Kadant Reports Second Quarter 2025 Results
Kadant Inc. (NYSE: KAI) reported mixed Q2 2025 financial results with notable declines in key metrics. Revenue decreased 7% to $255.3 million, while net income fell 16% to $26.2 million. Despite these declines, the company saw positive trends in bookings, which increased 7% to $269.4 million, and significant improvements in cash flow, with operating cash flow up 44% to $40.5 million.
The company maintained its full-year 2025 guidance, expecting revenue of $1.020 to $1.040 billion and adjusted EPS of $9.05 to $9.25. For Q3 2025, Kadant projects revenue of $256 to $263 million with adjusted EPS of $2.13 to $2.23. The company's gross margin improved by 150 basis points to 45.9%, while parts and consumables revenue represented 71% of total revenue.
Kadant Inc. (NYSE: KAI) ha comunicato risultati finanziari contrastanti per il secondo trimestre 2025, con cali significativi in alcuni indicatori chiave. Il fatturato è diminuito del 7% a 255,3 milioni di dollari, mentre l'utile netto è sceso del 16% a 26,2 milioni di dollari. Nonostante queste diminuzioni, l'azienda ha registrato tendenze positive negli ordini, aumentati del 7% a 269,4 milioni di dollari, e notevoli miglioramenti nel flusso di cassa, con un aumento del 44% a 40,5 milioni di dollari nel flusso di cassa operativo.
L'azienda ha confermato le previsioni per l'intero anno 2025, prevedendo un fatturato compreso tra 1,020 e 1,040 miliardi di dollari e un utile per azione rettificato tra 9,05 e 9,25 dollari. Per il terzo trimestre 2025, Kadant prevede un fatturato tra 256 e 263 milioni di dollari e un utile per azione rettificato tra 2,13 e 2,23 dollari. Il margine lordo dell'azienda è migliorato di 150 punti base, raggiungendo il 45,9%, mentre i ricavi da parti e consumabili hanno rappresentato il 71% del totale.
Kadant Inc. (NYSE: KAI) reportó resultados financieros mixtos en el segundo trimestre de 2025, con descensos notables en métricas clave. Los ingresos disminuyeron un 7% hasta 255,3 millones de dólares, mientras que el ingreso neto cayó un 16% hasta 26,2 millones de dólares. A pesar de estas caídas, la compañía experimentó tendencias positivas en reservas, que aumentaron un 7% hasta 269,4 millones de dólares, y mejoras significativas en el flujo de caja, con un aumento del 44% hasta 40,5 millones de dólares en el flujo de caja operativo.
La empresa mantuvo su guía para todo el año 2025, esperando ingresos entre 1.020 y 1.040 millones de dólares y un BPA ajustado entre 9,05 y 9,25 dólares. Para el tercer trimestre de 2025, Kadant proyecta ingresos entre 256 y 263 millones de dólares y un BPA ajustado entre 2,13 y 2,23 dólares. El margen bruto mejoró en 150 puntos básicos hasta un 45,9%, mientras que los ingresos por partes y consumibles representaron el 71% del total.
Kadant Inc. (NYSE: KAI)는 2025년 2분기 실적에서 주요 지표가 혼재된 결과를 보고했습니다. 매출은 7% 감소하여 2억 5,530만 달러를 기록했으며, 순이익은 16% 감소하여 2,620만 달러에 그쳤습니다. 이러한 감소에도 불구하고 예약은 7% 증가하여 2억 6,940만 달러를 기록했고, 영업 현금 흐름은 44% 증가하여 4,050만 달러로 크게 개선되었습니다.
회사는 2025년 연간 가이던스를 유지하며 매출을 10억 2천만 달러에서 10억 4천만 달러 사이, 조정 주당순이익(EPS)을 9.05달러에서 9.25달러로 예상하고 있습니다. 2025년 3분기에는 매출이 2억 5,600만 달러에서 2억 6,300만 달러, 조정 EPS가 2.13달러에서 2.23달러 사이가 될 것으로 전망합니다. 회사의 총 마진은 150 베이시스 포인트 상승하여 45.9%를 기록했으며, 부품 및 소모품 매출은 전체 매출의 71%를 차지했습니다.
Kadant Inc. (NYSE : KAI) a publié des résultats financiers mitigés pour le deuxième trimestre 2025, avec des baisses notables sur des indicateurs clés. Le chiffre d'affaires a diminué de 7 % pour s'établir à 255,3 millions de dollars, tandis que le bénéfice net a chuté de 16 % à 26,2 millions de dollars. Malgré ces baisses, l'entreprise a observé des tendances positives dans les commandes, en hausse de 7 % à 269,4 millions de dollars, ainsi que des améliorations significatives du flux de trésorerie, avec un flux de trésorerie opérationnel en hausse de 44 % à 40,5 millions de dollars.
L'entreprise a maintenu ses prévisions pour l'ensemble de l'année 2025, anticipant un chiffre d'affaires compris entre 1,020 et 1,040 milliard de dollars et un BPA ajusté entre 9,05 et 9,25 dollars. Pour le troisième trimestre 2025, Kadant prévoit un chiffre d'affaires entre 256 et 263 millions de dollars et un BPA ajusté entre 2,13 et 2,23 dollars. La marge brute de la société s'est améliorée de 150 points de base pour atteindre 45,9 %, tandis que les revenus provenant des pièces détachées et consommables représentaient 71 % du chiffre d'affaires total.
Kadant Inc. (NYSE: KAI) meldete gemischte Finanzergebnisse für das zweite Quartal 2025 mit deutlichen Rückgängen bei wichtigen Kennzahlen. Der Umsatz sank um 7 % auf 255,3 Millionen US-Dollar, während der Nettogewinn um 16 % auf 26,2 Millionen US-Dollar zurückging. Trotz dieser Rückgänge verzeichnete das Unternehmen positive Trends bei den Aufträgen, die um 7 % auf 269,4 Millionen US-Dollar stiegen, sowie erhebliche Verbesserungen beim Cashflow, wobei der operative Cashflow um 44 % auf 40,5 Millionen US-Dollar zunahm.
Das Unternehmen bestätigte seine Prognose für das Gesamtjahr 2025 und erwartet einen Umsatz von 1,020 bis 1,040 Milliarden US-Dollar sowie ein bereinigtes Ergebnis je Aktie (EPS) von 9,05 bis 9,25 US-Dollar. Für das dritte Quartal 2025 prognostiziert Kadant einen Umsatz von 256 bis 263 Millionen US-Dollar und ein bereinigtes EPS von 2,13 bis 2,23 US-Dollar. Die Bruttomarge verbesserte sich um 150 Basispunkte auf 45,9 %, während der Umsatz aus Ersatzteilen und Verbrauchsmaterialien 71 % des Gesamtumsatzes ausmachte.
- Bookings increased 7% to $269.4 million, showing strong capital equipment demand
- Operating cash flow surged 44% to $40.5 million
- Gross margin improved 150 basis points to 45.9%
- Free cash flow increased 58% to $37 million
- Parts and consumables revenue represented 71% of total revenue, up from 63% in prior year
- Revenue decreased 7% to $255.3 million
- Net income fell 16% to $26.2 million
- GAAP EPS declined 17% to $2.22
- Adjusted EBITDA decreased 15% to $52.4 million
- Adjusted EBITDA margin contracted to 20.5% from 22.5%
Insights
Kadant reports mixed Q2 results with strong bookings (+7%) and cash flow (+58%) despite revenue decline (-7%) and margin pressure.
Kadant delivered a mixed performance in Q2 2025, showcasing both strengths and challenges in the current operating environment. While revenue declined 7% to
The company demonstrated impressive cash flow generation with operating cash flow increasing
Despite the revenue decline, Kadant improved its gross margin by
The parts and consumables segment now represents
Management maintained its full-year 2025 guidance of
Kadant's segment performance reveals resilience in Flow Control while Industrial Processing faces significant headwinds amid shifting customer demand.
A detailed examination of Kadant's segment performance reveals important divergences across its three business units. The Flow Control segment demonstrated resilience with revenue increasing
In stark contrast, the Industrial Processing segment experienced significant pressure with revenue falling
The Material Handling segment showed moderate weakness with revenue declining
A critical operational shift is evident in the product mix evolution—parts and consumables now represent
The company's improved gross margin despite revenue declines suggests effective implementation of operational efficiency initiatives and strategic pricing actions. However, the
WESTFORD, Mass., July 29, 2025 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) reported its financial results for the second quarter ended June 28, 2025.
Second Quarter Financial Highlights
- Bookings increased
7% to$269 million - Revenue decreased
7% to$255 million - Gross margin increased 150 basis points to
45.9% - Net income decreased
16% to$26 million - GAAP EPS decreased
17% to$2.22 - Adjusted EPS decreased
18% to$2.31 - Adjusted EBITDA decreased
15% to$52 million and represented20.5% of revenue - Operating cash flow increased
44% to$40 million - Free cash flow increased
58% to$37 million - Ending backlog was
$299 million
Note: Percent changes above are based on comparison to the prior year period. All references to earnings per share (EPS) are to our EPS as calculated on a diluted basis. Adjusted EPS, adjusted EBITDA, adjusted EBITDA margin, free cash flow, and changes in organic revenue are non-GAAP financial measures that exclude certain items as detailed later in this press release under the heading “Use of Non-GAAP Financial Measures.”
Management Commentary
“We had strong cash flow and a solid improvement in our capital equipment bookings in the second quarter," said Jeffrey L. Powell, president and chief executive officer of Kadant Inc. “Our strong bookings, particularly notable in the current environment of evolving trade policies, demonstrate our customers' preference for Kadant equipment and technologies to help drive sustainable value in their operations.”
Second Quarter 2025 Compared to 2024
Revenue decreased seven percent to
Net income was
Adjusted EBITDA decreased 15 percent to
Bookings increased seven percent to
Summary and Outlook
"We have a healthy backlog and expect stronger bookings in the second half of 2025,” continued Mr. Powell. “Capital project activity remains high and stable demand for our aftermarket parts is expected to continue. We are maintaining our revenue and adjusted EPS guidance for the full year and expect revenue of
Conference Call
Kadant will hold a webcast with a slide presentation for investors on Wednesday, July 30, 2025, at 11:00 a.m. Eastern Time to discuss its second quarter financial performance, as well as future expectations. To listen to the call live and view the webcast, go to the “Investors” section of the Company’s website at kadant.com. Participants interested in joining the call’s live question and answer session are required to register by clicking here or selecting the Q&A link on our website to receive a dial-in number and unique PIN. It is recommended that you join the call 10 minutes prior to the start of the event. A replay of the webcast presentation will be available on our website through August 29, 2025.
Prior to the call, our earnings release and the slides used in the webcast presentation will be filed with the Securities and Exchange Commission and will be available at sec.gov. After the webcast, Kadant will post its updated general investor presentation incorporating the second quarter results on its website at kadant.com under the “Investors” section.
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including increases or decreases in revenue excluding the effect of acquisitions and foreign currency translation (organic revenue), adjusted operating income, adjusted net income, adjusted EPS, earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA, adjusted EBITDA margin, and free cash flow.
We use organic revenue to understand our trends and to forecast and evaluate our financial performance and compare revenue to prior periods. Organic revenue excludes revenue from acquisitions for the four quarterly reporting periods following the date of the acquisition and the effect of foreign currency translation. Revenue in the second quarter of 2025 included
We believe these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business, operating results, or future outlook. We believe that the inclusion of such measures helps investors gain an understanding of our underlying operating performance and future prospects, consistent with how management measures and forecasts our performance, especially when comparing such results to previous periods or forecasts and to the performance of our competitors. Such measures are also used by us in our financial and operating decision-making and for compensation purposes. We also believe this information is responsive to investors' requests and gives them additional measures of our performance.
The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for the results of operations or cash flows prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this press release have limitations associated with their use as compared to the most directly comparable GAAP measures, in that they may be different from, and therefore not comparable to, similar measures used by other companies.
Second Quarter
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:
- Pre-tax amortization of acquired profit in inventory and backlog of
$0.2 million in 2025 and$1.2 million in 2024. - Pre-tax acquisition costs of
$0.9 million in both 2025 and 2024. - Pre-tax indemnification asset provision of
$0.1 million in 2024.
Adjusted net income and adjusted EPS exclude:
- After-tax amortization of acquired profit in inventory and backlog of
$0.2 million in 2025 and$0.9 million ($1.2 million net of tax of$0.3 million ) in 2024. - After-tax acquisition costs of
$0.9 million in 2025 and$0.8 million ($0.9 million net of tax of$0.1 million ) in 2024.
Free cash flow is calculated as operating cash flow less:
- Capital expenditures of
$4.0 million in 2025 and$5.0 million in 2024.
First Six Months
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:
- Pre-tax amortization of acquired profit in inventory and backlog of
$0.6 million in 2025 and$4.4 million in 2024. - Pre-tax acquisition costs of
$1.2 million in 2025 and$2.1 million in 2024.
Adjusted net income and adjusted EPS exclude:
- After-tax amortization of acquired profit in inventory and backlog of
$0.5 million ($0.6 million net of tax of$0.1 million ) in 2025 and$3.3 million ($4.4 million net of tax of$1.1 million ) in 2024. - After-tax acquisition costs of
$1.2 million in 2025 and$1.7 million ($2.1 million net of tax of$0.4 million ) in 2024.
Free cash flow is calculated as operating cash flow less:
- Capital expenditures of
$7.8 million in 2025 and$11.2 million in 2024.
Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in this press release.
| Financial Highlights (unaudited) | ||||||||||||||||||
| (In thousands, except per share amounts and percentages) | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| Consolidated Statement of Income | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | ||||||||||||||
| Revenue | $ | 255,267 | $ | 274,765 | $ | 494,477 | $ | 523,740 | ||||||||||
| Costs and Operating Expenses: | ||||||||||||||||||
| Cost of revenue | 138,225 | 152,878 | 267,105 | 290,891 | ||||||||||||||
| Selling, general, and administrative expenses | 73,941 | 70,004 | 145,162 | 140,309 | ||||||||||||||
| Research and development expenses | 3,724 | 3,482 | 7,247 | 7,212 | ||||||||||||||
| 215,890 | 226,364 | 419,514 | 438,412 | |||||||||||||||
| Operating Income | 39,377 | 48,401 | 74,963 | 85,328 | ||||||||||||||
| Interest Income | 439 | 368 | 956 | 979 | ||||||||||||||
| Interest Expense | (3,338 | ) | (5,201 | ) | (7,160 | ) | (9,870 | ) | ||||||||||
| Other Expense, Net | (17 | ) | (2 | ) | (33 | ) | (32 | ) | ||||||||||
| Income Before Provision for Income Taxes | 36,461 | 43,566 | 68,726 | 76,405 | ||||||||||||||
| Provision for Income Taxes | 9,822 | 11,992 | 17,650 | 19,846 | ||||||||||||||
| Net Income | 26,639 | 31,574 | 51,076 | 56,559 | ||||||||||||||
| Net Income Attributable to Noncontrolling Interests | (480 | ) | (283 | ) | (854 | ) | (579 | ) | ||||||||||
| Net Income Attributable to Kadant | $ | 26,159 | $ | 31,291 | $ | 50,222 | $ | 55,980 | ||||||||||
| Earnings per Share Attributable to Kadant: | ||||||||||||||||||
| Basic | $ | 2.22 | $ | 2.66 | $ | 4.27 | $ | 4.77 | ||||||||||
| Diluted | $ | 2.22 | $ | 2.66 | $ | 4.26 | $ | 4.76 | ||||||||||
| Weighted Average Shares: | ||||||||||||||||||
| Basic | 11,776 | 11,743 | 11,768 | 11,734 | ||||||||||||||
| Diluted | 11,793 | 11,766 | 11,784 | 11,755 | ||||||||||||||
| Three Months Ended | Three Months Ended | ||||||||||||||||
| Adjusted Net Income and Adjusted Diluted EPS (a) | June 28, 2025 | June 28, 2025 | June 29, 2024 | June 29, 2024 | |||||||||||||
| Net Income and Diluted EPS Attributable to Kadant, as Reported | $ | 26,159 | $ | 2.22 | $ | 31,291 | $ | 2.66 | |||||||||
| Adjustments, Net of Tax: | |||||||||||||||||
| Acquired Profit in Inventory and Backlog Amortization | 170 | 0.01 | 929 | 0.08 | |||||||||||||
| Acquisition Costs | 903 | 0.08 | 798 | 0.07 | |||||||||||||
| Adjusted Net Income and Adjusted Diluted EPS (a) | $ | 27,232 | $ | 2.31 | $ | 33,018 | $ | 2.81 | |||||||||
| Six Months Ended | Six Months Ended | ||||||||||||||||
| June 28, 2025 | June 28, 2025 | June 29, 2024 | June 29, 2024 | ||||||||||||||
| Net Income and Diluted EPS Attributable to Kadant, as Reported | $ | 50,222 | $ | 4.26 | $ | 55,980 | $ | 4.76 | |||||||||
| Adjustments, Net of Tax: | |||||||||||||||||
| Acquired Profit in Inventory and Backlog Amortization | 466 | 0.04 | 3,298 | 0.28 | |||||||||||||
| Acquisition Costs | 1,218 | 0.10 | 1,728 | 0.15 | |||||||||||||
| Adjusted Net Income and Adjusted Diluted EPS (a) | $ | 51,906 | $ | 4.40 | $ | 61,006 | $ | 5.19 | |||||||||
| Three Months Ended | Increase (Decrease) Excluding | |||||||||||||||
| Revenue by Segment | June 28, 2025 | June 29, 2024 | Increase (Decrease) | Acquisitions and FX (a,b) | ||||||||||||
| Flow Control | $ | 95,947 | $ | 92,290 | $ | 3,657 | $ | 2,168 | ||||||||
| Industrial Processing | 95,937 | 114,753 | (18,816 | ) | (19,271 | ) | ||||||||||
| Material Handling | 63,383 | 67,722 | (4,339 | ) | (5,327 | ) | ||||||||||
| $ | 255,267 | $ | 274,765 | $ | (19,498 | ) | $ | (22,430 | ) | |||||||
| Percentage of Parts and Consumables Revenue | 71 | % | 63 | % | ||||||||||||
| Six Months Ended | Increase (Decrease) | Increase (Decrease) Excluding | ||||||||||||||
| June 28, 2025 | June 29, 2024 | Acquisitions and FX (a,b) | ||||||||||||||
| Flow Control | $ | 188,388 | $ | 178,972 | $ | 9,416 | $ | 2,948 | ||||||||
| Industrial Processing | 185,461 | 220,614 | (35,153 | ) | (32,775 | ) | ||||||||||
| Material Handling | 120,628 | 124,154 | (3,526 | ) | (4,608 | ) | ||||||||||
| $ | 494,477 | $ | 523,740 | $ | (29,263 | ) | $ | (34,435 | ) | |||||||
| Percentage of Parts and Consumables Revenue | 73 | % | 66 | % | ||||||||||||
| Three Months Ended | Increase (Decrease) | Increase (Decrease) Excluding | ||||||||||||||
| Bookings by Segment | June 28, 2025 | June 29, 2024 | Acquisitions and FX (b) | |||||||||||||
| Flow Control | $ | 93,055 | $ | 94,098 | $ | (1,043 | ) | $ | (2,191 | ) | ||||||
| Industrial Processing | 105,374 | 96,714 | 8,660 | 8,575 | ||||||||||||
| Material Handling | 70,946 | 60,910 | 10,036 | 8,842 | ||||||||||||
| $ | 269,375 | $ | 251,722 | $ | 17,653 | $ | 15,226 | |||||||||
| Percentage of Parts and Consumables Bookings | 67 | % | 71 | % | ||||||||||||
| Six Months Ended | Increase | Increase (Decrease) Excluding | ||||||||||||||
| June 28, 2025 | June 29, 2024 | Acquisitions and FX (b) | ||||||||||||||
| Flow Control | $ | 193,042 | $ | 188,768 | $ | 4,274 | $ | (3,121 | ) | |||||||
| Industrial Processing | 197,740 | 186,591 | 11,149 | 14,074 | ||||||||||||
| Material Handling | 134,811 | 124,793 | 10,018 | 8,307 | ||||||||||||
| $ | 525,593 | $ | 500,152 | $ | 25,441 | $ | 19,260 | |||||||||
| Percentage of Parts and Consumables Bookings | 70 | % | 70 | % | ||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| Additional Segment Information | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | |||||||||||||||
| Gross Margin: | |||||||||||||||||||
| Flow Control | 53.8 | % | 53.0 | % | 53.6 | % | 53.4 | % | |||||||||||
| Industrial Processing | 42.6 | % | 41.3 | % | 43.3 | % | 41.5 | % | |||||||||||
| Material Handling | 38.7 | % | 37.8 | % | 38.2 | % | 36.8 | % | |||||||||||
| Consolidated | 45.9 | % | 44.4 | % | 46.0 | % | 44.5 | % | |||||||||||
| Operating Income: | |||||||||||||||||||
| Flow Control | $ | 24,443 | $ | 23,530 | $ | 47,195 | $ | 45,240 | |||||||||||
| Industrial Processing | 15,486 | 24,092 | 32,318 | 44,091 | |||||||||||||||
| Material Handling | 9,939 | 11,188 | 17,474 | 16,729 | |||||||||||||||
| Corporate | (10,491 | ) | (10,409 | ) | (22,024 | ) | (20,732 | ) | |||||||||||
| $ | 39,377 | $ | 48,401 | $ | 74,963 | $ | 85,328 | ||||||||||||
| Adjusted Operating Income (a,c): | |||||||||||||||||||
| Flow Control | $ | 24,682 | $ | 24,563 | $ | 47,834 | $ | 46,475 | |||||||||||
| Industrial Processing | 16,358 | 24,443 | 33,324 | 46,237 | |||||||||||||||
| Material Handling | 9,962 | 11,902 | 17,661 | 19,790 | |||||||||||||||
| Corporate | (10,491 | ) | (10,409 | ) | (22,024 | ) | (20,732 | ) | |||||||||||
| $ | 40,511 | $ | 50,499 | $ | 76,795 | $ | 91,770 | ||||||||||||
| Capital Expenditures: | |||||||||||||||||||
| Flow Control | $ | 1,380 | $ | 1,961 | $ | 2,889 | $ | 3,835 | |||||||||||
| Industrial Processing | 1,595 | 1,851 | 2,920 | 4,734 | |||||||||||||||
| Material Handling | 993 | 1,157 | 1,992 | 2,663 | |||||||||||||||
| Corporate | — | 5 | 3 | 13 | |||||||||||||||
| $ | 3,968 | $ | 4,974 | $ | 7,804 | $ | 11,245 | ||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| Cash Flow and Other Data | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | |||||||||||||||
| Operating Cash Flow | $ | 40,482 | $ | 28,066 | $ | 63,317 | $ | 50,897 | |||||||||||
| Capital Expenditures | (3,968 | ) | (4,974 | ) | (7,804 | ) | (11,245 | ) | |||||||||||
| Free Cash Flow (a) | $ | 36,514 | $ | 23,092 | $ | 55,513 | $ | 39,652 | |||||||||||
| Depreciation and Amortization Expense | $ | 12,069 | $ | 11,991 | $ | 24,082 | $ | 23,730 | |||||||||||
| Balance Sheet Data | June 28, 2025 | December 28, 2024 | |||||||
| Assets | |||||||||
| Cash, Cash Equivalents, and Restricted Cash | $ | 97,188 | $ | 95,946 | |||||
| Accounts Receivable, Net | 152,574 | 142,462 | |||||||
| Inventories | 168,588 | 146,092 | |||||||
| Contract Assets | 11,105 | 18,408 | |||||||
| Property, Plant, and Equipment, Net | 174,724 | 170,331 | |||||||
| Intangible Assets | 272,973 | 279,494 | |||||||
| Goodwill | 497,824 | 479,169 | |||||||
| Other Assets | 109,538 | 98,443 | |||||||
| $ | 1,484,514 | $ | 1,430,345 | ||||||
| Liabilities and Stockholders' Equity | |||||||||
| Accounts Payable | $ | 52,541 | $ | 51,062 | |||||
| Debt Obligations | 247,219 | 286,504 | |||||||
| Other Borrowings | 1,704 | 2,023 | |||||||
| Other Liabilities | 245,757 | 232,628 | |||||||
| Total Liabilities | 547,221 | 572,217 | |||||||
| Stockholders' Equity | 937,293 | 858,128 | |||||||
| $ | 1,484,514 | $ | 1,430,345 | ||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| Adjusted Operating Income and Adjusted EBITDA Reconciliation (a) | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | ||||||||||||||
| Consolidated | ||||||||||||||||||
| Net Income Attributable to Kadant | $ | 26,159 | $ | 31,291 | $ | 50,222 | $ | 55,980 | ||||||||||
| Net Income Attributable to Noncontrolling Interests | 480 | 283 | 854 | 579 | ||||||||||||||
| Provision for Income Taxes | 9,822 | 11,992 | 17,650 | 19,846 | ||||||||||||||
| Interest Expense, Net | 2,899 | 4,833 | 6,204 | 8,891 | ||||||||||||||
| Other Expense, Net | 17 | 2 | 33 | 32 | ||||||||||||||
| Operating Income | 39,377 | 48,401 | 74,963 | 85,328 | ||||||||||||||
| Acquired Profit in Inventory Amortization (d) | 24 | 529 | 35 | 2,860 | ||||||||||||||
| Acquired Backlog Amortization (e) | 202 | 695 | 581 | 1,494 | ||||||||||||||
| Acquisition Costs | 908 | 940 | 1,245 | 2,064 | ||||||||||||||
| Indemnification Asset (Provision) Reversal (f) | — | (66 | ) | (29 | ) | 24 | ||||||||||||
| Adjusted Operating Income (a) | 40,511 | 50,499 | 76,795 | 91,770 | ||||||||||||||
| Depreciation and Amortization | 11,867 | 11,296 | 23,501 | 22,236 | ||||||||||||||
| Adjusted EBITDA (a) | $ | 52,378 | $ | 61,795 | $ | 100,296 | $ | 114,006 | ||||||||||
| Adjusted EBITDA Margin (a,g) | 20.5 | % | 22.5 | % | 20.3 | % | 21.8 | % | ||||||||||
| Flow Control | ||||||||||||||||||
| Operating Income | $ | 24,443 | $ | 23,530 | $ | 47,195 | $ | 45,240 | ||||||||||
| Acquired Profit in Inventory Amortization (d) | 24 | 235 | 35 | 235 | ||||||||||||||
| Acquired Backlog Amortization (e) | 184 | 253 | 463 | 253 | ||||||||||||||
| Acquisition Costs | 31 | 566 | 39 | 566 | ||||||||||||||
| Indemnification Asset (Provision) Reversal (f) | — | (21 | ) | 102 | 181 | |||||||||||||
| Adjusted Operating Income (a) | 24,682 | 24,563 | 47,834 | 46,475 | ||||||||||||||
| Depreciation and Amortization | 3,081 | 2,359 | 6,093 | 4,580 | ||||||||||||||
| Adjusted EBITDA (a) | $ | 27,763 | $ | 26,922 | $ | 53,927 | $ | 51,055 | ||||||||||
| Adjusted EBITDA Margin (a,g) | 28.9 | % | 29.2 | % | 28.6 | % | 28.5 | % | ||||||||||
| Industrial Processing | ||||||||||||||||||
| Operating Income | $ | 15,486 | $ | 24,092 | $ | 32,318 | $ | 44,091 | ||||||||||
| Acquired Profit in Inventory Amortization (d) | — | 294 | — | 1,585 | ||||||||||||||
| Acquisition Costs | 872 | 89 | 1,212 | 688 | ||||||||||||||
| Indemnification Asset Provision (f) | — | (32 | ) | (206 | ) | (127 | ) | |||||||||||
| Adjusted Operating Income (a) | 16,358 | 24,443 | 33,324 | 46,237 | ||||||||||||||
| Depreciation and Amortization | 4,904 | 5,095 | 9,629 | 10,254 | ||||||||||||||
| Adjusted EBITDA (a) | $ | 21,262 | $ | 29,538 | $ | 42,953 | $ | 56,491 | ||||||||||
| Adjusted EBITDA Margin (a,g) | 22.2 | % | 25.7 | % | 23.2 | % | 25.6 | % | ||||||||||
| Material Handling | ||||||||||||||||||
| Operating Income | $ | 9,939 | $ | 11,188 | $ | 17,474 | $ | 16,729 | ||||||||||
| Acquired Profit in Inventory Amortization (d) | — | — | — | 1,040 | ||||||||||||||
| Acquired Backlog Amortization (e) | 18 | 442 | 118 | 1,241 | ||||||||||||||
| Acquisition Costs | 5 | 285 | (6 | ) | 810 | |||||||||||||
| Indemnification Asset (Provision) Reversal (f) | — | (13 | ) | 75 | (30 | ) | ||||||||||||
| Adjusted Operating Income (a) | 9,962 | 11,902 | 17,661 | 19,790 | ||||||||||||||
| Depreciation and Amortization | 3,870 | 3,830 | 7,756 | 7,378 | ||||||||||||||
| Adjusted EBITDA (a) | $ | 13,832 | $ | 15,732 | $ | 25,417 | $ | 27,168 | ||||||||||
| Adjusted EBITDA Margin (a,g) | 21.8 | % | 23.2 | % | 21.1 | % | 21.9 | % | ||||||||||
| Corporate | ||||||||||||||||||
| Operating Loss | $ | (10,491 | ) | $ | (10,409 | ) | (22,024 | ) | $ | (20,732 | ) | |||||||
| Depreciation and Amortization | 12 | 12 | 23 | 24 | ||||||||||||||
| EBITDA (a) | $ | (10,479 | ) | $ | (10,397 | ) | $ | (22,001 | ) | $ | (20,708 | ) | ||||||
| (a) | Represents a non-GAAP financial measure. | |||||||||||||||||
| (b) | Represents the increase (decrease) resulting from the exclusion of acquisitions and from the conversion of current period amounts reported in local currencies into U.S. dollars at the exchange rate of the prior period compared to the U.S. dollar amount reported in the prior period. | |||||||||||||||||
| (c) | See reconciliation to the most directly comparable GAAP financial measure under "Adjusted Operating Income and Adjusted EBITDA Reconciliation.” | |||||||||||||||||
| (d) | Represents amortization expense within cost of revenue associated with acquired profit in inventory. | |||||||||||||||||
| (e) | Represents intangible amortization expense associated with acquired backlog. | |||||||||||||||||
| (f) | Represents the provision for or reversal of indemnification assets related to the establishment or release of tax reserves associated with uncertain tax positions. | |||||||||||||||||
| (g) | Calculated as adjusted EBITDA divided by revenue in each period. | |||||||||||||||||
About Kadant
Kadant Inc. is a global supplier of technologies and engineered systems that drive Sustainable Industrial Processing®. The Company’s products and services play an integral role in enhancing efficiency, optimizing energy utilization, and maximizing productivity in process industries. Kadant is based in Westford, Massachusetts, with approximately 3,500 employees in 20 countries worldwide. For more information, visit kadant.com.
Safe Harbor Statement
The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about our future financial and operating performance, demand for our products, and economic and industry outlook. These forward-looking statements represent our expectations as of the date of this press release. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements as a result of various important factors, including those set forth under the heading “Risk Factors” in Kadant’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024 and subsequent filings with the Securities and Exchange Commission. These include risks and uncertainties relating to adverse changes in global and local economic conditions; the variability and difficulty in accurately predicting revenues from large capital equipment and systems projects; our acquisition strategy; levels of residential construction activity; reductions by our wood processing customers of their capital spending or production of oriented strand board; changes to the global timber supply; development and use of digital media; cyclical economic conditions affecting the global mining industry; demand for coal, including economic and environmental risks associated with coal; failure of our information systems or breaches of data security and cybersecurity incidents; implementation of our internal growth strategy; competition; our ability to successfully manage our manufacturing operations; supply chain constraints, inflationary pressure, price increases or shortages in raw materials; loss of key personnel and effective succession planning; future restructurings; protection of intellectual property; changes to tax laws and regulations; climate change; adequacy of our insurance coverage; global operations; policies of the Chinese government; the variability and uncertainties in sales of capital equipment in China; currency fluctuations; changes to government regulations and policies around the world; compliance with government regulations and policies and compliance with laws; environmental laws and regulations; environmental, health and safety laws and regulations impacting the mining industry; our debt obligations; restrictions in our credit agreement and note purchase agreement; soundness of financial institutions; fluctuations in our share price; and anti-takeover provisions.
Contacts
Investor Contact Information:
Michael McKenney, 978-776-2000
IR@kadant.com
Media Contact Information:
Wes Martz, 269-278-1715
media@kadant.com
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