluted2,983 2,995 2,979 2,979 




Kewaunee Scientific Corporation
Condensed Consolidated Balance Sheets
($ in thousands)

January 31, 2026April 30, 2025
 (Unaudited)
Assets
Cash and cash equivalents$8,153 $14,942 
Restricted cash2,194 2,222 
Receivables, less allowances54,131 62,384 
Inventories32,907 32,849 
Prepaid expenses and other current assets6,193 5,966 
Total Current Assets103,578 118,363 
Net property, plant and equipment
22,610 23,174 
Right of use assets10,449 12,965 
Deferred income taxes3,570 3,994 
Net intangible assets
16,679 17,831 
Goodwill
12,487 12,487 
Other assets6,588 5,840 
Total Assets$175,961 $194,654 
Liabilities and Stockholders' Equity
Short-term borrowings$1,542 $986 
Current portion of lease obligations3,248 3,371 
Current portion of financing liability847 788 
Current portion of term loans
4,893 2,903 
Accounts payable23,641 27,033 
Other current liabilities
14,614 18,631 
Total Current Liabilities48,785 53,712 
Long-term portion of lease obligations6,796 8,946 
Long-term portion of financing liability25,988 26,632 
Long-term portion of seller note
— 23,537 
Long-term portion of term loans
16,028 10,412 
Other non-current liabilities5,836 5,170 
Total Liabilities103,433 128,409 
Kewaunee Scientific Corporation Equity70,675 64,457 
Non-controlling interest1,853 1,788 
Total Stockholders' Equity72,528 66,245 
Total Liabilities and Stockholders' Equity$175,961 $194,654