Kewaunee Scientific Corporation reported significant financial growth for the first quarter of fiscal year 2026, ending July 31, 2025, with net sales reaching $71.1 million, a 47% increase from $48.4 million in the same period last year. The company's gross profit also saw a substantial rise, climbing to $20.9 million, compared to $12.5 million in the prior year, resulting in a gross profit margin of 29.4%, up from 25.8%. Net earnings attributable to Kewaunee Scientific Corporation were $3.1 million, or $1.04 per diluted share, compared to $2.2 million, or $0.74 per diluted share, in the previous year.
The increase in revenue was primarily driven by the acquisition of Nu Aire, Inc., completed on November 1, 2024, which contributed $19.7 million in revenue during the quarter. Domestic sales surged by 53% to $54.4 million, while international sales increased by 30.2% to $16.8 million, reflecting the commencement of large projects booked in the previous fiscal year. The company's order backlog stood at $205 million, up from $159.4 million a year earlier, indicating strong demand for its products.
Operating expenses rose to $16.1 million, or 22.7% of sales, compared to $9.9 million, or 20.5% of sales, in the prior year. This increase was largely attributed to the integration of Nu Aire and higher international operating expenses. Interest expense also increased to $1.1 million from $472,000, reflecting higher borrowing levels. The effective income tax rate for the quarter was 19.4%, significantly higher than the 7.9% rate in the previous year, influenced by the tax implications of foreign operations and a discrete tax benefit from stock issuance.
Kewaunee's strategic focus remains on growth through both organic and inorganic means, with plans to invest in technology and processes to support this expansion. The company is optimistic about its future, despite potential market volatility and uncertainties surrounding government policies and raw material costs. Management believes that the strong backlog and recent acquisitions position the company well to navigate short-term challenges while maintaining long-term growth.
About KEWAUNEE SCIENTIFIC CORP /DE/
Kewaunee Scientific Corporation designs, manufactures, and installs laboratory, healthcare, and technical furniture and infrastructure products. Its offerings include steel and wood casework, fume hoods, safety cabinets, incubators, and freezers. Serving global markets in pharmaceuticals, biotech, education, and healthcare, the company leverages a diversified product portfolio, international subsidiaries, and strategic acquisitions to meet the needs of laboratory and research facilities worldwide.
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