Kadant Reports Fourth Quarter and Fiscal Year 2024 Results

Core Viewpoint - Kadant Inc. reported strong financial results for the fourth quarter and fiscal year 2024, achieving record revenue and adjusted earnings despite economic challenges [4][5][14]. Fourth Quarter Financial Highlights - Revenue increased by 8% to $258.0 million compared to $238.7 million in 2023 [5][8]. - Organic revenue decreased by 5%, excluding a 14% increase from acquisitions and a 1% decrease from unfavorable foreign currency translation [5][10]. - Gross margin was 43.4%, a slight increase from 42.7% in 2023 [5][10]. - Net income decreased by 12% to $24.0 million, with GAAP EPS also down 12% to $2.04 [6][8]. - Adjusted EPS decreased by 7% to $2.25, excluding acquisition-related costs [6][8]. - Adjusted EBITDA increased by 8% to $52.4 million, maintaining a margin of 20.3% [7][8]. - Operating cash flow decreased by 12% to $51.9 million [7][8]. - Bookings increased by 10% to $240.6 million compared to $218.0 million in 2023 [8]. Fiscal Year Financial Highlights - Revenue for the fiscal year increased by 10% to a record $1.05 billion compared to $957.7 million in 2023 [10][11]. - Organic revenue decreased by 2%, excluding a 12% increase from acquisitions [10][11]. - Gross margin improved to 44.3% from 43.5% in 2023 [10][11]. - Net income decreased by 4% to $111.6 million, with GAAP EPS down 4% to $9.48 [11][12]. - Adjusted EPS increased by 2% to a record $10.28 [11][12]. - Adjusted EBITDA rose by 14% to a record $229.7 million, representing 21.8% of revenue [12][12]. - Operating cash flow decreased by 6% to $155.3 million [12][12]. - Bookings increased by 7% to a record $981.1 million compared to $917.4 million in 2023 [13][13]. Management Commentary and Outlook - Management expressed optimism about project activity and stable demand for aftermarket parts entering 2025 [14]. - The company expects revenue for 2025 to be between $1.040 billion and $1.065 billion, with GAAP EPS projected between $9.63 and $9.98 [14]. - The guidance includes a negative impact from foreign currency translation, reducing revenue by $23 million and adjusted EPS by $0.32 [14].