Core Insights - Kadant reported resilient performance in fiscal 2025 despite challenging macroeconomic conditions, with a focus on aftermarket parts contributing significantly to revenue growth [6][8] Financial Performance - For fiscal 2025, Kadant's revenue was $1.052 billion, nearly flat compared to $1.053 billion in 2024, with a 3% increase from acquisitions and a 1% favorable currency effect [2] - Fourth-quarter revenue reached a record $286.2 million, up 11% from the fourth quarter of 2024, driven by an 8% contribution from acquisitions and a 3% benefit from foreign currency translation [5] - Adjusted EPS for the fourth quarter was $2.27, slightly above guidance, while adjusted EBITDA increased 11% to $58.0 million, with an adjusted EBITDA margin of 20.3% [3] Segment Performance - Aftermarket parts represented a record 71% of total revenue for the year, with gross margin improving to 45.2% from 44.3% [1] - Flow control segment revenue increased 5% to $100 million, with aftermarket parts revenue rising 9% [9] - Industrial processing segment revenue increased 16% to $118 million, with aftermarket parts revenue growing 31% [9] - Material handling segment revenue increased 11% to $69 million, driven by growth in capital revenue [10] Operational Highlights - Operating cash flow rose 10% to a record $171.3 million, and free cash flow increased 15% to a record $154.3 million [8] - The end-of-quarter backlog was $288 million, split 60% capital and 40% parts, with delays in customer capital orders noted [11][12] 2026 Guidance - Kadant provided 2026 revenue guidance of $1.16 billion to $1.185 billion and adjusted EPS of $10.40 to $10.75, excluding amortization of acquired profit and inventory [16] - The company plans to revise its adjusted EPS calculation to include recurring intangible amortization expense starting in Q1 2026, which would adjust 2026 guidance to $12.53 to $12.88 [18]