Kewaunee Scientific Net Sales Climb 29% to $210.6M in Nine Months Ended January 31

Kewaunee Scientific Corporation (NASDAQ: KEQU), a manufacturer of laboratory furniture and equipment, reported net sales of $210.6 million for the nine months ended January 31, 2026, a 29% increase from $163.3 million in the same period a year ago. The company posted net earnings attributable to shareholders of $6.2 million, down 5% from $6.6 million in the prior-year period. Read more earnings reports.

For the third quarter ended January 31, 2026, net sales totaled $69.4 million, up 3% from $67.2 million in the same quarter last year. Net earnings attributable to Kewaunee came in at $692,000, a 49% decline from $1.4 million in the third quarter of fiscal 2025.

Nine-Month Performance

Operating profit for the nine-month period reached $11.5 million, compared to $9.3 million in the prior year. Gross profit expanded to $59.2 million from $44.8 million, reflecting a gross margin improvement driven by higher sales volume. Cost of products sold rose to $151.4 million from $118.5 million.

Operating expenses climbed to $47.7 million from $35.6 million in the year-earlier period. Interest expense increased sharply to $3.2 million from $2.1 million, reflecting higher debt levels. Income tax expense totaled $2.2 million, up from $1.0 million a year ago.

Third Quarter Results

In the third quarter, operating profit was $2.6 million, compared to $2.3 million in the prior-year quarter. Gross profit held steady at $18.5 million versus $18.4 million. Interest expense declined slightly to $1.1 million from $1.1 million.

The company recorded income tax expense of $528,000 in the quarter, compared to a tax benefit of $108,000 in the same quarter last year. Net earnings attributable to non-controlling interests rose to $384,000 from $29,000, reflecting increased profitability in joint ventures.

Earnings Per Share

Diluted earnings per share for the nine months ended January 31, 2026, totaled $2.09, down from $2.20 in the prior-year period. For the third quarter, diluted earnings per share came in at $0.23, compared to $0.45 a year earlier.

Balance Sheet and Cash Flow

Cash and cash equivalents stood at $8.2 million as of January 31, 2026, down from $14.9 million at April 30, 2025. Total assets declined to $176.0 million from $194.7 million. Long-term debt, including seller notes and term loans, totaled $21.3 million, down from $37.7 million at the end of the prior fiscal year.

The company generated $13.2 million in cash from operating activities during the nine months, compared to $5.4 million in the prior-year period. Capital expenditures totaled $3.0 million, up from $1.7 million. The company paid down $23.0 million in seller notes during the period.

Segment Performance

Domestic operations reported revenues from external customers of $160.5 million for the nine months, while international operations contributed $50.1 million. Domestic segment earnings before income taxes totaled $13.1 million for the nine-month period.

Total stockholders' equity rose to $72.5 million from $66.2 million at April 30, 2025. The company's non-controlling interest increased to $1.9 million from $1.8 million.