In Q1 2025, Kewaunee Scientific Corporation (3KEQU3) reported total revenues of $48.4 million, representing a 2.90% year-over-year decline and a significant 14.65% decrease compared to the previous quarter. The net income fell to $2.2 million, a sharp 80.11% drop sequentially and 11.36% year-over-year, primarily due to shrinking operating margins amidst rising costs. Management acknowledged the challenging market conditions affecting demand, particularly in the educational and healthcare sectors, which have experienced a slowdown in capital expenditure.
Despite these challenges, the company showed resilience in certain segments, with a slight increase in gross profit margin to 25.8%, indicating effective cost management strategies implemented to mitigate the impacts of rising operational expenses. The management reiterated its commitment to enhancing product innovation and expanding the international market presence, which they believe will position KEQU favorably in the future.