Kewaunee Q1 Profit Slides as Revenue Falls

Kewaunee Scientific Corporation posted a 6.7% year-over-year revenue decline to $66.3 million in the first quarter of fiscal 2027. Earnings per share dropped to 58 cents from $1.04, while net income attributable to the company fell to $1.7 million from $3.1 million in the same period last year. The company’s pretax earnings decreased by 34.7% to $2.6 million, reflecting broader pressure on profitability across its core operations.

Despite the top-line contraction, Kewaunee’s International segment showed improved profitability, with net earnings rising 23.5% to $794,000. This positive shift was attributed to a more favorable mix of higher-margin projects, even as international sales declined 7.8% to $15.5 million. The divergence highlights how project composition rather than volume growth is currently driving segment-level financial performance.

Lab Products Segment Drives Revenue Drop

The Lab Products Group, which constitutes the bulk of Kewaunee’s revenue, saw sales fall 6.4% to $50.9 million from $54.4 million in the prior year quarter. Segment net earnings decreased to $3.9 million from $4.7 million, while EBITDA declined to $6.6 million from $7.6 million. This segment represents the primary source of the company’s overall earnings compression, indicating that domestic and core laboratory demand remains under pressure.

Backlog and Balance Sheet Position

As of July 31, 2026, Kewaunee’s backlog stood at $169 million, an increase from $165.9 million at the end of fiscal 2026 but significantly below the $205 million recorded a year earlier. Cash on hand decreased to $10.3 million from $11.6 million at fiscal year-end, while working capital slightly reduced to $56.7 million. Short-term debt rose to $6.5 million, offset partially by a reduction in long-term debt to $39.4 million, resulting in a modest improvement in the debt-to-equity ratio to 0.59-to-1.

Management Cites Quoting Strength

CEO Thomas D. Hull III noted that quoting activity remains strong across all markets, supporting confidence in underlying demand. However, he acknowledged that project award and release timelines are extended due to geopolitical and economic uncertainty. Management emphasized a focus on operational improvement and converting quotes into awards, describing the company as more diversified and resilient based on recent progress, according to earnings commentary sourced from GN markets/earnings (en-US).