kai-20250329

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 29, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to _________

Commission file number 001-11406

KADANT INC.

(Exact name of registrant as specified in its charter)


Delaware									52-1762325
(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)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $.01 par value

KAI

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 25, 2025, the registrant had 11,775,859 shares of common stock outstanding.

Table of Contents

Kadant Inc.

Report on Form 10-Q

For the Quarterly Period Ended March 29, 2025

Table of Contents


		Page
PART I: Financial Information

Item 1.	Financial Statements (unaudited)

	Condensed Consolidated Balance Sheet as of March 29, 2025 and December 28, 2024	3

	Condensed Consolidated Statement of Income for the three-month periods ended March 29, 2025 and March 30, 2024	4

	Condensed Consolidated Statement of Comprehensive Income for the three-month periods ended March 29, 2025 and March 30, 2024	5

	Condensed Consolidated Statement of Cash Flows for the three-month periods ended March 29, 2025 and March 30, 2024	6

	Condensed Consolidated Statement of Stockholders' Equity for the three-month periods ended March 29, 2025 and March 30, 2024	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29

Item 4.	Controls and Procedures	29

PART II: Other Information

Item 1A.	Risk Factors	30

Item 5.	Other Information	31

Item 6.	Exhibits	32

Table of Contents

PART 1 – FINANCIAL INFORMATION

Item 1 – Financial Statements

KADANT INC.

Condensed Consolidated Balance Sheet

(Unaudited)


	March 29, 2025		December 28, 2024
(In thousands, except share and per share amounts)
Assets
Current Assets:
Cash and cash equivalents	$	91,678	$	94,660
Restricted cash	2,127		1,286
Accounts receivable, net of allowances of $4,300 and $4,403	145,907		142,462
Inventories	153,544		146,092
Contract assets	12,222		18,408
Other current assets	41,252		39,418
Total Current Assets	446,730		442,326
Property, Plant, and Equipment, net of accumulated depreciation of $152,021 and $145,359	170,548		170,331
Other Assets	58,878		59,025
Intangible Assets, Net (Note 1)	274,782		279,494
Goodwill (Note 1)	484,501		479,169
Total Assets	$	1,435,439	$	1,430,345

Liabilities and Stockholders' Equity
Current Liabilities:
Current maturities of long-term obligations (Note 4)	$	3,378	$	3,376
Accounts payable	49,305		51,062
Accrued payroll and employee benefits	34,837		43,815
Accrued warranty costs	10,116		10,664
Customer deposits	35,761		35,887
Advanced billings	10,316		7,641
Other current liabilities	36,910		39,120
Total Current Liabilities	180,623		191,565
Long-Term Obligations (Note 4)	273,498		285,151
Long-Term Deferred Income Taxes	42,643		41,850
Other Long-Term Liabilities	52,105		53,651

Commitments and Contingencies (Note 9)

Stockholders' Equity:
Preferred stock, $.01 par value, 5,000,000 shares authorized; none issued	—		—
Common stock, $.01 par value, 150,000,000 shares authorized; 14,624,159 shares issued	146		146
Capital in excess of par value	128,272		130,180
Retained earnings	879,752		859,693
Treasury stock at cost, 2,848,300 and 2,878,080 shares	(69,795)		(70,524)
Accumulated other comprehensive items (Note 6)	(62,424)		(72,368)
Total Kadant Stockholders' Equity	875,951		847,127
Noncontrolling interests	10,619		11,001
Total Stockholders' Equity	886,570		858,128
Total Liabilities and Stockholders' Equity	$	1,435,439	$	1,430,345

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

KADANT INC.

Condensed Consolidated Statement of Income

(Unaudited)


	Three Months Ended
	March 29, 2025		March 30, 2024
(In thousands, except per share amounts)
Revenue (Notes 1 and 8)	$	239,210	$	248,975

Costs and Operating Expenses:
Cost of revenue	128,880		138,013
Selling, general, and administrative expenses	71,221		70,305
Research and development expenses	3,523		3,730

	203,624		212,048
Operating Income	35,586		36,927
Interest Income	517		611
Interest Expense	(3,822)		(4,669)
Other Expense, Net	(16)		(30)
Income Before Provision for Income Taxes	32,265		32,839
Provision for Income Taxes (Note 3)	7,828		7,854
Net Income	24,437		24,985
Net Income Attributable to Noncontrolling Interests	(374)		(296)
Net Income Attributable to Kadant	$	24,063	$	24,689

Earnings per Share Attributable to Kadant (Note 2)
Basic	$	2.05	$	2.11
Diluted	$	2.04	$	2.10

Weighted Average Shares (Note 2)
Basic	11,760		11,724
Diluted	11,776		11,744

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

KADANT INC.

Condensed Consolidated Statement of Comprehensive Income

(Unaudited)


	Three Months Ended
	March 29, 2025		March 30, 2024
(In thousands)
Net Income	$	24,437	$	24,985
Other Comprehensive Items:
Foreign currency translation adjustment	10,009		(10,222)
Post-retirement liability adjustments, net (net of tax of $1 and $0)	4		1
Deferred gain on cash flow hedges (net of tax of $0 and $13)	—		38
Other comprehensive items	10,013		(10,183)
Comprehensive Income	34,450		14,802
Comprehensive Income Attributable to Noncontrolling Interests	(443)		(224)
Comprehensive Income Attributable to Kadant	$	34,007	$	14,578

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

KADANT INC.

Condensed Consolidated Statement of Cash Flows

(Unaudited)


	Three Months Ended
	March 29, 2025		March 30, 2024
(In thousands)
Operating Activities
Net income attributable to Kadant	$	24,063	$	24,689
Net income attributable to noncontrolling interests	374		296

Net income	24,437		24,985
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,013		11,739
Stock-based compensation expense	2,757		2,415
(Recovery of) provision for bad debts	(240)		413

Other items, net	2,337		803
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable	(1,068)		(7,956)
Contract assets	6,310		(2,425)
Inventories	(5,516)		(6,721)
Other assets	(1,368)		609
Accounts payable	(1,658)		15,036
Customer deposits	(827)		(778)
Other liabilities	(14,342)		(15,289)


Net cash provided by operating activities	22,835		22,831

Investing Activities
Acquisitions, net of cash acquired	—		(232,261)
Purchases of property, plant, and equipment	(3,836)		(6,271)
Proceeds from sale of property, plant, and equipment	—		1,269


Net cash used in investing activities	(3,836)		(237,263)

Financing Activities
Proceeds from issuance of long-term obligations	8,000		234,000
Repayment of short- and long-term obligations	(22,563)		(33,450)
Tax withholding payments related to stock-based compensation	(6,036)		(5,855)
Dividends paid	(3,762)		(3,395)
Proceeds from issuance of Company common stock	2,101		1,605
Dividend paid to noncontrolling interest	(825)		—


Net cash (used in) provided by financing activities	(23,085)		192,905

Exchange Rate Effect on Cash, Cash Equivalents, and Restricted Cash	1,945		(2,308)

Decrease in Cash, Cash Equivalents, and Restricted Cash	(2,141)		(23,835)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	95,946		106,453
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	93,805	$	82,618

See Note 1, Nature of Operations and Summary of Significant Accounting Policies,

under the heading Supplemental Cash Flow Information for further details.

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

KADANT INC.

Condensed Consolidated Statement of Stockholders' Equity

(Unaudited)


	Three Months Ended March 29, 2025
(In thousands, except share and per share amounts)	Common Stock			Capital in Excess of Par Value		Retained Earnings		Treasury Stock			Accumulated Other Comprehensive Items		Noncontrolling Interests		Total Stockholders' Equity
	Shares	Amount						Shares	Amount
Balance at December 28, 2024	14,624,159	$	146	$	130,180	$	859,693	2,878,080	$	(70,524)	$	(72,368)	$	11,001	$	858,128
Net income	—	—		—		24,063		—	—		—		374		24,437
Dividend declared – Common Stock, $0.34 per share	—	—		—		(4,004)		—	—		—		—		(4,004)
Activity under stock plans	—	—		(1,908)		—		(29,780)	729		—		—		(1,179)


Dividend paid to noncontrolling interest	—	—		—		—		—	—		—		(825)		(825)
Other comprehensive items	—	—		—		—		—	—		9,944		69		10,013
Balance at March 29, 2025	14,624,159	$	146	$	128,272	$	879,752	2,848,300	$	(69,795)	$	(62,424)	$	10,619	$	886,570

Three Months Ended March 30, 2024

(In thousands, except share and per share amounts)

Common
Stock

Capital in
Excess of Par Value

Retained Earnings

Treasury
Stock

Accumulated
Other
Comprehensive Items

Noncontrolling Interests

Total
Stockholders' Equity

Amount

SEC Form 10-Q filed by Kadant Inc