NYSE$KAI

Kadant Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Kadant reported record revenue, adjusted EBITDA, and adjusted EPS performance, driven by record aftermarket demand and strong capital business.

Kadant Inc. reported a 12% increase in revenue to a record $275 million for the second quarter ended June 29, 2024. Net income increased by 5% to $31 million, with GAAP EPS up by 5% to $2.66 and adjusted EPS increasing by 11% to a record $2.81. Adjusted EBITDA also reached a record $62 million, representing 22.5% of revenue.

  • Revenue increased 12% to a record $275 million.
  • Adjusted EBITDA was a record $62 million, representing 22.5% of revenue.
  • Net income increased 5% to $31 million.
  • Adjusted EPS increased 11% to a record $2.81.

Headline financials

Total Revenue

$275M

Previous: $245M+12.1%
EPS

$2.66

Previous: $2.54+4.7%
Bookings

$252M

Previous: $215M+17.0%
Gross Margin

44.4%

Previous: 43.5%+2.1%
Adjusted EBITDA

$61.8M

Previous: $51.6M+19.8%
Capital Expenditures

-$11.2M

Previous: -$8.78M-28.1%
Free Cash Flow

$20M

Previous: $21M-4.3%
Net Income

$31.3M

Previous: $29.7M+5.2%
Operating Income

$48.4M

Previous: $43.1M+12.4%
Gross Profit

$122M

Previous: $107M+14.4%
Cash & Equivalents

$73.8M

Previous: $66.7M+10.6%
Total Assets

$1.46B

Previous: $1.16B+25.4%
R&D Expense

$3.48M

No prior period
Stock-Based Comp

$2.88M

Previous: $2.65M+8.9%

Revenue & EPS history

Kadant · Revenue · Quarterly

$275M

Q2 2024+12.1%vs Q2 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

Kadant is raising the low end of its revenue and adjusted EPS guidance for the full year. The company now expects revenue of $1.045 to $1.065 billion and adjusted EPS of $9.80 to $10.05 for 2024. For the third quarter of 2024, the company expects revenue of $257 to $269 million, GAAP EPS of $2.27 to $2.39 and adjusted EPS of $2.36 to $2.48.

Tailwinds

  • Revenue of $1.045 to $1.065 billion in 2024
  • Adjusted EPS of $9.80 to $10.05 for 2024
  • Revenue of $257 to $269 million for Q3 2024
  • GAAP EPS of $2.27 to $2.39 for Q3 2024
  • Adjusted EPS of $2.36 to $2.48 for Q3 2024

Headwinds

  • Persistent economic headwinds in certain regions.
  • Industrial demand in the second half of the year to be similar to the first half of the year
  • 2024 adjusted EPS guidance excludes $0.60 of acquisition-related costs
  • Q3 2024 adjusted EPS excludes $0.09 of acquisition-related costs
  • Unfavorable effect of foreign currency translation

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 Q2 2024

Historical avgQ2 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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