Kadant's 3Q 2021 revenue increased 29% to a record $199.8 million compared to $154.6 million in the 3Q 2020. Gross margin was 41.9%, which included a negative 110 basis point impact from the amortization of acquired profit in inventory, compared to 44.2% in 2020, which included a positive 110 basis point impact from the receipt of government assistance benefits related to the pandemic.
3Q 2021 net income increased 38% to $20.5 million compared to $14.9 million in the 3Q 2020. Adjusted EBITDA increased 36% to $40.9 million and 20.5% of revenue compared to $30 million and 19.4% of revenue in the prior year quarter. Operating cash flow increased 56% to $37.9 million compared to $24.4 million in 2020.
Bookings increased 71% to a record $244.7 million compared to $143.3 million in 2020. Organic bookings increased 57%, which excludes a ten percent increase from acquisitions and a 4% increase from the favorable effect of foreign currency translation.
“Record revenue combined with excellent execution by our operations teams led to another quarter of strong performance,” said Jeffrey L. Powell, President and CEO of Kadant Inc. “End-market demand was exceptional in the 3Q with record parts demand and robust capital order activity, particularly in our Industrial Processing segment. These results contributed to solid margin performance and improved operating leverage across all our segments.
“Despite an increasingly challenging operating environment resulting from supply chain constraints and inflationary pressures, our global workforce performed extremely well in fulfilling our customer commitments and delivering value. Our end markets continue to show signs of strength as we enter the final quarter of the year and we are well positioned for a strong finish to 2021.”
Kadant Inc. is a global supplier of high-value, critical components and engineered systems used in process industries worldwide.
