Kadant Inc. reported its financial results for the 2Q ended July 2, 2022. Revenue increased 13% to $221.6 million compared to $195.8 million in 2021. Organic revenue increased 8%, which excludes a 10% increase from acquisitions and a 5% decrease from the unfavorable effect of foreign currency translation. Gross margin was 43.3% compared to 43.6% in 2021.
GAAP diluted earnings per share (EPS) increased 14% to $2.24 compared to $1.96 in 2021. Adjusted diluted EPS increased 11% to $2.24 compared to $2.01 in 2021. Adjusted diluted EPS excludes $0.05 of acquisition costs in 2021.
Net income increased 14% to $26.2 million compared to $22.9 million in 2021. Adjusted EBITDA increased 11% to a record $46.0 million and represented 20.7% of revenue compared to $41.3 million and 21.1% of revenue in the prior year quarter. Operating cash flow decreased 58% to $18.8 million compared to $44.4 million in 2021 due to an increase in working capital to support shipments in the second half of 2022.
Bookings increased 25% to $265.9 million compared to $213.2 million in 2021. Organic bookings increased 17%, which excludes a 12% increase from acquisitions and a four percent decrease from the unfavorable effect of foreign currency translation.
“Our strong performance continued into the second quarter with outstanding bookings and record adjusted EBITDA,” said Jeffrey L. Powell, President and CEO of Kadant. “In the 2Q we delivered solid margins and revenue growth of 13% led by our Flow Control segment. Our global workforce once again navigated through supply chain constraints and inflationary pressures to deliver remarkable value to our customers. New order activity from both aftermarket parts and capital contributed to a sixth consecutive record quarterly backlog placing us in an excellent position to finish the year strong.”
Kadant Inc. is a global supplier of technologies and engineered systems.