WESTFORD, Mass., Jan. 29, 2026 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) has entered into a definitive agreement to acquire voestalpine BÖHLER Profil GmbH & Co KG (“voestalpine BÖHLER Profil”). The acquisition is expected to close in the first quarter of 2026, subject to certain Austrian regulatory approvals and the satisfaction of customary closing conditions, and will be financed primarily through borrowings under Kadant’s revolving credit facility. With over 150 years of experience, voestalpine BÖHLER ...

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Financial Data and Key Metrics Changes - Q3 2025 revenue was $271.6 million, flat compared to the prior year, with record aftermarket parts revenue of $188.4 million, up 6% year-over-year [6][12] - Adjusted EBITDA was $58 million, with an adjusted EBITDA margin of 21.4% [6][19] - GAAP EPS decreased 12% to $2.35, while adjusted EPS decreased 9% to $2.59, exceeding guidance by $0.36 due to higher-than-expected aftermarket parts revenue [18][19] - Gross margin improved to 45.2%, up 50 basis points from 44.7% in Q3 2024 [12][16] Business Line Data and Key Metrics Changes - Flow control segment revenue declined 3% to $94 million, with aftermarket parts revenue up 5% [7][8] - Industrial processing segment revenue decreased 4% to $106 million, with aftermarket parts revenue at a record $81 million, representing 76% of total revenue [8][9] - Material handling segment revenue increased 11% to a record $70 million, driven by an 18% increase in capital shipments [9][10] Market Data and Key Metrics Changes - Market demand for capital equipment remains sluggish, but there is increasing activity expected in Q4 2025 [5][10] - Capital bookings were flat compared to the previous year, primarily due to sustained weakness in capital project orders [7][24] - Operating rates in the U.S. are higher than in other regions, with paper side rates around low 80% and China at 60% [45][46] Company Strategy and Development Direction - The company is focusing on operational improvements and strategic acquisitions, including Clyde Industries and Babbini [22][25] - The acquisition strategy is supported by a renewed revolving credit facility, increasing borrowing capacity to $750 million [22] - The company anticipates a healthy aftermarket demand and improved business activity moving forward [10][25] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about capital orders moving forward, despite delays in bookings due to administrative processes [31][32] - The impact of tariffs is still present, creating uncertainty, but conditions are improving compared to earlier in the year [34][35] - The second half of 2025 is expected to show solid improvement across various metrics, with strong aftermarket parts activity anticipated [89] Other Important Information - Cash flow from operations was $47 million, and free cash flow was $44 million in Q3 2025 [6][19] - The company is monitoring tariff impacts and exploring alternative suppliers to mitigate costs [24] - The backlog at the end of Q3 was $273 million, with capital orders making up about 60% of that [73] Q&A Session Summary Question: Percentage of aftermarket parts revenue for each segment - Flow control: 74% current quarter vs. 70% prior year; Industrial processing: 76% current vs. 67% prior; Material handling: 52% current vs. 55% prior [29] Question: Clarification on capital bookings being pushed to 2026 - Management noted several projects are in late stages, but administrative requirements may delay bookings [31][32] Question: Impact of tariffs on capital equipment needs - Management indicated that while conditions are better, uncertainty remains, affecting customer caution [34][35] Question: Insights on factory utilization rates globally - U.S. operating rates are higher than global averages, with paper side at low 80% and China at 60% [45][46] Question: Backlog contribution from Clyde Industries - Expected backlog contribution from Clyde Industries is around $30 million [75]

Financial Performance - The company reported Q3 revenue of $272 million, flat compared to the prior year, with record aftermarket parts revenue up 6% to $188.4 million [6][12][17] - Adjusted EBITDA was $58 million with a margin of 21.4%, while GAAP EPS decreased 12% to $2.35 and adjusted EPS decreased 9% to $2.59 [6][17][18] - Cash flow from operations was $47 million and free cash flow was $44 million, demonstrating strong business model resilience [6][18] Business Segment Performance - Flow control segment revenue decreased 3% to $94 million, with aftermarket parts revenue up 5% [7][8] - Industrial processing segment revenue decreased 4% to $106 million, with aftermarket parts revenue at a record $81 million, representing 76% of total revenue [8][9] - Material handling segment revenue increased 11% to a record $70 million, driven by an 18% increase in capital shipments [9][10] Market Conditions - Market demand for capital equipment remains sluggish, but there is increasing activity anticipated in Q4 [5][10] - Capital project orders have been delayed, with many expected to push into 2026 due to administrative processes [23][30] Company Strategy and Industry Competition - The company is focused on enhancing operational efficiencies through initiatives like the 80/20 performance enhancement program [88] - Recent acquisitions, including Clyde Industries, are expected to contribute positively to future revenue and operational capabilities [9][24][88] Management Commentary - Management expressed optimism about future capital orders, despite current delays, and noted that economic headwinds are still a concern [7][30] - The company is monitoring tariff impacts and is actively seeking alternative suppliers to mitigate cost pressures [23][24] Other Important Information - The company increased its full-year revenue guidance to $1.036 billion to $1.046 billion, reflecting the impact of recent acquisitions [24] - SG&A expenses as a percentage of revenue increased to 27.9% in Q3, attributed to various factors including acquisition-related costs [16][17] Q&A Session Summary Question: What is the percentage of aftermarket parts revenue for each segment? - Flow control: 74% current quarter vs. 70% prior year; Industrial processing: 76% vs. 67%; Material handling: 52% vs. 55% [28] Question: Can you clarify the situation with capital bookings being pushed to 2026? - Management indicated that several projects are in late stages but may not be booked until administrative requirements are met [30] Question: How are tariffs affecting capital equipment demand? - Management noted that while conditions have improved, uncertainty remains, impacting customer decision-making [33][34] Question: What is the expected contribution from recent acquisitions? - Clyde Industries and Babini are anticipated to contribute approximately $23 to $25 million in revenue combined for Q4 [57] Question: What is the backlog status? - The company ended Q3 with a backlog of $273 million, with capital orders making up about 60% of that [72]

Financial Data and Key Metrics Changes - The company's Q3 revenue was flat year-over-year at $272 million, benefiting from record aftermarket parts revenue, which increased by 6% compared to the same period last year [6][13] - Adjusted EBITDA for Q3 was $58 million, with an adjusted EBITDA margin of 21.4% [6] - GAAP EPS decreased by 12% to $2.35, while adjusted EPS decreased by 9% to $2.59, exceeding the high end of guidance by $0.36 due to higher-than-expected aftermarket parts revenue [19][20] Business Line Data and Key Metrics Changes - In the flow control segment, revenue declined by 3% year-over-year, but new order activity increased by 5% [8] - The industrial processing segment saw a 4% decrease in revenue to $106 million, with aftermarket parts revenue reaching a record $81 million, representing 76% of total Q3 revenue [9] - The material handling segment achieved record revenue of $70 million, up 11% year-over-year, driven by an 18% increase in capital shipments [10] Market Data and Key Metrics Changes - Market demand for capital equipment remains sluggish, but there is increasing activity anticipated in early Q4 [5] - Capital bookings were below expectations due to weak market conditions in the pulp and paper industry, particularly affecting the industrial processing segment [25] Company Strategy and Development Direction - The company is focusing on its aftermarket parts business as a core strategic area, which has shown resilience during economic headwinds [5] - Recent acquisitions, including Clyde Industries, are expected to enhance operational capabilities and contribute to revenue growth in the upcoming quarters [10][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about capital orders moving forward, despite delays in booking due to administrative processes [31] - The company anticipates solid improvement in the second half of 2025, with expectations for increased demand for capital equipment and strong aftermarket parts activity [70] Other Important Information - The company renewed its revolving credit facility, increasing borrowing capacity from $400 million to $750 million, which supports its acquisition strategy [23] - Cash flow from operations and free cash flow for Q3 were $47 million and $44 million, respectively, indicating strong business model performance [20] Q&A Session Summary Question: Percentage of aftermarket parts revenue for segments - Flow control segment: 74% this quarter vs. 70% last year; industrial processing: 76% vs. 67%; material handling: 52% vs. 55% [29] Question: Clarification on capital bookings and demand - Management noted that several projects are in late stages, but administrative requirements may delay bookings into 2026 [31] Question: Impact of tariffs on sales and capital equipment needs - While conditions have improved, uncertainty remains, and clients are gradually adapting to the new environment [33] Question: Backlog and capital equipment orders - The backlog at the end of Q3 was $273 million, with capital orders making up about 60% [59][60] Question: Contribution from recent acquisitions - Expected revenue contribution from Clyde Industries and Babini is in the range of $23 to $25 million combined for Q4 [49]

Core Viewpoint - Kadant (KAI) reported quarterly earnings of $2.59 per share, exceeding the Zacks Consensus Estimate of $2.18 per share, but down from $2.84 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was +18.81%, following a previous surprise of +19.07% when earnings were $2.31 per share against an expectation of $1.94 [2] - Kadant's revenues for the quarter were $271.57 million, surpassing the Zacks Consensus Estimate by 4.29%, and slightly down from $271.61 million year-over-year [3] Stock Performance and Outlook - Kadant shares have declined approximately 12% year-to-date, contrasting with the S&P 500's gain of 16.9% [4] - The company's current Zacks Rank is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Earnings Expectations - The consensus EPS estimate for the upcoming quarter is $2.55 on revenues of $273.84 million, and for the current fiscal year, it is $9.14 on revenues of $1.03 billion [8] Industry Context - The Manufacturing - General Industrial industry, to which Kadant belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges ahead [9]

Financial Performance - Revenue for Q3 2025 was $271.6 million, with organic revenue decreasing by 4%[5] - Net income decreased by 12% to $27.7 million compared to $31.6 million in Q3 2024[6] - GAAP EPS decreased by 12% to $2.35, while adjusted EPS decreased by 9% to $2.59[6] - Adjusted EBITDA decreased by 8% to $58.0 million, representing 21.4% of revenue[7] - Operating cash flow decreased by 10% to $47.3 million compared to $52.5 million in Q3 2024[7] - Bookings decreased by 1% to $238.4 million, with organic bookings down by 4%[8] - Revenue for the three months ended September 27, 2025, was $271,567,000, a slight decrease of 0.1% compared to $271,614,000 for the same period in 2024[21] - Net income attributable to Kadant for the three months ended September 27, 2025, was $27,722,000, down 12.0% from $31,586,000 in the prior year[21] - Adjusted net income for the three months ended September 27, 2025, was $30,569,000, resulting in an adjusted diluted EPS of $2.59, compared to $33,416,000 and $2.84 in the same period of 2024[21] - Operating income for the nine months ended September 27, 2025, was $117,579,000, a decrease of 12.5% from $134,315,000 in the same period of 2024[27] - Adjusted EBITDA for the nine months ended September 27, 2025, was $158.314 million, down 10.7% from $177.267 million in the same period of 2024[29] - Adjusted EBITDA margin for the three months ended September 27, 2025, was 21.4%, compared to 23.3% for the same period in 2024[29] Guidance and Expectations - The company expects revenue of $1.036 to $1.046 billion for 2025, revised from previous guidance[10] - Adjusted EPS guidance for 2025 is maintained at $9.05 to $9.25, excluding $0.51 of acquisition-related costs[10] - For Q4 2025, revenue is expected to be between $270 million and $280 million, with GAAP EPS of $1.91 to $2.11[10] Segment Performance - Flow Control segment revenue for the three months ended September 27, 2025, was $94,839,000, down 2.7% from $97,521,000 in 2024[24] - Material Handling segment revenue increased by 11.0% to $70,335,000 for the three months ended September 27, 2025, compared to $63,397,000 in the prior year[24] - The percentage of parts and consumables revenue increased to 69% for the three months ended September 27, 2025, compared to 65% in the same period of 2024[24] - Operating income for the Industrial Processing segment for the three months ended September 27, 2025, was $18.828 million, a decrease of 27.3% from $25.969 million in the same period of 2024[29] - Adjusted operating income for the Material Handling segment for the three months ended September 27, 2025, was $12.565 million, an increase from $9.019 million in the same period of 2024[29] Costs and Expenses - Acquisition costs for the three months ended September 27, 2025, totaled $2.253 million, significantly higher than $469,000 in the same period of 2024[29] - The company reported an operating loss of $11.087 million in the Corporate segment for the three months ended September 27, 2025, compared to a loss of $10.056 million in the same period of 2024[31] Workforce and Operations - The company has approximately 3,900 employees across 22 countries, indicating a stable workforce supporting its global operations[32] - Kadant's products and services focus on enhancing efficiency and optimizing energy utilization in process industries, aligning with sustainable industrial processing goals[32] Risks and Challenges - The company faces various risks, including economic conditions, supply chain constraints, and competition, which may impact future performance[34]

Core Insights - Kadant Inc. reported its third-quarter financial results for the period ending September 27, 2025, highlighting solid performance despite ongoing challenges in demand for capital equipment and global trade uncertainties [1][3]. Financial Performance - Revenue for the third quarter was $271.6 million, unchanged from the previous year, with organic revenue decreasing by four percent, offset by a two percent increase from acquisitions and a two percent favorable foreign currency translation effect [4]. - Gross margin improved to 45.2% from 44.7% in the prior year [4]. - Net income decreased by 12% to $27.7 million compared to $31.6 million in 2024, with GAAP EPS also down 12% to $2.35 [5]. - Adjusted EPS fell by nine percent to $2.59, excluding acquisition-related costs [5]. - Adjusted EBITDA decreased by eight percent to $58.0 million, representing 21.4% of revenue, down from 23.3% in 2024 [6][27]. - Operating cash flow decreased by 10% to $47.3 million, while free cash flow decreased by nine percent to $44.1 million [6][26]. Bookings and Outlook - Bookings decreased by one percent to $238.4 million, with organic bookings down four percent [7]. - The company anticipates healthy demand for aftermarket parts and improving order activity for capital equipment in the fourth quarter, revising revenue guidance for 2025 to $1.036 to $1.046 billion [8]. - Adjusted EPS guidance remains at $9.05 to $9.25, while GAAP EPS is expected to be between $8.52 and $8.72 [8]. Segment Performance - The Flow Control segment reported revenue of $94.8 million, down from $97.5 million, while Industrial Processing revenue decreased to $106.4 million from $110.7 million [24]. - Material Handling segment revenue increased to $70.3 million from $63.4 million [24]. - The percentage of revenue from parts and consumables increased to 69% from 65% [24]. Company Overview - Kadant Inc. is a global supplier of technologies and engineered systems that enhance efficiency and productivity in process industries, with approximately 3,900 employees across 22 countries [29].

Core Viewpoint - Kadant Inc. is set to release its third quarter results for 2025 on October 28, 2025, followed by a webcast on October 29, 2025, to discuss financial performance and future expectations [1]. Company Overview - Kadant is a global supplier of technologies and engineered systems focused on Sustainable Industrial Processing, enhancing efficiency, optimizing energy utilization, and maximizing productivity in process industries [3]. - The company is headquartered in Westford, Massachusetts, and employs approximately 3,900 people across 22 countries [3]. Investor Information - Interested participants can access the live call and webcast through the "Investors" section of Kadant's website, with a recommendation to join 10 minutes early [2]. - A replay of the webcast will be available until November 28, 2025, and the earnings release along with the webcast presentation will also be posted in the "Investors" section [2].

Core Insights - Kadant Inc. is currently in Phase 8 of its 18-phase Adhishthana cycle, with a negative outlook as the stock has broken below its Cakra structure, indicating potential selling pressure and underperformance ahead [1][7]. Stock Performance Analysis - The stock formed a Cakra structure between Phases 4 and 8, which typically has bullish implications, but has recently shifted to a bearish outlook after breaking below the lower arc of its Cakra [2][3]. - Following the breakdown, Kadant's stock has fallen by approximately 23% since it broke its Cakra near the $350 level, suggesting continued underperformance until it enters the Guna Triads in Phases 14, 15, and 16, which will not occur until September 2029 [6]. Market Outlook - The current weekly structure indicates sustained weakness for Kadant, with the monthly chart also reflecting a bearish setup as it is in the descent leg of its Himalayan Formation [7]. - While short-term rallies may occur, the overall Adhishthana framework suggests a prolonged phase of consolidation and selling pressure, advising caution for investors and traders considering long positions in Kadant [8].