The earnings call highlighted Kadant's strong performance in the aftermarket parts segment and cash flow generation. However, challenges were noted in the form of revenue declines in key segments, increased expenses, and ongoing uncertainty in capital project orders. While the company remains optimistic about future capital demand and market improvements, they face considerable challenges that temper the overall outlook.
Company Guidance
During Kadant's Q3 2025 earnings call, the company reported revenue of $272 million, with a record aftermarket parts revenue growth of 6% compared to the previous year. Despite a sluggish capital equipment market, Kadant achieved an adjusted EBITDA of $58 million, equivalent to a 21.4% margin, and generated $47 million in cash flow from operations, with free cash flow at $44 million. Bookings remained flat due to ongoing weakness in capital project orders, reflecting a broader economic slowdown since 2023. The Flow Control segment saw a 3% revenue decline, while the Industrial Processing segment experienced a 4% revenue decrease despite record aftermarket parts sales. The Material Handling segment, however, reported an 11% revenue increase to $70 million, driven by an 18% rise in capital shipments. The company anticipates strong aftermarket demand and improving business activity in Q4 2025, with revenue guidance adjusted to $1.36 billion-$1.46 billion for the full year. Adjusted EPS guidance remains at $9.05-$9.25, factoring in recent acquisitions but excluding certain costs.
Record Aftermarket Parts Revenue
Kadant achieved record aftermarket parts revenue in Q3 2025, which was up 6% compared to the third quarter of last year, contributing significantly to their solid earnings performance.
Material Handling Segment Growth
The Material Handling segment reported a revenue increase of 11% to a record $70 million, driven by an 18% increase in capital shipments compared to the same period last year.
Strong Cash Flow
Kadant reported strong cash flow from operations and free cash flow in Q3 2025, totaling $47 million and $44 million, respectively.
Gross Margin Improvement
Gross margin improved by 50 basis points to 45.2% in Q3 2025 compared to the same period in 2024, demonstrating resilience against cost pressures.
Kadant (KAI) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
KAI Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Oct 28, 2025
$298.55
$300.88
+0.78%
Jul 29, 2025
$344.02
$358.20
+4.12%
Apr 29, 2025
$314.89
$294.36
-6.52%
Feb 12, 2025
$355.65
$353.01
-0.74%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Kadant Inc (KAI) report earnings?
Kadant Inc (KAI) is schdueled to report earning on Feb 18, 2026, After Close (Confirmed).
What is Kadant Inc (KAI) earnings time?
Kadant Inc (KAI) earnings time is at Feb 18, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.