1. KEQU reported $70.1 million in Q2 sales, up 46.8%. 2. Net earnings decreased to $2.4 million from $3 million last year. 3. Domestic sales surged by 51.7%, driven by strong demand. 4. Order backlog increased to $192.9 million, promoting future growth. 5. CEO asserts confidence in market demand despite expected project delays.
FAQ
Why Bullish?
The significant sales increase and strong backlog suggest robust demand ahead. Past examples show such growth often leads to positive market reactions.
How important is it?
The article outlines positive sales trends and strategic growth plans, which are crucial for investor sentiment.
Why Short Term?
High sales and backlog indicate immediate market confidence, although project delivery volatility may introduce near-term risks.
Related Companies
Kewaunee Scientific Reports Impressive Second Quarter Results for Fiscal Year 2026
Kewaunee Scientific Corporation (NASDAQ: KEQU) announced its financial results for the second quarter of fiscal year 2026, ending October 31, 2025. The company reported significant growth in sales, but experienced a decline in both pre-tax and net earnings compared to the previous year. This report highlights the latest performance metrics and ongoing strategic efforts to enhance shareholder value.
Fiscal Year 2026 Second Quarter Results Overview
For the second quarter, Kewaunee Scientific posted sales of $70,096,000, marking a robust increase of 46.8% from $47,764,000 during the same quarter last year. However, pre-tax earnings declined to $3,453,000, down 12.2% from $3,931,000 in 2024. Net earnings also decreased to $2,445,000, compared to $3,008,000 in the prior year.
Key financial metrics for the quarter include:
- EBITDA: $5,790,000, up from $4,883,000 in Q2 2024.
- Diluted earnings per share: $0.82, down from $1.01 in the prior year.
Order Backlog and Segment Performance
Kewaunee's order backlog as of October 31, 2025, was $192.9 million, an increase from $184.4 million in the previous year, although it represents a decline from $214.6 million on April 30, 2025.
Domestic Segment Performance
Domestic sales reached $55,224,000, reflecting a remarkable increase of 51.7% from $36,409,000 in the same quarter of the previous year. However, net earnings for the domestic segment were recorded at $3,597,000, a decrease from $4,524,000 in Q2 2024. EBITDA for this segment was $6,712,000, slightly down from $6,838,000.
International Segment Performance
International sales rose to $14,872,000, an increase of 31.0% from $11,355,000. The international segment net earnings also improved to $641,000 from $356,000. EBITDA for international operations increased to $860,000, compared to $592,000 in the prior year.
Corporate Segment Results
The corporate segment reported a pre-tax loss of $2,515,000, marginally worse than the $2,444,000 loss reported in the previous year. Corporate EBITDA improved to ($1,782,000) from ($2,547,000), aided by strategic investments aligned with the acquisition of Nu Aire, Inc. completed in November 2024.
Financial Health and Strategic Outlook
Total cash on hand stood at $13,679,000 as of October 31, 2025. Working capital improved to $67,830,000 from $59,965,000 a year prior. The company reported short-term debt of $4,914,000, and long-term debt of $58,164,000, down from $60,730,000.
The debt-to-equity ratio on October 31, 2025, was 0.88-to-1, improved from 0.99-to-1 at the end of April 2025. Kewaunee’s management emphasized the importance of strategic growth, particularly through their acquisition strategy aimed at diversifying their offerings in the laboratory space.
Management Commentary
“As discussed in our prior earnings release, we expect volatility in project delivery timelines for the balance of the fiscal year,” commented Thomas D. Hull III, President and CEO of Kewaunee. He noted that although challenges persist, the company’s quoting and booking activities remain strong, with a backlog nearing record levels, especially in the domestic segment.
Hull added, “Our current quoting activity gives us confidence that our backlog will remain strong through the end of the fiscal year, setting the company up for continuing success in fiscal 2027.”
Overall, Kewaunee Scientific Corporation (NASDAQ: KEQU) demonstrated significant growth in sales for the second quarter of fiscal year 2026, despite facing challenges in earnings. The company remains committed to strategic growth and value creation in the laboratory solutions market.