Slide 1: First Quarter 2025 Business Review
FIRST QUARTER 2025 BUSINESS REVIEW APRIL 30, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about our future fin
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including increases or decreases in revenue excluding the effect of acquisitions and foreign currency
Slide 4: Business Review
Business Review Jeffrey L. Powell, President & CEO 4
Slide 5: Operational Highlights
Operational Highlights 5 KAI 1Q25 BUSINESS REVIEW– APRIL 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. • Record demand for aftermarket parts contributed to a solid start to 2025 • Operational execution was excellent with strong performance across all operating segments • Solid margin performance an
Slide 6: Q1 2025 Performance
Q1 2025 Performance 6 ($ in millions, except per share amounts) Q1 25 Q1 24 Change Bookings $256.2 $248.4 +3.1% Revenue $239.2 $249.0 -3.9% Net Income $24.1 $24.7 -2.5% Adjusted EBITDA* $47.9 $52.2 -8.2% Adjusted EBITDA Margin* 20.0 % 21.0 % -100 bps EPS $2.04 $2.10 -2.9% Adjusted EPS* $2.10 $2.38 -
Slide 7: Flow Control
$94.7 $94.1 $89.0 $87.4 $100.0 1Q24 2Q24 3Q24 4Q24 1Q25 7 ($ in millions) Q1 25 Q1 24 Change Revenue $92.4 $86.7 +6.6% Bookings $100.0 $94.7 +5.6% Adjusted EBITDA* $26.2 $24.1 +8.4% Adjusted EBITDA Margin* 28.3 % 27.8 % +50 bps HIGHLIGHTS • Stronger performance in North America offset softness in Eu
Slide 8: Industrial Processing
8 ($ in millions) Q1 25 Q1 24 Change Revenue $89.5 $105.9 -15.4% Bookings $92.4 $89.9 +2.8% Adjusted EBITDA* $21.7 $27.0 -19.5% Adjusted EBITDA Margin* 24.2 % 25.5% -130 bps HIGHLIGHTS • Stability in our aftermarket business expected to continue • Aftermarket parts revenue represented a record 80% o
Slide 9: Material Handling
9 ($ in millions) Q1 25 Q1 24 Change Revenue $57.2 $56.4 +1.4% Bookings $63.9 $63.9 0.0% Adjusted EBITDA* $11.6 $11.4 +1.3% Adjusted EBITDA Margin* 20.2 % 20.3% -10 bps HIGHLIGHTS • Aftermarket parts revenue was stable and offset a modest decline in capital business • Capital project activity expect
Slide 10: Business Outlook
Business Outlook • Industrial demand and project activity is being affected by ambiguity in global trade and the potential impact on supply lines • Aftermarket business is expected to remain healthy despite the current geopolitical environment • Our strong cash flow and healthy balance sheet positio
Slide 11: Financial Review
Financial Review Michael J. McKenney, EVP & CFO 11
Slide 12: Q1 2025 Financial Performance
Q1 2025 Financial Performance ($ in millions, except per share amounts) Q1 25 Q1 24 Revenue $239.2 $249.0 Gross Margin 46.1% 44.6% SG&A % of Revenue 29.8% 28.2% Operating Income $35.6 $36.9 Net Income $24.1 $24.7 Adjusted EBITDA* $47.9 $52.2 EPS $2.04 $2.10 Adjusted EPS* $2.10 $2.38 Operating Cash F
Slide 13: Key Financial Metrics
Key Financial Metrics KAI 1Q25 BUSINESS REVIEW– APRIL 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 13 $22.8 $28.1 $52.5 $51.9 $22.8 $16.6 $23.1 $48.3 $46.3 $19.0 FREE CASH FLOW* OPERATING CASH FLOW 1Q24 2Q24 3Q24 4Q24 1Q25 $52.2 $61.8 $63.3 $52.4 $47.9 $24.7 $31.3 $31.6 $24.0 $24.1 21.0% 22.5% 23.
Slide 14: 1Q24 to 1Q25 Adjusted EPS
2Q21 ADJ EPS* 2Q22 ADJ EPS* KAI 1Q25 BUSINESS REVIEW– APRIL 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 1Q24 to 1Q25 Adjusted EPS* 14 $2.38 $0.08 $0.07 $0.05 $0.05 $(0.52) $(0.01) $2.10 1Q24 ADJ EPS* GROSS MARGIN OPERATING EXPENSES ACQUISITIONS INTEREST EXPENSE REVENUE NONCONTROLLING INTERESTS 1Q
Slide 15: Key Liquidity Metrics
Key Liquidity Metrics KAI 1Q25 BUSINESS REVIEW– APRIL 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 15 ($ in millions) Q1 25 Q4 24 Q1 24 Cash, cash equivalents, and restricted cash $93.8 $95.9 $82.6 Debt $274.9 $286.5 $308.0 Lease obligations $1.9 $2.0 $2.0 Net Debt $183.1 $192.6 $227.4 Leverage ra
Slide 16: Guidance
Guidance KAI 1Q25 BUSINESS REVIEW– APRIL 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 16 • FY 2025 revenue of $1.020 to $1.040 billion, revised from $1.040 to $1.065 billion • FY 2025 GAAP EPS of $8.97 to $9.17, revised from $9.63 to $9.98 • FY 2025 adjusted EPS* of $9.05 to $9.25, revised from $9
Slide 17: Questions & Answers
Questions & Answers To participate in the live Q&A session, please go to investor.kadant.com and click on the Q&A session link to receive a dial-in number and unique PIN. Please mute the audio on your computer. 17
Slide 18: 2025 Key Priorities
2025 Key Priorities 18 ENABLE SUSTAINABLE INDUSTRIAL PROCESSING® DELIVER EXCEPTIONAL STAKEHOLDER VALUE PROVIDE STRONG CASH FLOW CAPITALIZE ON NEW OPPORTUNITIES KAI 1Q25 BUSINESS REVIEW– APRIL 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED.
Slide 19: Investor Relations Contact
Investor Relations Contact Michael McKenney, 978-776-2000 IR@kadant.com Media Relations Contact Wes Martz, 269-278-1715 media@kadant.com 19
Slide 20: First Quarter 2025 Business Review Appendix
First Quarter 2025 Business Review 20 Appendix April 30, 2025
Slide 21: Revenue by Customer Location
Revenue by Customer Location ($ in thousands) Q1 25 Q1 24 Change Change Excluding Acquisitions and FX* North America $159,870 $156,491 $3,379 $(1,020) Europe 49,341 55,787 (6,446) (5,597) Asia 18,702 22,554 (3,852) (3,590) Rest of World 11,297 14,143 (2,846) (1,798) Total $239,210 $248,975 $(9,765)
Slide 22: Adjusted EPS and Free Cash Flow Reconciliation
Adjusted EPS* Reconciliation Q1 25 Q1 24 EPS, as Reported $2.04 $2.10 Adjustments, Net of Tax Acquired Profit in Inventory and Backlog Amortization 0.03 0.20 Acquisition Costs 0.03 0.08 Adjusted EPS* $2.10 $2.38 KAI 1Q25 BUSINESS REVIEW– APRIL 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 22 ($ in
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA* Reconciliation ($ in thousands) Q1 25 Q1 24 Net Income Attributable to Kadant $24,063 $24,689 Net Income Attributable to Noncontrolling Interests 374 296 Provision for Income Taxes 7,828 7,854 Interest Expense, Net 3,305 4,058 Other Expense, Net 16 30 Acquired Profit in Inventory Am
Slide 24: Notes
Notes PRESENTATION NOTES • All references to EPS (earnings per share) are to our EPS as calculated on a diluted basis. • Percent change in slides 6-9 is calculated using actual numbers reported in our press release dated April 29, 2025. FOOTNOTES 1) Leverage ratio is calculated by dividing total deb