Kadant's Q1 2025 revenue decreased 4% to $239.2 million compared to $249.0 million in Q1 2024. Organic revenue decreased 5%, which excludes a three percent increase from acquisitions and a 2% decrease from the unfavorable effect of foreign currency translation. Gross margin was 46.1%, compared to 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. Adjusted EPS excludes acquisition-related costs of $0.06 in 2025 and $0.28 in 2024.
Adjusted EBITDA decreased 8% to $47.9 million and represented 20% of revenue compared to $52.2 million and 21% of revenue in 2024. Operating cash flow was $22.8 million in both 2025 and 2024 and free cash flow increased 15% to $19.0 million compared to $16.6 million in 2024.
Bookings increased 3% to $256.2 million compared to $248.4 million in 2024. Organic bookings increased 2%, which excludes a 4% increase from acquisitions and a 3% decrease from the unfavorable effect of foreign currency translation.
“Our Q1 results were in line with expectations across most financial metrics despite the increasing geopolitical and trade uncertainties,” said Jeffrey L. Powell, President and CEO of Kadant Inc. “We had record demand for our aftermarket parts, and our operations teams around the globe once again executed extremely well in a challenging environment. This solid execution contributed to strong margin performance and healthy free cash flow in the Q1.”
"The geopolitical and trade policy uncertainty has impacted our outlook for 2025,” continued Mr. Powell. “Based on the tariffs currently in effect, we estimate incremental tariff costs of $5 to $6 million, or $0.32 to $0.39 per share, in 2025. In addition, economic uncertainty has resulted in some customers delaying large capital projects to later in the year, which has caused the associated revenue to move into 2026. These tariff-related impacts are subject to change based on the outcome of the ongoing tariff negotiations and our tariff mitigation efforts. For 2025, we now expect revenue of $1.020 to $1.040 billion, revised from our previous guidance of $1.040 to $1.065 billion, and GAAP EPS of $8.97 to $9.17, revised from our previous GAAP EPS guidance of $9.63 to $9.98. After excluding $0.08 of acquisition-related costs, we now expect adjusted EPS of $9.05 to $9.25, revised from our previous adjusted EPS guidance of $9.70 to $10.05. For the Q2 2025, we expect revenue of $243 to $250 million, GAAP EPS of $1.89 to $1.99 and, after excluding $0.01 of acquisition-related costs, adjusted EPS of $1.90 to $2.00.”
Kadant Inc. is a global supplier of technologies and engineered systems.
