0000886346false00008863462025-02-122025-02-12

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
______________________________________________________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported): February 12, 2025

KADANT INC.
(Exact name of registrant as specified in its charter)

Commission file number 001-11406
Delaware52-1762325
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
One Technology Park Drive
Westford, Massachusetts 01886
(Address of principal executive offices, including zip code)
(978) 776-2000
(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $.01 par valueKAINew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨



KADANT INC.
Item 2.02 Results of Operations and Financial Condition.

On February 12, 2025, Kadant Inc. (the “Company”) announced its financial results for the fiscal quarter and year ended December 28, 2024. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01 Regulation FD Disclosure.

On February 13, 2025, the Company will hold a webcast and conference call to discuss its financial results for the fiscal quarter and year ended December 28, 2024. A copy of the slides that will be presented on the webcast and discussed in the conference call is furnished as Exhibit 99.2 to this Current Report on Form 8-K.

The information in Item 2.02 and Item 7.01 of this Form 8-K (including Exhibits 99.1 and 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits
The following exhibits relating to Item 2.02 and Item 7.01 shall be deemed to be furnished and not filed.
Exhibit
No.
Description of Exhibits
99.1
99.2
104Cover Page Interactive Data File (embedded within the Inline XBRL document).

2


KADANT INC.
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
KADANT INC.
Date: February 12, 2025
By
/s/ Michael J. McKenney
Michael J. McKenney
Executive Vice President and Chief Financial Officer
3


Exhibit 99.1
kadantlogo_jpg.jpg
PRESS RELEASE
KADANT INC.
One Technology Park Drive
Westford, MA 01886 USA
Tel: +1 978-776-2000
www.kadant.com


Kadant Reports Fourth Quarter and Fiscal Year 2024 Results

WESTFORD, Mass., February 12, 2025 - Kadant Inc. (NYSE: KAI) reported its financial results for the fourth quarter and fiscal year ended December 28, 2024.

Fourth Quarter Financial Highlights
•Revenue increased 8% to $258 million
•Gross margin was 43.4%
•Net income decreased 12% to $24 million
•GAAP EPS decreased 12% to $2.04
•Adjusted EPS decreased 7% to $2.25
•Adjusted EBITDA increased 8% to $52 million and represented 20.3% of revenue
•Operating cash flow decreased 12% to $52 million
•Bookings increased 10% to $241 million

Fiscal Year Financial Highlights
•Revenue increased 10% to a record $1.05 billion
•Gross margin was 44.3%
•Net income decreased 4% to $112 million
•GAAP EPS decreased 4% to $9.48
•Adjusted EPS increased 2% to a record $10.28
•Adjusted EBITDA increased 14% to a record $230 million and represented a record 21.8% of revenue
•Operating cash flow decreased 6% to $155 million
•Bookings increased 7% to a record $981 million

Note: Percent changes above are based on comparison to the prior year period. All references to earnings per share (EPS) are to our EPS as calculated on a diluted basis. Free cash flow, adjusted EPS, adjusted EBITDA, adjusted EBITDA margin, and changes in organic revenue are non-GAAP financial measures that exclude certain items as detailed later in this press release under the heading “Use of Non-GAAP Financial Measures.”

Management Commentary
“The fourth quarter was a good finish to a record-setting year,” said Jeffrey L. Powell, president and chief executive officer of Kadant Inc. “Excellent execution by our businesses led to solid margin performance and strong cash flows. Despite continued economic headwinds in many regions, industrial activity was relatively stable both year-over-year and sequentially.

“Our recent acquisitions made strong contributions not only to our fourth quarter performance, but to our full-year 2024 results, including record revenue of $1.05 billion, record adjusted EPS of $10.28 per share, and record adjusted EBITDA of $230 million at a record 21.8 percent of revenue. Overall, we achieved solid performance across our key financial metrics.”




Kadant Reports Fourth Quarter and Fiscal 2024 Results
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February 12, 2025
Page 2
Fourth Quarter 2024 Compared to 2023
Revenue increased eight percent to $258.0 million compared to $238.7 million in 2023. Organic revenue decreased five percent, which excludes a 14 percent increase from acquisitions and a one percent decrease from the unfavorable effect of foreign currency translation. Gross margin was 43.4 percent, including a 40 basis point decrease from acquisition-related costs, compared to 42.7 percent in 2023.

Net income was $24.0 million, decreasing 12 percent compared to $27.4 million in 2023. GAAP EPS decreased 12 percent to $2.04 compared to $2.33 in 2023. Adjusted EPS decreased seven percent to $2.25 compared to $2.41 in 2023. Adjusted EPS excludes $0.16 of acquisition-related costs and $0.06 of other costs in 2024. Adjusted EPS excludes $0.10 of acquisition costs, $0.04 of other income, and $0.02 of restructuring costs in 2023.

Adjusted EBITDA increased eight percent to $52.4 million compared to $48.5 million in 2023 and was 20.3 percent of revenue in both periods. Operating cash flow decreased 12 percent to $51.9 million compared to $59.2 million in 2023. Free cash flow decreased six percent to $46.3 million compared to $49.5 million in 2023.

Bookings increased 10 percent to $240.6 million compared to $218.0 million in 2023. Organic bookings decreased three percent, which excludes a 14 percent increase from acquisitions and a one percent decrease from the unfavorable effect of foreign currency translation.

Fiscal Year 2024 Compared to 2023
Revenue increased 10 percent to a record $1.053 billion compared to $957.7 million in 2023. Organic revenue decreased two percent, which excludes a 12 percent increase from acquisitions. Gross margin was 44.3 percent, including a 40 basis point decrease from acquisition-related costs, compared to 43.5 percent in 2023.

Net income was $111.6 million, decreasing four percent compared to $116.1 million in 2023. GAAP EPS decreased four percent to $9.48 compared to $9.90 in 2023. Adjusted EPS increased two percent to a record $10.28 compared to $10.04 in 2023. Adjusted EPS excludes $0.74 of acquisition-related costs and $0.06 of other costs in 2024. Adjusted EPS excludes $0.10 of acquisition costs and $0.04 of restructuring costs in 2023.

Adjusted EBITDA increased 14 percent to a record $229.7 million and represented a record 21.8 percent of revenue compared to $201.3 million and 21.0 percent of revenue in the prior year. Operating cash flow decreased six percent to $155.3 million compared to $165.5 million in 2023. Free cash flow was $134.3 million compared to $133.7 million in 2023.

Bookings increased seven percent to a record $981.1 million compared to $917.4 million in 2023. Organic bookings decreased five percent, which excludes a 13 percent increase from acquisitions and a one percent decrease from the unfavorable effect of foreign currency translation.

Summary and Outlook
“As we look ahead to the first quarter of 2025 and the full year, project activity is looking more favorable and demand for aftermarket parts has been stable as we entered the year,” continued Mr. Powell. “We expect an increase in demand for our capital equipment products benefiting our revenue in the second half of 2025. Despite macroeconomic uncertainty, we remain committed to maximizing the value we create for our customers and shareholders while accelerating our internal initiatives that have proven to drive value across our operations. For 2025, we expect revenue of $1.040 to $1.065 billion, GAAP EPS of $9.63 to $9.98 and, after excluding $0.07 of acquisition-related costs, adjusted EPS of $9.70 to $10.05. The 2025 guidance includes a negative effect from foreign currency translation compared to 2024, which is lowering revenue by $23 million and adjusted EPS by $0.32. For the first quarter of 2025, we expect revenue of $235 to $242 million, GAAP EPS of $1.81 to $2.01 and, after excluding $0.04 of acquisition-related costs, adjusted EPS of $1.85 to $2.05. Our 2025 guidance does not include any estimates related to the impact of the newly issued or proposed tariffs by the U.S. government.”
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Kadant Reports Fourth Quarter and Fiscal 2024 Results
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February 12, 2025
Page 3
Conference Call
Kadant will hold a webcast with a slide presentation for investors on Thursday, February 13, 2025, at 11:00 a.m. Eastern Standard Time to discuss its fourth quarter and full year financial performance, as well as future expectations. To listen to the call live and view the webcast, go to the “Investors” section of the Company’s website at kadant.com. Participants interested in joining the call’s live question and answer session are required to register by visiting https://register.vevent.com/register/BI2a3387599c634446890dc315133354d1 or selecting the Q&A link on our website to receive a dial-in number and unique PIN. It is recommended that you join the call 10 minutes prior to the start of the event. A replay of the webcast presentation will be available on our website through March 14, 2025.

Prior to the call, our earnings release and the slides used in the webcast presentation will be filed with the Securities and Exchange Commission and will be available at sec.gov. After the webcast, Kadant will post its updated general investor presentation incorporating the fourth quarter and full year results on its website at kadant.com under the “Investors” section.

Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including increases or decreases in revenue excluding the effect of acquisitions and foreign currency translation (organic revenue), adjusted operating income, adjusted net income, adjusted EPS, earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA, adjusted EBITDA margin, and free cash flow.

We use organic revenue to understand our trends and to forecast and evaluate our financial performance and compare revenue to prior periods. Organic revenue excludes revenue from acquisitions for the four quarterly reporting periods following the date of the acquisition and the effect of foreign currency translation. Revenue in the fourth quarter of 2024 included $33.1 million from acquisitions and an unfavorable foreign currency translation effect of $2.2 million compared to the fourth quarter of 2023. Revenue in 2024 included $115.4 million from acquisitions and an unfavorable foreign currency translation effect of $4.6 million compared to 2023. Our other non-GAAP financial measures exclude amortization expense related to acquired profit in inventory and backlog, acquisition costs, restructuring and impairment costs, relocation costs, and other income or expense, as indicated. Collectively, these items are excluded as they are not indicative of our core operating results and are not comparable to other periods, which have differing levels of incremental costs, expenditures or income, or none at all. Additionally, we use free cash flow in order to provide insight on our ability to generate cash for acquisitions and debt repayments, as well as for other investing and financing activities.

We believe these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business, operating results, or future outlook. We believe that the inclusion of such measures helps investors gain an understanding of our underlying operating performance and future prospects, consistent with how management measures and forecasts our performance, especially when comparing such results to previous periods or forecasts and to the performance of our competitors. Such measures are also used by us in our financial and operating decision-making and for compensation purposes. We also believe this information is responsive to investors' requests and gives them additional measures of our performance.

The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for the results of operations or cash flows prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this press release have limitations associated with their use as compared to the most directly comparable GAAP measures, in that they may be different from, and therefore not comparable to, similar measures used by other companies.


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Kadant Reports Fourth Quarter and Fiscal 2024 Results
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February 12, 2025
Page 4
Fourth Quarter
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:
•Pre-tax amortization of acquired profit in inventory and backlog of $2.2 million in 2024.
•Pre-tax acquisition costs of $0.3 million in 2024 and $1.4 million in 2023.
•Pre-tax indemnification asset reversal of $0.3 million in 2024.
•Pre-tax restructuring and impairment costs of $0.3 million in 2023.
•Pre-tax other costs of $0.7 million in 2024 and other income of $0.7 million in 2023.

Adjusted net income and adjusted EPS exclude:
•After-tax amortization of acquired profit in inventory and backlog of $1.7 million ($2.2 million net of tax of $0.5 million) in 2024.
•After-tax acquisition costs of $0.2 million ($0.3 million net of tax of $0.1 million) in 2024 and $1.2 million ($1.4 million net of tax of $0.2 million) in 2023.
•After-tax restructuring and impairment costs of $0.2 million ($0.3 million net of tax of $0.1 million) in 2023.
•After-tax other costs of $0.7 million in 2024 and other income of $0.5 million ($0.7 million net of tax of $0.2 million) in 2023.

Free cash flow is calculated as operating cash flow less:
•Capital expenditures of $5.6 million in 2024 and $9.8 million in 2023.

Fiscal Year
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:
•Pre-tax amortization of acquired profit in inventory and backlog of $8.4 million in 2024.
•Pre-tax acquisition costs of $2.9 million in 2024 and $1.4 million in 2023.
•Pre-tax indemnification asset reversal of $0.2 million in 2024 and $0.1 million in 2023.
•Pre-tax restructuring and impairment costs of $0.8 million in 2023.
•Pre-tax other costs of $0.7 million in 2024.

Adjusted net income and adjusted EPS exclude:
•After-tax amortization of acquired profit in inventory and backlog of $6.4 million ($8.4 million net of tax of $2.0 million) in 2024.
•After-tax acquisition costs of $2.3 million ($2.9 million net of tax of $0.6 million) in 2024 and $1.2 million ($1.4 million net of tax of $0.2 million) in 2023.
•After-tax restructuring and impairment costs of $0.5 million ($0.8 million net of tax of $0.3 million) in 2023.
•After-tax other costs of $0.7 million in 2024.

Free cash flow is calculated as operating cash flow less:
•Capital expenditures of $21.0 million in 2024 and $31.9 million in 2023.

Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in this press release.
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Kadant Reports Fourth Quarter and Fiscal 2024 Results
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February 12, 2025
Page 5
Financial Highlights (unaudited)
(In thousands, except per share amounts and percentages)
 
Three Months EndedTwelve Months Ended
Consolidated Statement of IncomeDecember 28,
2024		December 30,
2023		December 28,
2024		December 30,
2023
Revenue$258,030 $238,679 $1,053,384 $957,672 
Costs and Operating Expenses:
Cost of revenue146,170 136,695 587,236 541,366 
Selling, general, and administrative expenses70,568 59,823 279,920 236,264 
Research and development expenses3,697 3,460 14,318 13,562 
Other costs (income)
658 (320)658 723 
221,093 199,658 882,132 791,915 
Operating Income36,937 39,021 171,252 165,757 
Interest Income529 705 1,915 1,758 
Interest Expense(4,642)(1,676)(20,028)(8,398)
Other Expense, Net(21)(39)(69)(101)
Income Before Provision for Income Taxes32,803 38,011 153,070 159,016 
Provision for Income Taxes8,706 10,449 40,516 42,210 
Net Income24,097 27,562 112,554 116,806 
Net Income Attributable to Noncontrolling Interests
(65)(166)(956)(737)
Net Income Attributable to Kadant$24,032 $27,396 $111,598 $116,069 
Earnings per Share Attributable to Kadant:
Basic$2.05 $2.34 $9.51 $9.92 
Diluted$2.04 $2.33 $9.48 $9.90 
Weighted Average Shares:
Basic11,745 11,707 11,739 11,700 
Diluted 11,794 11,759 11,771 11,729 
Three Months EndedThree Months Ended
Adjusted Net Income and Adjusted Diluted EPS (a)
December 28,
2024		December 28,
2024		December 30,
2023		December 30,
2023
Net Income and Diluted EPS Attributable to Kadant, as Reported$24,032 $2.04 $27,396 $2.33 
Adjustments, Net of Tax:
Acquired Profit in Inventory and Backlog Amortization
1,664 0.14 — — 
Acquisition Costs
194 0.02 1,194 0.10 
Restructuring and Impairment Costs
— — 226 0.02 
Other Costs (Income) (g)
658 0.06 (489)(0.04)
Adjusted Net Income and Adjusted Diluted EPS (a)
$26,548 $2.25 $28,327 $2.41 
Twelve Months EndedTwelve Months Ended
 
December 28,
2024		December 28,
2024		December 30,
2023		December 30,
2023
Net Income and Diluted EPS Attributable to Kadant, as Reported$111,598 $9.48 $116,069 $9.90 
Adjustments, Net of Tax:
Acquired Profit in Inventory and Backlog Amortization
6,394 0.54 — — 
Acquisition Costs
2,320 0.20 1,194 0.10 
Restructuring and Impairment Costs
— — 521 0.04 
Other Costs (Income) (g)
658 0.06 (32)— 
Adjusted Net Income and Adjusted Diluted EPS (a)
$120,970 $10.28 $117,752 $10.04 
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Kadant Reports Fourth Quarter and Fiscal 2024 Results
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February 12, 2025
Page 6
Three Months Ended
Increase (Decrease)
Excluding Acquisitions and FX (a,b)
Revenue by Segment December 28,
2024		December 30,
2023
Increase (Decrease)
Flow Control$94,684 $87,403 $7,281 $609 
Industrial Processing101,428 86,974 14,454 1,087 
Material Handling61,918 64,302 (2,384)(13,268)
 $258,030 $238,679 $19,351 $(11,572)
Percentage of Parts and Consumables Revenue
67%
60%
Twelve Months Ended
Increase
Increase (Decrease)
Excluding Acquisitions and FX (a,b)
December 28,
2024		December 30,
2023
Flow Control$371,177 $363,451 $7,726 $(5,444)
Industrial Processing432,738 354,703 78,035 20,396 
Material Handling249,469 239,518 9,951 (30,055)
 $1,053,384 $957,672 $95,712 $(15,103)
Percentage of Parts and Consumables Revenue
66%
62%
Three Months Ended
Increase
Increase (Decrease)
Excluding Acquisitions and FX (b)
Bookings by SegmentDecember 28,
2024		December 30,
2023
Flow Control$87,436 $85,354 $2,082 $(2,657)
Industrial Processing103,607 84,130 19,477 5,464 
Material Handling 49,601 48,535 1,066 (9,032)
$240,644 $218,019 $22,625 $(6,225)
Percentage of Parts and Consumables Bookings
70%
64%
Twelve Months Ended
 
Increase
Decrease Excluding Acquisitions and FX (b)
 December 28,
2024		December 30,
2023
Flow Control$365,185 $361,216 $3,969 $(12,551)
Industrial Processing379,517 330,136 49,381 (7,008)
Material Handling236,399 226,017 10,382 (29,330)
$981,101 $917,369 $63,732 $(48,889)
Percentage of Parts and Consumables Bookings
71%
64%

Three Months EndedTwelve Months Ended
Additional Segment Information
December 28,
2024		December 30,
2023		December 28,
2024		December 30,
2023
Gross Margin:
Flow Control
51.4%
50.4%
52.5%
51.8%
Industrial Processing
39.9%
41.2%
41.8%
40.2%
Material Handling
36.7%
34.4%
36.3%
35.7%
Consolidated
43.4%
42.7%
44.3%
43.5%
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Kadant Reports Fourth Quarter and Fiscal 2024 Results
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February 12, 2025
Page 7
Three Months EndedTwelve Months Ended
Additional Segment Information (continued)
December 28,
2024		December 30,
2023		December 28,
2024		December 30,
2023
Operating Income:
Flow Control$22,091 $20,993 $91,612 $95,249 
Industrial Processing
16,563 17,313 86,623 69,281 
Material Handling8,551 10,686 34,073 40,692 
Corporate(10,268)(9,971)(41,056)(39,465)
$36,937 $39,021 $171,252 $165,757 
Adjusted Operating Income (a,c):
Flow Control$24,330 $21,301 $96,476 $95,991 
Industrial Processing17,442 17,727 90,218 70,304 
Material Handling8,934 11,061 37,743 41,194 
Corporate(10,268)(9,971)(41,056)(39,465)
$40,438 $40,118 $183,381 $168,024 
Capital Expenditures:
Flow Control$1,496 $2,031 $7,225 $5,920 
Industrial Processing
2,178 6,061 8,121 22,068 
Material Handling1,901 1,664 5,638 3,834 
Corporate— — 21 28 
$5,575 $9,756 $21,005 $31,850 
Three Months EndedTwelve Months Ended
Cash Flow and Other DataDecember 28,
2024		December 30,
2023		December 28,
2024		December 30,
2023
Operating Cash Flow$51,890 $59,234 $155,265 $165,545 
Capital Expenditures
(5,575)(9,756)(21,005)(31,850)
Free Cash Flow (a)$46,315 $49,478 $134,260 $133,695 
Depreciation and Amortization Expense$13,082 $8,380 $49,587 $33,297 

Balance Sheet Data  December 28,
2024		December 30,
2023
Assets
Cash, Cash Equivalents, and Restricted Cash $95,946 $106,453 
Accounts Receivable, net142,462 133,929 
Inventories146,092 152,677 
Contract Assets18,408 8,366 
Property, Plant, and Equipment, net170,331 140,504 
Intangible Assets279,494 159,286 
Goodwill479,169 392,084 
Other Assets98,443 82,366 
$1,430,345 $1,175,665 
Liabilities and Stockholders' Equity
Accounts Payable$51,062 $42,104 
Debt Obligations286,504 109,086 
Other Borrowings2,023 1,789 
Other Liabilities232,628 246,446 
Total Liabilities572,217 399,425 
Stockholders' Equity858,128 776,240 
$1,430,345 $1,175,665 

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Kadant Reports Fourth Quarter and Fiscal 2024 Results
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February 12, 2025
Page 8
Three Months EndedTwelve Months Ended
Adjusted Operating Income and Adjusted EBITDA Reconciliation (a) December 28,
2024		December 30,
2023		December 28,
2024		December 30,
2023
Consolidated
Net Income Attributable to Kadant$24,032 $27,396 $111,598 $116,069 
Net Income Attributable to Noncontrolling Interests
65 166 956 737 
Provision for Income Taxes8,706 10,449 40,516 42,210 
Interest Expense, Net4,113 971 18,113 6,640 
Other Expense, Net21 39 69 101 
Operating Income36,937 39,021 171,252 165,757 
Acquired Profit in Inventory Amortization (d)
1,124 — 5,189 — 
Acquired Backlog Amortization (e)
1,071 — 3,252 — 
Acquisition Costs339 1,442 2,872 1,442 
Indemnification Asset Reversal (Provision), Net (f)
309 (25)158 102 
Restructuring and Impairment Costs
— 332 — 766 
Other Costs (Income) (g)
658 (652)658 (43)
Adjusted Operating Income (a)40,438 40,118 183,381 168,024 
Depreciation and Amortization12,011 8,380 46,335 33,297 
Adjusted EBITDA (a)$52,449 $48,498 $229,716 $201,321 
Adjusted EBITDA Margin (a,h)
20.3%
20.3%
21.8%
21.0%
Flow Control
 Operating Income$22,091 $20,993 $91,612 $95,249 
Acquired Profit in Inventory Amortization (d)
981 — 1,944 — 
Acquired Backlog Amortization (e)
618 — 1,500 — 
Acquisition Costs18 — 655 — 
Indemnification Asset (Provision) Reversal, Net (f)
(36)(24)107 (24)
Restructuring and Impairment Costs
— 332 — 766 
Other Costs (g)
658 — 658 — 
Adjusted Operating Income (a)24,330 21,301 96,476 95,991 
Depreciation and Amortization2,874 2,262 10,435 9,047 
Adjusted EBITDA (a)$27,204 $23,563 $106,911 $105,038 
Adjusted EBITDA Margin (a,h)
28.7%
27.0%
28.8%
28.9%
Industrial Processing
Operating Income $16,563 $17,313 $86,623 $69,281 
Acquired Profit in Inventory Amortization (d)
139 — 2,201 — 
Acquisition Costs
361 1,066 1,203 1,066 
Indemnification Asset Reversal (f)
379 — 191 — 
Other Income (g)
— (652)— (43)
Adjusted Operating Income (a)17,442 17,727 90,218 70,304 
Depreciation and Amortization5,149 2,975 20,607 11,798 
Adjusted EBITDA (a)$22,591 $20,702 $110,825 $82,102 
Adjusted EBITDA Margin (a,h)
22.3%
23.8%
25.6%
23.1%
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Kadant Reports Fourth Quarter and Fiscal 2024 Results
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February 12, 2025
Page 9
Three Months EndedTwelve Months Ended
Adjusted Operating Income and Adjusted EBITDA Reconciliation (a)December 28,
2024		December 30,
2023		December 28,
2024		December 30,
2023
Material Handling
Operating Income $8,551 $10,686 $34,073 $40,692 
Acquired Profit in Inventory Amortization (d)
4 — 1,044 — 
Acquired Backlog Amortization (e)
453 — 1,752 — 
Acquisition Costs(40)376 1,014 376 
Indemnification Asset (Provision) Reversal, Net (f)
(34)(1)(140)126 
Adjusted Operating Income (a)8,934 11,061 37,743 41,194 
Depreciation and Amortization3,975 3,125 15,244 12,379 
Adjusted EBITDA (a)$12,909 $14,186 $52,987 $53,573 
Adjusted EBITDA Margin (a,h)
20.8%
22.1%
21.2%
22.4%
Corporate
Operating Loss$(10,268)$(9,971)$(41,056)$(39,465)
Depreciation and Amortization13 18 49 73 
EBITDA (a)$(10,255)$(9,953)$(41,007)$(39,392)
(a) Represents a non-GAAP financial measure.
(b)
Represents the increase (decrease) resulting from the exclusion of acquisitions and from the conversion of current period amounts reported in local currencies into U.S. dollars at the exchange rate of the prior period compared to the U.S. dollar amount reported in the prior period.
(c)
See reconciliation to the most directly comparable GAAP financial measure under "Adjusted Operating Income and Adjusted EBITDA Reconciliation."
(d)
Represents amortization expense within cost of revenue associated with acquired profit in inventory.
(e)
Represents intangible amortization expense associated with acquired backlog.
(f)
Represents the provision for or reversal of indemnification assets related to the establishment or release of tax reserves associated with uncertain tax positions.
(g)
Other costs (income) includes a $658 loss in the three and twelve months ended December 28, 2024 related to the recognition of a cumulative translation adjustment associated with the liquidation of a foreign subsidiary within the Flow Control segment. Other costs (income) includes $841 of other income ($631 net of tax) and $189 of relocation costs ($142 net of tax) in the three months ended December 30, 2023 and $841 of other income ($631 net of tax) and $798 of relocation costs ($599 net of tax) in the twelve months ended December 30, 2023 related to the sale and relocation of a manufacturing facility in China, all within the Industrial Processing segment.
(h)
Calculated as adjusted EBITDA divided by revenue in each period.

About Kadant
Kadant Inc. is a global supplier of technologies and engineered systems that drive Sustainable Industrial Processing®. The Company’s products and services play an integral role in enhancing efficiency, optimizing energy utilization, and maximizing productivity in process industries. Kadant is based in Westford, Massachusetts, with approximately 3,500 employees in 20 countries worldwide. For more information, visit kadant.com.

Safe Harbor Statement
The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about our future financial and operating performance, demand for our products, and economic and industry outlook. These forward-looking statements represent our expectations as of the date of this press release. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.
-more-
Kadant Reports Fourth Quarter and Fiscal 2024 Results
kadantlogo_jpg.jpg
February 12, 2025
Page 10
These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements as a result of various important factors, including those set forth under the heading "Risk Factors" in Kadant’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023 and subsequent filings with the Securities and Exchange Commission. These include risks and uncertainties relating to adverse changes in global and local economic conditions; the variability and difficulty in accurately predicting revenues from large capital equipment and systems projects; our acquisition strategy; levels of residential construction activity; reductions by our wood processing customers of their capital spending or production of oriented strand board; changes to the global timber supply; development and use of digital media; cyclical economic conditions affecting the global mining industry; demand for coal, including economic and environmental risks associated with coal; failure of our information systems or breaches of data security and cybertheft; implementation of our internal growth strategy; supply chain constraints, inflationary pressure, price increases and shortages in raw materials; competition; changes to tax laws and regulations; our ability to successfully manage our manufacturing operations; disruption in production; future restructurings; loss of key personnel and effective succession planning; protection of intellectual property; climate change; adequacy of our insurance coverage; global operations; policies of the Chinese government; the variability and uncertainties in sales of capital equipment in China; currency fluctuations; changes to government regulations and policies around the world; compliance with government regulations and policies and compliance with laws; environmental laws and regulations; environmental, health and safety laws and regulations impacting the mining industry; our debt obligations; restrictions in our credit agreement and note purchase agreement; soundness of financial institutions; fluctuations in our share price; and anti-takeover provisions.

Contacts
Investor Contact Information:
Michael McKenney, 978-776-2000
IR@kadant.com

Media Contact Information:
Wes Martz, 269-278-1715
media@kadant.com


Fourth Quarter 2024 and FY 2024 Business Review February 13, 2025 Exhibit 99.2

 
Forward-Looking Statements The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about our future financial and operating performance, demand for our products, and economic and industry outlook. These forward-looking statements represent our expectations as of February 12, 2025. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements as a result of various important factors, including those set forth under the heading "Risk Factors" in Kadant’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023 and subsequent filings with the Securities and Exchange Commission. These include risks and uncertainties relating to adverse changes in global and local economic conditions; the variability and difficulty in accurately predicting revenues from large capital equipment and systems projects; our acquisition strategy; levels of residential construction activity; reductions by our wood processing customers of their capital spending or production of oriented strand board; changes to the global timber supply; development and use of digital media; cyclical economic conditions affecting the global mining industry; demand for coal, including economic and environmental risks associated with coal; failure of our information systems or breaches of data security and cybertheft; implementation of our internal growth strategy; supply chain constraints, inflationary pressure, price increases and shortages in raw materials; competition; changes to tax laws and regulations; our ability to successfully manage our manufacturing operations; disruption in production; future restructurings; loss of key personnel and effective succession planning; protection of intellectual property; climate change; adequacy of our insurance coverage; global operations; policies of the Chinese government; the variability and uncertainties in sales of capital equipment in China; currency fluctuations; changes to government regulations and policies around the world; compliance with government regulations and policies and compliance with laws; environmental laws and regulations; environmental, health and safety laws and regulations impacting the mining industry; our debt obligations; restrictions in our credit agreement and note purchase agreement; soundness of financial institutions; fluctuations in our share price; and anti-takeover provisions. 2KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED.

 
Use of Non-GAAP Financial Measures In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including increases or decreases in revenue excluding the effect of acquisitions and foreign currency translation (organic revenue), adjusted EPS, adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA), adjusted EBITDA margin, adjusted operating income, and free cash flow. All references to EPS (earnings per share) are to our EPS as calculated on a diluted basis. Specific non-GAAP financial measures have been marked with an * (asterisk) within this presentation. A reconciliation of those numbers to the most directly comparable GAAP financial measures is shown in the Appendix and in our fourth quarter and fiscal year 2024 earnings press release issued February 12, 2025, which is available in the Investors section of our website at investor.kadant.com under the heading News Releases. We believe these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business, operating results, or future outlook. We believe the inclusion of such measures helps investors gain an understanding of our underlying operating performance and future prospects, consistent with how management measures and forecasts our performance, especially when comparing such results to previous periods or forecasts and to the performance of our competitors. Such measures are also used by us in our financial and operating decision-making and for compensation purposes. We also believe this information is responsive to investors' requests and gives them additional measures of our performance. The non-GAAP financial measures included in this presentation are not meant to be considered superior to or a substitute for the results of operations or cash flows prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this presentation have limitations associated with their use as compared to the most directly comparable GAAP measures, in that they may be different from, and therefore not comparable to, similar measures used by other companies. 3 KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED.

 
Business Review Jeffrey L. Powell, President & CEO 4

 
Operational Highlights 5 KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. • Stable demand led to a solid finish to a record-setting year • Solid margin performance and strong cash flow • Named by Newsweek as one of America's Most Responsible Companies for the fifth consecutive year

 
Q4 2024 Performance 6 ($ in millions, except per share amounts) Q4 24 Q4 23 Change Revenue $258.0 $238.7 +8.1% Net Income $24.0 $27.4 -12.3% Adjusted EBITDA* $52.4 $48.5 +8.1% Adjusted EBITDA Margin* 20.3 % 20.3% — bps EPS $2.04 $2.33 -12.4% Adjusted EPS* $2.25 $2.41 -6.6% Operating Cash Flow $51.9 $59.2 -12.4% Free Cash Flow* $46.3 $49.5 -6.4% Bookings $240.6 $218.0 +10.4% HIGHLIGHTS • Revenue growth led by contributions from recent acquisitions • Solid demand for aftermarket parts continued while capital activity softened in the fourth quarter • Industrial demand, particularly in Europe and Asia, continues to be impacted by economic headwinds KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED.

 
FY 2024 Performance 7 ($ in millions, except per share amounts) FY 24 FY 23 Change Revenue $1,053.4 $957.7 +10.0% Net Income $111.6 $116.1 -3.9% Adjusted EBITDA* $229.7 $201.3 +14.1% Adjusted EBITDA Margin* 21.8 % 21.0 % +80 bps EPS $9.48 $9.90 -4.2% Adjusted EPS* $10.28 $10.04 +2.4% Operating Cash Flow $155.3 $165.5 -6.2% Free Cash Flow* $134.3 $133.7 +0.4% Bookings $981.1 $917.4 +6.9% HIGHLIGHTS • Record performance across many financial metrics including revenue and bookings • Strong operating performance led to record adjusted EPS* and adjusted EBITDA* • Internal initiatives and customer-focused innovations delivered solid gains KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED.

 
$85.4 $94.7 $94.1 $89.0 $87.4 4Q23 1Q24 2Q24 3Q24 4Q24 8 ($ in millions) Q4 24 Q4 23 Change Revenue $94.7 $87.4 +8.3% Bookings $87.4 $85.4 +2.4% Adjusted EBITDA* $27.2 $23.6 +15.5% Adjusted EBITDA Margin* 28.7 % 27.0% +170 bps HIGHLIGHTS • Stronger performance in North America offset softness in Europe • Aftermarket parts revenue increased 12% and benefited from our recent acquisition • Adjusted EBITDA* performance was solid • Favorable long-term market trends expected to drive new opportunities ($ in millions) KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. BOOKINGS Flow Control

 
9 ($ in millions) Q4 24 Q4 23 Change Revenue $101.4 $87.0 +16.6% Bookings $103.6 $84.1 +23.2% Adjusted EBITDA* $22.6 $20.7 +9.1% Adjusted EBITDA Margin* 22.3 % 23.8% -150 bps HIGHLIGHTS • Strong demand for aftermarket parts in Q4 fueled bookings increase • Aftermarket parts revenue represented 67% of total revenue • Capital project activity remains healthy although project timing can be uncertain KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. Industrial Processing $84.1 $89.9 $96.7 $89.3 $103.6 4Q23 1Q24 2Q24 3Q24 4Q24 BOOKINGS ($ in millions)

 
10 ($ in millions) Q4 24 Q4 23 Change Revenue $61.9 $64.3 -3.7% Bookings $49.6 $48.5 +2.2% Adjusted EBITDA* $12.9 $14.2 -9.0% Adjusted EBITDA Margin* 20.8 % 22.1% -130 bps HIGHLIGHTS • Aftermarket parts revenue was strong and represented 61% of total revenue in Q4 • Lower capital revenue resulted in a decrease in operating leverage • Capital project activity expected to strengthen as the year progresses KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. Material Handling $48.5 $63.9 $60.9 $62.0 $49.6 4Q23 1Q24 2Q24 3Q24 4Q24 BOOKINGS ($ in millions)

 
Business Outlook • Project activity expected to be more favorable although timing remains uncertain • Foreign currency translation likely to temper financial results • Our strong cash flow and healthy balance sheet position us well to capitalize on new opportunities 11 KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED.

 
12 Financial Review Michael J. McKenney, EVP & CFO

 
Q4 2024 Financial Performance ($ in millions, except per share amounts) Q4 24 Q4 23 Revenue $258.0 $238.7 Gross Margin 43.4% 42.7% SG&A % of Revenue 27.3% 25.1% Operating Income $36.9 $39.0 Net Income $24.0 $27.4 Adjusted EBITDA* $52.4 $48.5 EPS $2.04 $2.33 Adjusted EPS* $2.25 $2.41 Operating Cash Flow $51.9 $59.2 HIGHLIGHTS • 67% parts and consumables revenue • Adjusted EBITDA margin* of 20.3% • Adjusted EPS* exceeded guidance • Free cash flow* of $46.3 million KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 13

 
FY 2024 Financial Performance ($ in millions, except per share amounts) FY 24 FY 23 Revenue $1,053.4 $957.7 Gross Margin 44.3% 43.5% SG&A % of Revenue 26.6% 24.7% Operating Income $171.3 $165.8 Net Income $111.6 $116.1 Adjusted EBITDA* $229.7 $201.3 EPS $9.48 $9.90 Adjusted EPS* $10.28 $10.04 Operating Cash Flow $155.3 $165.5 HIGHLIGHTS • Record revenue • Record adjusted EBITDA* and adjusted EBITDA margin* • Adjusted EPS* was a record and exceeded guidance • Free cash flow* of $134.3 million KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 14

 
$115.9 $159.4 $189.1 $201.3 $229.7 $55.2 $84.0 $120.9 $116.1 $111.6 18.3% 20.3% 20.9% 21.0% 21.8% NET INCOME ADJUSTED EBITDA* ADJ. EBITDA MARGIN* 2020 2021 2022 2023 2024 Adjusted EBITDA* and Cash Flow Metrics KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 15 FY ADJUSTED EBITDA* ($ in millions) $59.2 $22.8 $28.1 $52.5 $51.9 $49.5 $16.6 $23.1 $48.3 $46.3 FREE CASH FLOW* OPERATING CASH FLOW 4Q23 1Q24 2Q24 3Q24 4Q24 CASH FLOW ($ in millions) $92.9 $162.4 $102.6 $165.5 $155.3 $85.3 $149.6 $74.4 $133.7 $134.3 FREE CASH FLOW* OPERATING CASH FLOW 2020 2021 2022 2023 2024 FY CASH FLOW ($ in millions)($ in millions) $48.5 $52.2 $61.8 $63.3 $52.4 $27.4 $24.7 $31.3 $31.6 $24.0 20.3% 21.0% 22.5% 23.3% 20.3% NET INCOME ADJUSTED EBITDA* ADJ. EBITDA MARGIN* 4Q23 1Q24 2Q24 3Q24 4Q24 ADJUSTED EBITDA* ($ in millions)

 
2Q21 ADJ EPS* 2Q22 ADJ EPS* KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 4Q23 to 4Q24 Adjusted EPS* 16 $2.41 $0.26 $0.17 $(0.36) $(0.20) $(0.02) $(0.01) $2.25 4Q23 ADJ EPS* ACQUISITIONS GROSS MARGIN REVENUE INTEREST EXPENSE OPERATING EXPENSES TAX PROVISION 4Q24 ADJ EPS*

 
2Q21 ADJ EPS* 2Q22 ADJ EPS* KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. FY 2023 to FY 2024 Adjusted EPS* 17 $10.04 $0.88 $0.87 $0.02 $(0.72) $(0.54) $(0.24) $(0.03) $10.28 2023 ADJ EPS* GROSS MARGIN ACQUISITIONS TAX PROVISION INTEREST EXPENSE REVENUE OPERATING EXPENSES CHANGE IN SHARES 2024 ADJ EPS*

 
Key Liquidity Metrics KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 18 ($ in millions) Q4 24 Q3 24 Q4 23 Cash, cash equivalents, and restricted cash $95.9 $89.7 $106.5 Debt $286.5 $324.5 $109.1 Lease obligations $2.0 $1.9 $1.8 Net Debt $192.6 $236.7 $4.4 Leverage ratio1 0.99 1.13 0.27 Working capital % LTM revenue2 15.0% 17.2% 12.8% Cash conversion days3 122 129 130

 
Guidance KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 19 • FY 2025 revenue of $1.040 to $1.065 billion • FY 2025 GAAP EPS of $9.63 to $9.98 • FY 2025 adjusted EPS* of $9.70 to $10.05 • Q1 2025 revenue of $235 to $242 million • Q1 2025 GAAP EPS of $1.81 to $2.01 • Q1 2025 adjusted EPS* of $1.85 to $2.05

 
Questions & Answers To participate in the live Q&A session, please go to investor.kadant.com and click on the Q&A session link to receive a dial-in number and unique PIN. Please mute the audio on your computer. 20

 
2025 Key Priorities 21 ENABLE SUSTAINABLE INDUSTRIAL PROCESSING® DELIVER EXCEPTIONAL STAKEHOLDER VALUE PROVIDE STRONG CASH FLOW CAPITALIZE ON NEW OPPORTUNITIES KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED.

 
INVESTOR RELATIONS CONTACT Michael McKenney, 978-776-2000 IR@kadant.com MEDIA RELATIONS CONTACT Wes Martz, 269-278-1715 media@kadant.com 22

 
Fourth Quarter and FY 2024 Business Review 23 Appendix February 13, 2025

 
Revenue by Customer Location ($ in thousands) Q4 24 Q4 23 Change Change Excluding Acquisitions and FX* North America $159,796 $137,040 $22,756 $(6,560) Europe 53,852 63,881 (10,029) (11,227) Asia 27,466 25,481 1,985 1,611 Rest of World 16,916 12,277 4,639 4,604 Total $258,030 $238,679 $19,351 $(11,572) KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 24 ($ in thousands) FY 24 FY 23 Change Change Excluding Acquisitions and FX* North America $661,016 $538,658 $122,358 $15,538 Europe 230,141 245,154 (15,013) (19,179) Asia 101,714 113,511 (11,797) (11,487) Rest of World 60,513 60,349 164 25 Total $1,053,384 $957,672 $95,712 $(15,103)

 
Percentage of Parts and Consumables Revenue Q4 24 Q4 23 FY 24 FY 23 Flow Control 71 % 68 % 72 % 69 % Industrial Processing 67 % 64 % 65 % 62 % Material Handling 61 % 45 % 58 % 53 % Consolidated 67 % 60 % 66 % 62 % KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 25

 
Gross Margin and SG&A KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 26 25.1% 28.2% 25.5% 25.4% 27.3% 4Q23 1Q24 2Q24 3Q24 4Q24 42.7% 44.6% 44.4% 44.7% 43.4% 4Q23 1Q24 2Q24 3Q24 4Q24 SG&A (as a % of revenue) GROSS MARGIN 43.7% 42.9% 43.1% 43.5% 44.3% 2020 2021 2022 2023 2024 28.6% 26.5% 24.8% 24.7% 26.6% 2020 2021 2022 2023 2024 FY GROSS MARGIN FY SG&A (as a % of revenue)

 
Adjusted EPS* Reconciliation Q4 24 Q4 23 FY 24 FY 23 EPS, as Reported $2.04 $2.33 $9.48 $9.90 Adjustments, Net of Tax Acquired Profit in Inventory and Backlog Amortization 0.14 — 0.54 — Acquisition Costs 0.02 0.10 0.20 0.10 Restructuring and Impairment Costs — 0.02 — 0.04 Other Costs (Income) 0.06 (0.04) 0.06 — Adjusted EPS* $2.25 $2.41 $10.28 $10.04 KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 27 ($ in thousands) Q4 24 Q4 23 FY 24 FY 23 Operating Cash Flow $51,890 $59,234 $155,265 $165,545 Capital Expenditures (5,575) (9,756) (21,005) (31,850) Free Cash Flow* $46,315 $49,478 $134,260 $133,695 Free Cash Flow* Reconciliation

 
Adjusted EBITDA* Reconciliation ($ in thousands) Q4 24 Q4 23 FY 24 FY 23 Net Income Attributable to Kadant $24,032 $27,396 $111,598 $116,069 Net Income Attributable to Noncontrolling Interests 65 166 956 737 Provision for Income Taxes 8,706 10,449 40,516 42,210 Interest Expense, Net 4,113 971 18,113 6,640 Other Expense, Net 21 39 69 101 Acquired Profit in Inventory Amortization 1,124 — 5,189 — Acquired Backlog Amortization 1,071 — 3,252 — Acquisition Costs 339 1,442 2,872 1,442 Indemnification Asset Reversal (Provision), Net 309 (25) 158 102 Restructuring and Impairment Costs — 332 — 766 Other Costs (Income) 658 (652) 658 (43) Depreciation and Amortization 12,011 8,380 46,335 33,297 Adjusted EBITDA* $52,449 $48,498 $229,716 $201,321 Adjusted EBITDA Margin* 20.3% 20.3% 21.8% 21.0% KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 28

 
Notes PRESENTATION NOTES • All references to EPS (earnings per share) are to our EPS as calculated on a diluted basis. • Percent change in slides 6-10 is calculated using actual numbers reported in our press release dated February 12, 2025. FOOTNOTES 1) Leverage ratio is calculated by dividing total debt by EBITDA. For purposes of this calculation, EBITDA is calculated by adding or subtracting certain items from Adjusted EBITDA, as required by our amended and restated credit facility (“Credit Facility”). Our Credit Facility defines total debt as debt less worldwide cash of up to $50 million. 2) Working capital is defined as current assets less current liabilities, excluding cash and debt. LTM is defined as last 12 months. 3) Cash conversion days is based on days in receivables plus days in inventory less days in accounts payable. KAI 4Q24 BUSINESS REVIEW– FEBRUARY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 29

 
v3.25.0.1
Document and Entity Information
Feb. 12, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 12, 2025
Entity Registrant Name KADANT INC.
Entity File Number 001-11406
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 52-1762325
Entity Address, Address Line One One Technology Park Drive
Entity Address, City or Town Westford
Entity Address, State or Province MA
Entity Address, Postal Zip Code 01886
City Area Code 978
Local Phone Number 776-2000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $.01 par value
Trading Symbol KAI
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000886346
Amendment Flag false
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