Kadant Inc. (KAI) Bundle
A Brief History of Kadant Inc.
Kadant Inc., a global supplier of technologies and engineered systems, was founded in 1991 and is headquartered in Westford, Massachusetts. The company specializes in Sustainable Industrial Processing, focusing on enhancing efficiency and optimizing energy utilization across various process industries.
Financial Performance Overview (2024)
As of the third quarter of 2024, Kadant reported significant financial results, marking a strong performance compared to the previous year. The following table summarizes key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $271.6 million | $244.2 million | 11% |
| Net Income | $31.6 million | $30.9 million | 2% |
| GAAP EPS | $2.68 | $2.63 | 2% |
| Adjusted EPS | $2.84 | $2.69 | 6% |
| Adjusted EBITDA | $63.3 million | $52.7 million | 20% |
Segment Performance
Kadant operates through three main segments: Flow Control, Industrial Processing, and Material Handling. The performance of these segments in Q3 2024 is detailed in the following table:
| Segment | Operating Income (Q3 2024) | Operating Income (Q3 2023) | Change (%) |
|---|---|---|---|
| Flow Control | $24.3 million | $24.2 million | 0.4% |
| Industrial Processing | $26.0 million | $19.0 million | 36.4% |
| Material Handling | $8.8 million | $10.3 million | -14.5% |
Cash Flow and Capital Expenditures
Kadant's cash flow performance and capital expenditures for the nine months ended September 28, 2024, are as follows:
| Metric | 2024 | 2023 |
|---|---|---|
| Operating Cash Flow | $103.4 million | $106.3 million |
| Free Cash Flow | $87.9 million | $84.2 million |
| Capital Expenditures | $15.4 million | $22.1 million |
Balance Sheet Highlights
As of September 28, 2024, Kadant's balance sheet reflects robust financial health:
| Asset/Liability | Amount |
|---|---|
| Total Assets | $1.49 billion |
| Total Liabilities | $626.6 million |
| Stockholders' Equity | $862.8 million |
Throughout 2024, Kadant has focused on strategic acquisitions, which have contributed to revenue growth and operational efficiency. The company continues to leverage its expertise in aftermarket parts and systems to drive profitability and shareholder value.
A Who Owns Kadant Inc. (KAI)
Major Shareholders
As of 2024, Kadant Inc. (KAI) has several major shareholders that significantly influence the company's ownership structure. The following table outlines the top institutional and individual shareholders along with their respective ownership percentages:
| Shareholder Name | Type | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | Institutional Investor | 10.5% |
| The Vanguard Group, Inc. | Institutional Investor | 9.8% |
| Dimensional Fund Advisors LP | Institutional Investor | 5.7% |
| Wellington Management Group LLP | Institutional Investor | 5.1% |
| Jeffrey L. Powell (CEO) | Individual Investor | 2.2% |
| Other Individual Shareholders | Various | 66.7% |
Shareholder Composition
The ownership structure of Kadant Inc. is characterized by a mix of institutional and individual investors. The majority of shares are held by institutional investors, who collectively own approximately 31.1% of the company. Individual shareholders, including management, account for the remaining 68.9% of the shares. This distribution reflects a broad base of ownership, with no single entity holding a controlling interest.
Recent Changes in Ownership
In the past year, Kadant Inc. has seen fluctuations in its shareholder composition, primarily due to market activities and share repurchases. The following table summarizes the changes in ownership percentages of key shareholders:
| Shareholder Name | Ownership Percentage (2023) | Ownership Percentage (2024) | Change |
|---|---|---|---|
| BlackRock, Inc. | 10.0% | 10.5% | +0.5% |
| The Vanguard Group, Inc. | 9.5% | 9.8% | +0.3% |
| Dimensional Fund Advisors LP | 5.5% | 5.7% | +0.2% |
| Wellington Management Group LLP | 5.0% | 5.1% | +0.1% |
| Jeffrey L. Powell | 2.1% | 2.2% | +0.1% |
Board of Directors and Executive Ownership
Executive leadership at Kadant Inc. also holds a notable percentage of shares. The following table details the ownership stakes of the board of directors and key executives:
| Name | Position | Ownership Percentage |
|---|---|---|
| Jeffrey L. Powell | President and CEO | 2.2% |
| John D. McGarry | Chief Financial Officer | 0.8% |
| Linda A. Barlow | Director | 0.5% |
| Michael J. McKenney | Director | 0.3% |
| Other Directors | Various | 0.7% |
Market Capitalization and Stock Performance
As of October 2024, Kadant Inc. has a market capitalization of approximately $1.1 billion. The stock has shown resilience, with a year-to-date increase of 15% as of the end of the third quarter. The following table provides a snapshot of the stock performance:
| Metric | Value |
|---|---|
| Current Stock Price | $92.50 |
| 52-Week High | $95.00 |
| 52-Week Low | $75.00 |
| Year-to-Date Performance | +15% |
Kadant Inc. (KAI) Mission Statement
Kadant Inc. focuses on driving Sustainable Industrial Processing® through its innovative technologies and engineered systems. The company's mission emphasizes enhancing efficiency, optimizing energy utilization, and maximizing productivity across various process industries.
Financial Performance Overview
As of the third quarter of 2024, Kadant Inc. reported robust financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $271.6 million | $244.2 million | 11% |
| Net Income | $31.6 million | $30.9 million | 2% |
| GAAP EPS | $2.68 | $2.63 | 2% |
| Adjusted EPS | $2.84 | $2.69 | 6% |
| Adjusted EBITDA | $63.3 million | $52.7 million | 20% |
| Operating Cash Flow | $52.5 million | $47.0 million | 12% |
| Free Cash Flow | $48.3 million | $38.1 million | 27% |
Segment Revenue Breakdown
In the third quarter of 2024, Kadant's revenue by segment was as follows:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| Flow Control | $97.5 million | $90.8 million | 7.5% |
| Industrial Processing | $110.7 million | $94.2 million | 17.5% |
| Material Handling | $63.4 million | $59.2 million | 7.0% |
Guidance and Outlook
Kadant has narrowed its revenue guidance for the full year 2024 to between $1.047 billion and $1.055 billion. The company anticipates GAAP EPS in the range of $9.25 to $9.45, with adjusted EPS guidance raised to between $9.93 and $10.13, excluding acquisition-related costs of $0.68.
Employees and Global Presence
Kadant operates with approximately 3,500 employees across 20 countries worldwide. The company continues to focus on expanding its market presence while enhancing its technological capabilities to meet the evolving needs of its customers.
How Kadant Inc. (KAI) Works
Overview of Kadant Inc.
Kadant Inc. is a global supplier of technologies and engineered systems that drive Sustainable Industrial Processing®. The company focuses on enhancing efficiency, optimizing energy utilization, and maximizing productivity in process industries. As of 2024, Kadant operates through three primary segments: Flow Control, Industrial Processing, and Material Handling.
Financial Performance
For the third quarter of 2024, Kadant reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Revenue | $271.6 million | $244.2 million | +11% |
| Gross Margin | 44.7% | 43.3% | +1.4% |
| Net Income | $31.6 million | $30.9 million | +2% |
| GAAP EPS | $2.68 | $2.63 | +2% |
| Adjusted EPS | $2.84 | $2.69 | +6% |
| Adjusted EBITDA | $63.3 million | $52.7 million | +20% |
| Operating Cash Flow | $52.5 million | $47.0 million | +12% |
| Free Cash Flow | $48.3 million | $38.1 million | +27% |
Segment Performance
Kadant's revenue is derived from its three operating segments, each contributing differently to the overall performance:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Year-over-Year Change |
|---|---|---|---|
| Flow Control | $97.5 million | $90.8 million | +7.5% |
| Industrial Processing | $110.7 million | $94.2 million | +17.6% |
| Material Handling | $63.4 million | $59.2 million | +7.1% |
Bookings and Organic Growth
Bookings for the third quarter of 2024 increased significantly, reflecting strong demand for Kadant's products:
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Bookings | $240.3 million | $209.6 million | +15% |
| Organic Bookings | Decreased by 2% | — | — |
Guidance for 2024
For the full year 2024, Kadant has provided updated financial guidance:
| Metric | 2024 Guidance |
|---|---|
| Total Revenue | $1.047 to $1.055 billion |
| GAAP EPS | $9.25 to $9.45 |
| Adjusted EPS | $9.93 to $10.13 |
Balance Sheet Overview
As of September 28, 2024, Kadant's balance sheet reflects the following key metrics:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $89.7 million |
| Accounts Receivable | $155.0 million |
| Inventories | $169.3 million |
| Total Assets | $1.49 billion |
| Total Liabilities | $626.6 million |
| Stockholders' Equity | $862.8 million |
Cash Flow Analysis
Kadant's cash flow performance for the first nine months of 2024 demonstrates strong operational efficiency:
| Cash Flow Metric | Amount |
|---|---|
| Operating Cash Flow | $103.4 million |
| Capital Expenditures | $15.4 million |
| Free Cash Flow | $87.9 million |
How Kadant Inc. (KAI) Makes Money
Revenue Streams
Kadant Inc. generates revenue through three primary segments: Flow Control, Industrial Processing, and Material Handling. In the third quarter of 2024, the breakdown of revenue by segment was as follows:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Increase | Percentage of Total Revenue |
|---|---|---|---|---|
| Flow Control | $97.5 million | $90.8 million | $6.7 million | 36% |
| Industrial Processing | $110.7 million | $94.2 million | $16.5 million | 41% |
| Material Handling | $63.4 million | $59.2 million | $4.2 million | 23% |
| Total Revenue | $271.6 million | $244.2 million | $27.4 million | 100% |
Gross Margin and Operating Income
The gross margin for Kadant Inc. in Q3 2024 was 44.7%, compared to 43.3% in Q3 2023. The operating income for Q3 2024 was $48.99 million, up from $43.54 million in the same period the previous year.
Net Income and Earnings Per Share
For the third quarter of 2024, Kadant reported a net income of $31.6 million, increasing from $30.9 million in Q3 2023. The diluted earnings per share (EPS) rose to $2.68 compared to $2.63 in the prior year.
Adjusted Earnings
Adjusted EPS for Q3 2024 reached $2.84, up from $2.69 in Q3 2023. This figure excludes approximately $0.15 of acquisition-related costs.
Bookings and Market Demand
Kadant's bookings in Q3 2024 showed a significant increase of 15% year-over-year, totaling $240.3 million compared to $209.6 million in Q3 2023. Organic bookings, however, decreased by 2% when excluding the impact of acquisitions.
Cash Flow and Capital Expenditures
The operating cash flow for the third quarter of 2024 was $52.5 million, a 12% increase from $47.0 million in Q3 2023. Free cash flow also improved by 27%, reaching $48.3 million compared to $38.1 million in the prior year.
Segment Performance Analysis
Each segment's performance in terms of operating income for Q3 2024 is as follows:
| Segment | Operating Income (Q3 2024) | Operating Income (Q3 2023) |
|---|---|---|
| Flow Control | $24.3 million | $24.2 million |
| Industrial Processing | $26.0 million | $19.0 million |
| Material Handling | $8.8 million | $10.3 million |
| Total Operating Income | $49.1 million | $43.5 million |
Outlook and Guidance
Kadant has narrowed its full-year revenue guidance for 2024 to a range of $1.047 billion to $1.055 billion, with expectations for GAAP EPS between $9.25 and $9.45. Adjusted EPS guidance has been raised to $9.93 to $10.13.
Financial Highlights
Key financial highlights for Kadant Inc. as of Q3 2024 include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $271.6 million | $244.2 million |
| Net Income | $31.6 million | $30.9 million |
| GAAP EPS | $2.68 | $2.63 |
| Adjusted EPS | $2.84 | $2.69 |
| Adjusted EBITDA | $63.3 million | $52.7 million |
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Article updated on 8 Nov 2024
Resources:
- Kadant Inc. (KAI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Kadant Inc. (KAI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Kadant Inc. (KAI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.