Kewaunee Scientific Corporation announced its financial results for the first quarter of fiscal year 2027, which ended July 31, 2026. The company reported a decrease in sales and net earnings compared to the prior year period.
Sales for the quarter were $66.3 million, a decrease of 6.7% from $71.1 million in the prior year. Net earnings were $1.7 million, down from $3.1 million in the same period last year. Diluted earnings per share were $0.58, compared to $1.04 in the prior year.
EBITDA for the quarter was $4.5 million, a decrease from $6.3 million in the prior year. The company noted that its order backlog increased to $169.0 million on July 31, 2026, from $165.9 million on April 30, 2026.
Segment performance varied by geography. The Lab Products Group (LPG) segment, which was renamed in fiscal 2026, reported sales of $50.9 million, a decrease of 6.4% from the prior year. The International segment reported sales of $15.5 million, a decrease of 7.8%, but saw net earnings increase 23.5% to $794,000 due to a favorable mix of higher-margin projects.
Corporate expenses increased in the quarter, resulting in a pre-tax net loss of $3.6 million. The company attributed this to additional compensation expense associated with a decision to settle long-term incentive awards in cash rather than shares to reduce dilution.
On the balance sheet, total cash on hand was $10.3 million as of July 31, 2026. Long-term debt, excluding a sale-leaseback obligation, declined to $13.8 million from $15.1 million on April 30, 2026. The company's debt-to-equity ratio was 0.59-to-1.
Thomas D. Hull III, President and CEO, stated that quoting activity remains strong and that the company is focused on executing its strategy despite extended project timelines due to geopolitical and economic uncertainty.
