Wed, Jul 2, 1:59 PM (17 days ago)
### Summary of Kewaunee Scientific Corporation (KEQU) 10-K Annual Report for Fiscal Year Ended April 30, 2025 **Financial Performance:** - **Revenue:** $240.5 million, an increase from $203.8 million in fiscal year 2024. - **Net Income:** $11.4 million, a decrease from $18.8 million in fiscal year 2024. - **Earnings Per Share (EPS):** $3.83, a decrease from $6.38 in fiscal year 2024. - **Operating Expenses:** $51.1 million, an increase from $33.8 million in fiscal year 2024. - **Gross Profit Margin:** 28.6%, an increase from 25.5% in fiscal year 2024. **Strategic Overview:** - **Acquisition of Nu Aire:** Completed on November 1, 2024, for $55.0 million. Nu Aire specializes in biological safety cabinets, airflow products, CO2 incubators, ultralow freezers, and related products. The acquisition expands Kewaunee's capabilities and accelerates its vision of becoming a market leader in laboratory furniture and technical products. - **Segment Information:** The company operates in two segments: Domestic and International. The Domestic segment includes operations in Statesville, North Carolina, and Nu Aire in Plymouth, Minnesota. The International segment consists of foreign subsidiaries in Singapore, India, and Saudi Arabia. **Future Outlook:** - **Order Backlog:** $214.6 million as of April 30, 2025, compared to $155.6 million as of April 30, 2024. - **Capital Expenditures:** Approximately $7.0 million anticipated for fiscal year 2026, funded primarily by operating activities and supplemented by borrowings under the revolving credit facility. - **Liquidity and Capital Resources:** The company believes its sources of funds will be sufficient to support ongoing business requirements, including capital expenditures, through fiscal year 2026. **Risk Factors:** - **Market Position Changes:** The company faces competition in the laboratory and healthcare furniture industries, with a significant portion of business involving competitive public bidding. - **Financial Condition:** The company has a strong order backlog and improved manufacturing capabilities, positioning it well for future growth. - **Market Position Changes:** The company's strategic acquisition of Nu Aire and strong relationships with dealers and distribution channel partners contribute to its market position. **Market Position Changes:** - **Competition:** The industries in which the company participates are highly competitive, with a significant amount of business based on competitive public bidding. - **Research and Experimentation Expenditures:** The company spent $919,000 on research and experimentation expenditures in fiscal year 2025, compared to $920,000 in fiscal year 2024. **Financial Condition:** - **Liquidity:** The company has a strong order backlog and improved manufacturing capabilities, positioning it well for future growth. - **Capital Resources:** The company anticipates capital expenditures of approximately $7.0 million for fiscal year 2026, funded primarily by operating activities and supplemented by borrowings under the revolving credit facility. **Note:** This summary is based on the provided text and is intended to give a brief overview of the key points. For a detailed understanding, please refer to the full 10-K report.