Earnings release
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Kewaunee Scientific Reports Results for First Quarter of Fiscal Year 2027 Exchange: NASDAQ (KEQU) Contact: Donald T. Gardner III 704/871-3274 STATESVILLE, N.C. September 9, 2026 – PRNewswire / Kewaunee Scientific Corporation (NASDAQ: KEQU)today announced results for its first quarter ended July 31, 2026. Fiscal Year 2027 First Quarter Highlights: • Backlog increased to $169.0 million on July 31, 2026, up from $165.9 million on April 30, 2026.• International segment net earnings increased 23.5% and segment EBITDA increased 13.9% despite lowersales as a result of a favorable mix of higher-margin projects.• Ongoing cost management efforts and improved operating efficiencies helped mitigate the negative impactof lower manufacturing volumes within LPG.• Higher effective tax rate driven by a greater mix of earnings from international operations relative todomestic operations.• Long-term debt, excluding the Company's sale-leaseback financing obligation, declined to $13.8 millionfrom $15.1 million on April 30, 2026.• Corporate results included additional compensation expense associated with the decision to settle specificlong-term incentive awards in cash rather than shares to reduce dilution to existing shareholders; theresulting incremental expense is not expected to recur. Fiscal Year 2027 First Quarter Results: Sales during the first quarter of fiscal year 2027 were $66,320,000, a decrease of 6.7% compared to sales of$71,104,000 from the prior year's first quarter. Pre-tax earnings for the quarter were $2,560,000 compared to$3,920,000 for the prior year quarter, a decrease of 34.7%. Net earnings were $1,706,000 compared to net earningsof $3,093,000 for the prior year quarter. EBITDA for the quarter was $4,525,000 compared to $6,320,000 for theprior year quarter. Diluted earnings per share were $0.58 compared to diluted earnings per share of $1.04 in theprior year quarter. The Company’s order backlog increased to $169.0 million on July 31, 2026 from $165.9 million on April 30, 2026.Backlog was $205.0 million on July 31, 2025. During fiscal year 2026, the Company renamed its Domestic reportable segment to Lab Products Group ("LPG") tobetter align with the segment's expanded business activities, organizational structure, and strategic direction. Thissegment name change had no impact on the composition of the Company's reportable segments or on previouslyreported financial position, results of operations, cash flows, or segment operating results. EBITDA is a non-GAAP financial measure. See the table below for a reconciliation of EBITDA and segment EBITDA to net earnings (loss), the mostdirectly comparable GAAP measure. 1 1 CORPORATE OFFICES ● P. O. BOX 1842, STATESVILLE, NORTH CAROLINA 28687-1842 ● 2700 WEST FRONT STREET, STATESVILLE, NORTH CAROLINA 28677-2927 PHONE 704-873-7202 ● FAX 704-873-1275
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Lab Products Group Segment - LPG sales for the quarter were $50,868,000, a decrease of 6.4% from sales of$54,352,000 in the prior year quarter. LPG segment net earnings were $3,889,000 compared to $4,722,000 in theprior year quarter. LPG segment EBITDA was $6,585,000 compared to $7,576,000 for the prior year quarter.Despite lower manufacturing volumes amid challenging life sciences market conditions, the segment maintainedsolid profitability, supported by a stronger education market, disciplined cost management, and greater operatingefficiencies. International Segment - International sales for the quarter were $15,452,000, a decrease of 7.8% from sales of$16,752,000 in the prior year quarter. Despite lower sales, International segment net earnings increased 23.5% to$794,000 from $643,000 in the prior year quarter; while segment EBITDA increased 13.9% to $1,202,000 from$1,055,000. The improvement in profitability was driven by a favorable mix of higher-margin projects. Corporate Segment – Corporate segment pre-tax net loss was $3,577,000 for the quarter, as compared to a pre-taxnet loss of $3,058,000 in the prior year quarter. Corporate segment EBITDA for the quarter was ($3,262,000)compared to corporate segment EBITDA of ($2,311,000) for the prior year quarter. The change primarily reflectedadditional compensation expense associated with a decision to settle specific long-term incentive awards in cashrather than in shares to reduce dilution to existing shareholders. The resulting incremental compensation expense isnot expected to recur. Total cash on hand on July 31, 2026, was $10,261,000, as compared to $11,617,000 on April 30, 2026. Workingcapital was $56,716,000, as compared to $66,662,000 at the end of the first quarter last year and $57,046,000 onApril 30, 2026. The Company had short-term debt of $6,478,000 as of July 31, 2026, as compared to $5,904,000 on April 30, 2026.Long-term debt was $39,377,000 on July 31, 2026, as compared to $40,851,000 on April 30, 2026. The buildinglease from the Company's December 2021 sale-leaseback transaction accounts for $25,533,000 of the long-termdebt on July 31, 2026, and $25,765,000 of the long-term debt on April 30, 2026. Long-term debt, net of the sale-leaseback transaction, was $13,844,000 on July 31, 2026, as compared to $15,086,000 on April 30, 2026. TheCompany’s debt-to-equity ratio on July 31, 2026, was 0.59-to-1, as compared to 0.61-to-1 on April 30, 2026. TheCompany's debt-to-equity ratio, net of the sale-leaseback transaction, on July 31, 2026, was 0.25-to-1, as comparedto 0.26-to-1 on April 30, 2026. "I am pleased with Kewaunee's performance during the first quarter and, importantly, with the continued executionof our strategy," said Thomas D. Hull III, Kewaunee's President and Chief Executive Officer. "Quoting activityremains strong across our markets, reinforcing our confidence in the underlying demand for our products andcapabilities. While project award and release timelines remain extended amid broader geopolitical and economicuncertainty, we continue to see a healthy level of customer activity and opportunity across the business." "Kewaunee continues to perform well in this environment, strengthening its competitive position andoutperforming the broader market, which we believe reflects the strength of our brands, the breadth of ourcapabilities, and our commitment to delivering exceptional value and service to our customers," Hull continued."At the same time, we remain disciplined and focused on the areas we can control - serving our customers,improving our operations, strengthening our commercial capabilities, and ensuring we are well positioned asquoting activity converts into project awards and releases." "As we discussed at our Annual Meeting of Shareholders in August, Kewaunee is operating from a position ofstrength. The progress we have made over the past several years has created a stronger, more diversified, and moreresilient company, with an increasingly solid foundation for future growth. We continue to invest in our businesses,advance our strategy, and build the capabilities necessary to capture the opportunities ahead."
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"While we remain attentive to near-term market conditions, our focus is firmly on the long term. We are confidentin Kewaunee's competitive position, encouraged by the opportunities we see across our markets, and excited aboutthe company's next phase of growth. We believe the actions we are taking today will position Kewaunee tocontinue creating sustainable value for our customers, associates, and shareholders."
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EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA Reconciliation (Unaudited)($ in thousands) Quarter Ended July 31, 2025 LPG International Corporate Consolidated Net Earnings (Loss) $ 4,722 $ 643 $ (2,272)$ 3,093 Add/(Less): Interest Expense 313 13 732 1,058 Interest Income — (131) (10) (141) Income Taxes 1,113 434 (786) 761 Depreciation and Amortization 1,428 96 25 1,549 EBITDA $ 7,576 $ 1,055 $ (2,311) $ 6,320 Professional Fees — — 224 224 Adjusted EBITDA $ 7,576 $ 1,055 $ (2,087)$ 6,544 Quarter Ended July 31, 2026 LPG International Corporate Consolidated Net Earnings (Loss) $ 3,889 $ 794 $ (2,977)$ 1,706 Add/(Less): Interest Expense 301 11 314 626 Interest Income — (115) — (115) Income Taxes 894 423 (600) 717 Depreciation and Amortization 1,501 89 1 1,591 EBITDA $ 6,585 $ 1,202 $ (3,262)$ 4,525 Professional and other fees incurred during the three months ended July 31, 2025 related to the Company's integration of Nu Aire, Inc. ("Nu Aire"), whose acquisition closed on November 1, 2024 2 2
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About Non-GAAP Measures EBITDA and Segment EBITDA are calculated as net earnings (loss), less interest expense and interest income,income taxes, depreciation, and amortization. Adjusted EBITDA and Adjusted Segment EBITDA are calculated asEBITDA or Segment EBITDA less the impact of the professional and other fees related to the Company'sintegration of its newly acquired subsidiary, Nu Aire, Inc. We believe EBITDA, Segment EBITDA, AdjustedEBITDA, and Adjusted Segment EBITDA allow management and investors to compare our performance to othercompanies on a consistent basis without regard to interest expense and interest income, income taxes, depreciation,amortization or the costs incurred related to the integration of Nu Aire, Inc., which can vary significantly betweencompanies depending upon many factors. EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted SegmentEBITDA are not calculations based upon generally accepted accounting principles, and the method for calculatingEBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA can vary among companies. Theamounts included in the EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDAcalculations, however, are derived from amounts included in the historical consolidated statements of operations.EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA should not be considered asalternatives to net earnings (loss) or operating earnings (loss) as an indicator of the Company’s operatingperformance, or as an alternative to operating cash flows as a measure of liquidity. About Kewaunee Scientific Founded in 1906, Kewaunee Scientific Corporation is a recognized global leader in the design, manufacture, andinstallation of laboratory, healthcare, and technical furniture products. The Company’s portfolio includes laboratorycasework, fume hoods, adaptable modular systems, healthcare storage solutions, epoxy resin work surfaces andsinks, biological safety cabinets, and other critical containment lab furniture solutions. The Company’s corporate headquarters are located in Statesville, North Carolina. Sales offices are located in theUnited States, India, Saudi Arabia, Spain, and Singapore. Three manufacturing facilities are located in Statesvilleserving the domestic and international markets, and one manufacturing facility is located in Bangalore, Indiaserving the local, Asian, and African markets. The Company also operates manufacturing facilities in Plymouth andLong Lake, Minnesota, and maintains warehouse partnerships in the Netherlands and OEM partnerships in Chinathrough its acquisition of Nu Aire, Inc., supporting customers around the world. Learn more at http://www.kewaunee.com. This press release contains statements that the Company believes to be "forward-looking statements" within themeaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historicalfact included in this press release, including statements regarding the Company's future financial condition, resultsof operations, business operations and business prospects, are forward-looking statements. Words such as"anticipate," "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressionsand variations of these words and expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other importantfactors that could significantly impact results or achievements expressed or implied by such forward-lookingstatements. Such factors, risks, uncertainties and assumptions include, but are not limited to: competitive andgeneral economic conditions, including disruptions from government mandates, both domestically andinternationally, as well as supplier constraints and other supply disruptions; changes in customer demands;technological changes in our operations or in our industry; dependence on customers’ required delivery schedules;risks related to fluctuations in the Company’s operating results from quarter to quarter; risks related tointernational operations, including foreign currency fluctuations; changes in the legal and regulatory environment;changes in raw
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materials and commodity costs; acts of terrorism, war, governmental action, and natural disasters and other ForceMajeure events. The cautionary statements made pursuant to the Reform Act herein and elsewhere by us should notbe construed as exhaustive. We cannot always predict what factors would cause actual results to differ materiallyfrom those indicated by the forward-looking statements. Over time, our actual results, performance, orachievements will likely differ from the anticipated results, performance or achievements that are expressed orimplied by our forward-looking statements, and such difference might be significant and harmful to ourstockholders’ interest. Many important factors that could cause such a difference are described under the caption“Risk Factors,” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended April 30, 2026, which youshould review carefully, and in our subsequent quarterly reports on Form 10-Q and current reports on Form 8-K.These reports are available on our investor relations website at www.kewaunee.com and on the SEC website atwww.sec.gov. These forward-looking statements speak only as of the date of this document. The Company assumesno obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as aresult of new information, future events or otherwise.
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Kewaunee Scientific CorporationCondensed Consolidated Statements of Operations(Unaudited)($ and shares in thousands, except per share amounts) Three Months EndedJuly 31, 2026 2025 Net sales $ 66,320 $ 71,104 Cost of products sold 46,681 50,174 Gross profit 19,639 20,930 Operating expenses 16,481 16,120 Operating profit 3,158 4,810 Other income, net 28 168 Interest expense (626) (1,058) Profit before income taxes 2,560 3,920 Income tax expense 717 761 Net earnings 1,843 3,159 Less: Net earnings attributable to the non-controlling interest 137 66 Net earnings attributable to Kewaunee Scientific Corporation $ 1,706 $ 3,093 Net earnings per share attributable to Kewaunee Scientific Corporation stockholders Basic $ 0.59 $ 1.08 Diluted $ 0.58 $ 1.04 Weighted average number of common shares outstanding Basic 2,880 2,851 Diluted 2,921 2,963
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Kewaunee Scientific CorporationCondensed Consolidated Balance Sheets($ in thousands) July 31, 2026 April 30, 2026 (Unaudited) Assets Cash and cash equivalents $ 8,246 $ 9,950 Restricted cash 2,015 1,667 Receivables, less allowances 58,197 58,738 Inventories 29,786 30,533 Prepaid expenses and other current assets 5,707 4,509 Total Current Assets 103,951 105,397 Net property, plant and equipment 21,932 22,367 Right of use assets 10,277 10,791 Deferred income taxes 3,642 3,829 Net intangible assets 15,910 16,294 Goodwill 12,487 12,487 Other assets 7,601 7,146 Total Assets $ 175,800 $ 178,311 Liabilities and Stockholders' Equity Short-term borrowings $ 627 $ 74 Current portion of lease obligations 4,171 3,845 Current portion of financing liability 887 867 Current portion of term loans 4,893 4,893 Accounts payable 21,557 22,455 Other current liabilities 15,100 16,217 Total Current Liabilities 47,235 48,351 Long-term portion of lease obligations 5,780 6,569 Long-term portion of financing liability 25,533 25,765 Long-term portion of term loans 13,581 14,804 Other non-current liabilities 6,451 6,010 Total Liabilities 98,580 101,499 Kewaunee Scientific Corporation Equity 75,005 74,718 Non-controlling interest 2,215 2,094 Total Stockholders' Equity 77,220 76,812 Total Liabilities and Stockholders' Equity $ 175,800 $ 178,311