Kadant Inc

Latest Results (21.11.2025):

Kadant Inc reported results for the third quarter of 2025. Revenue held steady at $271.6 million year-over-year, gross margin improved to 45.2% (+50 bps), but net income and earnings declined (GAAP net income $27.7 million, GAAP EPS $2.35, both down ~12%). Adjusted measures also softened: adjusted EPS was $2.59 (down 9%) and adjusted EBITDA was $58.0 million (down 8%, 21.4% of revenue). Operating cash flow and free cash flow declined 10% and 9%, respectively. Management called out strong aftermarket parts performance while capital equipment demand remained soft, and updated full-year 2025 guidance higher on revenue but unchanged for adjusted EPS.

Key financials

Q3 2025 revenue $271.6M (flat YoY), gross margin 45.2% (up 50 bps). GAAP net income $27.7M (-12% YoY); GAAP EPS $2.35 (-12%). Adjusted EPS $2.59 (-9%). Adjusted EBITDA $58.0M (-8%), representing 21.4% of revenue.

Cash flow and bookings

Operating cash flow was $47.3M (down 10% YoY) and free cash flow $44.1M (down 9%). Bookings were $238.4M (down 1% YoY); organic bookings declined 4% after stripping acquisition and FX effects.

Organic trends and acquisition/FX impact

Organic revenue decreased 4% in Q3 2025; the reported flat revenue included about +$5.9M from acquisitions and a +$4.2M favorable FX effect versus the prior year.

Non-GAAP adjustments

Adjusted EPS excludes acquisition-related costs of $0.22 and other costs of $0.02 in Q3 2025 (vs. $0.15 of acquisition-related costs in Q3 2024). Adjusted metrics also remove certain acquisition, amortization and one-time items as described in the release.

Guidance and outlook

Kadant revised 2025 revenue guidance to $1.036–$1.046 billion (up from $1.020–$1.040B) while maintaining adjusted EPS guidance of $9.05–$9.25. GAAP EPS guidance was revised to $8.52–$8.72. For Q4 2025 management expects revenue of $270–$280M, GAAP EPS $1.91–$2.11 and adjusted EPS $2.05–$2.25 (excludes $0.14 of acquisition-related costs).

Management commentary

CEO Jeffrey L. Powell noted continued softness in capital equipment demand and global trade uncertainty but highlighted strong execution and record aftermarket parts revenue, and expects improving order activity for capital equipment entering Q4.