Kadant (KAI) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of $1.0534 billion in 2024, up 10% year-over-year, with strong contributions from acquisitions and stable industrial activity despite economic headwinds in Europe and Asia.

• Adjusted EBITDA reached a record $230 million, or 21.8% of revenue, and adjusted EPS hit $10.28.

• Named one of America's Most Responsible Companies by Newsweek for the fifth consecutive year.

Financial highlights

• Q4 2024 revenue rose 8.1% year-over-year to $258 million; FY 2024 revenue increased 10% to $1.0534 billion.

• Q4 adjusted EBITDA grew 8.1% to $52.4 million (20.3% margin); FY adjusted EBITDA up 14.1% to $229.7 million (21.8% margin).

• Q4 adjusted EPS was $2.25, down 6.6% year-over-year; FY adjusted EPS reached $10.28, up 2.4%.

• FY net income decreased 3.9% to $111.6 million; Q4 net income declined 12.3% to $24 million.

• FY free cash flow was $134.3 million, nearly flat year-over-year.

Outlook and guidance

• FY 2025 revenue expected between $1.040 and $1.065 billion; adjusted EPS guidance of $9.70 to $10.05, with negative FX impact.

• Q1 2025 revenue projected at $235–$242 million; adjusted EPS of $1.85–$2.05.

• Gross margin expected at 44.5–45%; SG&A at 26.5–27% of revenue; CapEx $24–26 million.

• Guidance excludes potential impact from new or proposed U.S. tariffs.

• Q1 2025 expected to be the weakest quarter; stronger results anticipated in the second half due to capital bookings.