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    Aditya Madan

    Research Analyst at D.A. Davidson Companies

    Aditya Madan is an Equity Research Associate at D.A. Davidson Companies specializing in building materials and industrials, with direct coverage of companies such as PotlatchDeltic Corporation, Weyerhaeuser, Builders FirstSource, Boise Cascade, UFP Industries, and BlueLinx Holdings. He has contributed to research reports providing actionable stock ratings and risk-adjusted return expectations, and actively participates in industry earnings calls, including for firms like Kadant. Madan began his finance career after roles at Tata Consultancy Services and has been with D.A. Davidson since at least 2023, holding FINRA registration as a broker under CRD# 7588623. He is recognized for thorough analytical work supporting investment decisions in both equity research and client communications.

    Aditya Madan's questions to KADANT (KAI) leadership

    Aditya Madan's questions to KADANT (KAI) leadership • Q2 2025

    Question

    Aditya Madan of D.A. Davidson Companies asked about the demand for capital equipment outside of the wood processing sector and the current level of customer confidence. He sought color on any pockets of geographic or end-market strength and weakness. Madan also requested an update on the key assumptions in the full-year guidance, including contributions from the recent Babini and GPS acquisitions, and asked how the margin profile of the backlog compares to the high gross margins seen recently. He later asked for a specific breakout of the GPS acquisition's contribution.

    Answer

    President & CEO Jeffrey Powell stated that while many projects were paused due to tariff uncertainty, the aging installed base is creating pent-up demand. He identified North America as the strongest region, China as the slowest, and Europe as in-between. EVP & CFO Michael McKenney noted the Babini acquisition was small (~$19M in 2024 revenue) and would be slightly dilutive initially. He explained that as more capital projects from the backlog are recognized as revenue in the second half, the parts mix will moderate, and gross margins are expected to fall into the 44% range. Powell clarified that the GPS acquisition is a key supplier to Babini, and their contributions are considered together.

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