Statesville, N.C. – – September 15, 2026 -- Kewaunee Scientific Corporation (NASDAQ: KEQU) reported first-quarter fiscal 2027 sales of $66.3 million, down 6.7% from $71.1 million a year earlier, even as order backlog rose to $169.0 million from $165.9 million at the end of April.
Net earnings drop to $1.7 million on lower manufacturing volumes
Pre-tax earnings fell 34.7% to $2.56 million from $3.92 million in the prior-year quarter, while net earnings declined to $1.706 million from $3.093 million. Diluted earnings per share came in at $0.58, down from $1.04. EBITDA for the quarter totaled $4.525 million versus $6.32 million a year ago. Backlog, while up sequentially, remains well below the $205.0 million recorded on July 31, 2025.
Lab Products Group absorbs weaker life sciences demand
The company's Lab Products Group, renamed from its former Domestic segment during fiscal 2026, posted sales of $50.868 million, down 6.4% from $54.352 million. Segment net earnings fell to $3.889 million from $4.722 million, and segment EBITDA declined to $6.585 million from $7.576 million. Management said cost discipline and a stronger education market partly offset softer life sciences manufacturing volumes.
International segment lifts margins despite an 7.8% sales decline
International sales dropped to $15.452 million from $16.752 million, yet segment net earnings climbed 23.5% to $794,000 from $643,000, and segment EBITDA rose 13.9% to $1.202 million from $1.055 million. Kewaunee attributed the gain to a shift toward higher-margin project work.
Corporate costs widen on one-time incentive settlement
The Corporate segment recorded a pre-tax net loss of $3.577 million, compared with a $3.058 million loss a year earlier, and segment EBITDA fell to negative $3.262 million from negative $2.311 million. The company said the increase stemmed from a decision to settle specific long-term incentive awards in cash rather than shares to limit shareholder dilution, an expense it does not expect to recur.
Debt levels ease as company trims long-term obligations
Long-term debt, excluding the company's sale-leaseback financing obligation, fell to $13.844 million from $15.086 million at the end of April. Total long-term debt stood at $39.377 million, down from $40.851 million, while short-term debt rose to $6.478 million from $5.904 million. Cash on hand was $10.261 million, down from $11.617 million. Working capital declined to $56.716 million from $66.662 million a year earlier. The debt-to-equity ratio improved to 0.59-to-1 from 0.61-to-1, or 0.25-to-1 net of the sale-leaseback transaction.
CEO cites strong quoting activity despite extended project timelines
President and CEO Thomas D. Hull III said quoting activity remains strong across Kewaunee's markets, though project award and release timelines continue to stretch amid geopolitical and economic uncertainty. "Kewaunee continues to perform well in this environment, strengthening its competitive position and outperforming the broader market," Hull said, pointing to the company's brand strength and operational discipline as drivers of relative performance.