Overview

* Kadant ( KAI ) Q2 rev falls 7% yr/yr but beats analyst expectations, per LSEG data

* Adjusted EPS for Q2 beats consensus despite 18% decline, per LSEG data

* Co's bookings rise 7% to $269 mln

Outlook

* Kadant ( KAI ) expects 2025 revenue of $1.020 bln to $1.040 bln

* Kadant ( KAI ) maintains 2025 adjusted EPS guidance of $9.05 to $9.25

* Kadant sees Q3 2025 revenue of $256 mln to $263 mln

* Company expects stable demand for aftermarket parts to continue

* Co expectsstronger" bookings in the second half of 2025

Result Drivers

* BOOKINGS GROWTH - Co attributes 7% increase in bookings to customer preference for its equipment and technologies, per CEO Jeffrey Powell

* CASH FLOW IMPROVEMENT - Operating cash flow rose 44% and free cash flow increased 58%, indicating efficient operational management

* GROSS MARGIN INCREASE - Gross margin improved by 150 basis points to 45.9%, reflecting better cost management

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $255 mln $250.40

Revenue mln (4

Analysts

)

Q2 Beat $2.31 $2.08 (4

Adjusted Analysts

EPS )

Q2 EPS $2.22

Q2 Net $26 mln

Income

Q2 Beat $52 mln $49.20

Adjusted mln (4

EBITDA Analysts

)

Q2 Gross 45.9%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

* Wall Street's median 12-month price target for Kadant Inc ( KAI ) is $327.50, about 5% below its July 28 closing price of $344.02

* The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 33 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)