Kewaunee Scientific Corporation reported fiscal 2026 second‑quarter revenue of $70.1 million, a 46.8% year‑over‑year increase driven by a 51.7% jump in domestic sales to $55.2 million and a 31.0% rise in international sales to $14.9 million. The surge is largely attributable to the integration of Nu Aire, acquired for $55 million on November 1 2024, whose high‑margin laboratory equipment has expanded Kewaunee’s product mix and broadened its market reach.
Net earnings fell to $2.45 million from $3.01 million a year earlier, reflecting a 12.2% decline in pre‑tax earnings. The decline is largely due to higher operating expenses associated with the Nu Aire integration and lower manufacturing volumes in the legacy furniture segment. While revenue grew, margin compression indicates that the company is still absorbing integration costs and facing supply‑chain pressures that have reduced profitability.
The company’s backlog as of October 31 2025 stood at $192.9 million, up from $184.4 million a year earlier but down from $214.6 million in April 2025. The reduction reflects the conversion of high‑margin Nu Aire projects into revenue, signaling a shift toward more profitable work. Management noted that the Nu Aire performance helped offset volatility in the legacy furniture business, underscoring the strategic importance of the acquisition.
Diluted earnings per share were $0.82, down from $1.01 a year earlier. The decline mirrors the drop in net earnings and highlights the impact of integration expenses on shareholder returns. The company reported consolidated EBITDA of $5.79 million, a figure that provides a clearer view of operating performance than net income alone.
Management emphasized that the company expects continued volatility in project delivery timelines for the remainder of the fiscal year, citing supply‑chain constraints and the need to ramp up production of Nu Aire products. The guidance for the next quarter remains unchanged, indicating cautious optimism about demand while acknowledging short‑term execution challenges.
Overall, the results demonstrate that Kewaunee’s transition from a cyclical furniture maker to a diversified lab‑solutions provider is gaining traction, but the company must manage integration costs and supply‑chain headwinds to preserve profitability as it scales its new product portfolio.
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