Kadant Q1 2024 Earnings Report
Key Takeaways
Kadant Inc. reported an 8% increase in revenue to a record $249 million for the first quarter of 2024. Net income decreased by 12% to $25 million, while adjusted EBITDA increased by 8% to $52 million. The company reaffirms its full-year revenue and adjusted EPS guidance.
Revenue increased 8% to a record $249 million.
Adjusted EBITDA increased 8% to $52 million, representing 21.0% of revenue.
Aftermarket parts revenue increased 13% and comprised 69% of total revenue.
Bookings decreased 10% to $248 million.
Kadant
Kadant
Forward Guidance
Kadant expects revenue of $258 to $266 million, GAAP EPS of $2.34 to $2.44 and adjusted EPS of $2.40 to $2.50 for the second quarter of 2024. For the full year, the company expects revenue of $1.040 to $1.065 billion and adjusted EPS of $9.75 to $10.05.
Positive Outlook
- Industrial demand is expected to strengthen in certain regions, such as Europe and Asia.
- Industrial demand is expected to remain stable in other regions.
- Backlog remains strong.
- Ability to generate robust cash flows.
- Maintaining revenue and adjusted EPS guidance for the full year.
Challenges Ahead
- 2024 adjusted EPS guidance excludes $0.36 of acquisition-related costs, revised from $0.20.
- Organic revenue decreased three percent.
- Operating cash flow decreased 38 percent.
- Free cash flow decreased 49 percent.
- Organic bookings decreased 18 percent.