Kadant (KAI) Q2 2025 Earnings Call Transcript

Image source: The Motley Fool.Need a quote from one of our analysts? Email pr@fool.comKadant (NYSE:KAI) reported sequential improvement in capital project bookings and record aftermarket parts sales in the second quarter, supporting future revenue and backlog expansion. Management cited tariff-induced market uncertainty as a constraint on near-term revenue conversion, with gross margin benefiting from an elevated aftermarket mix but expected to moderate to the 44% range as capital equipment orders increase in the second half, per guidance. The company closed the Babini acquisition, targeting strategic integration in upcycling and dewatering, and stated it will be initially EPS dilutive. The flow control segment achieved 4% revenue growth and a 28.9% adjusted EBITDA margin, while industrial processing's 9% bookings growth contrasted with a 16% revenue decline, highlighting the lag between orders and shipments. Capital project activity is forecast to recover, particularly in fiber processing, with large projects in the pipeline for late 2025. Cash flow and net debt improvement provide operational flexibility, with over $360 million in borrowing capacity reported as of the second quarter.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool