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Jun 29, 2024

Kadant Q2 2024 Earnings Report

Kadant reported record revenue, adjusted EBITDA, and adjusted EPS performance, driven by record aftermarket demand and strong capital business.

Key Takeaways

Kadant Inc. reported a 12% increase in revenue to a record $275 million for the second quarter ended June 29, 2024. Net income increased by 5% to $31 million, with GAAP EPS up by 5% to $2.66 and adjusted EPS increasing by 11% to a record $2.81. Adjusted EBITDA also reached a record $62 million, representing 22.5% of revenue.

Revenue increased 12% to a record $275 million.

Adjusted EBITDA was a record $62 million, representing 22.5% of revenue.

Net income increased 5% to $31 million.

Adjusted EPS increased 11% to a record $2.81.

Total Revenue
$275M
Previous year: $245M
+12.1%
EPS
$2.81
Previous year: $2.54
+10.6%
Adjusted EBITDA
$61.8M
Previous year: $51.6M
+19.8%
Bookings
$252M
Previous year: $215M
+17.0%
Gross Margin
44.4%
Previous year: 43.5%
+2.1%
Gross Profit
$122M
Previous year: $107M
+14.4%
Cash and Equivalents
$75.2M
Previous year: $70.2M
+7.1%
Free Cash Flow
$23.1M
Previous year: $13.7M
+68.6%
Total Assets
$1.46B
Previous year: $1.16B
+25.4%

Kadant

Kadant

Forward Guidance

Kadant is raising the low end of its revenue and adjusted EPS guidance for the full year. The company now expects revenue of $1.045 to $1.065 billion and adjusted EPS of $9.80 to $10.05 for 2024. For the third quarter of 2024, the company expects revenue of $257 to $269 million, GAAP EPS of $2.27 to $2.39 and adjusted EPS of $2.36 to $2.48.

Positive Outlook

  • Revenue of $1.045 to $1.065 billion in 2024
  • Adjusted EPS of $9.80 to $10.05 for 2024
  • Revenue of $257 to $269 million for Q3 2024
  • GAAP EPS of $2.27 to $2.39 for Q3 2024
  • Adjusted EPS of $2.36 to $2.48 for Q3 2024

Challenges Ahead

  • Persistent economic headwinds in certain regions.
  • Industrial demand in the second half of the year to be similar to the first half of the year
  • 2024 adjusted EPS guidance excludes $0.60 of acquisition-related costs
  • Q3 2024 adjusted EPS excludes $0.09 of acquisition-related costs
  • Unfavorable effect of foreign currency translation