Kadant Reports Third Quarter 2025 Results
Kadant (NYSE: KAI) reported third quarter 2025 results for the period ended September 27, 2025. Revenue was $271.6 million (flat year-over-year); gross margin improved 50 basis points to 45.2%. Net income fell 12% to $27.7 million and GAAP EPS declined 12% to $2.35. Adjusted EPS was $2.59, down 9%, and adjusted EBITDA totaled $58.0 million (21.4% of revenue), down 8%.
Operating cash flow was $47.3 million (-10%) and free cash flow was $44.1 million (-9%). Organic revenue decreased 4% (acquisitions +2%, FX +2%).
2025 guidance was updated: revenue $1.036–$1.046 billion (raised), adjusted EPS maintained at $9.05–$9.25, and GAAP EPS revised to $8.52–$8.72. Q4 2025 revenue expected at $270–$280 million.
Kadant (NYSE: KAI) ha riportato i risultati del terzo trimestre 2025 per il periodo terminato il 27 settembre 2025. Fatturato era $271.6 milioni (stabile rispetto all'anno precedente); margine lordo migliorato di 50 punti base al 45.2%. Utile netto è diminuito del 12% a $27.7 milioni e EPS GAAP è sceso del 12% a $2.35. EPS rettificato era $2.59, in calo del 9%, e EBITDA rettificato si è attestato a $58.0 milioni (21.4% dei ricavi), in calo dell'8%.
Il flusso di cassa operativo è stato di $47.3 milioni (-10%) e il flusso di cassa libero di $44.1 milioni (-9%). Le entrate organiche sono diminuite del 4% (acquisizioni +2%, FX +2%).
Le previsioni per il 2025 sono state aggiornate: ricavi $1.036–$1.046 miliardi (in rialzo), EPS rettificato mantenuto a $9.05–$9.25, e EPS GAAP rivisto a $8.52–$8.72. Le entrate previste per Q4 2025 sono di $270–$280 milioni.
Kadant (NYSE: KAI) informó los resultados del tercer trimestre de 2025 para el periodo que terminó el 27 de septiembre de 2025. Los ingresos fueron de $271.6 millones (estable año tras año); margen bruto mejoró 50 puntos base a 45.2%. Ingreso neto cayó un 12% a $27.7 millones y EPS GAAP disminuyó un 12% a $2.35. EPS ajustado fue de $2.59, 9% menos, y EBITDA ajustado fue de $58.0 millones (21.4% de los ingresos), bajando un 8%.
El flujo de caja operativo fue de $47.3 millones (-10%) y el flujo de caja libre fue de $44.1 millones (-9%). Los ingresosorgánicos disminuyeron un 4% (adquisiciones +2%, FX +2%).
Se actualizó la guía para 2025: ingresos $1.036–$1.046 mil millones (al alza), EPS ajustado se mantiene en $9.05–$9.25, y EPS GAAP revisado a $8.52–$8.72. Los ingresos del 4T 2025 se esperan entre $270–$280 millones.
Kadant (NYSE: KAI) 는 2025년 9월 27일로 종료되는 기간의 2025년 3분기 실적을 보고했습니다. 매출은 전년 동기 대비 변동 없이 2억 7,160만 달러; 총이익률은 50bp 상승하여 45.2%를 기록했습니다. 순이익은 12% 감소하여 2,770만 달러였고 GAAP EPS 역시 12% 감소한 2.35달러였습니다. 조정 EPS는 2.59달러로 9% 하락했고 조정 EBITDA는 매출의 21.4%인 5,800만 달러로 8% 감소했습니다.
영업현금흐름은 4,730만 달러(-10%), 자유현금흐름은 4,410만 달러(-9%)였습니다. 유기적 매출은 4% 감소했습니다(인수+2%, 환율+2%).
2025년 가이던스가 업데이트되었습니다: 매출 $1.036–$1.046십억(상향), 조정 EPS는 유지되어 $9.05–$9.25, GAAP EPS는 $8.52–$8.72로 조정되었습니다. 2025년 4분기 매출은 $270–$280백만으로 예상됩니다.
Kadant (NYSE: KAI) a publié les résultats du troisième trimestre 2025 pour la période se terminant le 27 septembre 2025. Le chiffre d'affaires était de 271,6 millions de dollars (stable d'une année sur l'autre); la marge brute a augmenté de 50 points de base pour atteindre 45,2%. Résultat net a chuté de 12% à 27,7 millions de dollars et EPS GAAP a diminué de 12% à 2,35 $. EPS ajusté était de 2,59 $, en baisse de 9%, et EBITDA ajusté s’élevait à 58,0 millions de dollars (21,4% du chiffre d'affaires), en baisse de 8%.
Le flux de trésorerie opérationnel s’élevait à 47,3 millions de dollars (-10%) et le flux de trésorerie disponible était de 44,1 millions de dollars (-9%). Le chiffre d’affaires organique a diminué de 4% (acquisitions +2%, FX +2%).
Les prévisions pour 2025 ont été mises à jour : chiffre d'affaires 1,036–1,046 milliards de dollars (à la hausse), EPS ajusté maintenu à 9,05–9,25 dollars, et EPS GAAP révisé à 8,52–8,72 dollars. Le chiffre d’affaires prévu pour le 4e trimestre 2025 est estimé entre 270–280 millions de dollars.
Kadant (NYSE: KAI) berichtete die Ergebnisse des dritten Quartals 2025 für den Zeitraum bis zum 27. September 2025. Umsatz betrug 271,6 Mio. USD (jahr-zu-Jahr unverändert); Bruttomarge verbesserte sich um 50 Basispunkte auf 45,2%. Nettoergebnis fiel um 12% auf 27,7 Mio. USD und GAAP-EPS sanken ebenfalls um 12% auf 2,35 USD. Angepasstes EPS betrug 2,59 USD, um 9% geringer, und angepasstes EBITDA belief sich auf 58,0 Mio. USD (21,4% des Umsatzes), -8% gegenüber Vorjahr.
Operativer Cashflow betrug 47,3 Mio. USD (-10%) und freier Cashflow 44,1 Mio. USD (-9%). Organischer Umsatz ging um 4% zurück (Akquisitionen +2%, FX +2%).
Die Guidance für 2025 wurde angepasst: Umsatz $1,036–$1,046 Milliarden (erhöht), angepasstes EPS beibehalten bei $9,05–$9,25, und GAAP-EPS auf $8,52–$8,72 revidiert. Der Umsatz im Q4 2025 wird zwischen $270–$280 Millionen erwartet.
Kadant (NYSE: KAI) أبلغت عن نتائج الربع الثالث من 2025 للفترة المنتهية في 27 سبتمبر 2025. الإيرادات بلغت 271.6 مليون دولار (ثابتة مقارنة بالعام السابق); هامش الربح الإجمالي تحسن بمقدار 50 نقطة أساس ليصل إلى 45.2%. صافي الدخل انخفض 12% إلى 27.7 مليون دولار وEPS GAAP انخفض 12% إلى 2.35 دولار. EPS المعدل كان 2.59 دولار، منخفضاً 9%، وEBITDA المعدل بلغ 58.0 مليون دولار (21.4% من الإيرادات)، منخفضاً 8%.
بلغ التدفق النقدي من العمليات 47.3 مليون دولار (-10%) والتدفق النقدي الحر 44.1 مليون دولار (-9%). الإيرادات العضوية انخفضت 4% (الاستحواذات +2%، FX +2%).
تم تحديث التوجيه لعام 2025: الإيرادات 1.036–1.046 مليار دولار (رفع)، EPS المعدل حافظ على $9.05–$9.25، وEPS GAAP تم تعديله إلى $8.52–$8.72. من المتوقع أن تكون الإيرادات للربع الرابع من 2025 بين $270–$280 مليون.
Kadant (NYSE: KAI) 公布了截至2025年9月27日的2025年第三季度业绩。 收入为1.716亿美元（同比持平）； 毛利率提升50个基点至45.2%。 净利润下降12%至2770万美元，GAAP 每股收益下降12%至2.35美元。 调整后每股收益为2.59美元，下降9%，调整后EBITDA总计5800万美元（占收入的21.4%），下降8%。
经营现金流为4730万美元（-10%），自由现金流为4410万美元（-9%）。有机收入下降4%（并购+2%，汇率+2%）。
2025年的指引已更新：收入1.036–1.046十亿美元（上调），调整后EPS维持在9.05–9.25美元，GAAP EPS修订为8.52–8.72美元。2025年第四季度收入预计在270–280百万美元之间。
- Revenue guidance raised to $1.036–$1.046B for 2025
- Gross margin improved 50 bps to 45.2% in Q3 2025
- Parts and consumables comprised 69% of Q3 revenue (up from 65%)
- Net income decreased 12% to $27.7M in Q3 2025
- GAAP diluted EPS decreased 12% to $2.35 in Q3 2025
- Operating cash flow declined 10% to $47.3M in Q3 2025
Insights
Kadant posted flat revenue with weaker organic demand and lower net income, while raising revenue outlook but keeping adjusted EPS guidance.
Kadant delivered consolidated revenue of
The business mix drove outcomes: aftermarket parts strength lifted parts contribution to
Key risks and dependencies include the pace of capital equipment order recovery and successful integration of recent acquisitions that added
WESTFORD, Mass., Oct. 28, 2025 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) reported its financial results for the third quarter ended September 27, 2025.
Third Quarter Financial Highlights
- Revenue was
$272 million in both periods - Gross margin increased 50 basis points to
45.2% - Net income decreased
12% to$28 million - GAAP EPS decreased
12% to$2.35 - Adjusted EPS decreased
9% to$2.59 - Adjusted EBITDA decreased
8% to$58 million and represented21.4% of revenue - Operating cash flow decreased
10% to$47 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
“Despite a persistent softness in demand for capital equipment and continued global trade uncertainties, our businesses executed well and delivered solid gross margin performance during the quarter,” said Jeffrey L. Powell, president and chief executive officer of Kadant Inc. “Our businesses exceeded our earnings expectations led by record revenue performance in our aftermarket parts business.”
Third Quarter 2025 Compared to 2024
Revenue was
Net income was
Adjusted EBITDA decreased eight percent to
Bookings decreased one percent to
Summary and Outlook
“We anticipate healthy demand for aftermarket parts and improving order activity for our capital equipment in the fourth quarter following prolonged delays in project execution,” continued Mr. Powell. “We are incorporating our recent acquisitions into our guidance and now expect revenue of
Conference Call
Kadant will hold a webcast with a slide presentation for investors on Wednesday, October 29, 2025, at 11:00 a.m. Eastern Time to discuss its third 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 November 28, 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 third 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 third 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.
Third Quarter
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:
- Pre-tax acquisition costs of
$2.3 million in 2025 and$0.5 million in 2024. - Pre-tax amortization of acquired profit in inventory and backlog of
$0.6 million in 2025 and$1.9 million in 2024. - Pre-tax impairment costs of
$0.3 million in 2025. - Pre-tax indemnification asset provision of
$0.2 million in 2024.
Adjusted net income and adjusted EPS exclude:
- After-tax acquisition costs of
$2.2 million ($2.3 million net of tax of$0.1 million ) in 2025 and$0.4 million ($0.5 million net of tax of$0.1 million ) in 2024. - 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$1.4 million ($1.9 million net of tax of$0.5 million ) in 2024. - After-tax impairment costs of
$0.2 million ($0.3 million net of tax of$0.1 million ) in 2025.
Free cash flow is calculated as operating cash flow less:
- Capital expenditures of
$3.2 million in 2025 and$4.2 million in 2024.
First Nine Months
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:
- Pre-tax acquisition costs of
$3.5 million in 2025 and$2.5 million in 2024. - Pre-tax amortization of acquired profit in inventory and backlog of
$1.2 million in 2025 and$6.2 million in 2024. - Pre-tax impairment costs of
$0.3 million in 2025. - Pre-tax indemnification asset provision of
$0.2 million in 2024.
Adjusted net income and adjusted EPS exclude:
- After-tax acquisition costs of
$3.4 million ($3.5 million net of tax of$0.1 million ) in 2025 and$2.1 million ($2.5 million net of tax of$0.4 million ) in 2024. - After-tax amortization of acquired profit in inventory and backlog of
$0.9 million ($1.2 million net of tax of$0.3 million ) in 2025 and$4.7 million ($6.2 million net of tax of$1.5 million ) in 2024. - After-tax impairment costs of
$0.2 million ($0.3 million net of tax of$0.1 million ) in 2025.
Free cash flow is calculated as operating cash flow less:
- Capital expenditures of
$11.0 million in 2025 and$15.4 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 | Nine Months Ended | ||||||||||||||
| Consolidated Statement of Income | September 27, 2025 | September 28, 2024 | September 27, 2025 | September 28, 2024 | |||||||||||
| Revenue | $ | 271,567 | $ | 271,614 | $ | 766,044 | $ | 795,354 | |||||||
| Costs and Operating Expenses: | |||||||||||||||
| Cost of revenue | 148,906 | 150,175 | 416,011 | 441,066 | |||||||||||
| Selling, general, and administrative expenses | 75,839 | 69,043 | 221,001 | 209,352 | |||||||||||
| Research and development expenses | 3,919 | 3,409 | 11,166 | 10,621 | |||||||||||
| Other costs | 287 | — | 287 | — | |||||||||||
| 228,951 | 222,627 | 648,465 | 661,039 | ||||||||||||
| Operating Income | 42,616 | 48,987 | 117,579 | 134,315 | |||||||||||
| Interest Income | 373 | 407 | 1,329 | 1,386 | |||||||||||
| Interest Expense | (3,089 | ) | (5,516 | ) | (10,249 | ) | (15,386 | ) | |||||||
| Other Expense, Net | (19 | ) | (16 | ) | (52 | ) | (48 | ) | |||||||
| Income Before Provision for Income Taxes | 39,881 | 43,862 | 108,607 | 120,267 | |||||||||||
| Provision for Income Taxes | 11,766 | 11,964 | 29,416 | 31,810 | |||||||||||
| Net Income | 28,115 | 31,898 | 79,191 | 88,457 | |||||||||||
| Net Income Attributable to Noncontrolling Interests | (393 | ) | (312 | ) | (1,247 | ) | (891 | ) | |||||||
| Net Income Attributable to Kadant | $ | 27,722 | $ | 31,586 | $ | 77,944 | $ | 87,566 | |||||||
| Earnings per Share Attributable to Kadant: | |||||||||||||||
| Basic | $ | 2.35 | $ | 2.69 | $ | 6.62 | $ | 7.46 | |||||||
| Diluted | $ | 2.35 | $ | 2.68 | $ | 6.61 | $ | 7.44 | |||||||
| Weighted Average Shares: | |||||||||||||||
| Basic | 11,777 | 11,745 | 11,771 | 11,737 | |||||||||||
| Diluted | 11,802 | 11,780 | 11,790 | 11,763 | |||||||||||
| Three Months Ended | Three Months Ended | ||||||||||||||
| Adjusted Net Income and Adjusted Diluted EPS (a) | September 27, 2025 | September 27, 2025 | September 28, 2024 | September 28, 2024 | |||||||||||
| Net Income and Diluted EPS Attributable to Kadant, as Reported | $ | 27,722 | $ | 2.35 | $ | 31,586 | $ | 2.68 | |||||||
| Adjustments, Net of Tax: | |||||||||||||||
| Acquisition Costs | 2,172 | 0.18 | 398 | 0.03 | |||||||||||
| Acquired Profit in Inventory and Backlog Amortization | 459 | 0.04 | 1,432 | 0.12 | |||||||||||
| Other Costs | 216 | 0.02 | — | — | |||||||||||
| Adjusted Net Income and Adjusted Diluted EPS (a) | $ | 30,569 | $ | 2.59 | $ | 33,416 | $ | 2.84 | |||||||
| Nine Months Ended | Nine Months Ended | ||||||||||||||
| September 27, 2025 | September 27, 2025 | September 28, 2024 | September 28, 2024 | ||||||||||||
| Net Income and Diluted EPS Attributable to Kadant, as Reported | $ | 77,944 | $ | 6.61 | $ | 87,566 | $ | 7.44 | |||||||
| Adjustments, Net of Tax: | |||||||||||||||
| Acquisition Costs | 3,390 | 0.29 | 2,126 | 0.18 | |||||||||||
| Acquired Profit in Inventory and Backlog Amortization | 925 | 0.08 | 4,730 | 0.40 | |||||||||||
| Other Costs | 216 | 0.02 | — | — | |||||||||||
| Adjusted Net Income and Adjusted Diluted EPS (a) | $ | 82,475 | $ | 7.00 | $ | 94,422 | $ | 8.03 | |||||||
| Three Months Ended | Increase (Decrease) Excluding Acquisitions and FX (a,b) | ||||||||||||||
| Revenue by Segment | September 27, 2025 | September 28, 2024 | Increase (Decrease) | ||||||||||||
| Flow Control | $ | 94,839 | $ | 97,521 | $ | (2,682 | ) | $ | (4,696 | ) | |||||
| Industrial Processing | 106,393 | 110,696 | (4,303 | ) | (11,202 | ) | |||||||||
| Material Handling | 70,335 | 63,397 | 6,938 | 5,745 | |||||||||||
| $ | 271,567 | $ | 271,614 | $ | (47 | ) | $ | (10,153 | ) | ||||||
| Percentage of Parts and Consumables Revenue | 69 | % | 65 | % | |||||||||||
| Nine Months Ended | Increase (Decrease) | Increase (Decrease) Excluding Acquisitions and FX (a,b) | |||||||||||||
| September 27, 2025 | September 28, 2024 | ||||||||||||||
| Flow Control | $ | 283,227 | $ | 276,493 | $ | 6,734 | $ | (1,748 | ) | ||||||
| Industrial Processing | 291,854 | 331,310 | (39,456 | ) | (43,977 | ) | |||||||||
| Material Handling | 190,963 | 187,551 | 3,412 | 1,137 | |||||||||||
| $ | 766,044 | $ | 795,354 | $ | (29,310 | ) | $ | (44,588 | ) | ||||||
| Percentage of Parts and Consumables Revenue | 72 | % | 65 | % | |||||||||||
| Three Months Ended | Increase (Decrease) | Increase (Decrease) Excluding Acquisitions and FX (b) | |||||||||||||
| Bookings by Segment | September 27, 2025 | September 28, 2024 | |||||||||||||
| Flow Control | $ | 93,844 | $ | 88,981 | $ | 4,863 | $ | 2,877 | |||||||
| Industrial Processing | 85,162 | 89,319 | (4,157 | ) | (7,877 | ) | |||||||||
| Material Handling | 59,349 | 62,005 | (2,656 | ) | (3,615 | ) | |||||||||
| $ | 238,355 | $ | 240,305 | $ | (1,950 | ) | $ | (8,615 | ) | ||||||
| Percentage of Parts and Consumables Bookings | 74 | % | 72 | % | |||||||||||
| Nine Months Ended | Increase | Increase (Decrease) Excluding Acquisitions and FX (b) | |||||||||||||
| September 27, 2025 | September 28, 2024 | ||||||||||||||
| Flow Control | $ | 286,886 | $ | 277,749 | $ | 9,137 | $ | (244 | ) | ||||||
| Industrial Processing | 282,902 | 275,910 | 6,992 | 6,197 | |||||||||||
| Material Handling | 194,160 | 186,798 | 7,362 | 4,692 | |||||||||||
| $ | 763,948 | $ | 740,457 | $ | 23,491 | $ | 10,645 | ||||||||
| Percentage of Parts and Consumables Bookings | 71 | % | 71 | % | |||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| Additional Segment Information | September 27, 2025 | September 28, 2024 | September 27, 2025 | September 28, 2024 | |||||||||||
| Gross Margin: | |||||||||||||||
| Flow Control | 51.9 | % | 51.8 | % | 53.0 | % | 52.9 | % | |||||||
| Industrial Processing | 43.6 | % | 44.0 | % | 43.4 | % | 42.3 | % | |||||||
| Material Handling | 38.5 | % | 35.0 | % | 38.3 | % | 36.2 | % | |||||||
| Consolidated | 45.2 | % | 44.7 | % | 45.7 | % | 44.5 | % | |||||||
| Operating Income: | |||||||||||||||
| Flow Control | $ | 22,342 | $ | 24,281 | $ | 69,537 | $ | 69,521 | |||||||
| Industrial Processing | 18,828 | 25,969 | 51,146 | 70,060 | |||||||||||
| Material Handling | 12,533 | 8,793 | 30,007 | 25,522 | |||||||||||
| Corporate | (11,087 | ) | (10,056 | ) | (33,111 | ) | (30,788 | ) | |||||||
| $ | 42,616 | $ | 48,987 | $ | 117,579 | $ | 134,315 | ||||||||
| Adjusted Operating Income (a,c): | |||||||||||||||
| Flow Control | $ | 22,491 | $ | 25,671 | $ | 70,325 | $ | 72,146 | |||||||
| Industrial Processing | 21,817 | 26,539 | 55,141 | 72,776 | |||||||||||
| Material Handling | 12,565 | 9,019 | 30,226 | 28,809 | |||||||||||
| Corporate | (11,087 | ) | (10,056 | ) | (33,111 | ) | (30,788 | ) | |||||||
| $ | 45,786 | $ | 51,173 | $ | 122,581 | $ | 142,943 | ||||||||
| Capital Expenditures: | |||||||||||||||
| Flow Control | $ | 1,213 | $ | 1,894 | $ | 4,102 | $ | 5,729 | |||||||
| Industrial Processing | 783 | 1,209 | 3,703 | 5,943 | |||||||||||
| Material Handling | 1,198 | 1,074 | 3,190 | 3,737 | |||||||||||
| Corporate | — | 8 | 3 | 21 | |||||||||||
| $ | 3,194 | $ | 4,185 | $ | 10,998 | $ | 15,430 | ||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| Cash Flow and Other Data | September 27, 2025 | September 28, 2024 | September 27, 2025 | September 28, 2024 | |||||||||||
| Operating Cash Flow | $ | 47,252 | $ | 52,478 | $ | 110,569 | $ | 103,375 | |||||||
| Capital Expenditures | (3,194 | ) | (4,185 | ) | (10,998 | ) | (15,430 | ) | |||||||
| Free Cash Flow (a) | $ | 44,058 | $ | 48,293 | $ | 99,571 | $ | 87,945 | |||||||
| Depreciation and Amortization Expense | $ | 12,397 | $ | 12,775 | $ | 36,479 | $ | 36,505 | |||||||
| Balance Sheet Data | September 27, 2025 | December 28, 2024 | |||||
| Assets | |||||||
| Cash, Cash Equivalents, and Restricted Cash | $ | 126,913 | $ | 95,946 | |||
| Accounts Receivable, Net | 158,781 | 142,462 | |||||
| Inventories | 179,705 | 146,092 | |||||
| Contract Assets | 9,866 | 18,408 | |||||
| Property, Plant, and Equipment, Net | 177,381 | 170,331 | |||||
| Intangible Assets | 270,775 | 279,494 | |||||
| Goodwill | 497,088 | 479,169 | |||||
| Other Assets | 111,725 | 98,443 | |||||
| $ | 1,532,234 | $ | 1,430,345 | ||||
| Liabilities and Stockholders' Equity | |||||||
| Accounts Payable | $ | 50,625 | $ | 51,062 | |||
| Debt Obligations | 256,020 | 286,504 | |||||
| Other Borrowings | 1,985 | 2,023 | |||||
| Other Liabilities | 262,097 | 232,628 | |||||
| Total Liabilities | 570,727 | 572,217 | |||||
| Stockholders' Equity | 961,507 | 858,128 | |||||
| $ | 1,532,234 | $ | 1,430,345 | ||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| Adjusted Operating Income and Adjusted EBITDA Reconciliation (a) | September 27, 2025 | September 28, 2024 | September 27, 2025 | September 28, 2024 | |||||||||||||
| Consolidated | |||||||||||||||||
| Net Income Attributable to Kadant | $ | 27,722 | $ | 31,586 | $ | 77,944 | $ | 87,566 | |||||||||
| Net Income Attributable to Noncontrolling Interests | 393 | 312 | 1,247 | 891 | |||||||||||||
| Provision for Income Taxes | 11,766 | 11,964 | 29,416 | 31,810 | |||||||||||||
| Interest Expense, Net | 2,716 | 5,109 | 8,920 | 14,000 | |||||||||||||
| Other Expense, Net | 19 | 16 | 52 | 48 | |||||||||||||
| Operating Income | 42,616 | 48,987 | 117,579 | 134,315 | |||||||||||||
| Acquisition Costs | 2,253 | 469 | 3,498 | 2,533 | |||||||||||||
| Acquired Profit in Inventory Amortization (d) | 465 | 1,205 | 500 | 4,065 | |||||||||||||
| Acquired Backlog Amortization (e) | 165 | 687 | 746 | 2,181 | |||||||||||||
| Other Costs | 287 | — | 287 | — | |||||||||||||
| Indemnification Asset Provision (f) | — | (175 | ) | (29 | ) | (151 | ) | ||||||||||
| Adjusted Operating Income (a) | 45,786 | 51,173 | 122,581 | 142,943 | |||||||||||||
| Depreciation and Amortization | 12,232 | 12,088 | 35,733 | 34,324 | |||||||||||||
| Adjusted EBITDA (a) | $ | 58,018 | $ | 63,261 | $ | 158,314 | $ | 177,267 | |||||||||
| Adjusted EBITDA Margin (a,g) | 21.4 | % | 23.3 | % | 20.7 | % | 22.3 | % | |||||||||
| Flow Control | |||||||||||||||||
| Operating Income | $ | 22,342 | $ | 24,281 | $ | 69,537 | $ | 69,521 | |||||||||
| Acquisition Costs | 2 | 71 | 41 | 637 | |||||||||||||
| Acquired Profit in Inventory Amortization (d) | — | 728 | 35 | 963 | |||||||||||||
| Acquired Backlog Amortization (e) | 147 | 629 | 610 | 882 | |||||||||||||
| Indemnification Asset (Provision) Reversal (f) | — | (38 | ) | 102 | 143 | ||||||||||||
| Adjusted Operating Income (a) | 22,491 | 25,671 | 70,325 | 72,146 | |||||||||||||
| Depreciation and Amortization | 3,174 | 2,981 | 9,267 | 7,561 | |||||||||||||
| Adjusted EBITDA (a) | $ | 25,665 | $ | 28,652 | $ | 79,592 | $ | 79,707 | |||||||||
| Adjusted EBITDA Margin (a,g) | 27.1 | % | 29.4 | % | 28.1 | % | 28.8 | % | |||||||||
| Industrial Processing | |||||||||||||||||
| Operating Income | $ | 18,828 | $ | 25,969 | $ | 51,146 | $ | 70,060 | |||||||||
| Acquisition Costs | 2,237 | 154 | 3,449 | 842 | |||||||||||||
| Acquired Profit in Inventory Amortization (d) | 465 | 477 | 465 | 2,062 | |||||||||||||
| Other Costs | 287 | — | 287 | — | |||||||||||||
| Indemnification Asset Provision (f) | — | (61 | ) | (206 | ) | (188 | ) | ||||||||||
| Adjusted Operating Income (a) | 21,817 | 26,539 | 55,141 | 72,776 | |||||||||||||
| Depreciation and Amortization | 5,221 | 5,204 | 14,850 | 15,458 | |||||||||||||
| Adjusted EBITDA (a) | $ | 27,038 | $ | 31,743 | $ | 69,991 | $ | 88,234 | |||||||||
| Adjusted EBITDA Margin (a,g) | 25.4 | % | 28.7 | % | 24.0 | % | 26.6 | % | |||||||||
| Material Handling | |||||||||||||||||
| Operating Income | $ | 12,533 | $ | 8,793 | $ | 30,007 | $ | 25,522 | |||||||||
| Acquisition Costs | 14 | 244 | 8 | 1,054 | |||||||||||||
| Acquired Profit in Inventory Amortization (d) | — | — | — | 1,040 | |||||||||||||
| Acquired Backlog Amortization (e) | 18 | 58 | 136 | 1,299 | |||||||||||||
| Indemnification Asset (Provision) Reversal (f) | — | (76 | ) | 75 | (106 | ) | |||||||||||
| Adjusted Operating Income (a) | 12,565 | 9,019 | 30,226 | 28,809 | |||||||||||||
| Depreciation and Amortization | 3,824 | 3,891 | 11,580 | 11,269 | |||||||||||||
| Adjusted EBITDA (a) | $ | 16,389 | $ | 12,910 | $ | 41,806 | $ | 40,078 | |||||||||
| Adjusted EBITDA Margin (a,g) | 23.3 | % | 20.4 | % | 21.9 | % | 21.4 | % | |||||||||
| Corporate | |||||||||||||||||
| Operating Loss | $ | (11,087 | ) | $ | (10,056 | ) | $ | (33,111 | ) | $ | (30,788 | ) | |||||
| Depreciation and Amortization | 13 | 12 | 36 | 36 | |||||||||||||
| EBITDA (a) | $ | (11,074 | ) | $ | (10,044 | ) | $ | (33,075 | ) | $ | (30,752 | ) | |||||
| (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 3,900 employees in 22 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, 978-776-2000
media@kadant.com
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