Kadant Inc. reported its financial results for the 3Q ended September 29, 2018. Revenue increased 8% to a record $165.7 million compared to the 3Q 2017, including $0.9 million from an acquisition and a $3.8 million decrease from the unfavorable effect of foreign currency translation.
Gross margin was 44.1%. Net income increased 41% to $18.8 million, or $1.64 per diluted share, compared to $13.3 million, or $1.17 per diluted share, in the 3Q 2017.
Adjusted EBITDA increased 11% to a record $33.5 million compared to $30.1 million in the 3Q 2017. Adjusted EBITDA excludes $0.4 million of restructuring costs in the 3Q 2018 and $4.9 million of acquisition-related costs in the 3Q 2017.
“The record-setting pace we set in the first half of 2018 continued into the 3Q,” said Jonathan Painter, president and CEO. “Strong internal growth and excellent execution led to record revenue and diluted EPS. Capacity build-outs at mills in Asia and strong demand in North America, particularly for our Fluid-Handling and Stock-Preparation product lines, led this growth. Our bookings increased 22% due almost entirely to internal growth, contributing to our near-record backlog of $192 million at the end of the third quarter. Our operating units executed extremely well this quarter resulting in record adjusted EBITDA, representing 20% of revenue.”
Kadant Inc. is a global supplier of high-value, critical components and engineered systems.
