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Apr 01, 2023

Kadant Q1 2023 Earnings Report

Kadant had an outstanding start to 2023 with record bookings, record adjusted EPS, and excellent cash flow.

Key Takeaways

Kadant reported a 1% increase in revenue to $230 million and record bookings of $275 million. Adjusted EPS increased 5% to a record $2.40, and adjusted EBITDA increased 6% to $49 million. The company raised its full-year earnings guidance.

Bookings increased 3% to a record $275 million

Operating cash flow increased 55% to $37 million

Revenue increased 1% to $230 million

Adjusted EBITDA increased 6% to $49 million and represented 21.1% of revenue

Total Revenue
$230M
Previous year: $226M
+1.4%
EPS
$2.4
Previous year: $2.28
+5.3%
Adjusted EBITDA
$48.6M
Previous year: $45.8M
+6.1%
Bookings
$275M
Previous year: $266M
+3.2%
Gross Margin
44.4%
Previous year: 43.4%
+2.3%
Gross Profit
$102M
Previous year: $92.6M
+10.2%
Cash and Equivalents
$85.5M
Previous year: $86.2M
-0.8%
Free Cash Flow
$32.4M
Previous year: $20.9M
+55.0%
Total Assets
$1.17B
Previous year: $1.14B
+2.2%

Kadant

Kadant

Forward Guidance

Kadant raised its guidance for the full year. The company now expects revenue of $910 to $935 million and GAAP EPS of $8.82 to $9.07 in 2023. For the second quarter of 2023, the company expects revenue of $230 to $235 million and GAAP EPS of $2.01 to $2.11.

Positive Outlook

  • Expect revenue of $910 to $935 million in 2023
  • Expect GAAP EPS of $8.82 to $9.07 in 2023
  • Expect adjusted EPS of $8.90 to $9.15 in 2023
  • Expect revenue of $230 to $235 million for Q2 2023
  • Expect GAAP EPS of $2.01 to $2.11 for Q2 2023

Challenges Ahead

  • Includes pre-tax relocation costs of $1.2 million
  • Includes $0.08 per diluted share related to the relocation of one of our Chinese facilities
  • Expect adjusted EPS of $2.05 to $2.15 for Q2 2023, excluding $0.04 per diluted share of relocation costs
  • Unfavorable effect of foreign currency translation
  • Net income decreased 32% to $28 million