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Kewaunee Scientific Stock Soars 47% After Q4 Earnings Beat Estimates
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Shares of Kewaunee Scientific Corporation (KEQU - Free Report) have risen 47.1% since reporting results for the fourth quarter of fiscal 2025. This compares with the S&P 500 index’s 6.1% growth over the same time frame. Over the past month, the stock has gained 46%, outperforming the S&P 500’s 14.5% rally.
Revenue & Earnings Performance
Kewaunee Scientific reported a robust set of results for the fourth quarter and the year ended April 30, 2025. Fiscal fourth-quarter net sales rose 36.1% to $77.1 million from $56.7 million in the prior year. Adjusted diluted earnings per share (EPS) rose 25.8% to $1.95 from $1.55. Adjusted net earnings grew 26.6% to $5.8 million from $4.6 million, and adjusted EBITDA climbed 64.2% to $10.3 million from $6.3 million.
For fiscal 2025, net sales totaled $240.5 million, up 18% from $203.8 million in the previous year. The adjusted diluted EPS rose 28.2% to $5.37 from $4.19. Adjusted net earnings were $16 million, up from $12.3 million, while adjusted EBITDA reached $26.5 million, a 28.4% increase from $20.7 million.
Kewaunee Scientific Corporation Price, Consensus and EPS Surprise
Domestic Segment: The domestic operations delivered standout performance, with fiscal fourth-quarter sales increasing 54.7% to $55.5 million from $35.9 million. Adjusted EBITDA rose to $9.3 million from $5.5 million. This growth was attributed to stronger manufacturing volumes and the inclusion of results from Nu Aire, which was acquired in November 2024.
International Segment: International sales grew a modest 3.9% year over year in the fiscal fourth quarter to $21.7 million. Segment EBITDA improved to $2.4 million from $1.7 million, reflecting a rebound in deliveries and billing activity after earlier delays.
Corporate Segment: The corporate segment showed an adjusted EBITDA loss of $1.4 million in the fiscal fourth quarter, which widened slightly from the prior year’s loss of $956,000. These losses reflect professional fees and integration costs tied to the Nu Aire acquisition and compliance readiness efforts.
Management Commentary
President and CEO Thomas D. Hull III emphasized the company's strong close to fiscal 2025, attributing performance gains to consistent strategy execution and elevated customer demand. “Our strategy to emphasize investments in our product portfolio and manufacturing assets while strengthening our dealer and distribution relationships continues to drive performance improvement,” Hull stated.
He also acknowledged macroeconomic challenges, such as geopolitical instability, tariff uncertainty and supply-chain disruptions. Nonetheless, he credited Kewaunee’s adaptable corporate culture and channel partnerships as key strengths that enabled the company to navigate uncertainty effectively.
Drivers Behind the Results
The acquisition of Nu Aire played a pivotal role in Kewaunee’s top and bottom-line expansion. Excluding one-time integration and purchase accounting costs of $1.3 million in the fiscal fourth quarter, adjusted operating profit reached $9.8 million from $5.6 million in the prior year. On a full-year basis, $6 million in related costs were excluded to arrive at $20.8 million in adjusted pre-tax earnings, up 21.5% year over year.
The gross margin also improved meaningfully due to operational leverage and higher volumes. The fiscal fourth-quarter adjusted gross profit surged 69% to $24.7 million from $14.6 million. Similarly, adjusted operating income for the quarter surged to $9.8 million from $5.6 million a year ago.
Guidance
Management conveyed optimism about continued growth, citing both organic initiatives and potential future acquisitions. Hull reiterated confidence in Kewaunee’s channel partnerships and emphasized that the company is poised to capitalize on market opportunities despite a challenging macroeconomic environment.
Other Developments
In a major strategic move, Kewaunee completed the acquisition of Nu Aire, Inc. on Nov. 1, 2024. Nu Aire, a manufacturer of biosafety cabinets and other critical lab equipment, brings complementary capabilities and expands Kewaunee’s reach in laboratory infrastructure. The integration process, though incurring short-term costs, is expected to generate significant long-term synergies. The transaction also led to an increase in intangible assets and goodwill, totaling $30.3 million as of April 30, 2025.
The acquisition contributed to a rise in long-term debt and a corresponding increase in the company’s debt-to-equity ratio, which climbed to 0.99-to-1 (or 0.57-to-1 net of a prior sale-leaseback transaction) from 0.70-to-1 the year before.
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Kewaunee Scientific Stock Soars 47% After Q4 Earnings Beat Estimates
Shares of Kewaunee Scientific Corporation (KEQU - Free Report) have risen 47.1% since reporting results for the fourth quarter of fiscal 2025. This compares with the S&P 500 index’s 6.1% growth over the same time frame. Over the past month, the stock has gained 46%, outperforming the S&P 500’s 14.5% rally.
Revenue & Earnings Performance
Kewaunee Scientific reported a robust set of results for the fourth quarter and the year ended April 30, 2025. Fiscal fourth-quarter net sales rose 36.1% to $77.1 million from $56.7 million in the prior year. Adjusted diluted earnings per share (EPS) rose 25.8% to $1.95 from $1.55. Adjusted net earnings grew 26.6% to $5.8 million from $4.6 million, and adjusted EBITDA climbed 64.2% to $10.3 million from $6.3 million.
For fiscal 2025, net sales totaled $240.5 million, up 18% from $203.8 million in the previous year. The adjusted diluted EPS rose 28.2% to $5.37 from $4.19. Adjusted net earnings were $16 million, up from $12.3 million, while adjusted EBITDA reached $26.5 million, a 28.4% increase from $20.7 million.
Kewaunee Scientific Corporation Price, Consensus and EPS Surprise
Kewaunee Scientific Corporation price-consensus-eps-surprise-chart | Kewaunee Scientific Corporation Quote
Segment Highlights
Domestic Segment: The domestic operations delivered standout performance, with fiscal fourth-quarter sales increasing 54.7% to $55.5 million from $35.9 million. Adjusted EBITDA rose to $9.3 million from $5.5 million. This growth was attributed to stronger manufacturing volumes and the inclusion of results from Nu Aire, which was acquired in November 2024.
International Segment: International sales grew a modest 3.9% year over year in the fiscal fourth quarter to $21.7 million. Segment EBITDA improved to $2.4 million from $1.7 million, reflecting a rebound in deliveries and billing activity after earlier delays.
Corporate Segment: The corporate segment showed an adjusted EBITDA loss of $1.4 million in the fiscal fourth quarter, which widened slightly from the prior year’s loss of $956,000. These losses reflect professional fees and integration costs tied to the Nu Aire acquisition and compliance readiness efforts.
Management Commentary
President and CEO Thomas D. Hull III emphasized the company's strong close to fiscal 2025, attributing performance gains to consistent strategy execution and elevated customer demand. “Our strategy to emphasize investments in our product portfolio and manufacturing assets while strengthening our dealer and distribution relationships continues to drive performance improvement,” Hull stated.
He also acknowledged macroeconomic challenges, such as geopolitical instability, tariff uncertainty and supply-chain disruptions. Nonetheless, he credited Kewaunee’s adaptable corporate culture and channel partnerships as key strengths that enabled the company to navigate uncertainty effectively.
Drivers Behind the Results
The acquisition of Nu Aire played a pivotal role in Kewaunee’s top and bottom-line expansion. Excluding one-time integration and purchase accounting costs of $1.3 million in the fiscal fourth quarter, adjusted operating profit reached $9.8 million from $5.6 million in the prior year. On a full-year basis, $6 million in related costs were excluded to arrive at $20.8 million in adjusted pre-tax earnings, up 21.5% year over year.
The gross margin also improved meaningfully due to operational leverage and higher volumes. The fiscal fourth-quarter adjusted gross profit surged 69% to $24.7 million from $14.6 million. Similarly, adjusted operating income for the quarter surged to $9.8 million from $5.6 million a year ago.
Guidance
Management conveyed optimism about continued growth, citing both organic initiatives and potential future acquisitions. Hull reiterated confidence in Kewaunee’s channel partnerships and emphasized that the company is poised to capitalize on market opportunities despite a challenging macroeconomic environment.
Other Developments
In a major strategic move, Kewaunee completed the acquisition of Nu Aire, Inc. on Nov. 1, 2024. Nu Aire, a manufacturer of biosafety cabinets and other critical lab equipment, brings complementary capabilities and expands Kewaunee’s reach in laboratory infrastructure. The integration process, though incurring short-term costs, is expected to generate significant long-term synergies. The transaction also led to an increase in intangible assets and goodwill, totaling $30.3 million as of April 30, 2025.
The acquisition contributed to a rise in long-term debt and a corresponding increase in the company’s debt-to-equity ratio, which climbed to 0.99-to-1 (or 0.57-to-1 net of a prior sale-leaseback transaction) from 0.70-to-1 the year before.