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Sep 27
Kadant Q3 2025 Earnings Report
Kadant's third quarter 2025 financial results were reported, showing a slight decrease in revenue and net income compared to the prior year, despite solid gross margin performance.
Key Takeaways
Kadant Inc. reported third-quarter 2025 financial results with revenue remaining flat at $271.6 million compared to the prior year. Net income decreased by 12% to $27.7 million, and GAAP EPS also decreased by 12% to $2.35. Adjusted EPS saw a 9% decrease to $2.59, while adjusted EBITDA decreased by 8% to $58.0 million. Despite a challenging demand environment for capital equipment, the company achieved a 50 basis point increase in gross margin to 45.2% and record revenue in its aftermarket parts business.
Revenue remained stable at $271.6 million, consistent with the prior year's third quarter.
Net income decreased by 12% to $27.7 million, and GAAP EPS fell by 12% to $2.35.
Adjusted EPS decreased by 9% to $2.59, and adjusted EBITDA was down 8% to $58.0 million.
Gross margin improved by 50 basis points to 45.2%, driven by strong performance in the aftermarket parts business.
Kadant
Kadant
Kadant Revenue by Segment
Revenue by Segment
Flow Control Revenue
CapyFin.comIndustrial Processing Revenue
CapyFin.comMaterial Handling Revenue
CapyFin.com Forward Guidance
Kadant anticipates healthy demand for aftermarket parts and improving order activity for capital equipment in the fourth quarter of 2025. The company has revised its full-year 2025 revenue guidance upwards to $1.036 billion to $1.046 billion, while maintaining its adjusted EPS guidance of $9.05 to $9.25. GAAP EPS guidance for 2025 has been revised to $8.52 to $8.72. For the fourth quarter of 2025, revenue is expected to be between $270 million and $280 million, with GAAP EPS of $1.91 to $2.11 and adjusted EPS of $2.05 to $2.25.
Positive Outlook
- Anticipated healthy demand for aftermarket parts in Q4 2025.
- Expected improving order activity for capital equipment in Q4 2025.
- Full-year 2025 revenue guidance revised upwards to $1.036 billion to $1.046 billion.
- Adjusted EPS guidance for full-year 2025 maintained at $9.05 to $9.25.
- Recent acquisitions are being incorporated into guidance, contributing to revised revenue expectations.
Challenges Ahead
- Persistent softness in demand for capital equipment noted in the current quarter.
- Continued global trade uncertainties impacting business environment.
- Prolonged delays in project execution for capital equipment.
- GAAP EPS guidance for full-year 2025 revised downwards to $8.52 to $8.72.
- Acquisition-related costs are excluded from adjusted EPS guidance, indicating ongoing integration expenses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income