Kadant Reports Fourth Quarter and Fiscal Year 2025 Results

Financial Performance Summary - Kadant Inc. reported a record revenue of $286.2 million for the fourth quarter of 2025, an increase of 11% compared to $258.0 million in the same period of 2024, driven by acquisitions and favorable foreign currency translation [5][6] - For the fiscal year 2025, total revenue was $1,052.2 million, slightly down from $1,053.4 million in 2024, with organic revenue decreasing by 4% [9][10] - The company's gross margin improved to 43.9% in Q4 2025 from 43.4% in Q4 2024, and for the fiscal year, it increased to 45.2% from 44.3% [5][10] Earnings and Cash Flow - Net income for Q4 2025 remained stable at $24.0 million, with GAAP EPS at $2.04 for both years, while adjusted EPS increased by 1% to $2.27 [6][9] - Adjusted EBITDA rose by 11% to $58.0 million in Q4 2025, representing 20.3% of revenue, while operating cash flow increased by 17% to $60.8 million [7][9] - Free cash flow for Q4 2025 was $54.7 million, an 18% increase from $46.3 million in Q4 2024 [7][9] Bookings and Future Outlook - Bookings for Q4 2025 increased by 12% to $270.0 million compared to $240.6 million in Q4 2024, with organic bookings up by 1% [8][9] - The company anticipates revenue for 2026 to be between $1.160 billion and $1.185 billion, with GAAP EPS projected between $10.27 and $10.62 [14] Segment Performance - In Q4 2025, the Flow Control segment generated $99.6 million, Industrial Processing $117.6 million, and Material Handling $68.9 million, contributing to the overall revenue growth [29] - For the fiscal year, the Flow Control segment revenue was $382.9 million, Industrial Processing $409.5 million, and Material Handling $259.9 million, with varying performance across segments [30] Company Overview - Kadant Inc. is a global supplier of technologies and engineered systems focused on Sustainable Industrial Processing, with approximately 3,900 employees across 22 countries [33]