Kewaunee Scientific Q1 Revenue Jumps 47%

Key Points

• Revenue increased 46.9%, reflecting contributions from the Nu Aire acquisition and growth across both Domestic and International segments.

• Adjusted EBITDA rose 61.5%. Net profit climbed 41.0%.

• Order backlog reached $205.0 million as of July 31, 2025, up 28.6% compared to July 31, 2024, but management expects project timing to create uneven results ahead.

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Kewaunee Scientific (NASDAQ:KEQU), a manufacturer of laboratory furniture and technical products, released its fiscal first quarter 2026 earnings on September 10, 2025. The quarter brought headline year-over-year revenue growth and higher profits, supported by the completed acquisition of Nu Aire. Management noted order backlog remains elevated, but flagged anticipated variability in project delivery for the rest of the year. Overall, the company reported substantial top-line gains, expanding order pipeline, and continued investment in corporate platforms and integration.

Business Overview and Company Focus

Kewaunee Scientific develops, manufactures, and installs laboratory furniture systems used in research, education, healthcare, and industrial environments. Its portfolio includes steel and wood casework (furniture built into laboratory spaces), fume hoods (ventilation enclosures for lab chemicals), and technical equipment for controlled environments.

The company's growth strategy focuses on securing public and private contracts, expanding its international presence, and entering adjacent product categories. Key success factors include competitive bidding strength, strong customer service, and the ability to manage complex, project-based delivery schedules for new construction and renovations. The recent Nu Aire acquisition adds biological safety cabinets, carbon dioxide (CO₂) incubators, and ultralow freezers, further diversifying Kewaunee’s product mix and reach.

Quarterly Highlights: Revenue, Profitability, and Business Drivers

During Q1 FY2026, Kewaunee Scientific recorded revenue of $71.1 million, a 46.9% increase versus the prior year. This growth reflects the consolidation of Nu Aire results. Domestic segment sales contributed the majority with $54.4 million, up 53.0% compared to the prior year, while International sales reached $16.8 million, up 30.2% year over year.

Net profit attributable to Kewaunee Scientific rose to $3.1 million, up 41% compared to the prior year. Diluted EPS climbed to $1.04 from $0.74. Adjusted EBITDA, which excludes some acquisition integration costs and other non-routine items, rose by 61.5% compared to the prior year. Gross profit margin increased to 29.4% for the first quarter of fiscal year 2026, compared to 25.8% for the first quarter of fiscal year 2025.

The Domestic segment benefited from both higher sales and margin improvements driven by manufacturing productivity and continued cost control. Management highlighted the inclusion of Nu Aire's offerings as a major factor in the strong Domestic results, alongside improved operational efficiencies. In the International segment, sales growth accelerated as previous delays in client construction sites began to ease, supporting greater project deliveries and billings.

The Corporate segment recorded a wider pre-tax loss of $3.1 million compared to a $2.0 million loss in the prior year period. The increase relates largely to higher investment in Kewaunee’s corporate infrastructure and ongoing costs from integrating the new Nu Aire subsidiary. Integration expenses for Nu Aire added $224,000 to current quarter costs, and management indicated that while some expenses are non-recurring, many will continue as it scales operations. There were no one-time gains or losses reported that would materially distort results, outside of the Nu Aire acquisition costs already noted.

Business Outlook and Investor Watchpoints

Management did not issue explicit revenue or EPS guidance for the coming quarters or fiscal year. However, it stated that consolidated EBITDA (non-GAAP) for FY2026 is expected to surpass the figure achieved in FY2025, despite near-term fluctuations due to uneven project delivery and higher ongoing corporate investment. The company also pointed to continued volatility in order delivery schedules tied to its project-based business model, which it expects will cause performance to vary from quarter to quarter.

The company's $205.0 million backlog at the end of the quarter is historically strong, though down from $214.6 million at the prior quarter-end. Management emphasized the unpredictability in project timing, citing uncertain government and regulatory environments, as factors that may impact short-term performance. Investors are likely to track order backlog movements, integration expense trends, and whether the profitability gains seen this quarter can continue as Kewaunee Scientific further absorbs Nu Aire operations and invests in longer-term infrastructure.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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