Kadant (KAI) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of $1.053 billion in 2024, up 10% year-over-year, with strong contributions from acquisitions and stable industrial activity despite economic headwinds in Europe and Asia.

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

Financial highlights

• Q4 2024 revenue grew 8% year-over-year to $258 million; full year revenue reached $1.053 billion, up 10%.

• Adjusted EBITDA for 2024 was a record $229.7 million, 21.8% of revenue, up 14% from 2023.

• Adjusted EPS for 2024 was $10.28, up 2% year-over-year; GAAP EPS was $9.48, down 4%.

• Free cash flow for 2024 was $134.3 million, nearly flat year-over-year.

• Q4 gross margin was 43.4%, up 70 bps year-over-year; FY gross margin was 44.3%.

Outlook and guidance

• FY 2025 revenue guidance: $1.04–1.065 billion; adjusted EPS: $9.70–$10.05, with Q1 expected to be the weakest quarter.

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

• Organic revenue growth projected at 2.5% at the top end, excluding FX and acquisitions; FX and tariffs expected to negatively impact results.

• Second half of 2025 expected to be significantly stronger due to increased capital bookings.

• Gross margin guidance for 2025: 44.5%–45%; SG&A: 26.5%–27% of revenue; CapEx: $24–26 million.