WESTFORD, Mass., Feb. 18, 2026 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) reported its financial results for the fourth quarter and fiscal year ended January 3, 2026.
Fourth Quarter Financial Highlights
- Revenue increased 11% to a record $286 million
- Gross margin increased 50 basis points to 43.9%
- Net income was $24 million in both periods
- GAAP EPS was $2.04 in both periods
- Adjusted EPS increased 1% to $2.27
- Adjusted EBITDA increased 11% to $58 million and represented 20.3% of revenue
- Operating cash flow increased 17% to $61 million
- Bookings increased 12% to $270 million
Fiscal Year Financial Highlights
- Revenue was $1.05 billion in both periods
- Gross margin increased 90 basis points to 45.2%
- Net income decreased 9% to $102 million
- GAAP EPS decreased 9% to $8.65
- Adjusted EPS decreased 10% to $9.26
- Adjusted EBITDA decreased 6% to $216 million and represented 20.6% of revenue
- Operating cash flow increased 10% to a record $171 million
- Bookings increased 5% to a record $1.03 billion
Note: Percent changes above are based on comparison to the prior year period. All references to earnings per share (EPS) are to our EPS as calculated on a diluted basis. Adjusted EPS, adjusted EBITDA, adjusted EBITDA margin, free cash flow, and changes in organic revenue are non-GAAP financial measures that exclude certain items as detailed later in this press release under the heading “Use of Non-GAAP Financial Measures.”
Management Commentary
“The fourth quarter was a solid finish to the year,” said Jeffrey L. Powell, president and chief executive officer of Kadant Inc. “Good execution by our businesses combined with our recent acquisitions drove record revenue performance and strong cash flows despite a challenging economic environment.”
Fourth Quarter 2025 Compared to 2024
Revenue increased 11 percent to a record $286.2 million compared to $258.0 million in 2024, including increases of eight percent from acquisitions and three percent from the favorable effect of foreign currency translation. Gross margin was 43.9 percent compared to 43.4 percent in 2024.
Net income was $24.0 million in both 2025 and 2024. GAAP EPS was $2.04 in both periods, and adjusted EPS increased one percent to $2.27 in 2025 compared to $2.25 in 2024. Adjusted EPS excludes acquisition-related costs of $0.17 and other costs of $0.07 in 2025, and excludes acquisition-related costs of $0.16 and other costs of $0.06 in 2024.
Adjusted EBITDA increased 11 percent to $58.0 million compared to $52.4 million in 2024 and represented 20.3 percent of revenue in both periods. Operating cash flow increased 17 percent to $60.8 million compared to $51.9 million in 2024. Free cash flow increased 18 percent to $54.7 million compared to $46.3 million in 2024.
Bookings increased 12 percent to $270.0 million compared to $240.6 million in 2024. Organic bookings increased one percent, which excludes increases of eight percent from acquisitions and three percent from the favorable effect of foreign currency translation.
Fiscal Year 2025 Compared to 2024
Revenue was $1,052.2 million in 2025 compared to a record $1,053.4 million in 2024. Organic revenue decreased four percent, which excludes increases of three percent from acquisitions and one percent from the favorable effect of foreign currency translation. Gross margin was 45.2 percent compared to 44.3 percent in 2024.
Net income was $102.0 million, decreasing nine percent compared to $111.6 million in 2024. GAAP EPS decreased nine percent to $8.65 compared to $9.48 in 2024, and adjusted EPS decreased 10 percent to $9.26 compared to $10.28 in 2024. Adjusted EPS excludes acquisition-related costs of $0.53 and other costs of $0.08 in 2025, and excludes acquisition-related costs of $0.74 and other costs of $0.06 in 2024.
Adjusted EBITDA decreased six percent to $216.3 million and represented 20.6 percent of revenue compared to a record $229.7 million and 21.8 percent in 2024. Operating cash flow increased 10 percent to a record $171.3 million compared to $155.3 million in 2024. Free cash flow increased 15 percent to a record $154.3 million compared to $134.3 million in 2024.
Bookings increased five percent to a record $1,033.9 million compared to $981.1 million in 2024. Organic bookings increased one percent, which excludes a four percent increase from acquisitions.
Summary and Outlook
“Looking ahead to 2026, we are encouraged by improving business activity as we begin the year,” continued Mr. Powell. "Our capital project bookings are expected to strengthen supported by steady aftermarket demand, a strong balance sheet, and robust cash flow generation. For 2026, we expect revenue of $1.160 to $1.185 billion, GAAP EPS of $10.27 to $10.62 and, after excluding $0.13 of acquisition-related costs, adjusted EPS of $10.40 to $10.75. For the first quarter of 2026, we expect revenue of $270 to $280 million, GAAP EPS of $1.69 to $1.79 and, after excluding $0.09 of acquisition-related costs, adjusted EPS of $1.78 to $1.88.”
Conference Call
Kadant will hold a webcast with a slide presentation for investors on Thursday, February 19, 2026, at 11:00 a.m. Eastern Time to discuss its fourth quarter and full year financial performance, as well as future expectations. To listen to the call live and view the webcast, go to the “Investors” section of the Company’s website at kadant.com. Participants interested in joining the call’s live question and answer session are required to register by clicking here or selecting the Q&A link on our website to receive a dial-in number and unique PIN. It is recommended that you join the call 10 minutes prior to the start of the event. A replay of the webcast presentation will be available on our website through March 20, 2026.
Prior to the call, our earnings release and the slides used in the webcast presentation will be filed with the Securities and Exchange Commission and will be available at sec.gov. After the webcast, Kadant will post its updated general investor presentation incorporating the fourth quarter and full year results on its website at kadant.com under the “Investors” section.
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including increases or decreases in revenue excluding the effect of acquisitions and foreign currency translation (organic revenue), adjusted operating income, adjusted net income, adjusted EPS, earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA, adjusted EBITDA margin, and free cash flow.
We use organic revenue to understand our trends and to forecast and evaluate our financial performance and compare revenue to prior periods. Organic revenue excludes revenue from acquisitions for the four quarterly reporting periods following the date of the acquisition and the effect of foreign currency translation. Revenue in the fourth quarter of 2025 included $21.9 million from acquisitions and a favorable foreign currency translation effect of $6.5 million compared to the fourth quarter of 2024. Revenue in 2025 included $36.7 million from acquisitions and a favorable foreign currency translation effect of $7.0 million compared to 2024. Our other non-GAAP financial measures exclude acquisition costs, amortization expense related to acquired profit in inventory and backlog, restructuring and impairment costs, and other income or expense, as indicated. Collectively, these items are excluded as they are not indicative of our core operating results and are not comparable to other periods, which have differing levels of incremental costs, expenditures or income, or none at all. Additionally, we use free cash flow in order to provide insight on our ability to generate cash for acquisitions and debt repayments, as well as for other investing and financing activities.
We believe these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business, operating results, or future outlook. We believe that the inclusion of such measures helps investors gain an understanding of our underlying operating performance and future prospects, consistent with how management measures and forecasts our performance, especially when comparing such results to previous periods or forecasts and to the performance of our competitors. Such measures are also used by us in our financial and operating decision-making and for compensation purposes. We also believe this information is responsive to investors' requests and gives them additional measures of our performance.
The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for the results of operations or cash flows prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this press release have limitations associated with their use as compared to the most directly comparable GAAP measures, in that they may be different from, and therefore not comparable to, similar measures used by other companies.
Fourth Quarter
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:
- Pre-tax acquisition costs of $0.9 million in 2025 and $0.3 million in 2024.
- Pre-tax amortization of acquired profit in inventory and backlog of $1.1 million in 2025 and $2.2 million in 2024.
- Pre-tax indemnification asset reversal of $0.6 million in 2025 and $0.3 million in 2024.
- Pre-tax other costs of $1.0 million in 2025 and $0.7 million in 2024.
Adjusted net income and adjusted EPS exclude:
- After-tax acquisition costs of $1.1 million ($0.9 million plus tax of $0.2 million) in 2025 and $0.2 million ($0.3 million net of tax of $0.1 million) in 2024.
- After-tax amortization of acquired profit in inventory and backlog of $0.9 million ($1.1 million net of tax of $0.2 million) in 2025 and $1.7 million ($2.2 million net of tax of $0.5 million) in 2024.
- After-tax other costs of $0.8 million ($1.0 million net of tax of $0.2 million) in 2025 and $0.7 million in 2024.
Free cash flow is calculated as operating cash flow less:
- Capital expenditures of $6.1 million in 2025 and $5.6 million in 2024.
Fiscal Year
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:
- Pre-tax acquisition costs of $4.4 million in 2025 and $2.9 million in 2024.
- Pre-tax amortization of acquired profit in inventory and backlog of $2.4 million in 2025 and $8.4 million in 2024.
- Pre-tax indemnification asset reversal of $0.6 million in 2025 and $0.2 million in 2024.
- Pre-tax other costs of $1.3 million in 2025 and $0.7 million in 2024.
Adjusted net income and adjusted EPS exclude:
- After-tax acquisition costs of $4.5 million ($4.4 million plus tax of $0.1 million) in 2025 and $2.3 million ($2.9 million net of tax of $0.6 million) in 2024.
- After-tax amortization of acquired profit in inventory and backlog of $1.8 million ($2.4 million net of tax of $0.6 million) in 2025 and $6.4 million ($8.4 million net of tax of $2.0 million) in 2024.
- After-tax other costs of $1.0 million in ($1.3 million net of tax of $0.3 million) 2025 and $0.7 million in 2024.
Free cash flow is calculated as operating cash flow less:
- Capital expenditures of $17.0 million in 2025 and $21.0 million in 2024.
Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in this press release.
| Financial Highlights (unaudited) | ||||||||||||||||||
| (In thousands, except per share amounts and percentages) | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| Consolidated Statement of Income | January 3, 2026 | December 28, 2024 | January 3, 2026 | December 28, 2024 | ||||||||||||||
| Revenue | $ | 286,204 | $ | 258,030 | $ | 1,052,248 | $ | 1,053,384 | ||||||||||
| Costs and Operating Expenses: | ||||||||||||||||||
| Cost of revenue | 160,509 | 146,170 | 576,520 | 587,236 | ||||||||||||||
| Selling, general, and administrative expenses | 80,862 | 70,568 | 301,863 | 279,920 | ||||||||||||||
| Research and development expenses | 4,098 | 3,697 | 15,264 | 14,318 | ||||||||||||||
| Other costs (g) | 1,026 | 658 | 1,313 | 658 | ||||||||||||||
| 246,495 | 221,093 | 894,960 | 882,132 | |||||||||||||||
| Operating Income | 39,709 | 36,937 | 157,288 | 171,252 | ||||||||||||||
| Interest Income | 600 | 529 | 1,929 | 1,915 | ||||||||||||||
| Interest Expense | (5,322 | ) | (4,642 | ) | (15,571 | ) | (20,028 | ) | ||||||||||
| Other Expense, Net | (9 | ) | (21 | ) | (61 | ) | (69 | ) | ||||||||||
| Income Before Provision for Income Taxes | 34,978 | 32,803 | 143,585 | 153,070 | ||||||||||||||
| Provision for Income Taxes | 10,488 | 8,706 | 39,904 | 40,516 | ||||||||||||||
| Net Income | 24,490 | 24,097 | 103,681 | 112,554 | ||||||||||||||
| Net Income Attributable to Noncontrolling Interests | (465 | ) | (65 | ) | (1,712 | ) | (956 | ) | ||||||||||
| Net Income Attributable to Kadant | $ | 24,025 | $ | 24,032 | $ | 101,969 | $ | 111,598 | ||||||||||
| Earnings per Share Attributable to Kadant: | ||||||||||||||||||
| Basic | $ | 2.04 | $ | 2.05 | $ | 8.66 | $ | 9.51 | ||||||||||
| Diluted | $ | 2.04 | $ | 2.04 | $ | 8.65 | $ | 9.48 | ||||||||||
| Weighted Average Shares: | ||||||||||||||||||
| Basic | 11,779 | 11,745 | 11,773 | 11,739 | ||||||||||||||
| Diluted | 11,805 | 11,794 | 11,794 | 11,771 | ||||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||
| Adjusted Net Income and Adjusted Diluted EPS (a) | January 3, 2026 | January 3, 2026 | December 28, 2024 | December 28, 2024 | ||||||||||
| Net Income and Diluted EPS Attributable to Kadant, as Reported | $ | 24,025 | $ | 2.04 | $ | 24,032 | $ | 2.04 | ||||||
| Adjustments, Net of Tax: | ||||||||||||||
| Acquisition Costs | 1,146 | 0.10 | 194 | 0.02 | ||||||||||
| Amortization of Profit in Inventory and Backlog | 850 | 0.07 | 1,664 | 0.14 | ||||||||||
| Other Costs (g) | 769 | 0.07 | 658 | 0.06 | ||||||||||
| Adjusted Net Income and Adjusted Diluted EPS (a) | $ | 26,790 | $ | 2.27 | $ | 26,548 | $ | 2.25 | ||||||
| Twelve Months Ended | Twelve Months Ended | |||||||||||||
| January 3, 2026 | January 3, 2026 | December 28, 2024 | December 28, 2024 | |||||||||||
| Net Income and Diluted EPS Attributable to Kadant, as Reported | $ | 101,969 | $ | 8.65 | $ | 111,598 | $ | 9.48 | ||||||
| Adjustments, Net of Tax: | ||||||||||||||
| Acquisition Costs | 4,536 | 0.38 | 2,320 | 0.20 | ||||||||||
| Amortization of Profit in Inventory and Backlog | 1,775 | 0.15 | 6,394 | 0.54 | ||||||||||
| Other Costs (g) | 985 | 0.08 | 658 | 0.06 | ||||||||||
| Adjusted Net Income and Adjusted Diluted EPS (a) | $ | 109,265 | $ | 9.26 | $ | 120,970 | $ | 10.28 | ||||||
| Three Months Ended | Increase (Decrease) Excluding Acquisitions and FX (a,b) | |||||||||||||||||
| Revenue by Segment | January 3, 2026 | December 28, 2024 | Increase | |||||||||||||||
| Flow Control | $ | 99,639 | $ | 94,684 | $ | 4,955 | $ | 1,639 | ||||||||||
| Industrial Processing | 117,635 | 101,428 | 16,207 | (7,333 | ) | |||||||||||||
| Material Handling | 68,930 | 61,918 | 7,012 | 5,486 | ||||||||||||||
| $ | 286,204 | $ | 258,030 | $ | 28,174 | $ | (208 | ) | ||||||||||
| Percentage of Parts and Consumables Revenue | 70 | % | 67 | % | ||||||||||||||
| Twelve Months Ended | Increase (Decrease) | Increase (Decrease) Excluding Acquisitions and FX (a,b) | ||||||||||||||||
| January 3, 2026 | December 28, 2024 | |||||||||||||||||
| Flow Control | $ | 382,866 | $ | 371,177 | $ | 11,689 | $ | (109 | ) | |||||||||
| Industrial Processing | 409,489 | 432,738 | (23,249 | ) | (51,310 | ) | ||||||||||||
| Material Handling | 259,893 | 249,469 | 10,424 | 6,623 | ||||||||||||||
| $ | 1,052,248 | $ | 1,053,384 | $ | (1,136 | ) | $ | (44,796 | ) | |||||||||
| Percentage of Parts and Consumables Revenue | 71 | % | 66 | % | ||||||||||||||
| Three Months Ended | Increase | Increase (Decrease) Excluding Acquisitions and FX (b) | ||||||||||||||||
| Bookings by Segment | January 3, 2026 | December 28, 2024 | ||||||||||||||||
| Flow Control | $ | 93,617 | $ | 87,436 | $ | 6,181 | $ | 3,108 | ||||||||||
| Industrial Processing | 120,993 | 103,607 | 17,386 | (4,401 | ) | |||||||||||||
| Material Handling | 55,372 | 49,601 | 5,771 | 4,452 | ||||||||||||||
| $ | 269,982 | $ | 240,644 | $ | 29,338 | $ | 3,159 | |||||||||||
| Percentage of Parts and Consumables Bookings | 73 | % | 70 | % | ||||||||||||||
| Twelve Months Ended | Increase | Increase Excluding Acquisitions and FX (b) | ||||||||||||||||
| January 3, 2026 | December 28, 2024 | |||||||||||||||||
| Flow Control | $ | 380,503 | $ | 365,185 | $ | 15,318 | $ | 2,864 | ||||||||||
| Industrial Processing | 403,895 | 379,517 | 24,378 | 1,796 | ||||||||||||||
| Material Handling | 249,532 | 236,399 | 13,133 | 9,144 | ||||||||||||||
| $ | 1,033,930 | $ | 981,101 | $ | 52,829 | $ | 13,804 | |||||||||||
| Percentage of Parts and Consumables Bookings | 72 | % | 71 | % | ||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| Additional Segment Information | January 3, 2026 | December 28, 2024 | January 3, 2026 | December 28, 2024 | ||||||||||||||
| Gross Margin: | ||||||||||||||||||
| Flow Control | 50.5 | % | 51.4 | % | 52.3 | % | 52.5 | % | ||||||||||
| Industrial Processing | 42.0 | % | 39.9 | % | 43.0 | % | 41.8 | % | ||||||||||
| Material Handling | 37.6 | % | 36.7 | % | 38.1 | % | 36.3 | % | ||||||||||
| Consolidated | 43.9 | % | 43.4 | % | 45.2 | % | 44.3 | % | ||||||||||
| Operating Income: | ||||||||||||||||||
| Flow Control | $ | 23,271 | $ | 22,091 | $ | 92,808 | $ | 91,612 | ||||||||||
| Industrial Processing | 16,602 | 16,563 | 67,748 | 86,623 | ||||||||||||||
| Material Handling | 11,234 | 8,551 | 41,241 | 34,073 | ||||||||||||||
| Corporate | (11,398 | ) | (10,268 | ) | (44,509 | ) | (41,056 | ) | ||||||||||
| $ | 39,709 | $ | 36,937 | $ | 157,288 | $ | 171,252 | |||||||||||
| Adjusted Operating Income (a,c): | ||||||||||||||||||
| Flow Control | $ | 23,651 | $ | 24,330 | $ | 93,976 | $ | 96,476 | ||||||||||
| Industrial Processing | 19,748 | 17,442 | 74,889 | 90,218 | ||||||||||||||
| Material Handling | 11,362 | 8,934 | 41,588 | 37,743 | ||||||||||||||
| Corporate | (11,398 | ) | (10,268 | ) | (44,509 | ) | (41,056 | ) | ||||||||||
| $ | 43,363 | $ | 40,438 | $ | 165,944 | $ | 183,381 | |||||||||||
| Capital Expenditures: | ||||||||||||||||||
| Flow Control | $ | 1,949 | $ | 1,496 | $ | 6,051 | $ | 7,225 | ||||||||||
| Industrial Processing | 1,840 | 2,178 | 5,543 | 8,121 | ||||||||||||||
| Material Handling | 2,119 | 1,901 | 5,309 | 5,638 | ||||||||||||||
| Corporate | 142 | — | 145 | 21 | ||||||||||||||
| $ | 6,050 | $ | 5,575 | $ | 17,048 | $ | 21,005 | |||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| Cash Flow and Other Data | January 3, 2026 | December 28, 2024 | January 3, 2026 | December 28, 2024 | ||||||||||||||
| Operating Cash Flow | $ | 60,759 | $ | 51,890 | $ | 171,328 | $ | 155,265 | ||||||||||
| Capital Expenditures | (6,050 | ) | (5,575 | ) | (17,048 | ) | (21,005 | ) | ||||||||||
| Free Cash Flow (a) | $ | 54,709 | $ | 46,315 | $ | 154,280 | $ | 134,260 | ||||||||||
| Depreciation and Amortization Expense | $ | 14,740 | $ | 13,082 | $ | 51,219 | $ | 49,587 | ||||||||||
| Balance Sheet Data | January 3, 2026 | December 28, 2024 | ||||||||||
| Assets | ||||||||||||
| Cash, Cash Equivalents, and Restricted Cash | $ | 122,681 | $ | 95,946 | ||||||||
| Accounts Receivable, Net | 158,567 | 142,462 | ||||||||||
| Inventories | 206,854 | 146,092 | ||||||||||
| Contract Assets | 6,599 | 18,408 | ||||||||||
| Property, Plant, and Equipment, Net | 196,656 | 170,331 | ||||||||||
| Intangible Assets | 350,376 | 279,494 | ||||||||||
| Goodwill | 555,621 | 479,169 | ||||||||||
| Other Assets | 114,824 | 98,443 | ||||||||||
| $ | 1,712,178 | $ | 1,430,345 | |||||||||
| Liabilities and Stockholders' Equity | ||||||||||||
| Accounts Payable | $ | 53,362 | $ | 51,062 | ||||||||
| Debt Obligations | 372,720 | 286,504 | ||||||||||
| Other Borrowings | 1,781 | 2,023 | ||||||||||
| Other Liabilities | 293,248 | 232,628 | ||||||||||
| Total Liabilities | 721,111 | 572,217 | ||||||||||
| Stockholders' Equity | 991,067 | 858,128 | ||||||||||
| $ | 1,712,178 | $ | 1,430,345 | |||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| Adjusted Operating Income and Adjusted EBITDA Reconciliation (a) | January 3, 2026 | December 28, 2024 | January 3, 2026 | December 28, 2024 | ||||||||||||||
| Consolidated | ||||||||||||||||||
| Net Income Attributable to Kadant | $ | 24,025 | $ | 24,032 | $ | 101,969 | $ | 111,598 | ||||||||||
| Net Income Attributable to Noncontrolling Interests | 465 | 65 | 1,712 | 956 | ||||||||||||||
| Provision for Income Taxes | 10,488 | 8,706 | 39,904 | 40,516 | ||||||||||||||
| Interest Expense, Net | 4,722 | 4,113 | 13,642 | 18,113 | ||||||||||||||
| Other Expense, Net | 9 | 21 | 61 | 69 | ||||||||||||||
| Operating Income | 39,709 | 36,937 | 157,288 | 171,252 | ||||||||||||||
| Acquisition Costs | 927 | 339 | 4,425 | 2,872 | ||||||||||||||
| Acquired Profit in Inventory Amortization (d) | 1,004 | 1,124 | 1,504 | 5,189 | ||||||||||||||
| Acquired Backlog Amortization (e) | 109 | 1,071 | 855 | 3,252 | ||||||||||||||
| Indemnification Asset Reversal, Net (f) | 588 | 309 | 559 | 158 | ||||||||||||||
| Other Costs (g) | 1,026 | 658 | 1,313 | 658 | ||||||||||||||
| Adjusted Operating Income (a) | 43,363 | 40,438 | 165,944 | 183,381 | ||||||||||||||
| Depreciation and Amortization | 14,631 | 12,011 | 50,364 | 46,335 | ||||||||||||||
| Adjusted EBITDA (a) | $ | 57,994 | $ | 52,449 | $ | 216,308 | $ | 229,716 | ||||||||||
| Adjusted EBITDA Margin (a,h) | 20.3 | % | 20.3 | % | 20.6 | % | 21.8 | % | ||||||||||
| Flow Control | ||||||||||||||||||
| Operating Income | $ | 23,271 | $ | 22,091 | $ | 92,808 | $ | 91,612 | ||||||||||
| Acquisition Costs | 3 | 18 | 44 | 655 | ||||||||||||||
| Acquired Profit in Inventory Amortization (d) | — | 981 | 35 | 1,944 | ||||||||||||||
| Acquired Backlog Amortization (e) | 91 | 618 | 701 | 1,500 | ||||||||||||||
| Indemnification Asset Reversal (Provision) (f) | 286 | (36 | ) | 388 | 107 | |||||||||||||
| Other Costs (g) | — | 658 | — | 658 | ||||||||||||||
| Adjusted Operating Income (a) | 23,651 | 24,330 | 93,976 | 96,476 | ||||||||||||||
| Depreciation and Amortization | 3,184 | 2,874 | 12,451 | 10,435 | ||||||||||||||
| Adjusted EBITDA (a) | $ | 26,835 | $ | 27,204 | $ | 106,427 | $ | 106,911 | ||||||||||
| Adjusted EBITDA Margin (a,h) | 26.9 | % | 28.7 | % | 27.8 | % | 28.8 | % | ||||||||||
| Industrial Processing | ||||||||||||||||||
| Operating Income | $ | 16,602 | $ | 16,563 | $ | 67,748 | $ | 86,623 | ||||||||||
| Acquisition Costs | 920 | 361 | 4,369 | 1,203 | ||||||||||||||
| Acquired Profit in Inventory Amortization (d) | 1,004 | 139 | 1,469 | 2,201 | ||||||||||||||
| Indemnification Asset Reversal (Provision) (f) | 196 | 379 | (10 | ) | 191 | |||||||||||||
| Other Costs (g) | 1,026 | — | 1,313 | — | ||||||||||||||
| Adjusted Operating Income (a) | 19,748 | 17,442 | 74,889 | 90,218 | ||||||||||||||
| Depreciation and Amortization | 7,554 | 5,149 | 22,404 | 20,607 | ||||||||||||||
| Adjusted EBITDA (a) | $ | 27,302 | $ | 22,591 | $ | 97,293 | $ | 110,825 | ||||||||||
| Adjusted EBITDA Margin (a,h) | 23.2 | % | 22.3 | % | 23.8 | % | 25.6 | % | ||||||||||
| Material Handling | ||||||||||||||||||
| Operating Income | $ | 11,234 | $ | 8,551 | $ | 41,241 | $ | 34,073 | ||||||||||
| Acquisition Costs | 4 | (40 | ) | 12 | 1,014 | |||||||||||||
| Acquired Profit in Inventory Amortization (d) | — | 4 | — | 1,044 | ||||||||||||||
| Acquired Backlog Amortization (e) | 18 | 453 | 154 | 1,752 | ||||||||||||||
| Indemnification Asset Reversal (Provision) (f) | 106 | (34 | ) | 181 | (140 | ) | ||||||||||||
| Adjusted Operating Income (a) | 11,362 | 8,934 | 41,588 | 37,743 | ||||||||||||||
| Depreciation and Amortization | 3,878 | 3,975 | 15,458 | 15,244 | ||||||||||||||
| Adjusted EBITDA (a) | $ | 15,240 | $ | 12,909 | $ | 57,046 | $ | 52,987 | ||||||||||
| Adjusted EBITDA Margin (a,h) | 22.1 | % | 20.8 | % | 21.9 | % | 21.2 | % | ||||||||||
| Corporate | ||||||||||||||||||
| Operating Loss | $ | (11,398 | ) | $ | (10,268 | ) | $ | (44,509 | ) | $ | (41,056 | ) | ||||||
| Depreciation and Amortization | 15 | 13 | 51 | 49 | ||||||||||||||
| EBITDA (a) | $ | (11,383 | ) | $ | (10,255 | ) | $ | (44,458 | ) | $ | (41,007 | ) | ||||||
| (a) | Represents a non-GAAP financial measure. | |||||||||||||||||
| (b) | Represents the increase (decrease) resulting from the exclusion of acquisitions and from the conversion of current period amounts reported in local currencies into U.S. dollars at the exchange rate of the prior period compared to the U.S. dollar amount reported in the prior period. | |||||||||||||||||
| (c) | See reconciliation to the most directly comparable GAAP financial measure under “Adjusted Operating Income and Adjusted EBITDA Reconciliation.” | |||||||||||||||||
| (d) | Represents amortization expense within cost of revenue associated with acquired profit in inventory. | |||||||||||||||||
| (e) | Represents intangible amortization expense associated with acquired backlog. | |||||||||||||||||
| (f) | Represents the provision for or reversal of indemnification assets related to the establishment or release of tax reserves associated with uncertain tax positions. | |||||||||||||||||
| (g) | Other costs consist of land remediation costs of $871 ($653 net of tax) and restructuring costs of $155 ($116 net of tax) in the three and twelve months ended January 3, 2026, and impairment costs of $287 ($216 net of tax) in the twelve months ended January 3, 2026 all within the Industrial Processing segment, and a loss of $658 in the three and twelve months ended December 28, 2024 related to the recognition of a cumulative translation adjustment from the liquidation of a foreign subsidiary within the Flow Control segment. | |||||||||||||||||
| (h) | Calculated as adjusted EBITDA divided by revenue in each period. | |||||||||||||||||
About Kadant
Kadant Inc. is a global supplier of technologies and engineered systems that drive Sustainable Industrial Processing®. The Company’s products and services play an integral role in enhancing efficiency, optimizing energy utilization, and maximizing productivity in process industries. Kadant is based in Westford, Massachusetts, with approximately 3,900 employees in 22 countries worldwide. For more information, visit kadant.com.
Safe Harbor Statement
The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about our future financial and operating performance, demand for our products, and economic and industry outlook. These forward-looking statements represent our expectations as of the date of this press release. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements as a result of various important factors, including those set forth under the heading “Risk Factors” in Kadant’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024 and subsequent filings with the Securities and Exchange Commission. These include risks and uncertainties relating to adverse changes in global and local economic conditions; the variability and difficulty in accurately predicting revenues from large capital equipment and systems projects; our acquisition strategy; levels of residential construction activity; reductions by our wood processing customers of their capital spending or production of oriented strand board; changes to the global timber supply; development and use of digital media; cyclical economic conditions affecting the global mining industry; demand for coal, including economic and environmental risks associated with coal; failure of our information systems or breaches of data security and cybersecurity incidents; implementation of our internal growth strategy; competition; our ability to successfully manage our manufacturing operations; supply chain constraints, inflationary pressure, price increases or shortages in raw materials; loss of key personnel and effective succession planning; future restructurings; protection of intellectual property; changes to tax laws and regulations; climate change; adequacy of our insurance coverage; global operations; policies of the Chinese government; the variability and uncertainties in sales of capital equipment in China; currency fluctuations; changes to government regulations and policies around the world; compliance with government regulations and policies and compliance with laws; environmental laws and regulations; environmental, health and safety laws and regulations impacting the mining industry; our debt obligations; restrictions in our credit agreement and note purchase agreement; soundness of financial institutions; fluctuations in our share price; and anti-takeover provisions.
Contacts
Investor Contact Information:
Michael McKenney, 978-776-2000
IR@kadant.com
Media Contact Information:
Wes Martz, 978-776-2000
media@kadant.com
