Kewaunee Scientific (KEQU) Q1 2026 Earnings Report

Kewaunee Scientific delivered a solid QQ1 2026 performance anchored by double-digit revenue growth and a healthy gross margin, supported by disciplined cost management and favorable product mix. Revenue rose to 71.10 million, up 25.40% year over year and 5.86% quarter over quarter. Gross profit reached 20.93 million with a gross margin of 29.44%, reflecting a favorable mix between higher-margin technical and laboratory furniture products and ongoing pricing discipline. EBITDA stood at 4.81 million (EBITDA margin 6.76%), and operating income was 4.81 million, underscoring margins that held above the company’s historical troughs despite a more pronounced investment in SG&A in the prior year’s period. Net income was 3.09 million for the quarter, with an EPS of 1.08 (1.04 diluted). Notably, net income contracted on a year-over-year basis by approximately 72% even as top-line growth accelerated, suggesting the prior-year period benefited from one-time or unusual items and/or a different expense mix. QoQ, net income surged by about 128% as operating leverage from higher revenue and stable per-unit margins translated into stronger bottom-line results. Free cash flow was robust at 5.02 million, supported by 5.79 million of operating cash flow and modest capital expenditures of 0.77 million. The company ended the period with a strong liquidity position: cash and cash equivalents of about 19.49 million and a net debt position of roughly -1.15 million (net cash), reflecting a conservative balance sheet with ample liquidity to fund ongoing initiatives and working capital needs. Overall, KEQU enters the next quarter with a constructive growth trajectory, attractive cash generation, and a balance sheet capable of supporting strategic initiatives. The primary considerations for investors include management’s ability to sustain margin discipline amid project-driven demand, the pace of international expansion, and the potential volatility inherent in lab infrastructure cycles.