NYSE$KAI

Kadant Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Kadant reported record revenue and strong adjusted EBITDA and adjusted EPS due to recent acquisitions and strong performance in the Industrial Processing segment.

Kadant Inc. reported an 8% increase in revenue to a record $249 million for the first quarter of 2024. Net income decreased by 12% to $25 million, while adjusted EBITDA increased by 8% to $52 million. The company reaffirms its full-year revenue and adjusted EPS guidance.

  • Revenue increased 8% to a record $249 million.
  • Adjusted EBITDA increased 8% to $52 million, representing 21.0% of revenue.
  • Aftermarket parts revenue increased 13% and comprised 69% of total revenue.
  • Bookings decreased 10% to $248 million.

Headline financials

Total Revenue

$249M

Previous: $230M+8.4%
EPS

$2.10

Previous: $2.40-12.5%
Bookings

$248M

Previous: $275M-9.5%
Gross Margin

44.6%

Previous: 44.4%+0.5%
Adjusted EBITDA

$52.2M

Previous: $48.6M+7.4%
Adjusted EBITDA Margin

21.0%

No prior period
Capital Expenditures

-$6.27M

Previous: -$4.47M-40.3%
Free Cash Flow

$18.4M

Previous: $23.6M-22.0%
Net Income

$24.7M

Previous: $28.1M-12.1%
Operating Income

$36.9M

Previous: $40.1M-7.9%
Gross Profit

$111M

Previous: $102M+8.7%
Cash & Equivalents

$81.4M

Previous: $81.2M+0.3%
Total Assets

$1.41B

Previous: $1.17B+20.6%
R&D Expense

$3.73M

No prior period
Stock-Based Comp

$2.42M

Previous: $2.24M+7.9%

Revenue & EPS history

Kadant · Revenue · Quarterly

$249M

Q1 2024+8.4%vs Q1 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

Kadant expects revenue of $258 to $266 million, GAAP EPS of $2.34 to $2.44 and adjusted EPS of $2.40 to $2.50 for the second quarter of 2024. For the full year, the company expects revenue of $1.040 to $1.065 billion and adjusted EPS of $9.75 to $10.05.

Tailwinds

  • Industrial demand is expected to strengthen in certain regions, such as Europe and Asia.
  • Industrial demand is expected to remain stable in other regions.
  • Backlog remains strong.
  • Ability to generate robust cash flows.
  • Maintaining revenue and adjusted EPS guidance for the full year.

Headwinds

  • 2024 adjusted EPS guidance excludes $0.36 of acquisition-related costs, revised from $0.20.
  • Organic revenue decreased three percent.
  • Operating cash flow decreased 38 percent.
  • Free cash flow decreased 49 percent.
  • Organic bookings decreased 18 percent.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+1.3%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+2.3%

Avg return

30 days after

56%

35 / 63 earnings

Positive

+13.1%

Q2 2017

Best reaction

-14.4%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.3%+15.6%+1.2%
Q4 2025+2.7%+4.8%-7.5%
Q3 2025+0.8%-7.3%-6.8%
Q1 2025-6.5%-7.1%-0.5%
Q4 2024-0.7%+11.6%-1.2%
Q3 2024+4.2%+6.6%+25.2%
Q2 2024-0.6%-12.4%-9.4%
Q1 2024-8.9%-5.1%-4.2%
Q4 2023+12.0%+11.5%+4.5%
Q3 2023+6.8%+10.9%+18.3%
Q2 2023-6.7%-4.8%-1.4%
Q1 2023+3.4%+4.7%+2.9%
Q4 2022+4.7%+8.1%-2.5%
Q3 2022-5.2%-1.9%+8.9%
Q2 2022-3.0%-5.0%-12.8%
Q1 2022+5.9%-1.2%+1.5%
Q4 2021-4.6%-6.3%-3.6%
Q3 2021+2.6%+5.2%+6.7%
Q2 2021+9.2%+12.8%+20.3%
Q1 2021-0.7%+3.7%-5.4%
Q3 2020-4.5%-1.9%+12.1%
Q2 2020-6.1%-7.3%-1.2%
Q1 2020+0.4%-2.3%+15.7%
Q4 2019-14.4%-10.4%-33.7%
Q3 2019+1.4%+5.3%+11.6%
Q2 2019+8.3%-1.9%-5.0%
Q1 2019-0.9%-7.0%-16.1%
Q4 2018+2.6%+1.6%+1.8%
Q3 2018+5.9%+4.7%-1.8%
Q2 2018-0.2%-5.4%+4.8%
Q1 2018+0.7%-0.6%+4.5%
Q4 2017-0.4%-0.6%+4.8%
Q3 2017+10.2%+3.2%-0.0%
Q2 2017+13.1%+11.1%+11.3%
Q1 2017+13.0%+18.8%+26.2%
Q4 2016+0.0%-0.3%-6.7%
Q3 2016+3.1%+1.6%+22.0%
Q2 2016+3.9%-1.0%+1.7%
Q1 2016+3.0%
Q4 2015-2.9%
Q3 2015-3.3%
Q2 2015+5.0%
Q1 2015-6.9%
Q4 2014+1.0%
Q3 2014+7.1%
Q2 2014+1.9%
Q1 2014-2.3%
Q4 2013+4.4%
Q3 2013+3.4%
Q2 2013-3.1%
Q1 2013+6.4%
Q4 2012-9.0%
Q3 2012+10.3%
Q2 2012-8.2%
Q1 2012+1.6%
Q4 2011-0.8%
Q4 2010-0.8%
Q3 2011-4.8%
Q2 2011+11.6%
Q1 2011+11.6%
Q3 2010+0.6%
Q2 2010-0.7%
Q1 2010+5.2%

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