Company: KEQU
Filing Date: 2025-12-12
Form Type: 10-Q
Source: 0000055529-25-000054
Chunk: 37

Company: KEWAUNEE SCIENTIFIC CORP /DE/
Filing Date: 2025-12-12
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 sales, in the comparable period of the prior year. Operating expenses for the six months ended October 31, 2025 were $31,733,000, or 22.5% of sales, as compared to $19,431,000, or 20.2% of sales, in the comparable period of the prior year. The increase in operating expenses for the three months ended October 31, 2025 was primarily due to the acquisition of Nu Aire. The increase in operating expenses was also impacted by increases in SG&A wages, benefits, incentive and stock-based compensation of $699,000 and international operating expenses of $397,000, partially offset by decreases in consulting and professional fees of $624,000. The increase in operating expenses for the six months ended October 31, 2025 was primarily due to the acquisition of Nu Aire. The increase in operating expenses was also impacted by increases in SG&A wages, benefits, incentive and stock-based compensation of $881,000 and international operating expenses of $789,000, partially offset by decreases in consulting and professional fees of $655,000.

Interest expense was $1,061,000 and $2,119,000 for the three and six months ended October 31, 2025, respectively, as compared to $442,000 and $914,000 for the comparable periods 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 $915,000 and $916,000 were recorded for the three months ended October 31, 2025 and 2024, respectively. Income tax expense of $1,676,000 and $1,108,000 were recorded for the six months ended October 31, 2025 and 2024, respectively. The effective income tax rate for the three and six months ended October 31, 2025 was 26.5% and 22.7%, respectively, as compared to 23.3% and 17.4% for the three and six months ended October 31, 2024, respectively. The effective tax rate for the current three  and six month periods 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