Kadant Inc. Reports Mixed Q1 2025 Financial Results

Kadant ( (KAI) ) has released its Q1 earnings. Here is a breakdown of the information Kadant presented to its investors.

Kadant Inc. is a global supplier of technologies and engineered systems that enhance efficiency and productivity in process industries, with a focus on sustainable industrial processing. The company operates in the industrial sector and is headquartered in Westford, Massachusetts.

In the first quarter of 2025, Kadant Inc. reported a mixed financial performance with a 3% increase in bookings to $256 million, while revenue saw a 4% decline to $239 million. Despite these challenges, the company achieved a gross margin improvement of 150 basis points, reaching 46.1%.

Key financial metrics revealed a 3% decrease in net income to $24 million and a 3% drop in GAAP EPS to $2.04. Adjusted EPS fell by 12% to $2.10, and adjusted EBITDA decreased by 8% to $48 million, representing 20% of revenue. However, free cash flow improved by 15% to $19 million, indicating strong cash generation capabilities.

Looking ahead, Kadant’s management has revised its revenue expectations for 2025 to between $1.020 and $1.040 billion, down from previous guidance. The company anticipates GAAP EPS of $8.97 to $9.17, reflecting the impact of geopolitical uncertainties and delayed capital projects. Despite these challenges, Kadant remains focused on executing its strategies and mitigating tariff-related impacts.