Latest news with #KadantInc
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
01-05-2025
- Business
- Yahoo
Kadant Inc (KAI) Q1 2025 Earnings Call Highlights: Navigating Tariff Challenges and Aftermarket ...
Revenue: Declined 4% compared to the same period last year. Aftermarket Parts Revenue: Made up 75% of Q1 revenue, up 5% to a record $179 million. Gross Margin: 46.1%, up 150 basis points from 44.6% in Q1 '24. Adjusted EBITDA: $47.9 million, down 8% from $52.2 million in Q1 '24. Free Cash Flow: Increased 15% to $19 million compared to $16.6 million in Q1 '24. SG&A Expenses: Increased to 29.8% of revenue from 28.2% in Q1 '24. GAAP EPS: Decreased 3% to $2.04. Adjusted EPS: Decreased 12% to $2.10. Flow Control Segment Revenue: Increased 7% to $92 million. Industrial Processing Segment Revenue: Declined 15% compared to Q1 '24. Material Handling Segment Revenue: $57 million, up slightly compared to the prior year period. Net Debt: Decreased $10 million to $183 million at the end of Q1 '25. Leverage Ratio: Decreased to 0.95 from 0.99 at the end of '24. Tariff Impact Estimate: Incremental material costs of approximately $5 million to $6 million or $0.32 to $0.39 per share. Revised Full Year 2025 Revenue Guidance: $1.02 billion to $1.04 billion. Revised Full Year 2025 Adjusted EPS Guidance: $9.05 to $9.25. Warning! GuruFocus has detected 5 Warning Sign with TKR. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Kadant Inc (NYSE:KAI) reported strong demand for aftermarket parts, which represented 75% of Q1 revenue and was up 5% to a record $179 million. The flow control segment experienced solid demand, with bookings up 6% and revenue increasing by 7% compared to Q1 of last year. Gross margin improved to 46.1%, the highest since 2017, driven by a higher percentage of aftermarket parts. Free cash flow increased by 15% to $19 million in Q1 2025 compared to the same period last year. Kadant Inc (NYSE:KAI) maintains a healthy balance sheet with a leverage ratio of 0.95 and significant borrowing capacity available under its credit facility. Revenue in Q1 2025 declined by 4% compared to the same period last year due to weaker capital shipments in the industrial processing segment. Adjusted EBITDA decreased by 8% to $47.9 million, with a decline in the adjusted EBITDA margin by 100 basis points compared to the previous year. The industrial processing segment saw a 15% decline in revenue due to a significant drop in capital shipments. The company revised its full-year 2025 guidance downward, expecting lower revenue and adjusted EPS due to tariff impacts and delays in capital orders. Tariffs have introduced significant uncertainty, impacting customer decision-making and delaying capital equipment orders. Q: Can you provide insights into the current state of your order book and any potential risks of further deferrals into 2026? A: Jeffrey Powell, President and CEO, explained that while there is a pause due to tariff uncertainties, the discussion and activity levels remain strong. Projects are being delayed rather than canceled, and there is an expectation that investments will resume as equipment ages and requires replacement. The company is in discussions for several projects, indicating potential future growth. Q: How are tariffs impacting your capital projects, and do you expect these projects to move forward once there's clarity on tariffs? A: Jeffrey Powell noted that while tariffs have created uncertainty, leading to project delays, cancellations are rare. The company is well-positioned globally to adapt to changes in trade dynamics. Most projects are expected to proceed once there is more clarity on tariffs. Q: What is the expected impact of tariffs on your financials, and how are you mitigating these costs? A: Michael McKenney, CFO, stated that the estimated incremental material costs due to tariffs are $5 million to $6 million, impacting EPS by $0.32 to $0.39. The company is implementing mitigation strategies, including surcharges and alternative sourcing, to offset these costs over time. Q: How do you anticipate the mix of parts versus capital sales to evolve throughout the year? A: Michael McKenney indicated that parts and consumables are expected to make up 69% of revenue for the year, with a slight decrease in the second half as capital sales are anticipated to increase. The company expects continued strength in parts and consumables due to the aging installed base. Q: What are the implications of the current tariff environment on your operations in China and the US? A: Jeffrey Powell highlighted that tariffs have impacted both imports from China and exports to China. The company is working to realign its supply chain and mitigate these impacts. Despite the challenges, Kadant's global presence allows it to adapt to shifting trade dynamics. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
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
Yahoo
21-04-2025
- Business
- Yahoo
What Does Kadant Inc.'s (NYSE:KAI) Share Price Indicate?
Kadant Inc. (NYSE:KAI), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$398 at one point, and dropping to the lows of US$292. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Kadant's current trading price of US$305 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Kadant's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. According to our valuation model, the stock is currently overvalued by about 32%, trading at US$305 compared to our intrinsic value of $231.89. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Since Kadant's share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. View our latest analysis for Kadant Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to grow by a double-digit 19% over the next couple of years, the outlook is positive for Kadant. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? It seems like the market has well and truly priced in KAI's positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe KAI should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping an eye on KAI for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there's no upside from mispricing. However, the positive outlook is encouraging for KAI, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. In terms of investment risks, we've identified 1 warning sign with Kadant, and understanding it should be part of your investment process. If you are no longer interested in Kadant, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
