Kadant Inc. reported its financial results for the 3Q ended September 28, 2019. Revenue increased 5% to $173.5 million compared to the 3Q 2018, including $20.3 million from an acquisition and a $3.5 million decrease from the unfavorable effect of foreign currency translation.
Gross margin was 42.8%. Net income was $16.1 million, or $1.41 per diluted share, in the 3Q 2019 compared to $18.8 million, or $1.64 per diluted share in the 3Q 2018. Adjusted EBITDA decreased 4% to $32.3 million compared to $33.5 million in the 3Q 2018.
“Following our strong first half of 2019, we had another quarter with excellent execution and we solidly beat our EPS guidance,” said Jeffrey L. Powell, president and CEO of Kadant. “Strong operating performance in the 3Q across most of our segments led to one of our highest adjusted EBITDA results of $32 million, or 18.6% of revenue. We are particularly pleased with our cash flow from operations of $26 million, up 51% from the 3Q 2018. Despite reduced project activity in China and softer demand for wood processing equipment in North America, our end-markets have remained stable with healthy demand for our parts and consumables.”
Kadant Inc. is a global supplier of high-value, critical components and engineered systems used in process industries worldwide.
