Kewaunee Scientific (KEQU) Q2 2026 Earnings Report

KEQU reported QQ2 2026 revenue of $70.096 million, up 44.85% year-over-year and down 1.42% sequentially. The quarter delivered meaningful margin stability with gross profit of $19.72 million and a gross margin of 28.13%, contributing to operating income of $4.11 million (operating margin ~5.86%) and net income of $2.45 million (net margin ~3.49%). EBITDA was $6.09 million (EBITDA margin ~8.69%). Earnings per share (EPS) were $0.85 (diluted $0.82) on a weighted-average share count of ~2.86–2.98 million, indicating improved profitability on scale despite a modest top-line quarterly decrement.

However, KEQU’s cash flow profile remained challenging in the quarter. Operating cash flow was negative at approximately $(4.27) million, with free cash flow to the firm at $(5.84) million. The year-to-date cash depletion was driven by working capital dynamics (notably sizeable declines in accounts payable and increases in accounts receivable and inventories) and notable non-cash adjustments, including a substantial negative effect from other non-cash items (~$(9.22) million). The company ended the period with cash and equivalents of about $12.59 million, total assets of $189.08 million, and total liabilities of $117.36 million, yielding stockholders’ equity of ~$71.72 million. Net debt stood at roughly $5.08 million, indicating a modest leverage position given the liquidity cushion.

Sector and market context point to ongoing demand for KEQU’s two-segment model (Domestic and International) across laboratory, healthcare, and technical facilities. The QQ2 2026 results underscore the company’s ability to monetize a higher revenue base while maintaining a reasonably stable margin backdrop, but the near-term cash conversion cycle remains a focal point for investors. The absence of formal full-year guidance in the data provided, combined with working-capital sensitivity, suggests the key near-term investment questions revolve around cash flow normalization, backlog realization, and the pace of international expansion.