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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________
FORM 10-Q
_________________________

☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2025
or

☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________
Commission file number 0-5286
_________________________
KEWAUNEE SCIENTIFIC CORPORATION
(Exact name of registrant as specified in its charter)
_________________________

Delaware |  | 38-0715562
(State or other jurisdiction of incorporation or organization) |  | (IRS Employer Identification No.)
2700 West Front Street Statesville, North Carolina |  | 28677-2927
(Address of principal executive offices) |  | (Zip Code)

Registrant's telephone number, including area code: (704) 873-7202
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol(s) Name of Exchange on which registered
Common Stock, $2.50 par value KEQU NASDAQ Global Market
_________________________
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer |  | ☐ |  | Accelerated filer |  | ☐
Non-accelerated filer |  | ☒ |  | Smaller reporting company |  | ☒
|  |  |  | Emerging growth company |  | ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of September 9, 2025, the registrant had outstanding 2,865,694 shares of Common Stock.

KEWAUNEE SCIENTIFIC CORPORATION
INDEX TO FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED July 31, 2025

|  | Page Number
PART I. FINANCIAL INFORMATION |
Item 1. | Condensed Consolidated Financial Statements |
| Condensed Consolidated Statements of Operations (unaudited) – Three Months Ended July 31, 2025 and 2024 | 1
| Condensed Consolidated State ments of Comprehensive Earnings (unaudited) – Three Months Ended July 31, 2025 and 2024 | 2
| Condensed Consolidated S tatements of Stockholders' Equity (unaudited) – Three Months Ended July 31, 2025 and 2024 | 3
| Condensed Consol idated Balance Sheets – July 31, 2025 (unaudited) and April 30, 2025 | 4
| Condensed Consolid ated Statements of Cash Flows (unaudited) – Three Months Ended July 31, 2025 and 2024 | 5
| Notes to Condensed Consolidated Financial Statements (unaudited) | 7
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 18
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 21
Item 4. | Controls and Procedures | 21
PART II. OTHER INFORMATION |
Item 1A. | Risk Factors | 22
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 22
Item 5. | Other Information | 22
Item 6. | Exhibits | 23
SIGNATURE | 24

i

PART 1. FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
Kewaunee Scientific Corporation
Condensed Consolidated Statements of Operations
(Unaudited)
($ and shares in thousands, except per share amounts)

| Three Months Ended July 31, |  |
| 2025 |  | 2024 |  |  |  |
Net sales | $ | 71,104 |  |  | $ | 48,393 |  |  |  |  |
Cost of products sold | 50,174 |  |  | 35,905 |  |  |  |  |
Gross profit | 20,930 |  |  | 12,488 |  |  |  |  |
Operating expenses | 16,120 |  |  | 9,913 |  |  |  |  |
Operating profit | 4,810 |  |  | 2,575 |  |  |  |  |
Other income, net | 168 |  |  | 327 |  |  |  |  |
Interest expense | (1,058) |  |  | (472) |  |  |  |  |
Profit before income taxes | 3,920 |  |  | 2,430 |  |  |  |  |
Income tax expense | 761 |  |  | 192 |  |  |  |  |
Net earnings | 3,159 |  |  | 2,238 |  |  |  |  |
Less: Net earnings attributable to the non-controlling interest | 66 |  |  | 45 |  |  |  |  |
Net earnings attributable to Kewaunee Scientific Corporation | $ | 3,093 |  |  | $ | 2,193 |  |  |  |  |
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders |  |  |  |  |  |  |
Basic | $ | 1.08 |  |  | $ | 0.77 |  |  |  |  |
Diluted | $ | 1.04 |  |  | $ | 0.74 |  |  |  |  |
Weighted average number of common shares outstanding |  |  |  |  |  |  |
Basic | 2,851 |  |  | 2,849 |  |  |  |  |
Diluted | 2,963 |  |  | 2,967 |  |  |  |  |

See accompanying notes to Condensed Consolidated Financial Statements.
1

Kewaunee Scientific Corporation
Condensed Consolidated Statements of Comprehensive Earnings
(Unaudited)
($ in thousands)

| Three Months Ended July 31, |  |
| 2025 |  | 2024 |  |  |  |
Net earnings | $ | 3,159 |  |  | $ | 2,238 |  |  |  |  |
Other comprehensive loss, net of tax: |  |  |  |  |  |  |
Foreign currency translation adjustments | (410) |  |  | (116) |  |  |  |  |
Other comprehensive loss | (410) |  |  | (116) |  |  |  |  |
Comprehensive earnings, net of tax | 2,749 |  |  | 2,122 |  |  |  |  |
Less: Comprehensive income attributable to the non-controlling interest | 66 |  |  | 45 |  |  |  |  |
Comprehensive earnings attributable to Kewaunee Scientific Corporation | $ | 2,683 |  |  | $ | 2,077 |  |  |  |  |

See accompanying notes to Condensed Consolidated Financial Statements.
2

Kewaunee Scientific Corporation
Condensed Consolidated Statements of Stockholders' Equity
(Unaudited)
($ in thousands, except per share amounts)

| Common Stock |  | Additional Paid-in Capital |  | Treasury Stock |  | Retained Earnings |  | Accumulated Other Comprehensive Loss |  | Total Kewaunee Scientific Corporation Stockholders' Equity
Balance at April 30, 2025 | $ | 7,353 |  |  | $ | 5,635 |  |  | $ | (3,647) |  |  | $ | 58,919 |  |  | $ | (3,803) |  |  | $ | 64,457 |
Net earnings attributable to Kewaunee Scientific Corporation | — |  |  | — |  |  | — |  |  | 3,093 |  |  | — |  |  | 3,093 |
Other comprehensive loss | — |  |  | — |  |  | — |  |  | — |  |  | (410) |  |  | (410) |
Stock-based compensation | 68 |  |  | (130) |  |  | — |  |  | — |  |  | — |  |  | (62) |
Balance at July 31, 2025 | $ | 7,421 |  |  | $ | 5,505 |  |  | $ | (3,647) |  |  | $ | 62,012 |  |  | $ | (4,213) |  |  | $ | 67,078 |

| Common Stock |  | Additional Paid-in Capital |  | Treasury Stock |  | Retained Earnings |  | Accumulated Other Comprehensive Loss |  | Total Kewaunee Scientific Corporation Stockholders' Equity
Balance at April 30, 2024 | $ | 7,273 |  |  | $ | 5,406 |  |  | $ | (2,051) |  |  | $ | 47,514 |  |  | $ | (3,382) |  |  | $ | 54,760 |
Net earnings attributable to Kewaunee Scientific Corporation | — |  |  | — |  |  | — |  |  | 2,193 |  |  | — |  |  | 2,193 |
Other comprehensive loss | — |  |  | — |  |  | — |  |  | — |  |  | (116) |  |  | (116) |
Stock-based compensation | 80 |  |  | (894) |  |  | — |  |  | — |  |  | — |  |  | (814) |
Balance at July 31, 2024 | $ | 7,353 |  |  | $ | 4,512 |  |  | $ | (2,051) |  |  | $ | 49,707 |  |  | $ | (3,498) |  |  | $ | 56,023 |

See accompanying notes to Condensed Consolidated Financial Statements.
3

Kewaunee Scientific Corporation
Condensed Consolidated Balance Sheets
($ and shares in thousands, except per share amounts)

| July 31, 2025 |  | April 30, 2025
| (Unaudited) |  |
Assets |  |  |
Current Assets: |  |  |
Cash and cash equivalents | $ | 19,489 |  |  | $ | 14,942 |
Restricted cash | 952 |  |  | 2,222 |
Receivables, less allowance; $612; $530, on each respective date | 56,897 |  |  | 62,384 |
Inventories | 34,923 |  |  | 32,849 |
Prepaid expenses and other current assets | 4,887 |  |  | 5,966 |
Total Current Assets | 117,148 |  |  | 118,363 |
Property, plant and equipment, at cost | 72,748 |  |  | 71,983 |
Accumulated depreciation | (49,967) |  |  | (48,809) |
Property, plant and equipment, net | 22,781 |  |  | 23,174 |
Right of use assets | 12,022 |  |  | 12,965 |
Deferred income taxes | 4,211 |  |  | 3,994 |
Intangible assets, net | 17,447 |  |  | 17,831 |
Goodwill | 12,487 |  |  | 12,487 |
Other assets | 7,390 |  |  | 5,840 |
Total Assets | $ | 193,486 |  |  | $ | 194,654 |
Liabilities and Stockholders' Equity |  |  |
Current Liabilities: |  |  |
Short-term borrowings | $ | 495 |  |  | $ | 986 |
Current portion of financing liability | 807 |  |  | 788 |
Current portion of term loan | 2,903 |  |  | 2,903 |
Current portion of financing lease liabilities | 89 |  |  | 96 |
Current portion of operating lease liabilities | 3,131 |  |  | 3,275 |
Accounts payable | 26,327 |  |  | 27,033 |
Employee compensation and amounts withheld | 7,799 |  |  | 9,209 |
Deferred revenue | 4,983 |  |  | 6,073 |
Other accrued expenses | 3,952 |  |  | 3,349 |
Total Current Liabilities | 50,486 |  |  | 53,712 |
Long-term portion of financing liability | 26,420 |  |  | 26,632 |
Long-term portion of seller note | 24,021 |  |  | 23,537 |
Long-term portion of term loan | 9,686 |  |  | 10,412 |
Long-term portion of financing lease liabilities | 142 |  |  | 149 |
Long-term portion of operating lease liabilities | 8,014 |  |  | 8,797 |
Accrued pension and deferred compensation costs | 4,334 |  |  | 3,708 |
Deferred income taxes | 1,161 |  |  | 1,098 |
Other non-current liabilities | 353 |  |  | 364 |
Total Liabilities | 124,617 |  |  | 128,409 |
Commitments and Contingencies |  |  |
Stockholders' Equity: |  |  |
Common stock, $2.50 par value, Authorized – 5,000 shares; Issued – 2,968 shares; 2,941 shares; – Outstanding – 2,865 shares; 2,839 shares, on each respective date | 7,421 |  |  | 7,353 |
Additional paid-in-capital | 5,505 |  |  | 5,635 |
Retained earnings | 62,012 |  |  | 58,919 |
Accumulated other comprehensive loss | (4,213) |  |  | (3,803) |
Common stock in treasury, at cost, 103 shares; 103 shares, on each respective date | (3,647) |  |  | (3,647) |
Total Kewaunee Scientific Corporation Stockholders' Equity | 67,078 |  |  | 64,457 |
Non-controlling interest | 1,791 |  |  | 1,788 |
Total Stockholders' Equity | 68,869 |  |  | 66,245 |
Total Liabilities and Stockholders' Equity | $ | 193,486 |  |  | $ | 194,654 |

See accompanying notes to Condensed Consolidated Financial Statements.
4

Kewaunee Scientific Corporation
Condensed Consolidated Statements of Cash Flows
(Unaudited)
($ in thousands)

| Three Months Ended July 31,
| 2025 |  | 2024
Cash flows from operating activities: |  |  |
Net earnings | $ | 3,159 |  |  | $ | 2,238 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |  |  |
Depreciation and amortization | 1,549 |  |  | 815 |
Provision for credit losses | 19 |  |  | 11 |
Stock-based compensation expense | 521 |  |  | 318 |
Deferred income taxes | (154) |  |  | (635) |
Accrued payment in kind ("PIK") interest | 445 |  |  | — |
Amortization of deferred financing costs | 94 |  |  | — |
Change in assets and liabilities: |  |  |
Receivables | 5,468 |  |  | 1,508 |
Inventories | (2,074) |  |  | 1,393 |
Accounts payable and other accrued expenses | (1,525) |  |  | (5,113) |
Deferred revenue | (1,090) |  |  | 563 |
Other, net | (621) |  |  | (1,892) |
Net cash provided by (used in) operating activities | 5,791 |  |  | (794) |
Cash flows from investing activities: |  |  |
Capital expenditures | (771) |  |  | (278) |
Net cash used in investing activities | (771) |  |  | (278) |
Cash flows from financing activities: |  |  |
Repayments on term loan | (750) |  |  | — |
Proceeds from short-term borrowings | 1,377 |  |  | 38,479 |
Repayments on short-term borrowings | (1,869) |  |  | (37,951) |
Payments on sale-leaseback financing transaction | (207) |  |  | (174) |
Payments on long-term lease obligations | (14) |  |  | (11) |
Net cash (used in) provided by financing activities | (1,463) |  |  | 343 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (280) |  |  | (23) |
Increase (decrease) in cash, cash equivalents and restricted cash | 3,277 |  |  | (752) |
Cash, cash equivalents and restricted cash, beginning of period | 17,164 |  |  | 25,938 |
Cash, cash equivalents and restricted cash, end of period | $ | 20,441 |  |  | $ | 25,186 |

See accompanying notes to Condensed Consolidated Financial Statements.
5

Kewaunee Scientific Corporation
Condensed Consolidated Statements of Cash Flows (Cont'd)
(Unaudited)
($ in thousands)

| Three Months Ended July 31,
| 2025 |  | 2024
Supplemental Disclosure of Cash Flow Information |  |  |
Cash paid for: |  |  |
Interest | $ | 524 |  |  | $ | 472 |
Noncash investing and financing activities: |  |  |
Employee taxes withheld for stock-based compensation in stock | $ | 671 |  |  | $ | — |

See accompanying notes to Condensed Consolidated Financial Statements.
6

Kewaunee Scientific Corporation
Notes to Condensed Consolidated Financial Statements
(unaudited)
A. Financial Information
The unaudited interim Condensed Consolidated Financial Statements of Kewaunee Scientific Corporation (the "Company") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted, although the Company believes that the disclosures are adequate to make the information presented not misleading.
These interim Condensed Consolidated Financial Statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of these financial statements and should be read in conjunction with the Consolidated Financial Statements and Notes included in the Company's 2025 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. The Condensed Consolidated Balance Sheet as of April 30, 2025 included in this interim period filing has been derived from the audited consolidated financial statements at that date, but does not include all of the information and related notes required by GAAP for complete financial statements.
The preparation of the interim Condensed Consolidated Financial Statements requires management to make certain estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates.
B. Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of three months or less. During the three months ended July 31, 2025 and twelve months ended April 30, 2025, the Company had cash deposits in excess of FDIC insured limits. The Company has not experienced any losses from such deposits. Restricted cash includes bank deposits of subsidiaries used for performance guarantees against customer orders.
The Company includes restricted cash along with the cash balance for presentation in the Condensed Consolidated Statements of Cash Flows. The reconciliation between the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Cash Flows is as follows (in thousands):

|  | July 31, 2025 |  | April 30, 2025
Cash and cash equivalents |  | $ | 19,489 |  |  | $ | 14,942 |
Restricted cash |  | 952 |  |  | 2,222 |
Total cash, cash equivalents and restricted cash |  | $ | 20,441 |  |  | $ | 17,164 |

C. Nu Aire Acquisition
On November 1, 2024 (the “Closing Date”), the Company completed the acquisition of Nu Aire, Inc. ("Nu Aire"), a leading manufacturer of equipment for a diverse range of laboratory and pharmacy environments, by acquiring all of the Nu Aire capital stock that was issued and outstanding as of the date of acquisition (the "Transaction"). The Transaction expands the Company's capabilities, allowing the combined organization to better meet the needs of end-users in laboratory furnishings and accelerates the Company's vision of becoming the market leader in the design and manufacturing of laboratory furniture and technical products essential for outfitting laboratories.
The Company purchased all the outstanding stock of Nu Aire for $55.0 million, subject to certain adjustments for debt, cash, transaction expenses, and net working capital resulting in aggregate acquisition consideration of $53.0 million as shown in the table below. $23.0 million of the purchase price payable at closing of the Transaction was funded pursuant to subordinated seller notes. The remaining purchase price payable at closing of the Transaction was paid in cash, which cash was funded, in part, through the Revolving Credit Facility (as defined in Note H, Long-term Debt and Other Credit Arrangements), and Term Loan (as defined in Note H, Long-term Debt and Other Credit Arrangements), provided to the Company by PNC Bank, National Association ("PNC").
7

The following table summarizes the aggregate acquisition consideration for Nu Aire:

($ in thousands) |  |
Cash paid to Nu Aire |  | $ | 29,669 |
Subordinated Promissory Notes due to Nu Aire |  | 23,000 |
Payment of Nu Aire transaction expenses |  | 311 |
Purchase Price |  | $ | 52,980 |

The Transaction was accounted for as a business combination using the acquisition method of accounting in accordance with ASC 805, Business Combinations. The purchase price was allocated to the assets acquired and liabilities assumed based on the estimated fair values at the date of acquisition. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, none of which is expected to be deductible for tax purposes. Goodwill arising from the Transaction is attributable to the value of the acquired assembled workforce and the premium paid.
The purchase price recorded for Nu Aire was allocated as follows:

($ in thousands) |  |  |  |  | Final Allocation As Adjusted
Assets acquired: |  |  |  |  |
Cash and cash equivalents |  |  |  |  | $ | 1,245 |
Receivables |  |  |  |  | 10,650 |
Inventories |  |  |  |  | 15,522 |
Prepaid expenses and other current assets |  |  |  |  | 852 |
Property, plant and equipment |  |  |  |  | 7,349 |
Other intangible assets |  |  |  |  | 18,600 |
Goodwill |  |  |  |  | 12,487 |
Right of use assets |  |  |  |  | 7,376 |
Other assets |  |  |  |  | 7 |
Total assets acquired |  |  |  |  | 74,088 |
Liabilities assumed: |  |  |  |  |
Current portion of operating lease liabilities |  |  |  |  | (965) |
Accounts payable |  |  |  |  | (4,318) |
Employee compensation and amounts withheld |  |  |  |  | (2,642) |
Deferred revenue |  |  |  |  | (935) |
Other accrued expenses |  |  |  |  | (1,591) |
Long-term portion of operating lease liabilities |  |  |  |  | (5,167) |
Deferred income taxes |  |  |  |  | (5,490) |
Total liabilities assumed |  |  |  |  | (21,108) |
Aggregate acquisition consideration |  |  |  |  | $ | 52,980 |

The purchase price allocation was finalized as of July 31, 2025, within the measurement period, and no further adjustments will be made. During the year ended April 30, 2025, the Company recorded a $1.8 million measurement period adjustment to increase inventory as a result of revised capitalized variances related to work-in-progress as of the acquisition date, with a corresponding decrease to Goodwill, net of the tax impact. The net effect of these adjustments would have resulted in an insignificant decrease in cost of products sold recorded during the year ended April 30, 2025. The measurement period adjustments were recorded in our consolidated financial statements as of and for the year ended April 30, 2025.
The above fair values of assets acquired and liabilities assumed are based on the information that was available as of the reporting date. The fair values of the assets acquired and liabilities assumed were determined using the income and cost approaches. In many cases, the determination of the fair values required estimates about discount rates, future expected cash flows and other future events that are judgmental and subject to change. The fair value measurements were primarily based on
8

significant inputs that are not observable in the market and thus represent a Level 3 measurement of the fair value hierarchy as defined in ASC 820, Fair Value Measurements. Intangible assets consisting of customer relationships, trade names and trademarks, and developed technology were valued using the multi-period excess earnings method ("MEEM"), or the relief from royalty ("RFR") method, both are forms of the income approach. A cost approach was applied for property, plant and equipment.
•Customer relationship intangible assets were valued using the MEEM method. The significant assumptions used include the estimated annual net cash flows (including appropriate revenue and profit attributable to the asset, customer attrition rates, applicable tax rate, and contributory asset charges, among other factors), the discount rate reflecting the risks inherent in the future cash flow stream, an assessment of the asset's life cycle and the tax amortization benefit, among other factors.
•The trade names and trademarks and developed technology intangible assets were valued using the RFR method. The significant assumptions used include the estimated annual net cash flows (including appropriate revenue attributable to the asset, applicable tax rate, royalty rate, and other factors such as technology related obsolescence rates), the discount rate, reflecting the risks inherent in the future cash flow stream, and the tax amortization benefit, among other factors.
•The cost approach, which estimates value by determining the current cost of replacing an asset with another of equivalent economic utility, was used for property, plant, and equipment. The cost to replace a given asset reflects the estimated reproduction or replacement cost for the property, less an allowance for loss in value due to depreciation.
The Company believes that the information provided a reasonable basis for estimating the fair values of the acquired assets and assumed liabilities and considers the purchase price allocation finalized as of July 31, 2025, within the measurement period.
The amounts allocated to intangible assets are as follows:

($ in thousands) |  | Fair Value |  | Estimated Useful Life
Customer relationships |  | $ | 9,800 |  |  | 10 years
Trade names and trademarks |  | 4,900 |  |  | indefinite
Developed technology |  | 3,900 |  |  | 7 years
Intangible assets acquired |  | $ | 18,600 |  |  |

The results of operations for Nu Aire of $19.7 million of revenue and $696,000 of net earnings for the three months ended July 31, 2025, have been included within the accompanying Consolidated Statements of Operations.
The following unaudited supplemental pro forma combined financial information presents the Company's results of operations for the three months ended July 31, 2024 as if the acquisition of Nu Aire had occurred on May 1, 2023. The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the Company's operating results that may have actually occurred had the acquisition of Nu Aire been completed on May 1, 2023. In addition, the unaudited pro forma financial information does not give effect to any anticipated cost savings, operating efficiencies, or other synergies that may be associated with the Transaction, or any estimated costs that have been or will be incurred by the Company to integrate the assets and operations of Nu Aire.

| Three Months Ended July 31, |  |
($ in thousands, except per share amounts) | 2025 |  | 2024 |  |  |  |
| (actual) |  | (pro forma) |  |  |  |
Net sales | $ | 71,104 |  |  | $ | 65,448 |  |  |  |  |
Net earnings | $ | 3,093 |  |  | $ | 4,273 |  |  |  |  |
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders: |  |  |  |  |  |  |
Basic | $ | 1.08 |  |  | $ | 1.50 |  |  |  |  |
Diluted | $ | 1.04 |  |  | $ | 1.44 |  |  |  |  |

9

D. Revenue Recognition
The Company recognizes revenue when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. The majority of the Company's revenues are recognized over time as the customer receives control as the Company performs work under a contract. However, a portion of the Company's revenues are recognized at a point-in-time as control is transferred at a distinct point in time per the terms of a contract.
Disaggregated Revenue
A summary of net sales transferred to customers over time and at a point in time for the periods ended July 31, 2025 and July 31, 2024 is as follows (in thousands):

| Three Months Ended
| July 31, 2025 |  | July 31, 2024
| Domestic |  | International |  | Total |  | Domestic |  | International |  | Total
Over Time | $ | 32,713 |  |  | $ | 16,752 |  |  | $ | 49,465 |  |  | $ | 34,389 |  |  | $ | 12,870 |  |  | $ | 47,259 |
Point in Time | 21,639 |  |  | — |  |  | 21,639 |  |  | 1,134 |  |  | — |  |  | 1,134 |
Total | $ | 54,352 |  |  | $ | 16,752 |  |  | $ | 71,104 |  |  | $ | 35,523 |  |  | $ | 12,870 |  |  | $ | 48,393 |

Contract Balances
The closing balances of contract assets included $12,377,000 in accounts receivable July 31, 2025. The opening balance of contract assets arising from contracts with customers included $12,693,000 in accounts receivable at April 30, 2025. The closing and opening balances of contract liabilities included in deferred revenue arising from contracts with customers were $4,983,000 at July 31, 2025 and $6,073,000 at April 30, 2025. The timing of revenue recognition, billings and cash collections results in accounts receivable, unbilled receivables, and deferred revenue which are disclosed in the Condensed Consolidated Balance Sheets and in the Notes to the Condensed Consolidated Financial Statements. In general, the Company receives payments from customers based on a billing schedule established in its contracts. Unbilled receivables represent amounts earned which have not yet been billed in accordance with contractually stated billing terms and are included in receivables on the Condensed Consolidated Balance Sheets. Receivables are recorded when the right to consideration becomes unconditional and the Company has a right to invoice the customer. Deferred revenue relates to payments received in advance of performance under the contract. Deferred revenue is recognized as revenue as (or when) the Company performs under the contract. Approximately 40% and 100% of the contract liability balances at April 30, 2025 and July 31, 2025, respectively, are expected to be recognized as revenue during the respective succeeding 12 months, with the remaining balance primarily related to international operations, which generally have longer delivery and collection cycles.
E. Inventories
The Company measures inventories using the first-in, first-out method at the lower of cost or net realizable value. Inventories consisted of the following (in thousands):

| July 31, 2025 |  | April 30, 2025
Finished products | $ | 6,056 |  |  | $ | 5,543 |
Work in process | 6,827 |  |  | 3,784 |
Raw materials | 22,040 |  |  | 23,522 |
Total | $ | 34,923 |  |  | $ | 32,849 |

The Company's International subsidiaries' inventories were $2,703,000 at July 31, 2025 and $2,845,000 at April 30, 2025 and are included in the above tables.
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F. Fair Value of Financial Instruments
The Company's financial instruments consist primarily of cash and equivalents, mutual funds, a sale-leaseback financing liability, term loans, and short-term borrowings. The carrying value of these assets and liabilities approximates their fair value. The following tables summarize the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of July 31, 2025 and April 30, 2025 (in thousands):

|  | July 31, 2025
Financial Assets |  | Level 1 |  | Level 2 |  | Total
Trading securities held in non-qualified compensation plans (1) |  | $ | 2,340 |  |  | $ | — |  |  | $ | 2,340 |
Cash surrender value of life insurance policies (1) |  | — |  |  | 1,514 |  |  | 1,514 |
Total |  | $ | 2,340 |  |  | $ | 1,514 |  |  | $ | 3,854 |
Financial Liabilities |  |  |  |  |  |
Non-qualified compensation plans (2) |  | $ | — |  |  | $ | 4,334 |  |  | $ | 4,334 |
Total |  | $ | — |  |  | $ | 4,334 |  |  | $ | 4,334 |

|  | April 30, 2025
Financial Assets |  | Level 1 |  | Level 2 |  | Total
Trading securities held in non-qualified compensation plans (1) |  | $ | 1,861 |  |  | $ | — |  |  | $ | 1,861 |
Cash surrender value of life insurance policies (1) |  | — |  |  | 1,403 |  |  | 1,403 |
Total |  | $ | 1,861 |  |  | $ | 1,403 |  |  | $ | 3,264 |
Financial Liabilities |  |  |  |  |  |
Non-qualified compensation plans (2) |  | $ | — |  |  | $ | 3,708 |  |  | $ | 3,708 |
Total |  | $ | — |  |  | $ | 3,708 |  |  | $ | 3,708 |

(1)The Company maintains two non-qualified compensation plans which include investment assets in a rabbi trust. These assets consist of marketable securities, which are valued using quoted market prices multiplied by the number of shares owned, and life insurance policies, which are valued at their cash surrender value.
(2)Plan liabilities are equal to the individual participants' account balances and other earned retirement benefits.
G. Goodwill and Other Intangible Assets
In connection with the Nu Aire Acquisition, on November 1, 2024, the Company recorded goodwill of $14.2 million on its Condensed Consolidated Balance Sheet. During the year ended April 30, 2025, the Company recorded a $1.8 million measurement period adjustment to increase inventory as a result of revised capitalized variances related to work-in-progress as of the acquisition date, with a corresponding decrease to Goodwill, net of the tax impact. See Note C, Nu Aire Acquisition for additional information. No impairment losses on goodwill were recorded during the three months ended July 31, 2025. The ending balance of goodwill at July 31, 2025 and April 30, 2025 was approximately $12.5 million.
Also in connection with the Nu Aire Acquisition, the Company recorded other intangible assets on November 1, 2024 of $18.6 million on its Condensed Consolidated Balance Sheet. See Note C, Nu Aire Acquisition for additional information. The gross carrying amount and accumulated amortization of the Company's intangible assets other than goodwill as of July 31, 2025 and April 30, 2025 were as follows:

|  |  | July 31, 2025
($ in thousands) | Estimated Useful Life |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value
Customer relationships | 10 years |  | $ | 9,800 |  |  | $ | (735) |  |  | $ | 9,065 |
Trade names and trademarks | indefinite |  | 4,900 |  |  | — |  |  | 4,900 |
Developed technology | 7 years |  | 3,900 |  |  | (418) |  |  | 3,482 |
Total |  |  | $ | 18,600 |  |  | $ | (1,153) |  |  | $ | 17,447 |

11

|  |  | April 30, 2025
($ in thousands) | Estimated Useful Life |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value
Customer relationships | 10 years |  | $ | 9,800 |  |  | $ | (490) |  |  | $ | 9,310 |
Trade names and trademarks | indefinite |  | 4,900 |  |  | — |  |  | 4,900 |
Developed technology | 7 years |  | 3,900 |  |  | (279) |  |  | 3,621 |
Total |  |  | $ | 18,600 |  |  | $ | (769) |  |  | $ | 17,831 |

Expected future amortization expense related to intangible assets, net as of July 31, 2025, excluding trade names and trademarks, are as follows:

($ in thousands) |  |
Remainder of fiscal 2026 |  | $ | 1,153 |
2027 |  | 1,537 |
2028 |  | 1,537 |
2029 |  | 1,537 |
2030 |  | 1,537 |
Thereafter |  | 5,246 |
Total |  | $ | 12,547 |

H. Long-term Debt and Other Credit Arrangements
The components of the Company's long-term debt at July 31, 2025 and April 30, 2025, excluding lease, deferred financing costs of $0.8 million and $0.8 million related to the debt at each respective date, and sale-leaseback-related activity, as presented on the Condensed Consolidated Balance Sheet were as follows:

($ in thousands) | July 31, 2025 |  | April 30, 2025
PNC Loan Agreement | $ | 13,000 |  |  | $ | 13,750 |
Seller Notes | 24,380 |  |  | 23,935 |
Total long-term debt | $ | 37,380 |  |  | $ | 37,685 |
Current portion of long-term debt | $ | 3,000 |  |  | $ | 3,000 |
Non-current portion of long-term debt | 34,380 |  |  | 34,685 |
Total long-term debt | $ | 37,380 |  |  | $ | 37,685 |

See Note J, Leases, for more information on any long-term debt related to the Company's lease portfolio and Note I, Sale-Leaseback Financing Transaction, for more information on any long-term debt related to the Company's sale-leaseback financing transaction.
PNC Loan Agreement
As noted in Note C, Nu Aire Acquisition, the Company entered into a Loan Agreement (the “Loan Agreement”) with PNC on November 1, 2024. The loans governed by the Loan Agreement include (i) a $20.0 million committed senior secured revolving line of credit facility (the “Revolving Credit Facility”), which contains an option to increase the facility upon request by the Company and approval by PNC, in its discretion, by an additional $10.0 million; and (ii) a $15.0 million term loan (the “Term Loan”). The Revolving Credit Facility and Term Loan mature on November 1, 2029. The Revolving Credit Facility and the Term Loan can be paid at any time without penalty.
For the Revolving Credit Facility, the interest rate will be selected by the Company at each advance from one of two options. Option one is a base rate option. Option 2 is a daily secured overnight financing rate. There is an unused fee of 0.15% to 0.25%, determined by the ratio of senior debt to the Company’s EBITDA, of the unused daily balance of the Revolving Credit Facility. For the Term Loan, the principal will be paid in 60 substantially equal monthly installments commencing on November 1, 2024. Interest will be paid at the same time and calculated on the outstanding principal balance at an interest rate equal to the rate under Option 2 of the Revolving Credit Facility. The borrowing rate on the Term Loan was 5.91% as of July 31, 2025, as
12

compared to 5.96% as of April 30, 2025. The Company recorded interest expense of $225,000 related to the Term Loan for the three months ended July 31, 2025.
At July 31, 2025 and April 30, 2025, no advances were outstanding under the Revolving Credit Facility. Amounts available under the Revolving Credit Facility were $20.0 million at July 31, 2025 and April 30, 2025.
The Loan Agreement has customary reporting covenants. The principal financial covenants require that (1) the Company maintain on a consolidated basis a ratio of senior funded indebtedness to EBITDA of not more than 2.50 to 1.00 and (2) a fixed charge coverage ratio of at least 1.20 to 1.00. The Loan Agreement also contains covenants prohibiting under certain circumstances (1) the incurrence of certain indebtedness, (2) the granting of security interests by the Company to persons other than PNC, (3) the delivery of guaranties for debts of third parties, and (4) certain transactions not in the ordinary course of business. At July 31, 2025 and April 30, 2025, the Company was in compliance with all of the financial covenants under the Loan Agreement.
Seller Notes
As noted in Note C, Nu Aire Acquisition, $23.0 million of the aggregate purchase price paid in the Nu Aire Acquisition was paid by the issuance of subordinated seller notes (the "Seller Notes") entered into by the Company on November 1, 2024. The Seller Notes will accrue interest at 8% per annum and will mature on November 1, 2027, at which time the outstanding principal amount and all unpaid accrued interest will become due and payable by the Company. The Company accrued $445,000 in PIK interest for the three-month period ended July 31, 2025 and $935,000 for the fiscal year ended April 30, 2025.
The Seller Notes may be prepaid, in full or in part, any time without prepayment penalty, premium, or other fee; subject, however, to each seller’s obligation not to accept any prepayment under the Seller Notes until all Secured Claims (as defined in the Seller Notes) have been paid to PNC. The Company’s obligations under the Seller Notes are secured by a security agreement entered into between the Company and each shareholder of Nu Aire immediately prior to the completion of the acquisition (the "Sellers"), pursuant to which the Sellers have the option to cause the Company to issue shares of the Company’s common stock to the Sellers, solely upon the occurrence of an event of default.
The rights of the Sellers to receive payments under the Seller Notes are subordinate to the rights of PNC under the Loan Agreement pursuant to a separate subordination agreement that the Sellers entered into with PNC on November 1, 2024 in connection with the Transaction.
Mid Cap Revolving Credit Facility
On September 30, 2024, the Company terminated the Company's previous revolving credit facility with Mid Cap Funding IV Trust (the "Mid Cap Revolving Credit Facility"). At the time of termination, there was a $3.0 million balance outstanding under the Mid Cap Revolving Credit Facility, which was paid off in full as part of the termination. The Company incurred $0.5 million in related expenses as a result of the termination.
International Subsidiaries Short-Term Borrowings
The Company's International subsidiaries had a balance outstanding of $495,000 in short-term borrowings related to overdraft protection and short-term loan arrangements at July 31, 2025. The Company's International subsidiaries had a balance outstanding at April 30, 2025 of $986,000 in short-term borrowings related to overdraft protection and short-term loan arrangements.
I. Sale-Leaseback Financing Transaction
On December 22, 2021, the Company entered into an Agreement for Purchase and Sale of Real Property with CAI Investments Sub-Series 100 LLC, a Nevada limited liability company (the "Buyer"), for the Company’s headquarters and manufacturing facilities located at 2700 West Front Street in Statesville, North Carolina (the "Sale Agreement").
The Sale Agreement was finalized on March 24, 2022 and coincided with the Company and CAI Investments Medical Products I Master Lessee LLC ("Lessor") entering into a lease agreement. The lease arrangement is for a 20-year term, with four renewal options of five years each. Under the terms of the lease agreement, the Company’s initial basic rent is approximately $158,000 per month, with annual increases of approximately 2% each year of the initial term.
The Company accounted for the Sale-Leaseback Arrangement as a financing transaction as the lease agreement was determined to be a finance lease due to the significance of the present value of the lease payments, using a discount rate of 4.75% to reflect the Company’s incremental borrowing rate, compared to the fair value of the leased property as of the lease commencement
13

date. In measuring the lease payments for the present value analysis, the Company elected the practical expedient to combine the lease component (the leased facilities) with the non-lease component (property management provided by the Buyer/Lessor) into a single lease component.
The presence of a finance lease indicates that control of the property has not transferred to the Buyer/Lessor and, as such, the transaction was deemed a failed sale-leaseback and accounted for as a financing arrangement. As a result of this determination, the Company is viewed as having received the sale proceeds from the Buyer/Lessor in the form of a hypothetical loan collateralized by its leased facilities. The hypothetical loan is payable as principal and interest in the form of “lease payments” to the Buyer/Lessor. As such, the Company will not derecognize the property from its books for accounting purposes until the lease ends. No gain or loss was recognized under GAAP related to the Sale-Leaseback Arrangement.
As of July 31, 2025, the carrying value of the financing liability was $27,227,000, net of $575,000 in debt issuance costs, of which $807,000 was classified as current on the Condensed Consolidated Balance Sheet with $26,420,000 classified as long-term. As of April 30, 2025, the carrying value of the financing liability was $27,420,000, net of $589,000 in debt issuance costs, of which $788,000 was classified as current on the Consolidated Balance Sheet with $26,632,000 classified as long-term. The monthly lease payments are split between a reduction of principal and interest expense using the effective interest rate method. Interest expense associated with the financing arrangement was $308,000 and $317,000 for the three months ended July 31, 2025 and July 31, 2024, respectively.
The Company will continue to depreciate the building down to zero over the 20-year assumed economic life of the property so that at the end of the lease term, the remaining carrying amount of the financing liability will equal the carrying amount of the land of $41,000.
Remaining future cash payments related to the financing liability as of July 31, 2025 are as follows:

($ in thousands) |  |
Remainder of fiscal 2026 |  | $ | 1,508 |
2027 |  | 2,049 |
2028 |  | 2,090 |
2029 |  | 2,132 |
2030 |  | 2,175 |
Thereafter |  | 29,560 |
Total Minimum Liability Payments |  | 39,514 |
Imputed Interest |  | (12,287) |
Total |  | $ | 27,227 |

J. Leases
The Company recognizes lease assets and lease liabilities reflecting the rights and obligations created by operating type leases for real estate and equipment in both the U.S. and internationally and financing leases for vehicles and IT equipment in the U.S. At July 31, 2025 and April 30, 2025, right-of-use assets totaled $12,022,000 and $12,965,000, respectively. Operating cash paid to settle lease liabilities was $1,040,000 and $658,000 for the three months ended July 31, 2025 and July 31, 2024, respectively. The Company's leases have remaining lease terms of up to 7 years. In addition, some of the leases may include options to extend the leases for up to 5 years or options to terminate the leases within 1 year. Operating lease expense was $1,458,000 for the three months ended July 31, 2025, inclusive of period cost for short-term leases, not included in lease liabilities, of $418,000. Operating lease expense was $882,000 for the three months ended July 31, 2024, inclusive of period cost for short-term leases, not included in lease liabilities, of $224,000.
At July 31, 2025, the weighted average remaining lease term for the capitalized operating leases was 3.9 years and the weighted average discount rate was 6.2%. For the financing leases, the weighted average remaining lease term was 4.1 years and the weighted average discount rate was 8.6%. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of those lease payments. The Company uses the implicit rate when readily determinable.
14

Future minimum lease payments under non-cancelable leases as of July 31, 2025 were as follows:

($ in thousands) |  | Operating |  | Financing
Remainder of fiscal 2026 |  | $ | 2,843 |  |  | $ | 94 |
2027 |  | 3,345 |  |  | 40 |
2028 |  | 2,462 |  |  | 40 |
2029 |  | 2,108 |  |  | 40 |
2030 |  | 1,630 |  |  | 40 |
Thereafter |  | 160 |  |  | 22 |
Total Minimum Lease Payments |  | 12,548 |  |  | 276 |
Imputed Interest |  | (1,403) |  |  | (45) |
Total |  | $ | 11,145 |  |  | $ | 231 |

In April 2025, the Company entered into a new lease that has not yet commenced as of July 31, 2025 with future minimum lease payments in aggregate of roughly $267,000 that are not yet reflected on the Condensed Consolidated Balance Sheet. This lease is expected to commence in the second quarter of fiscal year 2026 with a lease term of 5 years. Subsequent to July 31, 2025, the Company entered into a new lease with future minimum lease payments in aggregate of roughly $477,000 that are not yet reflected on the Condensed Consolidated Balance Sheet. This lease will commence in the second quarter of fiscal year 2026 with a lease term of 1 year.
K. Stockholders' Equity
Common Stock
The Company is authorized to issue 5,000,000 shares of Common Stock, par value of $2.50 per share. Holders of the Company's Common Stock are entitled to one vote per share. As of July 31, 2025 and April 30, 2025, there were approximately 2,865,000 and 2,839,000 shares, respectively, of Common Stock outstanding. The Company has not declared or paid any dividends with respect to its Common Stock during the three months ended July 31, 2025. The declaration and payment of any future dividends is at the discretion of the Board of Directors and will depend upon many factors, including the Company's earnings, capital requirements, investment and growth strategies, financial conditions, the terms of the Company's indebtedness, which contains provisions that could limit the payment of dividends in certain circumstances, and other factors that the Board of Directors may deem to be relevant.
Share Repurchase Program
On August 31, 2023, the Board of Directors of the Company adopted a share repurchase program with authorization to repurchase up to 100,000 shares. There is no expiration date and currently, management has no plans to terminate this program.
On March 12, 2025, the Board of Directors amended the existing share repurchase program to authorize the repurchase of up to an additional 100,000 shares of the Company's common stock (as amended, the "Program"). The Program does not have a specified expiration date and the timing and amount of any repurchase under this Program will be determined by the Company's management at its discretion based upon its ongoing assessment of the capital needs of the business, the market price of the Company's common stock, and general market conditions. The Company did not purchase any shares under its share repurchase program during the three months ended July 31, 2025. As of July 31, 2025, the total remaining purchase authorization was 100,603 shares.
L. Earnings Per Share
Basic earnings per share is based on the weighted average number of common shares outstanding during the year. Diluted earnings per share reflects the assumed exercise of outstanding options and the conversion of restricted stock units ("RSUs") under the Company's various stock compensation plans, except when RSUs and options have an antidilutive effect. There were no antidilutive RSUs and options outstanding at July 31, 2025. There were no antidilutive RSUs and options outstanding at July 31, 2024. The following is a reconciliation of basic to diluted weighted average common shares outstanding (in thousands):

| Three Months Ended |  |
| July 31, 2025 |  | July 31, 2024 |  |  |  |
Basic | 2,851 |  |  | 2,849 |  |  |  |  |
Dilutive effect of stock options and RSUs | 112 |  |  | 118 |  |  |  |  |
Weighted average common shares outstanding - diluted | 2,963 |  |  | 2,967 |  |  |  |  |

15

M. Stock Options and Stock-based Compensation
The Company recognizes compensation costs related to stock options and other stock awards granted by the Company as operating expenses over their vesting period.
In August 2023, the stockholders approved the 2023 Omnibus Incentive Plan ("2023 Plan"), which enables the Company to grant equity-based awards, with potential recipients including directors, consultants, and employees. This plan replaces the 2017 Omnibus Incentive Plan ("2017 Plan"). All outstanding equity granted under the 2017 Plan remain subject to, and will be settled under, the 2017 Plan. At the date of approval of the 2023 Plan, there were 64,633 shares available for new awards under the 2017 Plan, and 168,791 shares available for issuance under equity awards outstanding under the 2017 Plan. These shares that were available for new awards and any shares subject to outstanding awards under the 2017 Plan that subsequently cease to be subject to such awards are available under the 2023 Plan. The 2023 Plan also increased the total number of shares reserved for issuance under the Company's equity compensation plans by 310,000, for a total of 374,633 shares initially reserved for issuance under the 2023 Plan. At July 31, 2025, there were 291,326 shares available for future issuance under the 2023 Plan.
In June 2025, the Company granted 72,728 RSUs under the 2023 Plan. These RSUs include both a service and a performance component, vesting over a three-year period. The recognized expense is based upon the vesting period for service criteria and estimated attainment of the performance criteria at the end of the three-year period, based on the ratio of cumulative days of service to total days over the three-year period. The Company recorded stock-based compensation expense of $431,000 during the three months ended July 31, 2025 with the remaining estimated stock-based compensation expense of $3,877,000 to be recorded over the remaining vesting periods. The Company recorded stock-based compensation expense of $318,000 during the three months ended July 31, 2024. Director's fees paid with shares of common stock in lieu of cash in accordance with Director compensation guidelines were $180,000 for the three months ended July 31, 2025, of which $90,000 was included in stock-based compensation.
N. Income Taxes
Income tax expense of $761,000 and $192,000 was recorded for the three months ended July 31, 2025 and July 31, 2024, respectively. The effective tax rate was 19.4% and 7.9% for the three months ended July 31, 2025 and July 31, 2024, respectively. The effective tax rate for the current three month period reflects the impact of foreign operations which are taxed at different rates than the U.S. tax rate of 21%, combined with expected current year tax expense for the Company's domestic operations. In addition, the income tax expense recorded for the three months ended July 31, 2025 was favorably impacted by a discrete tax benefit of $303,000 resulting from the issuance of stock through the vesting of restricted stock units during the quarter.
In August 2019, the Company revoked its indefinite reinvestment of foreign unremitted earnings position in compliance with ASC 740 "Income Taxes" and terminated its indefinite reinvestment of unremitted earnings assertion for the Singapore and Kewaunee Labway India Pvt. Ltd. international subsidiaries. The Company has a deferred tax liability of $1,549,000 and $1,507,000 for the withholding tax related to Kewaunee Labway India Pvt. Ltd. as of July 31, 2025 and April 30, 2025, respectively.
On July 4, 2025, the U.S. government enacted Public Law No. 119-21, commonly known as the One Big Beautiful Bill Act ("OBBBA"), which includes a broad range of tax reform provisions affecting businesses, including modifications and extensions of certain Tax Cuts and Jobs Act provisions, domestic research and development cost expensing, extension of 100% bonus depreciation, limitations on interest expense deductions, and adjustments to certain Inflation Reduction Act incentives. Since the OBBBA was enacted on July 4, 2025, its full impact is not reflected in the Company's Condensed Consolidated Financial Statements for the three months ended July 31, 2025. The Company is evaluating the provisions to assess potential effects on its effective tax rate, deferred tax assets and liabilities, and future cash tax obligations. The Company will recognize any required adjustments once the analysis is complete and impacts can be reasonably quantified.
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O. Segment Information
In accordance with ASC 280, Segment Reporting, the Company's operations are classified into two business segments: Domestic and International. The Domestic business segment principally designs, manufactures, and installs scientific and technical furniture, including steel and wood laboratory cabinetry, fume hoods, flexible systems, worksurfaces, workstations, workbenches, and computer enclosures. On November 1, 2024, the Company completed its acquisition of Nu Aire, whose operating results are reflected in the Domestic Operations segment, expanding the Company's Domestic capabilities through its manufacturing of biological safety cabinets, CO2 incubators, ultralow freezers, and other essential laboratory products. See Note C, Nu Aire Acquisition, for further information. The International business segment, which consists of the Company's foreign subsidiaries, provides products and services, including facility design, detailed engineering, construction, and project management from the planning stage through testing and commissioning of laboratories.
The Company's Chief Operating Decision Maker ("CODM") is its CEO, who evaluates the performance of each segment and measures its segment profitability based on earnings before income taxes. Some Corporate expenses, such as those related to executive management, finance, etc., are allocated to the segments. Certain corporate expenses shown below are net of expenses that have been allocated to the business segments. We periodically review these allocations and adjust them based upon changes in business circumstance. Intersegment transactions are recorded at normal profit margins. All intercompany balances and transactions have been eliminated.
The following tables provide financial information by business segment and unallocated corporate expenses for the periods ended July 31, 2025 and 2024 (in thousands):

| Domestic Operations |  | International Operations |  | Corporate / Eliminations |  | Total
Three Months Ended July 31, 2025 |  |  |  |  |  |  |
Revenues from external customers | $ | 54,352 |  |  | $ | 16,752 |  |  | $ | — |  |  | $ | 71,104 |
Intersegment revenues | 85 |  |  | 1,039 |  |  | (1,124) |  |  | — |
Depreciation and amortization | 1,428 |  |  | 96 |  |  | 25 |  |  | 1,549 |
Interest expense | 313 |  |  | 13 |  |  | 732 |  |  | 1,058 |
Earnings (loss) before income taxes | 5,835 |  |  | 1,143 |  |  | (3,058) |  |  | 3,920 |
Income tax expense (benefit) | 1,113 |  |  | 434 |  |  | (786) |  |  | 761 |
Net earnings attributable to non-controlling interest | — |  |  | 66 |  |  | — |  |  | 66 |
Net earnings (loss) attributable to Kewaunee Scientific Corporation | 4,722 |  |  | 643 |  |  | (2,272) |  |  | 3,093 |
Segment assets | 153,302 |  |  | 40,184 |  |  | — |  |  | 193,486 |
Expenditures for segment assets | 671 |  |  | 100 |  |  | — |  |  | 771 |
Revenues (excluding intersegment) from customers in foreign countries | 2,767 |  |  | 16,752 |  |  | — |  |  | 19,519 |
Three Months Ended July 31, 2024 |  |  |  |  |  |  |
Revenues from external customers | $ | 35,523 |  |  | $ | 12,870 |  |  | $ | — |  |  | $ | 48,393 |
Intersegment revenues | 113 |  |  | 1,348 |  |  | (1,461) |  |  | — |
Depreciation and amortization | 662 |  |  | 107 |  |  | 46 |  |  | 815 |
Interest expense | 441 |  |  | 21 |  |  | 10 |  |  | 472 |
Earnings (loss) before income taxes | 3,635 |  |  | 787 |  |  | (1,992) |  |  | 2,430 |
Income tax expense (benefit) | 764 |  |  | 279 |  |  | (851) |  |  | 192 |
Net earnings attributable to non-controlling interest | — |  |  | 45 |  |  | — |  |  | 45 |
Net earnings (loss) attributable to Kewaunee Scientific Corporation | 2,871 |  |  | 463 |  |  | (1,141) |  |  | 2,193 |
Segment assets | 90,235 |  |  | 41,783 |  |  | — |  |  | 132,018 |
Expenditures for segment assets | 196 |  |  | 82 |  |  | — |  |  | 278 |
Revenues (excluding intersegment) from customers in foreign countries | 525 |  |  | 12,870 |  |  | — |  |  | 13,395 |

17

P. New Accounting Standards
In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740) - Improvements for Income Tax Disclosures," which requires public business entities to, on an annual basis, (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. This ASU also provides for additional disclosure requirements to provide clarity for investors related to income tax disclosures. This guidance is effective for annual periods beginning after December 15, 2024. The Company will adopt this standard in fiscal year 2026. The Company does not expect the adoption of this standard to have a significant impact on the Company's consolidated financial position or results of operations.
In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)," which requires public business entities to provide disclosure of additional information about certain identified costs and expenses on both an interim and annual basis. In January 2025, the FASB issued ASU 2025-01, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40); Clarifying the Effective Date," which provided clarification regarding the effective dates of annual and interim disclosure requirements presented in ASU 2024-03. Upon consideration of the clarification in 2025-01, the guidance in ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning within annual reporting periods beginning after December 15, 2027. The Company will adopt this standard in fiscal year 2028 for annual disclosures and fiscal year 2029 for interim disclosures. The Company does not expect the adoption of this standard to have a significant impact on the Company's consolidated financial position or results of operations.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The Company's 2025 Annual Report to Stockholders on Form 10-K contains management's discussion and analysis of the Company's financial condition and results of operations as of and for the fiscal year ended April 30, 2025. The following discussion and analysis describes material changes in the Company's financial condition since April 30, 2025. The analysis of results of operations compares the three months ended July 31, 2025 with the comparable period of the prior year.
Acquisition of Nu Aire, Inc.
On November 1, 2024, the Company completed an acquisition of Nu Aire. The Company purchased all of the outstanding capital stock of Nu Aire for $55.0 million, subject to certain customary adjustments for debt, cash, transaction expenses and net working capital. $23.0 million of the purchase price payable at closing of the Transaction was funded pursuant to subordinated seller notes. The remaining purchase price payable at closing of the Transaction was paid in cash, which cash was funded, in part, through the Revolving Credit Facility and Term Loan, provided to the Company by PNC Bank, National Association.
Nu Aire is renowned for its manufacturing of biological safety cabinets, airflow products, CO2 incubators, ultralow freezers, animal handling equipment, pharmacy compounding isolators, and related parts and accessories. Their products serve a diverse range of industries, including life sciences, healthcare, pharmacy, education, food and beverage, and industrial sectors.
The acquisition of Nu Aire presents a unique opportunity for the Company to combine its robust capabilities with a recognized market leader whose product portfolio and well-developed channel strategy complement the Company’s existing offerings. This acquisition expands the Company’s capabilities, allowing the combined organization to better meet the diverse needs of end-users in laboratory furnishings. Additionally, Nu Aire has established distribution partners in regions where the Company has not previously had a presence. This move accelerates the Company’s vision of becoming the market leader in the design and manufacturing of laboratory furniture and technical products essential for outfitting laboratories.
Critical Accounting Estimates
In the ordinary course of business, the Company may make estimates and assumptions relating to the reporting of results of operations and financial position in the preparation of our consolidated financial statements in conformity with generally accepted accounting principles in the United States of America. Actual results could differ significantly from those estimates. There have been no material changes to the Company's determination of its most critical accounting estimates, which are those that are most important to the portrayal of our financial condition and results of operations, and require management's most difficult, subjective and complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain, from those described in Part II, Item 7 of the Company's 2025 Annual Report on Form 10-K under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" beyond those set forth below.
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Results of Operations
Sales for the quarter were $71,104,000, an increase from sales of $48,393,000 in the comparable period of the prior year. Domestic sales for the quarter were $54,352,000, up 53.0% when compared to sales of $35,523,000 in the comparable period of the prior year. Domestic sales increased when compared to the prior year primarily due to the acquisition of Nu Aire, as discussed above, which closed on November 1, 2024 and was not part of the prior year comparable results. International sales for the quarter were $16,752,000, up 30.2% when compared to sales of $12,870,000 in the comparable period of the prior year. International sales increased when compared to the prior year period due to the commencement of delivery of large projects booked in the prior fiscal year.
The Company's order backlog was $205.0 million at July 31, 2025, as compared to $159.4 million at July 31, 2024, and $214.6 million at April 30, 2025.
The gross profit margin for the three months ended July 31, 2025 was 29.4% of sales, as compared to 25.8% of sales in the comparable quarter of the prior year. The increase in gross profit margin percentage for the three months ended July 31, 2025 was primarily driven by the acquisition of Nu Aire on November 1, 2024, along with improved manufacturing productivity and ongoing cost-containment initiatives.
Operating expenses for the three months ended July 31, 2025 were $16,120,000, or 22.7% of sales, as compared to $9,913,000, or 20.5% of sales, in the comparable period of the prior year. The increase in operating expenses for the three months ended July 31, 2025 was largely related to the acquisition of Nu Aire. The increase in operating expenses from the comparable period was also impacted by increases in international operating expenses of $392,000 and SG&A wages, benefits, incentive and stock-based compensation of $182,000.
Interest expense was $1,058,000 for the three months ended July 31, 2025, as compared to $472,000 for the comparable period of the prior year. The changes in interest expense were due to changes in the levels of bank and other borrowings and interest rates.
Income tax expense of $761,000 and $192,000 were recorded for the three months ended July 31, 2025 and 2024, respectively. The effective income tax rate for the three months ended July 31, 2025 was 19.4%, as compared to 7.9% for the three months ended July 31, 2024. The effective tax rate for the current three month period reflects the impact of foreign operations which are taxed at different rates than the U.S. tax rate of 21%, combined with expected current year tax expense for the Company's domestic operations. In addition, the income tax expense recorded for the three months ended July 31, 2025 was favorably impacted by a discrete tax benefit of $303,000 resulting from the issuance of stock through the vesting of restricted stock units during the first quarter. On July 4, 2025, the U.S. government enacted Public Law No. 119-21, commonly known as the One Big Beautiful Bill Act ("OBBBA"), which includes a broad range of tax reform provisions affecting businesses. Since OBBBA was enacted on July 4, 2025, its full impact is not reflected in the Company's Condensed Consolidated Financial Statements for the three months ended July 31, 2025. The Company is evaluating the provisions to assess potential effects on its effective tax rate, deferred tax assets and liabilities, and future cash tax obligations. See Note N, Income Taxes, of the Notes to Condensed Consolidated Financial Statements for additional information.
Non-controlling interests related to the Company's subsidiaries not 100% owned by the Company decreased net earnings by $66,000 for the three months ended July 31, 2025, as compared to $45,000, for the comparable period of the prior year. The change in the net earnings attributable to the non-controlling interest in the current period was due to changes in earnings (losses) of the subsidiaries in the related period.
Net earnings was $3,093,000, or $1.04 per diluted share, for the three months ended July 31, 2025, compared to net earnings of $2,193,000, or $0.74 per diluted share, in the prior year period.
Liquidity and Capital Resources
Our principal sources of liquidity have historically been funds generated from operating activities, supplemented as needed by borrowings under our previous Mid Cap Revolving Credit Facility. The Company terminated the Mid Cap Revolving Credit Facility on September 30, 2024. In conjunction with the Nu Aire acquisition (see Note C, Nu Aire Acquisition for additional details), the Company entered into a new Revolving Credit Facility with PNC, which is available on an ongoing basis to supplement our sources of liquidity as needed. Additionally, certain machinery and equipment are financed by non-cancellable operating and financing leases. The Company believes that these sources will be sufficient to support ongoing business requirements in the current fiscal year, including capital expenditures.
19

The Company had working capital of $66,662,000 at July 31, 2025, compared to $64,651,000 at April 30, 2025. The ratio of current assets to current liabilities was 2.3-to-1.0 at July 31, 2025, compared to 2.2-to-1.0 at April 30, 2025.
The Company's operating activities provided cash of $5,791,000 during the three months ended July 31, 2025. Net cash provided by operating activities was primarily driven by operations and decreases in receivables of $5.5 million, partially offset by increases in inventories of $2.1 million, decreases in accounts payable and other accrued expenses of $1.5 million, and decreases in deferred revenue of $1.1 million. During the three months ended July 31, 2025, the Company used net cash of $771,000 in investing activities related to capital expenditures. The Company's financing activities used net cash of $1,463,000 during the three months ended July 31, 2025, primarily related to the servicing of the Company's long-term debt arrangements and a net decrease in the short-term borrowings of its International subsidiaries. See Note H, Long-term Debt and Other Credit Arrangements, for more details.
Outlook
The Company's ability to predict future demand for its products continues to be limited given its role as subcontractor or supplier to dealers for subcontractors. Demand for the Company's products is also dependent upon the number of laboratory construction projects planned and/or current progress in projects already under construction. The Company's earnings are also impacted by fluctuations in prevailing pricing for projects in the laboratory construction marketplace and costs of raw materials, including steel, wood, and epoxy resin.
Kewaunee's first quarter results for fiscal year 2026 demonstrate the Company's resilience in the face of challenging market conditions, including uncertainty around government policy, evolving tariff structures, and broader geopolitical upheaval. Though the Company anticipates some volatility in project delivery timelines, which may create uneven performance by quarter for the balance of fiscal year 2026, the Company's overall backlog remains strong.
The Company remains focused on growth, both organically and inorganically, and is committed to making strategic investments in the people, processes, and technology that will support and enable this growth in a sustainable manner. The Company is confident that these strategic investments and its healthy backlog position the Company well to handle any anticipated short-term headwinds and maintain the long-term health of the business.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Certain statements in this document constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). All statements other than statements of historical fact included in this Annual Report, including statements regarding the Company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors that could significantly impact results or achievements expressed or implied by such forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to: our ability to realize the benefits anticipated as a result of the Nu Aire acquisition; competitive and general economic conditions, including disruptions from government mandates, both domestically and internationally, as well as supplier constraints and other supply disruptions; changes in customer demands; technological changes in our operations or in our industry; dependence on customers’ required delivery schedules; risks related to fluctuations in the Company’s operating results from quarter to quarter; risks related to international operations, including foreign currency fluctuations; changes in the legal and regulatory environment; changes in raw materials and commodity costs; acts of terrorism, war, governmental action, natural disasters and other Force Majeure events. The cautionary statements made pursuant to the Reform Act herein and elsewhere by us should not be construed as exhaustive. We cannot always predict what factors would cause actual results to differ materially from those indicated by the forward-looking statements. Over time, our actual results, performance, or achievements will likely differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, and such difference might be significant and harmful to our stockholders' interest. Many important factors that could cause such differences are described under the caption "Risk Factors" in Item 1A in the Company's 2025 Annual Report on Form 10-K and in Item 1A of Part II in this Quarterly Report on Form 10-Q, which you should review carefully. These forward-looking statements speak only as of the date of this document. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.
20

Item 3. Quantitative and Qualitative Disclosures About Market Risk
There are no material changes to the disclosures made on this matter in the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2025.
Item 4. Controls and Procedures
(a) Evaluation of disclosure controls and procedures
An evaluation was performed under the supervision and with the participation of the Company's management, including the Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of July 31, 2025. Based on that evaluation, the Company's management, including the CEO and CFO, concluded that, as of July 31, 2025, the Company's disclosure controls and procedures were adequate and effective and designed to ensure that all material information required to be filed in this quarterly report is made known to them by others within the Company and its subsidiaries.
(b) Changes in internal controls
In November 2024, the Company completed the acquisition of Nu Aire. The Company is in the process of integrating Nu Aire into its systems and control environment as of July 31, 2025. The Company believes it has taken the necessary steps to monitor and maintain appropriate internal control over financial reporting during this integration. Other than the impact of this business acquisition, there were no significant changes in the Company's internal control over financial reporting that occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.
21

PART II. OTHER INFORMATION
Item 1A. Risk Factors
The business, financial condition and operating results of the Company can be affected by a number of factors, whether currently known or unknown, including but not limited to those described in Part I, Item 1A of the Company's 2025 Annual Report on Form 10-K under the heading "Risk Factors," any one or more of which could, directly or indirectly, cause the Company's actual financial condition and operating results to vary materially from its past, or from anticipated future, financial condition and operating results. Any of these factors, in whole or in part, could materially and adversely affect the Company's business, financial condition, operating results, and stock price. There have been no material changes to the Company's risk factors from those set forth in the Company's Annual Report on Form 10-K for the year ended April 30, 2025 as filed with the SEC on July 2, 2025 beyond those set forth below.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Sales of Unregistered Securities
None.
Issuer Purchases of Equity Securities
The Company's share repurchase program was adopted on August 31, 2023. This program was subsequently amended on March 12, 2025 to authorize the repurchase of up to an additional 100,000 shares of the Company's common stock. The Company did not purchase any shares under its share repurchase program during the three months ended July 31, 2025. The share repurchase program had remaining authorization of 100,603 shares as of July 31, 2025.
Item 5. Other Information
Securities Trading Plans of Directors and Executive Officers
Transactions in the Company's securities by its directors or executive officers are required to be made in accordance with its Insider Trading Policy, which, among other things, requires that the transaction be in accordance with applicable U.S. federal securities laws that prohibit trading while in the possession of material nonpublic information. Rule 10b5-1 under the Securities Exchange Act of 1934 provides an affirmative defense that enables prearranged transactions in securities in a manner that avoids concerns about initiating transactions at a future date while possibly in possession of material nonpublic information.
During the three months ended July 31, 2025, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) informed the Company of the adoption or termination of a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" (as defined in Item 408 of Regulation S-K).
22

Item 6. Exhibits

3.1 |  | B ylaws (as amended September 10, 2025) (incorporated by reference to Exhibit 3.1 on the registrant's Current Report on Form 8-K filed on September 11, 2025) |
31.1 |  | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 |  | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 |  | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 |  | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS |  | Inline XBRL Instance Document |
101.SCH |  | Inline XBRL Taxonomy Extension Schema Document |
101.CAL |  | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF |  | Inline XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB |  | Inline XBRL Taxonomy Extension Label Linkbase Document |
101.PRE |  | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
104 |  | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

23

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

|  | KEWAUNEE SCIENTIFIC CORPORATION (Registrant)
Date: September 12, 2025 |  | By | /s/ Donald T. Gardner III
|  |  | Donald T. Gardner III
|  |  | (As duly authorized officer and Vice President, Finance and Chief Financial Officer)

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