KADANT (KAI) Company Report

KAI reported Q3 2025 revenue of $271.6 million, which was flat compared to the prior year, primarily supported by a record $188.4 million in aftermarket parts revenue.
Adjusted EPS for Q3 2025 decreased 9% to $2.59, though it exceeded the high end of guidance. Gross margin improved to 45.2% , and the company generated strong operating cash flow of $47.3 million and free cash flow of $44.1 million.
Weakness in capital project orders persisted in Q3 2025, with some pending orders now expected in Q4 2025 or early 2026.
The company increased its full-year 2025 revenue guidance to $1,036 million to $1,046 million but maintained its adjusted EPS guidance at $9.05 to $9.25. KAI also completed the acquisition of Babini and acquired Clyde Industries, which were funded primarily through borrowings.

Oct 29, 2025, 3:00 PM

Transcript

Kadant Inc. Reports Q3 2025 Results and Updates Full-Year Guidance

KAI

Earnings

Guidance Update

M&A

Kadant Inc. reported Q3 2025 revenue of $271.6 million, which was flat compared to the prior year, benefiting from record aftermarket parts revenue of $188.4 million.
Adjusted EPS for Q3 2025 was $2.59, a 9% decrease from Q3 2024, but exceeded the high end of guidance by $0.36. Adjusted EBITDA was $58 million with a 21.4% margin.
The company increased its full-year 2025 revenue guidance range to $1,036 million to $1,046 million and maintained its adjusted EPS guidance at $9.05 to $9.25.
Kadant completed the acquisition of Babini for $16.5 million in Q3 2025 and acquired Clyde Industries for approximately $175 million after the quarter, with these acquisitions factored into the updated guidance.
Market demand for capital equipment remains sluggish, leading to lower capital bookings and extended quote-to-order times, particularly in the industrial processing and flow control segments.

Oct 29, 2025, 3:00 PM

Transcript

Kadant Reports Q3 2025 Results, Raises Full-Year Revenue Guidance, and Details Acquisitions

KAI

Earnings

Guidance Update

M&A

Kadant reported Q3 2025 revenue of $271.6 million and adjusted EPS of $2.59, exceeding the high end of its guidance by $0.36.
Revenue was flat year-over-year, driven by record aftermarket parts revenue of $188.4 million (up 6%), which comprised 69% of total Q3 revenue and offset sluggish capital equipment demand.
The company achieved an adjusted EBITDA of $58 million with a 21.4% margin and generated $47.3 million in operating cash flow. Gross margin improved to 45.2% in Q3 2025.
Kadant raised its full-year 2025 revenue guidance to $1,036 million - $1,046 million but maintained its adjusted EPS guidance at $9.05 - $9.25.
The company completed the acquisition of Babbini for $16.5 million in Q3 2025 and Clyde Industries for approximately $175 million after Q3, expecting these to contribute $23 million - $25 million to Q4 revenue but be $0.06 dilutive to Q4 adjusted EPS.

Oct 29, 2025, 3:00 PM

Transcript

Kadant Inc. Reports Q3 2025 Results and Updates Full-Year Guidance

KAI

Earnings

Guidance Update

Demand Weakening

Kadant Inc. reported Q3 2025 revenue of $272 million, flat compared to the prior year, with gross margin increasing 50 basis points to 45.2%.
For Q3 2025, net income decreased 12% to $28 million, GAAP EPS decreased 12% to $2.35, and Adjusted EPS decreased 9% to $2.59.
Adjusted EBITDA for Q3 2025 was $58 million, an 8% decrease from the prior year, and operating cash flow decreased 10% to $47 million.
Management noted persistent softness in demand for capital equipment but stated that businesses exceeded earnings expectations, driven by record revenue performance in the aftermarket parts business.
The company updated its FY 2025 revenue guidance to $1.036 to $1.046 billion (revised from $1.020 to $1.040 billion) and FY 2025 GAAP EPS guidance to $8.52 to $8.72 (revised from $8.89 to $9.09).

Oct 28, 2025, 9:08 PM

8-K

Kadant Reports Third Quarter 2025 Results and Updates Full-Year Guidance

KAI

Earnings

Guidance Update

Demand Weakening

Kadant Inc. reported third quarter 2025 revenue of $272 million, which was flat compared to the prior year period, and gross margin increased 50 basis points to 45.2%.
For Q3 2025, net income decreased 12% to $28 million, GAAP EPS decreased 12% to $2.35, and adjusted EPS decreased 9% to $2.59.
Management noted persistent softness in demand for capital equipment but highlighted record revenue performance in the aftermarket parts business and anticipates improving order activity in the fourth quarter.
The company revised its full-year 2025 revenue guidance to $1.036 to $1.046 billion and GAAP EPS guidance to $8.52 to $8.72, while maintaining its adjusted EPS guidance of $9.05 to $9.25.

Oct 28, 2025, 9:03 PM

Press Release

CADEN Inc. acquires Applied Industries

KAI

M&A

New Projects/Investments

CADEN Inc. has acquired Applied Industries, a manufacturer of boiler efficiency and cleaning system technologies, for approximately $175 million.
For the fiscal year ended February 28, 2025, Applied Industries reported approximately $92 million in revenue and $21.4 million in adjusted EBITDA, resulting in an 8.2x EBITDA multiple.
The acquisition is expected to be slightly dilutive on a GAAP EPS basis in the fourth quarter of 2025 but slightly accretive on an adjusted basis, with strong free cash generation.
Applied Industries generates approximately 75% of its revenue from aftermarket sales and has achieved a 7% to 8% compound annual growth rate (CAGR) in revenue over the last three to four years.

Oct 9, 2025, 3:00 PM

Transcript

Kadant Completes Acquisition of Clyde Industries

KAI

M&A

New Projects/Investments

Kadant Inc. (NYSE: KAI) has completed the acquisition of Clyde Industries Holdings, Inc. for $175 million in cash, primarily financed through borrowings under Kadant's revolving credit facility.
Clyde Industries, which generated $92 million in revenue for the fiscal year ended February 28, 2025, provides highly engineered boiler efficiency and cleaning system technologies.
The acquisition supports Kadant's strategic goals by expanding its industrial processing offerings to adjacent markets, with Clyde Industries becoming part of Kadant’s Industrial Processing reporting segment.

Oct 7, 2025, 8:53 PM

Press Release

Kadant Inc. Amends Credit Agreement, Increasing Revolving Loan Commitments

KAI

Debt Issuance

Kadant Inc. (KAI) entered into an Eighth Amendment to its Amended and Restated Credit Agreement on September 26, 2025, which increased its revolving loan commitments from $400 million to $750 million.
The amendment extended the maturity date of the unsecured credit facility to September 26, 2030.
The multicurrency sublimit was increased from $300 million to $400 million, and Australian Dollars were added as a foreign currency.
Kadant's Australian subsidiary, Vayeron Pty Ltd, was added as an authorized borrower under the amended credit agreement.
The letter of credit sublimit increased from $80 million to $100 million, and the swingline loan sublimit increased from $10 million to $15 million.

Oct 2, 2025, 8:07 PM

8-K

Kadant Inc. Reports Second Quarter 2025 Results and Updates Guidance

KAI

Earnings

Guidance Update

Kadant Inc. reported second quarter 2025 revenue of $255 million, a 7% decrease compared to the prior year, with GAAP EPS decreasing 17% to $2.22 and adjusted EPS decreasing 18% to $2.31.
In Q2 2025, bookings increased 7% to $269 million, and free cash flow increased 58% to $37 million.
For the full year 2025, Kadant maintained its revenue guidance of $1.020 to $1.040 billion and adjusted EPS guidance of $9.05 to $9.25, while revising GAAP EPS guidance to $8.89 to $9.09.
For the third quarter of 2025, the company expects revenue of $256 to $263 million, GAAP EPS of $2.12 to $2.22, and adjusted EPS of $2.13 to $2.23.