Kadant Inc. (NYSE: KAI) has reported its financial results for the first quarter ended March 29, 2025. The company's financial highlights for the first quarter include a 3% increase in bookings to $256 million, a 4% decrease in revenue to $239 million, and a 150 basis points increase in gross margin to 46.1%. Net income decreased by 3% to $24 million, with GAAP EPS also decreasing by 3% to $2.04, and adjusted EPS decreasing by 12% to $2.10. Adjusted EBITDA decreased by 8% to $48 million, representing 20.0% of revenue.
In comparison to the same period in 2024, revenue decreased by 4% to $239.2 million, with organic revenue decreasing by 5%. Gross margin increased to 46.1% from 44.6% in 2024. Net income was $24.1 million, decreasing 3% compared to $24.7 million in 2024. GAAP EPS decreased 3% to $2.04 compared to $2.10 in 2024, while adjusted EPS decreased 12% to $2.10 compared to $2.38 in 2024.
The company's operating cash flow remained flat at $23 million, while free cash flow increased by 15% to $19 million.
Looking ahead, Jeffrey L. Powell, President and CEO of Kadant Inc., commented on the impact of geopolitical and trade policy uncertainty, estimating incremental tariff costs of $5 to $6 million, or $0.32 to $0.39 per share, in 2025. As a result, the company has revised its 2025 revenue guidance to $1.020 to $1.040 billion, down from the previous guidance of $1.040 to $1.065 billion, and GAAP EPS to $8.97 to $9.17, revised from the previous guidance of $9.63 to $9.98. The adjusted EPS guidance has also been revised to $9.05 to $9.25, down from the previous guidance of $9.70 to $10.05.
These financial metrics indicate a mixed performance for Kadant Inc. in the first quarter of 2025 compared to the same period in 2024, reflecting the company's ongoing efforts to navigate challenging global economic conditions. As a result of these announcements, the company's shares have moved 0.6% on the market, and are now trading at a price of $315.57. For more information, read the company's full 8-K submission here.
