Kadant Stock Price, News & Analysis

Kadant Inc. (NYSE: KAI) reported strong financial results for Q2 2024:

• Revenue increased 12% to a record $275 million
• Net income increased 5% to $31.3 million
• GAAP EPS increased 5% to $2.66
• Adjusted EPS increased 11% to a record $2.81
• Adjusted EBITDA was a record $62 million (22.5% of revenue)
• Bookings increased 17% to $252 million

The company raised its full-year 2024 guidance:

• Revenue of $1.045 to $1.065 billion (up from $1.040-$1.065 billion)
• Adjusted EPS of $9.80 to $10.05 (up from $9.75-$10.05)
• GAAP EPS of $9.20 to $9.45

Kadant Inc. (NYSE: KAI) has announced its plans to release the 2024 second quarter results after market close on Tuesday, July 30, 2024. The company will hold a webcast on Wednesday, July 31, 2024, at 11:00 a.m. eastern time to discuss its financial performance and future expectations.

Interested participants can access the live webcast through the "Investors" section of Kadant's website. Those wishing to join the live Q&A session must register in advance to receive a dial-in number and unique PIN. The company recommends joining the call 10 minutes before the event starts. A replay of the webcast will be available on the website until August 30, 2024.

Kadant (NYSE: KAI) has acquired Dynamic Sealing Technologies (DSTI) for approximately $55 million in cash, with financing from its revolving credit facility. DSTI, based in Andover, Minnesota, specializes in engineered fluid sealing and transfer solutions for rotating applications, serving industries like defense, energy, medical, and factory automation. The acquisition, which includes DSTI's $25 million revenue for the twelve months ending March 31, 2024, will expand Kadant's Flow Control segment. Both Kadant's CEO, Jeffrey L. Powell, and DSTI's president, Jeffrey S. Meister, expressed enthusiasm about the integration. A conference call will be held on June 4, 2024, to discuss the acquisition further.

Kadant (NYSE: KAI) has announced that its Board of Directors has authorized a share repurchase program of up to $50 million, effective from May 16, 2024, through May 16, 2025. This allows the company to buy back its equity securities in public or private transactions, including those under Securities Exchange Act Rule 10b-5-1 trading plans. The timing and volume of the repurchases will depend on market conditions, credit agreement limitations, and other factors. Notably, the company has yet to repurchase any shares under the current $50 million authorization expiring on May 18, 2024.

Kadant (NYSE: KAI) has announced a quarterly cash dividend of $0.32 per share, approved by its Board of Directors.

The dividend is scheduled to be paid on August 8, 2024, to stockholders recorded by the close of business on July 11, 2024.

Future dividends will be subject to the Board's approval and may change according to business needs or market conditions.

Kadant Inc. reported a record revenue of $249 million in the first quarter of 2024, marking an 8% increase year over year. However, the company saw a decrease in net income and EPS, with operating cash flow falling by 38%. The aftermarket parts segment performed well, offsetting flat capital equipment revenue. Kadant maintains revenue and EPS guidance for the full year 2024, expecting revenue of $1.040 to $1.065 billion and adjusted EPS of $9.75 to $10.05.