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 represented 21.4% 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 $271.6 million in both periods. Organic revenue decreased four percent, which excludes increases of two percent from an acquisition and two percent from the favorable effect of foreign currency translation. Gross margin was 45.2 percent compared to 44.7 percent in 2024.
Net income was $27.7 million, decreasing 12 percent compared to $31.6 million in 2024. GAAP EPS decreased 12 percent to $2.35 compared to $2.68 in 2024 and adjusted EPS decreased nine percent to $2.59 compared to $2.84 in 2024. Adjusted EPS excludes acquisition-related costs of $0.22 and other costs of $0.02 in 2025 and acquisition-related costs of $0.15 in 2024.
Adjusted EBITDA decreased eight percent to $58.0 million and represented 21.4 percent of revenue compared to a record $63.3 million and 23.3 percent of revenue in 2024. Operating cash flow decreased 10 percent to $47.3 million compared to $52.5 million in 2024. Free cash flow decreased nine percent to $44.1 million compared to $48.3 million in 2024.
Bookings decreased one percent to $238.4 million compared to $240.3 million in 2024. Organic bookings decreased four percent, which excludes increases of one percent from an acquisition and two percent from the favorable effect of foreign currency translation.
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 $1.036 to $1.046 billion in 2025, revised from our previous guidance of $1.020 to $1.040 billion. We are maintaining our adjusted EPS guidance of $9.05 to $9.25. The 2025 adjusted EPS guidance excludes $0.51 of acquisition-related costs and $0.02 of other costs, revised from $0.16 of acquisition-related costs in our previous guidance. We now expect GAAP EPS of $8.52 to $8.72 in 2025, revised from our previous GAAP EPS guidance of $8.89 to $9.09. For the fourth quarter of 2025, we expect revenue of $270 to $280 million, GAAP EPS of $1.91 to $2.11 and, after excluding $0.14 of acquisition-related costs, adjusted EPS of $2.05 to $2.25."
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 $5.9 million from an acquisition and a favorable foreign currency translation effect of $4.2 million compared to the third quarter of 2024. Revenue in the first nine months of 2025 included $14.8 million from acquisitions and a favorable foreign currency translation effect of $0.5 million compared to the first nine months of 2024. Our other non-GAAP financial measures exclude acquisition costs, amortization expense related to acquired profit in inventory and backlog, and other income or expense, as indicated. Collectively, these items are excluded as they are not indicative of our core operating results and are not comparable to other periods, which have differing levels of incremental costs, expenditures or income, or none at all. Additionally, we use free cash flow in order to provide insight on our ability to generate cash for acquisitions and debt repayments, as well as for other investing and financing activities.
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
