Kadant Reports Second Quarter 2025 Results

Core Viewpoint - Kadant Inc. reported a decrease in revenue and net income for the second quarter of 2025 compared to the same period in 2024, but showed strong cash flow and an increase in bookings, indicating a solid demand for its products and services [3][4][5][6][8]. Financial Performance - Revenue decreased by 7% to $255.3 million from $274.8 million in 2024, with organic revenue down 8% [4][10]. - Net income fell by 16% to $26.2 million compared to $31.3 million in 2024, with GAAP EPS decreasing by 17% to $2.22 [5][10]. - Adjusted EPS decreased by 18% to $2.31, excluding acquisition-related costs [5][10]. - Adjusted EBITDA decreased by 15% to $52.4 million, representing 20.5% of revenue, down from 22.5% in 2024 [6][10]. Cash Flow and Bookings - Operating cash flow increased by 44% to $40.5 million compared to $28.1 million in 2024 [6][10]. - Free cash flow rose by 58% to $36.5 million from $23.1 million in 2024 [6][10]. - Bookings increased by 7% to $269.4 million from $251.7 million in 2024, with organic bookings up 6% [7][10]. Outlook - The company maintains its revenue guidance for the full year, expecting revenue between $1.020 billion and $1.040 billion and adjusted EPS between $9.05 and $9.25 [8]. - For the third quarter of 2025, revenue is expected to be between $256 million and $263 million, with GAAP EPS projected between $2.12 and $2.22 [8]. Segment Performance - The Flow Control segment reported revenue of $95.9 million, up from $92.3 million in 2024, while the Industrial Processing segment saw a decline to $95.9 million from $114.8 million [21][24]. - The Material Handling segment's revenue decreased to $63.4 million from $67.7 million [21][24]. Company Overview - Kadant Inc. is a global supplier of technologies and engineered systems that drive Sustainable Industrial Processing, with approximately 3,500 employees in 20 countries [28].