Kewaunee Scientific Corporation

What they do

Kewaunee Scientific designs, manufactures, and installs laboratory, healthcare, and technical furniture and infrastructure products, including steel and wood casework, fume hoods, modular systems, workstations, benches, and epoxy resin work surfaces. The acquisition of Nu Aire added biological safety cabinets, CO2 incubators, ultralow freezers, and other lab equipment. Products are sold through purchase orders, contracts, dealers, a national distributor, and international subsidiaries in Singapore and India, primarily to pharmaceutical, biotechnology, educational, healthcare, and government customers.

Revenue drivers

• Lab Products Group (LPG) — Domestic segment (formerly Domestic) generated FY2026 sales of $214.9M, up 19.8% from $179.4M, and segment net earnings of $14.2M; includes Nu Aire and laboratory construction, facing tariff and timing headwinds.
• International Segment — Sales of $67.1M in FY2026, up 9.9% from $61.1M, with net earnings of $4.0M; driven by turnkey lab solutions in India and greater Asian markets, supported by project backlog.
• Channel partners — Sales to two dealers and one national stocking distributor accounted for approximately 34% of total sales in fiscal 2026, indicating high dependence on these channels.

Recent performance

Fiscal 2026 revenue rose 17.3% to $282.0M from $240.5M, but net income fell to $9.6M from $11.4M, and diluted EPS declined to $3.22 from $3.83. Pre-tax earnings were $13.7M versus $14.8M, while EBITDA increased to $22.4M from $21.6M. Fourth-quarter revenue of $71.4M was the highest in the recent four quarters, with nine-month net earnings of $6.2M through January 31, 2026. The balance sheet at April 30, 2026 showed cash of $9.9M, long-term debt of $15.1M, and shareholder equity of $74.7M.

Strategy

Management is focused on integrating Nu Aire to expand the laboratory products portfolio and enter new distribution regions. The company renamed its Domestic segment to Lab Products Group to reflect expanded activities and strategic direction. It emphasizes productivity improvements, cost controls, and production scheduling to offset input cost and tariff pressures. The international segment aims to sustain growth via turnkey solutions and project execution in Asian markets. Corporate investments support a larger public company and long-term growth strategy.

Risks

• Customer concentration — About 34% of fiscal 2026 sales came from two dealers and one national distributor; losing any large channel partner would materially hurt revenue and profit.
• Project timing and construction delays — Orders often require delivery at extended future dates tied to building construction, so delays can push out sales recognition and increase working capital needs.
• Tariff and input cost pressure — The lab construction business faced tariff-related cost pressure and higher input costs in fiscal 2026, which can compress margins if not offset.
• Geopolitical and international risk — The Middle East conflict and broader geopolitical uncertainty affected regional conditions and could disrupt international operations or demand.

Outlook

Management highlights strong revenue growth, continued Nu Aire integration, and significant balance sheet improvement despite a challenging operating environment. The international segment's project backlog is a source of resilience, and the company expects to build on its diversified portfolio. No specific forward guidance was provided in the excerpts.