Shares of Kewaunee Scientific Corporation KEQU have gained 1% since reporting results for the third quarter of fiscal 2025. This compares with the S&P 500 index’s 1.3% rise over the same time frame. Over the past month, the stock has lost 13.9% compared with the S&P 500’s 7.4% decline.

Financial Performance

Kewaunee Scientific reported third-quarter fiscal 2025 earnings per share of 45 cents, reflecting a 29.7% decline from 64 cents in the year-ago quarter.

The company registered revenues of $67.2 million for the third quarter of fiscal 2025, marking a 43.6% increase from $46.8 million in the prior-year quarter. The rise was driven by strong domestic performance and the integration of the Nu Aire acquisition, which closed on Nov. 1, 2024.

However, despite revenue growth, profitability declined. Net earnings fell 46.3% to $1.4 million from $2.5 million in the same quarter last year.

Operating profit decreased 40.9% to $2.3 million from $3.8 million in the prior-year period. This decline was attributed to higher operating expenses, which nearly doubled to $16.1 million (24% of revenues) from $8.2 million (17.6% of revenues) last year. The increase in costs was primarily related to the acquisition of Nu Aire, along with consulting and professional fees, stock-based compensation, and international operating expenses.

Interest expenses also weighed on profitability, increasing to $1.1 million from $411,000 in the previous year. As a result, pre-tax earnings fell 63.7% year over year to $1.3 million from $3.5 million.

Kewaunee Scientific Corporation Price, Consensus and EPS Surprise

 

Kewaunee Scientific Corporation price-consensus-eps-surprise-chart | Kewaunee Scientific Corporation Quote

Domestic & International Segments

Domestic Performance

Domestic revenues grew 63.6% to $52 million in the third quarter of fiscal 2025 from $31.8 million in the prior-year quarter. The rise was largely driven by the integration of Nu Aire, as well as increased manufacturing volumes. Domestic net earnings increased 9.2% to $2.9 million, up from $2.6 million, and EBITDA improved to $5.2 million from $3.8 million.

International Challenges

International revenues were $15.2 million, up 1.2% from $15 million last year. The segment, however, faced headwinds from project site delays, particularly in India, which affected billing timelines. International net earnings dropped to $476,000 from $923,000, and segment EBITDA declined to $760,000 from $1.7 million.

Acquisition & Integration Impacts

The Nu Aire acquisition significantly influenced Kewaunee Scientific’s financials. The company recorded $2.5 million in acquisition-related costs in the quarter, impacting pre-tax earnings. Adjusted for these costs, pre-tax earnings would have been $3.8 million, up 7.8% year over year. Similarly, adjusted EBITDA increased 29.8% to $5.7 million from $4.4 million. The adjusted diluted EPS stood at $1.09 compared with $0.85 last year.