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Jan 03
Kadant Q4 2025 Earnings Report
Kadant reported a record 11% increase in revenue for the fourth quarter of 2025, reaching $286.2 million, with gross margin improving to 43.9%.
Key Takeaways
Kadant Inc. announced strong fourth-quarter and fiscal year 2025 results, with record revenue of $286.2 million in Q4, an 11% increase year-over-year. The company also reported a gross margin of 43.9% and adjusted EBITDA of $58 million, representing 20.3% of revenue. Operating cash flow increased by 17% to $61 million, and bookings rose by 12% to $270 million.
Fourth quarter revenue increased 11% to a record $286.2 million, driven by acquisitions and favorable foreign currency translation.
Gross margin improved by 50 basis points to 43.9% in the fourth quarter.
Adjusted EBITDA for the fourth quarter increased 11% to $58 million, representing 20.3% of revenue.
Operating cash flow saw a 17% increase to $61 million, and bookings grew 12% to $270 million in the fourth quarter.
Revenue by Segment
Forward Guidance
For fiscal year 2026, Kadant expects revenue to be between $1.160 billion and $1.185 billion, with GAAP EPS ranging from $10.27 to $10.62, and adjusted EPS from $10.40 to $10.75. For the first quarter of 2026, revenue is projected to be $270 million to $280 million, with GAAP EPS of $1.69 to $1.79 and adjusted EPS of $1.78 to $1.88.
Positive Outlook
- Improving business activity is expected as the year begins.
- Capital project bookings are anticipated to strengthen.
- Steady aftermarket demand is expected to continue.
- The company maintains a strong balance sheet.
- Robust cash flow generation is expected.
Challenges Ahead
- Acquisition-related costs are expected to impact adjusted EPS for the full year 2026.
- Acquisition-related costs are expected to impact adjusted EPS for the first quarter of 2026.
- The guidance for 2026 GAAP EPS is lower than the adjusted EPS, indicating ongoing non-GAAP adjustments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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