Kewaunee Scientific Corporation Reports Revenue Increase to $69.4 Million in Third Quarter

Kewaunee Scientific Corporation reported its financial results for the third quarter and nine months ended January 31, 2026, showing a notable increase in revenue and profitability compared to the previous fiscal period. The company achieved net sales of $69.4 million for the quarter, up from $67.2 million in the same period last year, and $210.6 million for the nine months, a significant rise from $163.3 million. The gross profit for the quarter was $18.5 million, yielding a gross profit margin of 26.7%, slightly down from 27.4% in the prior year. For the nine-month period, gross profit increased to $59.2 million, with a margin of 28.1%, compared to 27.4% in the previous year.

The increase in sales was primarily driven by the acquisition of Nu Aire, which Kewaunee completed on November 1, 2024, for $55 million. This acquisition has expanded Kewaunee's product offerings in laboratory equipment, contributing to a 29.6% increase in domestic sales for the nine-month period. International sales also saw a 27% increase, reaching $50.1 million, largely due to higher billings in the Indian market. However, domestic sales for the quarter experienced a slight decline of 2%, reflecting a challenging market environment.

Operationally, Kewaunee's order backlog stood at $183.2 million as of January 31, 2026, down from $221.6 million a year earlier. The company reported a decrease in cash and cash equivalents to $8.2 million from $14.9 million at the end of the previous fiscal year. The total assets decreased to $176 million, while total liabilities also fell to $103.4 million. The company’s employee headcount remained stable, with approximately 2,866,000 shares of common stock outstanding.

Looking ahead, Kewaunee anticipates continued volatility in project delivery and construction schedules, particularly during the winter months. The company remains focused on leveraging the Nu Aire acquisition to enhance its market position and diversify its product offerings. Kewaunee's management expressed confidence in its strategic investments and operational capabilities to support growth, despite the uncertainties in the broader economic landscape. The company is committed to maintaining its focus on innovation and customer service to navigate the challenges ahead.