Executive Summary

Q1 FY2026 sales rose 46.9% year over year to $71.10M, with diluted EPS of $1.04 versus $0.74 in Q1 FY2025; EBITDA increased to $6.32M from $3.33M .
Sequentially, results softened versus Q4 FY2025 (sales $77.15M, EPS $1.63, EBITDA $9.67M), reflecting management’s warning that project timing volatility will cause uneven quarterly performance through FY2026 .
Backlog remained historically high at $205.0M (vs. $214.6M at FY2025-end), while Domestic segment strength was driven by Nu Aire integration, productivity improvements, and cost actions; International improved as customer site delays eased .
Management expects better unadjusted EBITDA in FY2026 than FY2025 and flagged increased Corporate platform investments (including anticipated SOX 404(b) compliance) as a near-term earnings headwind—key narrative drivers for stock reaction .

What Went Well and What Went Wrong

What Went Well

Strong YoY growth: Sales +46.9% to $71.10M; diluted EPS up to $1.04; EBITDA nearly doubled to $6.32M. “Domestic and International segments delivered solid financial performance… despite challenging market conditions” .
Domestic outperformance: Sales $54.35M (+53.0% YoY), segment net earnings $4.72M, segment EBITDA $7.58M, aided by Nu Aire contributions, steady volumes, productivity, and cost management .
International recovery: Sales $16.75M (+30.2% YoY); segment net earnings $0.64M; EBITDA $1.06M as customer site delays eased and deliveries/billings increased .

What Went Wrong

Sequential decline: Sales decreased from $77.15M in Q4 FY2025 to $71.10M; EBITDA fell from $9.67M to $6.32M; diluted EPS from $1.63 to $1.04, driven by project timing and uneven delivery cadence .
Corporate loss and investments: Corporate pre-tax loss widened to ($3.06M); Corporate EBITDA remained negative at ($2.31M), with increased compliance and platform costs expected to pressure near-term earnings growth .
Backlog modestly declined sequentially to $205.0M from $214.6M; management anticipates uneven performance through FY2026, “likely starting in the second quarter,” reflecting macro and tariff uncertainty .

Financial Results

GAAP Results vs Prior Periods

Metric	Q1 FY2025	Q3 FY2025	Q4 FY2025	Q1 FY2026
Revenue ($USD Millions)	$48.39	$67.17	$77.15	$71.10
Diluted EPS ($)	$0.74	$0.45	$1.63	$1.04
Gross Profit ($USD Millions)	$12.49	$18.38	$24.04	$20.93
Gross Margin %	25.8%	27.4%	31.2%	29.4%
Operating Income ($USD Millions)	$2.58	$2.25	$8.50	$4.81
Operating Margin %	5.3%	3.4%	11.0%	6.8%
Net Income Attributable to KEQU ($USD Millions)	$2.19	$1.35	$4.85	$3.09
Net Income Margin %	4.5%	2.0%	6.3%	4.4%
EBITDA ($USD Millions)	$3.33	$3.73	$9.67	$6.32
EBITDA Margin %	6.9%	5.6%	12.5%	8.9%

Non-GAAP Adjusted Results

Metric	Q1 FY2025 Adjusted	Q1 FY2026 As Reported	Q1 FY2026 Adjusted
Operating Income ($USD Millions)	$3.31	$4.81	$5.03
Net Earnings Attributable to KEQU ($USD Millions)	$2.77	$3.09	$3.27
Diluted EPS ($)	$0.93	$1.04	$1.10
EBITDA ($USD Millions)	$4.06	$6.32	$6.54

Note: Adjustments reflect professional and other fees related to Nu Aire integration and related tax impact .

Segment Breakdown (Q1 FY2026 vs Q1 FY2025)

Segment	Sales ($USD Millions)	Net Earnings ($USD Millions)	EBITDA ($USD Millions)
Domestic – Q1 FY2025	$35.52	$2.87	$4.74
Domestic – Q1 FY2026	$54.35	$4.72	$7.58
International – Q1 FY2025	$12.87	$0.46	$0.70
International – Q1 FY2026	$16.75	$0.64	$1.06
Corporate – Q1 FY2025 (Pre-tax)	($1.99)	—	($2.11) EBITDA
Corporate – Q1 FY2026 (Pre-tax)	($3.06)	—	($2.31) EBITDA

Key Performance Indicators (KPIs)

KPI	Q3 FY2025 (Jan 31, 2025)	FY2025 End (Apr 30, 2025)	Q1 FY2026 (Jul 31, 2025)
Order Backlog ($USD Millions)	$221.6	$214.6	$205.0
Total Cash on Hand ($USD Millions)	$12.34	$17.16	$20.44
Cash & Equivalents ($USD Millions)	$9.45	$14.94	$19.49
Working Capital ($USD Millions)	$58.44	$64.65	$66.66
Short-term Debt ($USD Millions)	$1.13	$4.77	$4.29
Long-term Debt ($USD Millions)	$65.82	$60.73	$60.27
Debt/Equity (Reported)	1.29x	0.99x	0.94x
Debt/Equity (Excl. sale-leaseback)	0.84x	0.57x	0.54x

Results vs Estimates

S&P Global Wall Street consensus for KEQU Q1 FY2026 was unavailable (no published EPS or revenue estimates for the period). As a result, “vs estimates” comparisons are not applicable for this quarter. Values retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Unadjusted EBITDA	FY2026	None	Expect FY2026 unadjusted EBITDA to exceed FY2025 unadjusted EBITDA ($21.61M)	New/Raised (directional)
Quarterly performance cadence	FY2026	None	Expect uneven quarterly performance for the balance of FY2026, likely starting in Q2	New
Corporate platform investments	FY2026	None	Increased compliance costs (anticipated SOX 404(b)) and investments in people/process/technology to support growth	New

No formal numerical guidance ranges (revenue, margins, tax rate, etc.) were provided.

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 FY2025, Q4 FY2025)	Current Period (Q1 FY2026)	Trend
Supply chain / customer site delays	Q3: International revenue slowed due to site delays; working with customers . Q4: Impact decreased, deliveries/billings improved .	Delays decreased since Q4; deliveries/billings improved YoY .	Improving
Tariffs / macro uncertainty	Q3: Built diversified supply chain to mitigate tariffs/disruptions . Q4: Geopolitical uncertainty, unclear tariff policies .	Uncertain policy, evolving tariffs; expect uneven performance .	Ongoing headwind
Nu Aire integration	Q3: First consolidated quarter; integration costs; adjusted metrics . Q4: Integration/purchase accounting costs; adjusted metrics .	Drives Domestic growth; integration costs continue .	Progressing; costs ongoing
SOX 404(b) compliance costs	Q3/Q4: Compliance readiness costs in Corporate .	Anticipated triggering 404(b); increased compliance costs .	Rising FY2026
Backlog trajectory	Q3: $221.6M . Q4: $214.6M .	$205.0M .	High, modestly declining sequentially
Regional trends (India/International)	Q3: India backlog strong; site delays . Q4: International deliveries increased .	International sales +30.2% YoY; deliveries improved .	Improving
Product/technology	Q4: Portfolio/manufacturing investments .	Showcasing new Revit design tools; international presence at Arablab .	Expanding tools/brand presence

Management Commentary

“Our Domestic and International segments delivered solid financial performance… despite challenging market conditions as a result of uncertain government policy, evolving tariff structures and broader geopolitical upheaval.” – Thomas D. Hull III, President & CEO .
“We are experiencing volatility in project delivery timelines that we expect will cause uneven performance by quarter for the balance of fiscal year 2026, likely starting in the second quarter.” .
“Kewaunee is focused on growth… making strategic investments in the people, processes, and technology… Though this will place pressure on earnings growth in the near term, we believe it will position Kewaunee for rapid and sustained growth in the future.” .
“We expect to deliver better unadjusted EBITDA in fiscal year 2026 than we did in fiscal year 2025.” .

Q&A Highlights

Not applicable; no earnings call transcript was available in the document archive.

Estimates Context

S&P Global consensus estimates for KEQU Q1 FY2026 were unavailable (no published EPS or revenue estimates). Values retrieved from S&P Global.
In the absence of published estimates, we expect near-term buy-side models to emphasize sequential trends (QoQ deceleration from Q4), backlog trajectory, and Corporate investment drag, with sensitivity to project timing cadence highlighted by management .

Key Takeaways for Investors

YoY growth was strong across revenue (+46.9%) and EPS ($1.04 vs $0.74), with margin expansion versus Q1 FY2025, supported by Nu Aire integration and operational improvements .
Sequential moderation versus Q4 FY2025 aligns with management’s warning about uneven quarterly performance due to project timing; expect quarter-to-quarter variability through FY2026 .
Backlog remains robust but declined modestly sequentially to $205.0M; monitoring conversion pace and customer site readiness is critical for near-term prints .
Corporate platform investments and anticipated SOX 404(b) compliance costs are a deliberate near-term drag aimed at enabling scalable growth; expect ongoing Corporate losses but leverage over time .
International segment is recovering as delays ease; continued improvement in deliveries/billings could underpin earnings dispersion despite macro/tariff uncertainty .
With no Street estimates, trading may be driven by narrative and backlog cadence; near-term catalysts include Q2 performance variability, Nu Aire integration milestones, and any updates on SOX 404(b) timing .
Medium-term thesis: sustained growth from integrated portfolio (Kewaunee, Nu Aire, EVERHUTCH), strengthened distribution channels, and technology tools (Revit), with operating leverage as Corporate investments normalize .

KEWAUNEE SCIENTIFIC CORP /DE/ (KEQU)·Q1 2026 Earnings Summary