Kewaunee Scientific Corporation Reports 18% Revenue Growth to $240.5 Million for Fiscal Year Ending April 30, 2025

Kewaunee Scientific Corporation reported a significant increase in financial performance for the fiscal year ending April 30, 2025, with total sales reaching $240.5 million, up from $203.8 million in the previous year, marking a 18% increase. The domestic segment saw a notable rise in sales, contributing $179.4 million, a 30.7% increase compared to $137.2 million in fiscal year 2024. This growth was primarily driven by the acquisition of Nu Aire, Inc., which was completed on November 1, 2024. However, the international segment experienced a decline, with sales dropping 8.2% to $61.1 million from $66.5 million, attributed to delays in customer site readiness in India.

The acquisition of Nu Aire, a manufacturer of laboratory equipment, has expanded Kewaunee's product offerings and market reach. The total purchase price for Nu Aire was approximately $55 million, funded through a combination of cash and subordinated seller notes. This strategic move is expected to enhance Kewaunee's capabilities in laboratory furnishings and accelerate its growth trajectory in the market. The integration of Nu Aire's operations is ongoing, and the company anticipates realizing synergies that will further bolster its financial performance.

Kewaunee's order backlog as of April 30, 2025, stood at $214.6 million, a substantial increase from $155.6 million a year earlier, indicating strong future revenue potential. The gross profit margin improved to 28.6% from 25.5% in the previous year, largely due to enhanced manufacturing productivity and effective cost management. Operating expenses rose to $51.1 million from $33.8 million, primarily due to costs associated with the Nu Aire acquisition and increased professional fees.

The company reported net earnings of $11.4 million, or $3.83 per diluted share, down from $18.8 million, or $6.38 per diluted share, in the prior year. This decrease in net earnings was influenced by higher interest expenses, which rose to $3.2 million from $1.8 million, reflecting increased borrowing levels related to the acquisition. Kewaunee's liquidity position remains strong, with working capital increasing to $64.7 million, and no advances outstanding under its $20 million revolving credit facility as of April 30, 2025.

Looking ahead, Kewaunee Scientific Corporation remains optimistic about its growth prospects, driven by a healthy order backlog and the successful integration of Nu Aire. The company anticipates continued demand for its products in laboratory and healthcare construction projects, although it acknowledges potential challenges related to market conditions and raw material costs. The management is focused on leveraging its expanded capabilities to enhance its competitive position in the market.