Latest news with #JeffreyL.Powell
Yahoo
28-05-2025
- Business
- Yahoo
Kadant Awarded $18 Million in Orders for Wood Processing Systems
WESTFORD, Mass., May 28, 2025 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) announced it received orders with a combined value of $18 million from three lumber producers in North America and Europe since its first quarter earnings call. The capital equipment orders are expected to ship between the end of 2025 and the third quarter of 2026. The equipment and technologies to be supplied will be used to debark, strand, chip, and batch feed whole logs and lumber wastewood to produce oriented strand board (OSB) and dimensional lumber. Smart technology systems developed by Kadant will further optimize the wood processing operations by leveraging key data in the production process. 'We are pleased to have been selected as the preferred supplier to provide the wood processing systems for these significant projects, which reinforces our leading position in debarking, stranding, and chipping equipment used in OSB and lumber production,' said Jeffrey L. Powell, president and chief executive officer of Kadant Inc. 'In addition to the high-performance processing equipment, these orders include our embedded smart technology, optimizing productivity across the entire system." About KadantKadant Inc. is a global supplier of technologies and engineered systems that drive Sustainable Industrial Processing®. The Company's products and services play an integral role in enhancing efficiency, optimizing energy utilization, and maximizing productivity in process industries. Kadant is based in Westford, Massachusetts, with approximately 3,500 employees in 20 countries worldwide. For more information, visit Safe Harbor StatementThe following constitutes a 'Safe Harbor' statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about our future financial and operating performance, demand for our products, and economic and industry outlook. These forward-looking statements represent our expectations as of the date of this press release. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements as a result of various important factors, including those set forth under the heading 'Risk Factors' in Kadant's Annual Report on Form 10-K for the fiscal year ended December 28, 2024 and subsequent filings with the Securities and Exchange Commission. These include risks and uncertainties relating to adverse changes in global and local economic conditions; the variability and difficulty in accurately predicting revenues from large capital equipment and systems projects; our acquisition strategy; levels of residential construction activity; reductions by our wood processing customers of their capital spending or production of oriented strand board; changes to the global timber supply; development and use of digital media; cyclical economic conditions affecting the global mining industry; demand for coal, including economic and environmental risks associated with coal; failure of our information systems or breaches of data security and cybersecurity incidents; implementation of our internal growth strategy; competition; our ability to successfully manage our manufacturing operations; supply chain constraints, inflationary pressure, price increases or shortages in raw materials; loss of key personnel and effective succession planning; future restructurings; protection of intellectual property; changes to tax laws and regulations; climate change; adequacy of our insurance coverage; global operations; policies of the Chinese government; the variability and uncertainties in sales of capital equipment in China; currency fluctuations; changes to government regulations and policies around the world; compliance with government regulations and policies and compliance with laws; environmental laws and regulations; environmental, health and safety laws and regulations impacting the mining industry; our debt obligations; restrictions in our credit agreement and note purchase agreement; soundness of financial institutions; fluctuations in our share price; and anti-takeover provisions. ContactsInvestor Contact Information:Michael McKenney, 978-776-2000IR@ Media Contact Information:Wes Martz, 269-278-1715media@
Yahoo
27-05-2025
- Business
- Yahoo
Spotting Winners: Kadant (NYSE:KAI) And General Industrial Machinery Stocks In Q1
As the Q1 earnings season comes to a close, it's time to take stock of this quarter's best and worst performers in the general industrial machinery industry, including Kadant (NYSE:KAI) and its peers. Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies' offerings. The 14 general industrial machinery stocks we track reported a mixed Q1. As a group, revenues missed analysts' consensus estimates by 1.5% while next quarter's revenue guidance was 1.5% below. In light of this news, share prices of the companies have held steady as they are up 4.8% on average since the latest earnings results. Headquartered in Massachusetts, Kadant (NYSE:KAI) is a global supplier of high-value, critical components and engineered systems used in process industries worldwide. Kadant reported revenues of $239.2 million, down 3.9% year on year. This print was in line with analysts' expectations, but overall, it was a slower quarter for the company with full-year EPS guidance missing analysts' expectations. Management Commentary'Our first quarter results were in line with expectations across most financial metrics despite the increasing geopolitical and trade uncertainties,' said Jeffrey L. Powell, president and chief executive officer of Kadant Inc. Unsurprisingly, the stock is down 3.2% since reporting and currently trades at $305.08. Read our full report on Kadant here, it's free. With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE:LXFR) offers specialized materials, components, and gas containment devices to various industries. Luxfer reported revenues of $97 million, up 8.5% year on year, outperforming analysts' expectations by 11.9%. The business had an incredible quarter with an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. Luxfer scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 11.9% since reporting. It currently trades at $11.18. Is now the time to buy Luxfer? Access our full analysis of the earnings results here, it's free. Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors. Icahn Enterprises reported revenues of $1.87 billion, down 24.6% year on year, falling short of analysts' expectations by 29%. It was a disappointing quarter as it posted a significant miss of analysts' EPS estimates. Icahn Enterprises delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 1.5% since the results and currently trades at $8.60. Read our full analysis of Icahn Enterprises's results here. Credited with inventing the first hydraulic passenger elevator, Otis Worldwide (NYSE:OTIS) is an elevator and escalator manufacturing, installation and service company. Otis reported revenues of $3.35 billion, down 2.5% year on year. This print was in line with analysts' expectations. More broadly, it was a slower quarter as it recorded a miss of analysts' organic revenue and EBITDA estimates. The stock is down 2.1% since reporting and currently trades at $96.78. Read our full, actionable report on Otis here, it's free. One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare. GE Aerospace reported revenues of $9.94 billion, up 10.9% year on year. This number topped analysts' expectations by 1.7%. It was a very strong quarter as it also produced an impressive beat of analysts' EBITDA estimates. The stock is up 31.8% since reporting and currently trades at $235.10. Read our full, actionable report on GE Aerospace here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
29-04-2025
- Business
- Yahoo
Kadant's (NYSE:KAI) Q1 Earnings Results: Revenue In Line With Expectations But Full-Year Sales Guidance Misses Expectations
Industrial equipment manufacturer Kadant (NYSE:KAI) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 3.9% year on year to $239.2 million. On the other hand, next quarter's revenue guidance of $246.5 million was less impressive, coming in 6.5% below analysts' estimates. Its non-GAAP profit of $2.10 per share was 6.9% above analysts' consensus estimates. Is now the time to buy Kadant? Find out in our full research report. Revenue: $239.2 million vs analyst estimates of $238.8 million (3.9% year-on-year decline, in line) Adjusted EPS: $2.10 vs analyst estimates of $1.97 (6.9% beat) Adjusted EBITDA: $47.92 million vs analyst estimates of $48.63 million (20% margin, 1.5% miss) The company dropped its revenue guidance for the full year to $1.03 billion at the midpoint from $1.05 billion, a 2.1% decrease Management lowered its full-year Adjusted EPS guidance to $9.15 at the midpoint, a 7.3% decrease Operating Margin: 14.9%, in line with the same quarter last year Free Cash Flow Margin: 7.9%, up from 6.7% in the same quarter last year Market Capitalization: $3.69 billion Management Commentary'Our first quarter results were in line with expectations across most financial metrics despite the increasing geopolitical and trade uncertainties,' said Jeffrey L. Powell, president and chief executive officer of Kadant Inc. Headquartered in Massachusetts, Kadant (NYSE:KAI) is a global supplier of high-value, critical components and engineered systems used in process industries worldwide. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, Kadant's sales grew at a decent 8.6% compounded annual growth rate over the last five years. Its growth was slightly above the average industrials company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Kadant's recent performance shows its demand has slowed as its annualized revenue growth of 7.2% over the last two years was below its five-year trend. We can dig further into the company's revenue dynamics by analyzing its three most important segments: Fluid Handling, Industrial Processing, and Material Handling, which are 38.6%, 37.4%, and 23.9% of revenue. Over the last two years, Kadant's revenues in all three segments increased. Its Fluid Handling revenue (piping, cleaning, and filtration) averaged year-on-year growth of 3.5% while its Industrial Processing (paper and timber processing equipment) and Material Handling (wood production equipment) revenues averaged 10.7% and 9.2%. This quarter, Kadant reported a rather uninspiring 3.9% year-on-year revenue decline to $239.2 million of revenue, in line with Wall Street's estimates. Company management is currently guiding for a 10.3% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 1.4% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and suggests its products and services will see some demand headwinds. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Kadant has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 16.3%. This result isn't surprising as its high gross margin gives it a favorable starting point. Analyzing the trend in its profitability, Kadant's operating margin rose by 3.2 percentage points over the last five years, as its sales growth gave it operating leverage. This quarter, Kadant generated an operating profit margin of 14.9%, in line with the same quarter last year. This indicates the company's cost structure has recently been stable. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Kadant's EPS grew at a remarkable 13.9% compounded annual growth rate over the last five years, higher than its 8.6% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Kadant's earnings quality to better understand the drivers of its performance. As we mentioned earlier, Kadant's operating margin was flat this quarter but expanded by 3.2 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Kadant, its two-year annual EPS growth of 3.4% was lower than its five-year trend. We hope its growth can accelerate in the future. In Q1, Kadant reported EPS at $2.10, down from $2.38 in the same quarter last year. Despite falling year on year, this print beat analysts' estimates by 6.9%. Over the next 12 months, Wall Street expects Kadant's full-year EPS of $9.99 to grow 1.6%. It was good to see Kadant beat analysts' Material Handling revenue expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. On the other hand, its full-year EPS guidance missed significantly and its revenue guidance for next quarter fell short of Wall Street's estimates. Overall, this was a softer quarter. The stock traded down 1.4% to $310.50 immediately after reporting. Kadant underperformed this quarter, but does that create an opportunity to invest right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
