Ross Sparenblek's questions to Kadant Inc (KAI) leadership • Q3 2024
Question
Ross Sparenblek of William Blair requested the quarter-end backlog figure, clarification on order expectations, details on price versus volume in capital equipment, the mix of greenfield versus maintenance activity, and an update on regional utilization rates for the parts and consumables business.
Answer
Michael McKenney, Executive, reported the Q3 ending backlog at $285 million and confirmed that Q4 guidance implies further consumption of the backlog. CEO Jeffrey Powell noted that capital activity is mostly replacements and repairs, with the OSB market being an exception with some greenfield projects. He highlighted that the growing percentage of paper made from recycled fiber is a key driver for the parts business. Powell also provided regional utilization estimates, noting North America has held up best, Asia remains slow, and Europe is in between.