Kadant Inc (NYSE:KAI)
$ 332.98 -8.69 (-2.54%) Market Cap: 3.91 Bil Enterprise Value: 4.28 Bil PE Ratio: 34.26 PB Ratio: 4.84 GF Score: 83/100
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Q2 2024 Kadant Inc Earnings Call Transcript

Jul 31, 2024 / 03:00PM GMT
Release Date Price: $351.49 (-1.44%)

Key Points

Positve
  • Record revenue of $275 million, a 12% increase from the previous year.
  • Record adjusted EBITDA of $62 million, representing 22.5% of revenue.
  • Strong performance in aftermarket parts, contributing to solid margin expansion.
  • Successful integration of recent acquisitions, contributing positively to financial results.
  • Healthy backlog and stable demand expected for the second half of 2024.
Negative
  • Sluggish industrial demand in Europe and Asia, impacting overall performance.
  • SG&A expenses increased to 25.5% of revenue due to non-recurring acquisition-related costs.
  • Higher interest expenses due to acquisition borrowings, impacting net earnings.
  • Gross margins expected to decline slightly in the second half of the year.
  • Organic bookings growth was modest at 5%, indicating potential challenges in sustaining high growth rates.
Operator

Good day, and thank you for standing by, and welcome to the Q2 2024 Kadant earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)

I would now like to hand the conference over to your speaker today, Michael McKenney, Executive Vice President and Chief Financial Officer.

Michael Mckenney
Kadant Inc - Chief Financial Officer, Executive Vice President

Thank you, Josh. Good morning, everyone, and welcome to Kadant's second-quarter 2024 earnings call. With me on the call today is Jeff Powell, our President and Chief Executive Officer.

Before we begin, let me read our Safe Harbor statement. Various remarks that we may make today about Kadant's future plans and expectations, financial and operating results and prospects are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual

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