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Oct 01, 2022

Kadant Q3 2022 Earnings Report

Kadant reported strong revenue and earnings performance despite macroeconomic challenges.

Key Takeaways

Kadant's Q3 2022 results showed a 12% increase in revenue to $225 million, a 34% increase in net income to $27 million, and a 21% increase in adjusted diluted EPS to a record $2.38. Despite macroeconomic headwinds, the company delivered solid execution and excellent contributions across all operating segments.

Revenue increased 12% to $225 million.

Net income increased 34% to $27 million.

GAAP diluted EPS increased 34% to $2.35.

Adjusted EBITDA increased 17% to a record $48 million, representing 21.3% of revenue.

Total Revenue
$225M
Previous year: $200M
+12.4%
EPS
$2.38
Previous year: $1.97
+20.8%
Adjusted EBITDA
$47.8M
Previous year: $40.9M
+17.0%
Bookings
$211M
Previous year: $245M
-13.8%
Gross Margin
42.5%
Previous year: 41.9%
+1.4%
Gross Profit
$95.4M
Previous year: $83.7M
+13.9%
Cash and Equivalents
$72.9M
Previous year: $83.7M
-12.8%
Free Cash Flow
$18.5M
Previous year: $34.6M
-46.4%
Total Assets
$1.11B
Previous year: $1.13B
-2.3%

Kadant

Kadant

Forward Guidance

Kadant is narrowing its revenue and adjusted diluted EPS guidance. The company now expects revenue of $890 to $896 million and GAAP diluted EPS of $10.02 to $10.19 for 2022. For the fourth quarter of 2022, the company expects GAAP diluted EPS of $1.90 to $2.07 on revenue of $217 to $223 million.

Positive Outlook

  • Well positioned to finish the year strong.
  • Significant amount of capital projects to deliver in the upcoming quarter.
  • Backlog remains at a near-record level.

Challenges Ahead

  • Expect macroeconomic headwinds to strengthen.
  • Order activity to continue to moderate through the remainder of the year.