Kadant Reports Third Quarter 2025 Results with Stable Revenue and Declining Net Income

Kadant Inc. reported flat revenue of $272 million for Q3 2025, matching the prior year period, while gross margin improved by 50 basis points to 45.2%. Despite this, net income decreased 12% to $28 million, and GAAP earnings per share (EPS) fell 12% to $2.35. Adjusted EPS declined 9% to $2.59, with adjusted EBITDA dropping 8% to $58 million, representing 21.4% of revenue. Operating cash flow declined 10% to $47 million. Management noted softness in capital equipment demand and global trade uncertainties but highlighted strong performance in the aftermarket parts business. For 2025, Kadant revised its revenue guidance up to $1.036-$1.046 billion and maintained adjusted EPS guidance of $9.05-$9.25, anticipating improved order activity in Q4. The company continues to focus on sustainable industrial processing and operational efficiency.