Kewaunee Scientific Corporation (KEQU): Business Model Canvas [Dec-2025 Updated]

You're digging into Kewaunee Scientific Corporation's engine room, trying to see how they actually make money building those high-tech labs. Honestly, after two decades analyzing firms, I can tell you their model is a fascinating blend of custom manufacturing and strategic M&A, especially with the Nu Aire integration. Look at the numbers: they closed Fiscal Year 2025 with $240.5 million in sales, and still held a massive $214.6 million order backlog as of April 2025, showing serious demand for their specialized casework and containment gear. This canvas breaks down exactly how they connect their global facilities and dealer network to those well-funded life science customers. Dive in below to see the full nine-block map.

Kewaunee Scientific Corporation (KEQU) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Kewaunee Scientific Corporation maintains to deliver its laboratory, healthcare, and technical furniture solutions. These aren't just vendor lists; they are structural elements enabling market reach and financial flexibility, especially following recent strategic moves.

Nu Aire, Inc. as a Newly Integrated Subsidiary for Biosafety Equipment

The integration of Nu Aire, Inc., which Kewaunee Scientific Corporation acquired on November 1, 2024, is a cornerstone partnership for expanding the product portfolio into biosafety equipment. Nu Aire manufactures essential laboratory products like biological safety cabinets, CO2 incubators, and ultralow freezers. This subsidiary's operations are based in Plymouth, Minnesota, with additional manufacturing in Long Lake, Minnesota. The financial impact is already visible; the accretive contribution from the Nu Aire business helped enable the early repayment of its associated debt. For fiscal year 2025 (ending April 30, 2025), Kewaunee Scientific Corporation reported total sales of $240.5 million, an 18% surge, significantly influenced by the Nu Aire acquisition. In the first quarter of fiscal year 2026 (ended July 31, 2025), consolidated revenue hit $71.1 million, a 46.9% jump year-over-year, reflecting the full inclusion of Nu Aire's results.

Channel Partners, Dealers, and Distributors for Global Market Reach

Kewaunee Scientific Corporation relies heavily on its established network to push products into various end-user industries. These channel partners are explicitly credited with bringing Kewaunee's solutions to customers who depend on their portfolio for critical laboratory spaces. The combined entity now leverages the network of worldwide sales partners from both Kewaunee Scientific and Nu Aire. This distribution layer is essential for servicing the domestic market and supporting the International Segment, which reported sales of $16.8 million in Q1 FY2026.

Here's a look at the structure supporting market access:

• Kewaunee Scientific has sales offices in the United States, India, Saudi Arabia, and Singapore.
• The combined entity utilizes each company's network of worldwide sales partners.
• Channel partners are key to delivering solutions across various industries relying on Kewaunee's portfolio.

PNC Bank for the Loan Agreement and Debt Refinancing in December 2025

The relationship with PNC Bank, National Association, proved crucial for capital structure optimization in late 2025. On December 4, 2025, Kewaunee Scientific executed a debt refinancing by fully repaying the Seller Notes tied to the Nu Aire acquisition. These notes had an original principal balance of $23.0 million and carried an 8% annual interest rate, originally set to mature on November 1, 2027. The amendment to the Loan Agreement, originally dated November 1, 2024, provided an additional $10.0 million term loan and permitted drawing on the active revolving line of credit to fund the repayment. This move was intended to lower the overall debt load and reduce the effective interest rate on the debt portfolio, materially cutting expected future interest expense.

The key financial mechanics of the December 2025 refinancing were:

Strategic Alliance with Schneider Electric for Integrated International Solutions

Kewaunee Scientific Corporation's International Division has a strategic alliance with Schneider Electric, focusing on creating next-generation smart labs. This partnership targets Kewaunee's core international markets, specifically India, the Middle East, and the Pan-Asian rim. The goal is to offer an integrated, turn-key solution for building or modernizing laboratories, focusing on the customers' evolving digital and sustainability goals. Schneider Electric contributes its digital technology capability, championing sustainability and decarbonization through its IoT and cloud-enabled EcoStruxure solution. This alliance is designed to streamline data analytics, monitoring, and laboratory management in these key international regions.

OEM Partnerships in China and a Warehouse Partner in the Netherlands

Beyond direct sales channels and the Schneider Electric alliance, Kewaunee Scientific Corporation maintains operational partnerships to support its international footprint. The company has established OEM partnerships in China. Furthermore, to facilitate logistics and distribution in Europe, Kewaunee Scientific maintains a warehouse partnership located in the Netherlands. These arrangements support the International Segment, which, despite recent delays in India, is a focus area for the combined company.

International Footprint Support:

• OEM partnerships established in China.
• Warehouse partnership maintained in the Netherlands for logistics support.
• International Segment sales were $16.8 million in Q1 FY2026.

Finance: draft 13-week cash view by Friday.

Kewaunee Scientific Corporation (KEQU) - Canvas Business Model: Key Activities

Kewaunee Scientific Corporation focuses its key activities on high-value, project-based delivery within the specialized laboratory infrastructure sector.

Design, manufacture, and installation of specialized lab furniture

The core activity involves the end-to-end process for laboratory, healthcare, and technical furniture products. This is reflected in the company's top-line performance and future demand indicators.

For the full fiscal year ended April 30, 2025, Kewaunee Scientific Corporation reported sales of $240.5 million, which was an 18.0% increase from the prior year's sales of $203.8 million. The fourth quarter of fiscal year 2025 showed even stronger year-over-year growth, with sales reaching $77.1 million, a 36.1% increase compared to the prior year's fourth quarter. The domestic segment, which includes the newly acquired Nu Aire business, drove significant quarterly growth, reporting sales of $55.5 million, a 54.7% increase from the prior year period.

The pipeline for these activities remains substantial, as evidenced by the order backlog.

Managing complex, project-based delivery schedules for new construction

Handling complex, project-based delivery schedules is a critical operational activity, directly tied to converting the substantial order backlog into recognized revenue. The backlog of $214.6 million as of April 30, 2025, and again as of July 31, 2025, indicates a significant volume of work in the execution phase, requiring precise management of installation timelines for new construction projects.

Strategic integration of the Nu Aire acquisition (completed November 1, 2024)

The integration of Nu Aire, Inc., completed on November 1, 2024, is a major recent key activity, aimed at portfolio enhancement and market reach expansion. The initial acquisition was for $55 million, subject to adjustments. The company incurred $6.0 million in costs related to the acquisition and integration of Nu Aire during fiscal year 2025. Donald T. Gardner III, Vice President and Chief Financial Officer, noted the early repayment of Seller Notes was enabled by the accretive financial contribution from the Nu Aire business.

The integration success is further evidenced by financial actions taken post-reporting period:

• Seller Notes principal tied to Nu Aire acquisition: original outstanding principal of $23.0 million.
• Seller Notes repaid in full on December 4, 2025, ahead of the November 1, 2027 maturity date.
• Repayment partially funded by a new $10.0 million term loan from PNC.

Continuous investment in manufacturing assets and product portfolio

Kewaunee Scientific Corporation's strategy emphasizes ongoing investment to support performance improvement. This focus on assets and portfolio is supported by the company's liquidity management and debt servicing priorities.

The company's capital allocation priorities include servicing and paying down debt assumed with the Nu Aire acquisition in a quick manner. Cash on hand increased from $17,164,000 on April 30, 2025, to $20,441,000 on July 31, 2025, showing cash generation supporting these activities. The President and CEO highlighted the strategy of emphasizing investments in the product portfolio and manufacturing assets.

Key financial positions reflecting capital structure management:

• Long-term debt as of July 31, 2025: $60,269,000.
• Long-term debt as of April 30, 2025: $60,730,000.
• The building lease from the December 2021 sale-leaseback accounts for $26,420,000 of the long-term debt on July 31, 2025.

Kewaunee Scientific Corporation (KEQU) - Canvas Business Model: Key Resources

When you look at Kewaunee Scientific Corporation's foundation, the physical and intellectual assets they control are pretty central to their value proposition. These aren't just things they own; they are the actual capacity to deliver complex, regulated lab environments.

The manufacturing footprint is definitely global, which helps them manage supply chain risk and serve different markets directly. You've got three facilities in Statesville, North Carolina, handling domestic and international needs, plus one in Bangalore, India, focused on the local, Asian, and African markets. Also, since the November 1, 2024, acquisition of Nu Aire, Inc., Kewaunee Scientific now has manufacturing capabilities in Plymouth, Minnesota, and Long Lake, Minnesota, too. That's a lot of metal and wood fabrication capacity under one roof.

Their expertise is deep, built over a century, and it's codified in their intellectual property. They hold granted patents for things like fume hood designs-for instance, Patent No. 10807131 for a laboratory hood with a venturi effect air intake device for anti-turbulent air flow control. This specialized knowledge in safety standards, like SEFA 10 rated benches, is a serious barrier to entry for competitors. It's not just about building cabinets; it's about engineering containment.

The product portfolio is now broader following the Nu Aire integration, which brought in critical containment solutions. Here's a quick look at what they are manufacturing and selling:

Honestly, the best indicator of near-term revenue visibility is the order book. As of the fiscal year end on April 30, 2025, Kewaunee Scientific was sitting on a very strong order backlog of $214.6 million. That figure is up significantly from the $155.6 million backlog they reported on April 30, 2024, showing that demand for their specialized lab infrastructure is definitely running hot. This backlog is the tangible asset that gives you line of sight into future sales, so keep an eye on how quickly they convert that into recognized revenue next quarter.

These core resources-the physical plants, the patented designs, and the committed future revenue-are what you need to track. Finance: draft the Q1 2026 backlog conversion forecast by next Tuesday.

Kewaunee Scientific Corporation (KEQU) - Canvas Business Model: Value Propositions

Kewaunee Scientific Corporation delivers comprehensive, turn-key lab solutions from bench to biosafety, a capability significantly bolstered by the November 1, 2024, acquisition of Nu Aire for a base of $55 million, subject to adjustments. This integration is key to offering end-to-end environments for scientific discovery.

The core value rests on high-quality, specialized, and durable laboratory furniture and technical products. Kewaunee Scientific Corporation has been recognized as a global leader in the design, manufacture, and installation of these products since its founding in 1906. You see the strength of this execution in the financial results; for the fiscal year ended April 30, 2025, the company posted total sales of $240.5 million.

The expertise in advanced lab environment design is backed by a long history; Kewaunee Scientific Corporation was founded in 1906. This deep experience supports a global footprint, with manufacturing facilities in Statesville, North Carolina, and Bangalore, India, serving domestic and international markets. As of April 30, 2025, the company employed 793 Domestic employees (including Nu Aire) and 446 International employees.

The product range for controlled environments is now expanded, creating a more robust, diversified offering. This combination allows Kewaunee Scientific Corporation to better meet diverse end-user needs. The combined portfolio now includes:

• Steel and wood casework
• Fume hoods
• Adaptable modular systems
• Moveable workstations
• Stand-alone benches
• Epoxy resin work surfaces and sinks

The addition of Nu Aire specifically brought in critical biocontainment and controlled environment equipment. Here's a quick look at how the product sets complement each other:

The market demand for this comprehensive offering is reflected in the order book. At the end of the first quarter of fiscal year 2026 (July 31, 2025), the order backlog stood at $205.0 million, up from $155.6 million at the same point last year (April 30, 2024). The Domestic segment, which now includes Nu Aire, showed strong growth, with Q1 FY2026 sales reaching $54,352,000, a 53.0% increase year-over-year.

The value proposition is also supported by financial momentum; for Q1 FY2026, Kewaunee Scientific Corporation reported sales of $71,104,000, a 46.9% increase over the prior year's quarter.

Kewaunee Scientific Corporation (KEQU) - Canvas Business Model: Customer Relationships

You're looking at how Kewaunee Scientific Corporation builds and keeps its customer base, which is critical given the long sales cycles for lab and technical installations. The relationships here aren't transactional; they are deep and project-focused.

Project-based, consultative sales approach for complex installations

Kewaunee Scientific Corporation deals in highly specialized environments, meaning the sales process requires a consultative touch. This is evident in the sheer size of their commitments, which translate into a substantial order backlog. For instance, the order backlog stood at a robust $214.6 million as of April 30, 2025, and remained strong at $205.0 million on July 31, 2025. This volume suggests deep engagement on projects that take time to plan and execute. The company's reliance on construction schedules is clear, as customer construction site delays, particularly in India, have previously impacted sales delivery timing. This dependency underscores the need for close, consultative work with clients to manage project timelines effectively.

The company's strategy involves strengthening its network, as the CEO noted a focus on strengthening dealer and distribution relationships, which are key drivers for performance improvement.

Dedicated after-sales support and service for technical equipment

The products Kewaunee Scientific Corporation sells-fume hoods, biological safety cabinets, and technical furniture-require ongoing operational support. While specific service revenue isn't broken out, the nature of the equipment implies a need for dedicated support. The strategic acquisition of Nu Aire, Inc. on November 1, 2024, which is renowned for containment solutions like biological safety cabinets, further embeds Kewaunee Scientific Corporation into the long-term maintenance and upgrade cycle of these critical laboratory assets. This integration expands the portfolio that requires support, deepening the post-sale relationship.

The relationship extends through the entire lifecycle of the laboratory space. Here's a look at the scale of the business supporting these relationships:

Focus on earning customer trust and being easy to do business with

The CEO has explicitly mentioned that the market success is a testament to the high degree of trust end-use customers place in Kewaunee Scientific Corporation's products and services. Earning this trust is tied directly to execution, especially given the complexity of the installations. The company's strategy involves investments in its product portfolio and manufacturing assets to drive performance improvement, which directly impacts customer satisfaction and ease of doing business.

The company recognizes the risk associated with key accounts; sales to two domestic dealers and one national stocking distributor accounted for 42% of fiscal year 2024 sales, highlighting the importance of maintaining strong relationships with these primary channels.

Long-term relationships with key customers in well-funded industries

Kewaunee Scientific Corporation serves markets that require consistent, high-quality infrastructure, suggesting long-term customer relationships are the norm. The company's products furnish spaces across several well-funded sectors.

The key customer industries include:

• Life sciences
• Healthcare
• Education
• Government research
• Petrochemical
• Industrial

The Domestic Segment, which saw sales rise 53.0% year-over-year in Q1 FY2026, is clearly the primary engine for these relationships. The International Segment, despite growth of 30.2% in Q1 FY2026, has faced headwinds from site delays, showing that relationship management across different geographies presents varied challenges.

The focus is on sustained demand, as the backlog strength demonstrates continued vitality and investment in these sectors. Finance: draft 13-week cash view by Friday.

Kewaunee Scientific Corporation (KEQU) - Canvas Business Model: Channels

You're looking at how Kewaunee Scientific Corporation moves its products and services to the end user, which is a mix of direct presence and heavy reliance on partners. Honestly, their channel strategy is built around a global footprint supported by local expertise.

Network of worldwide sales partners, dealers, and distributors

Kewaunee Scientific Corporation relies heavily on its channel partners, calling it an 'UNPARALLED GLOBAL DEALER NETWORK' with exclusive relationships with exceptional dealer partners. These partners are key because they bring the necessary extensive knowledge of their local markets to the table. This structure is explicitly mentioned as a testament to their performance, with the CEO noting the valuable support from these partners in fiscal year 2025. What this means in practice is that a significant portion of revenue flows through these third parties. Here's the quick math on that reliance:

The company's total sales for the full fiscal year 2025 were $240.5 million. Still, the company maintains its own manufacturing presence to safeguard the supply chain, with three facilities in Statesville, North Carolina, serving domestic and international markets, and one facility in Bangalore, India, serving the local, Asian, and African markets.

Direct sales offices in the United States, India, Saudi Arabia, and Singapore

To support this network and manage key accounts directly, Kewaunee Scientific Corporation maintains dedicated sales offices in specific geographic locations. You'll find these direct sales offices in the United States, India, Saudi Arabia, and Singapore. The Domestic segment, which is heavily influenced by these direct sales and local dealers, generated $54.352 million in sales for the first quarter of fiscal year 2026 (ended July 31, 2025), representing a 53.0% year-over-year increase. The International segment, which includes sales from regions served by the international offices and the Bangalore plant, reported sales of $16.752 million for the same period.

International subsidiaries providing facility design and project management

The international reach extends beyond just sales offices, involving manufacturing and project execution capabilities. The Bangalore, India, manufacturing facility supports the local, Asian, and African markets. Furthermore, the newly acquired subsidiary, NuAire, contributes to this channel by maintaining a warehouse partnership in the Netherlands and holding OEM partnerships in China, which supports the broader international project management and delivery capabilities. The company's overall international sales for Q1 FY2026 were $16.752 million.

Company websites for product information and lead generation

Digital presence is a clear channel for information dissemination and initial customer contact. Kewaunee Scientific Corporation directs potential customers to its primary website, located at http://www.kewaunee.com, and the subsidiary's site at http://www.nuaire.com. These sites serve as the repository for product information, including brochures, specifications, CAD drawings, and BIM content, which are crucial for the design and specification phase of laboratory projects. You can expect financial information, like earnings releases, to be available on the Kewaunee website after they are announced.

You should check the Dealer Locator tool on the Kewaunee site to see how they map their dealer network geographically.

Finance: draft 13-week cash view by Friday.

Kewaunee Scientific Corporation (KEQU) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Kewaunee Scientific Corporation, the folks who build the specialized environments where science and industry happen. Honestly, the way they structure their sales geographically-Domestic versus International-gives us a good proxy for where the demand is coming from, even if the specific breakdown by end-user isn't explicitly published in those four neat buckets.

Kewaunee Scientific Corporation's vision is to be the global supplier of choice for customers in the laboratory furniture and infrastructure markets. As of the end of fiscal year 2025, the company achieved total sales of $240.5 million. The demand driving this revenue is clearly concentrated in the domestic market, which saw sales of $179.4 million in FY2025, a significant 30.7% jump from the prior year, partly due to the Nu Aire acquisition. The International segment, conversely, reported sales of $61.1 million for the same period.

The backlog, which stood at a robust $214.6 million as of April 30, 2025, underscores the durable demand across the specific sectors you listed. This backlog supports a strong outlook for fiscal year 2026.

Life sciences and pharmaceutical research organizations

This group is a primary driver of the demand Kewaunee Scientific Corporation sees, especially given the nature of the products they offer, like biological safety cabinets from the Nu Aire portfolio. Management specifically noted that demand durability exists across life sciences in their backlog commentary. While we don't have a specific dollar figure tied just to this segment for FY2025, their products-fume hoods, casework, and safety cabinets-are essential infrastructure for these organizations.

Higher education and government research institutions

These institutions represent foundational, long-term customers for Kewaunee Scientific Corporation. The company's products furnish laboratory spaces for both higher education and government research. These projects often involve large, multi-year capital expenditure cycles, which contribute to the overall order backlog. For instance, the backlog in Q3 FY2025 was $221.6 million, up from $152.3 million a year prior, reflecting strong forward visibility from these sectors.

Healthcare facilities and hospital laboratories

Kewaunee Scientific Corporation is a recognized global leader in providing solutions for healthcare facilities. Their technical furniture and laboratory products are critical for hospital laboratories and clinical research settings. The company's overall sales performance in FY2025, reaching $240.5 million, is directly supported by continued prioritization of projects requiring their infrastructure.

Industrial and petrochemical sectors requiring specialized technical products

This segment includes customers in the industrial and petrochemical sectors that require specialized technical furniture and laboratory environments. Management has explicitly cited demand from these areas as supporting the company's strong backlog position. These customers rely on Kewaunee Scientific Corporation's expertise in designing spaces that meet stringent technical specifications for their operations.

Here's a quick look at the financial context derived from the company's reported segments for the fiscal year ending April 30, 2025, which encompasses the revenue generated from all these customer types:

To be fair, the Domestic segment sales of $179.4 million include all domestic customers across the four categories, so you can see the heavy reliance on the North American market for immediate revenue conversion. If onboarding takes 14+ days longer than expected on a major project, backlog conversion risk rises, which is something management noted with the international delays.

Finance: draft 13-week cash view by Friday.

Kewaunee Scientific Corporation (KEQU) - Canvas Business Model: Cost Structure

You're looking at the major expenses driving Kewaunee Scientific Corporation's operations as of late 2025. The cost structure is heavily influenced by material procurement, global labor deployment, and recent financing activities tied to the Nu Aire acquisition.

Significant Raw Material Costs

Kewaunee Scientific Corporation bears the risk of fluctuating input costs because, in the industry, prices are typically quoted on a firm basis between the order date and final delivery. This means Kewaunee Scientific must absorb potential increases in material costs if they occur during the production cycle. The primary raw materials that impact earnings are:

• Steel, including cold-rolled carbon and stainless steel.
• Wood, such as hardwood lumber and plywood.
• Epoxy Resin, used for work surfaces and sinks.

The company acknowledges that fluctuations in the prevailing pricing for projects, alongside the costs of these raw materials, directly impact profitability.

Manufacturing and Installation Labor Costs

Labor is a key component of the cost structure, supporting manufacturing and installation across Kewaunee Scientific Corporation's global footprint. The company operates manufacturing facilities in Statesville, North Carolina, and Bangalore, India, while its subsidiary, Nu Aire, operates facilities in Plymouth and Long Lake, Minnesota. Labor costs are subject to general economic conditions and local wage rates across these locations. While specific labor cost figures for FY2025 aren't broken out separately from Cost of Goods Sold, the overall operating expenses for the nine months ended January 31, 2025, rose to $35.56 million, representing 21.8% of the nine-month sales of $163.32 million.

Debt Servicing Costs

Interest expense is a direct cost, though Kewaunee Scientific Corporation recently took decisive action to reduce this burden. As of December 4, 2025, the company successfully repaid in full and ahead of schedule its Seller Notes, which had an original outstanding principal balance of $23.0 million. These notes were originally set to mature on November 1, 2027, and were issued in connection with the November 2024 acquisition of Nu Aire, Inc.. The term loan balance under the PNC agreement was $13.8 million as of April 30, 2025. The early repayment, partially funded by a new $10.0 million term loan from PNC and drawing on the revolving credit facility, is expected to materially reduce future interest expense. For context, interest paid for the 12 months ended April 30, 2023, was reported as $1,862 (in thousands).

Acquisition and Integration Costs

The integration of Nu Aire, Inc. introduced non-recurring costs that impacted the cost structure in fiscal year 2025. Kewaunee Scientific Corporation reported that non-recurring acquisition costs totaled $6.0 million for the full fiscal year 2025, which influenced the reported net earnings of $11.4 million for that year. Earlier in the fiscal year, expenses related to the acquisition were noted as $2.3 million in the second quarter of fiscal year 2025. The rise in operating expenses for the nine months ending January 31, 2025, was explicitly attributed in part to these Nu Aire acquisition costs.

Here's a quick look at the key financial events impacting the cost base around the close of FY2025:

Finance: draft 13-week cash view by Friday.

Kewaunee Scientific Corporation (KEQU) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of Kewaunee Scientific Corporation's business as of late 2025, focusing on the numbers from the Fiscal Year ended April 30, 2025. Honestly, the business model relies heavily on large, project-based sales, which means revenue can look a bit lumpy quarter-to-quarter based on project completion timing.

The core revenue streams flow through two main operational segments: Domestic and International. The Domestic segment is now significantly bolstered by the acquisition of Nu Aire, Inc., which brought in the biosafety and containment equipment lines.

Here are the key financial figures for the Fiscal Year 2025:

• Total sales for Fiscal Year 2025 were $240.5 million.
• The company's business is fundamentally built on the sales of specialized laboratory furniture, which includes steel and wood casework and fume hoods.
• Revenue from sales of biosafety and containment equipment, such as biological safety cabinets, CO2 incubators, and ultralow freezers, is now integrated following the Nu Aire acquisition in November 2024.
• Revenue from installation and project management services is embedded within the overall project sales recognized by the segments.

Here's the quick math on how the segments contributed to that total revenue:

To be fair, the search results provide the segment totals, which are the most granular, trustworthy financial figures available for the revenue streams you listed. The Domestic segment is where the bulk of the specialized furniture and the new containment equipment revenue lands. Also, note that sales to just three domestic channel partners accounted for approximately 41% of total sales in fiscal year 2025.

The order backlog as of April 30, 2025, stood at $214.6 million, indicating strong forward revenue visibility, though management notes project timing can cause uneven results.

Finance: draft 13-week cash view by Friday.