Fri, Mar 14, 2:24 PM (37 days ago)
Kewaunee Scientific Corporation (KEQU) reported strong financial health and performance for the quarter ended January 31, 2025. Revenue increased by 43.6% year-over-year to $67.17 million, driven by the acquisition of Nu Aire and higher domestic sales. Net earnings were $1.35 million, or $0.45 per diluted share, compared to $2.52 million, or $0.85 per diluted share, in the prior year. The gross profit margin improved to 27.4% from 25.7% due to enhanced manufacturing productivity and cost-containment measures. Operating expenses rose to $16.13 million, or 24.0% of sales, primarily due to the Nu Aire acquisition and increased consulting fees. Interest expense increased to $1.14 million from $0.41 million due to higher borrowings. The effective tax rate was (8.5)% for the quarter, benefiting from foreign operations and a discrete tax benefit. The company's order backlog was $221.6 million, up from $152.3 million year-over-year. Cash flow from operations was $5.38 million, with investing activities using $30.39 million, mainly for the Nu Aire acquisition. Financing activities provided $11.75 million, primarily from a new term loan. The company's current ratio was 2.2-to-1.0, with working capital of $58.44 million. Kewaunee Scientific Corporation's acquisition of Nu Aire expands its capabilities and market presence, positioning it well for future growth despite uncertainties in the laboratory construction market and raw material costs.