Kadant Inc. Reports Q1 2025 Revenue of $239.2 Million, Down 4% Year-Over-Year

Kadant Inc. reported its financial results for the first quarter of 2025, revealing a consolidated revenue of $239.2 million, a decrease of 4% compared to $249.0 million in the same period last year. The decline was primarily attributed to a 15% drop in revenue from the Industrial Processing segment, which faced reduced demand for capital equipment. In contrast, the Flow Control segment saw a 7% increase in revenue, driven by strong demand for parts and consumables. Net income for the quarter was $24.4 million, down from $25.0 million in the prior year, reflecting a decrease in operating income offset by lower interest expenses.

The company's balance sheet as of March 29, 2025, showed total assets of $1.435 billion, a slight increase from $1.430 billion at the end of 2024. Current liabilities decreased to $180.6 million from $191.6 million, while total stockholders' equity rose to $886.6 million, up from $858.1 million. The increase in equity was supported by retained earnings, which grew to $879.8 million from $859.7 million, indicating a focus on maintaining financial stability amid fluctuating market conditions.

Kadant's operational metrics indicated a strong focus on aftermarket products, which accounted for 75% of total revenue in the first quarter, up from 69% in the previous year. The company reported a consolidated gross profit margin of 46.1%, an increase from 44.6% in the prior year, attributed to a higher proportion of parts and consumables revenue. The company also noted a significant increase in bookings, which rose 3% to $256.2 million, driven by record demand for parts and consumables across its segments.

Strategically, Kadant has been navigating complex market conditions, including tariff-related uncertainties and inflationary pressures. The company is actively pursuing acquisitions to enhance its product offerings and market presence. In the first quarter, Kadant did not engage in any significant acquisitions, contrasting with the previous year when it spent $232.3 million on acquisitions. The company plans to invest approximately $20 million to $22 million in capital expenditures for the remainder of 2025, focusing on property, plant, and equipment.

Looking ahead, Kadant anticipates stronger capital bookings in 2025, particularly in the Industrial Processing segment, although the timing of securing these orders remains uncertain due to ongoing tariff negotiations. The company expects steady demand for aftermarket products to continue throughout the year, supported by long-term growth opportunities in its end markets. Kadant's management remains optimistic about the company's ability to adapt to market challenges while maintaining a solid financial foundation.