Kadant Inc. Q4 2025 Earnings Call Summary

Core Insights - The company achieved record revenue of $1.05 billion in 2025, driven by strategic acquisitions and a strong aftermarket parts business, which constituted 71% of total revenue [1] Group 1: Revenue and Performance - The outperformance of the aftermarket parts segment is attributed to customers operating aging equipment, which compensates for offline capacity and deferred capital investment [1] - The Industrial Processing segment experienced growth due to the successful integration of Clyde Industries and Babbini, despite soft capital project activity throughout the year [1] - Flow Control performance showed strength in North America, countered by weakness in Europe, with margins affected by tariff volatility and shifts in product mix [1] Group 2: Financial Metrics - The Material Handling segment reported solid year-over-year improvements in bookings and margins, supported by modernization efforts in recycling and infrastructure construction [1] - The company achieved record free cash flow of $154 million, enabling the repayment of approximately 42% of outstanding debt at the end of 2024 [1]