Kadant Inc · NYSE:KAI
Kadant — Q2 2025 Earnings Presentation
24 slides from Kadant's earnings presentation, Jul 29, 2025
Slide 1: Second Quarter 2025 Business Review
SECOND QUARTER 2025 BUSINESS REVIEW JULY 30, 2025 Exhibit 99.2
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 2Q25 BUSINESS REVIEW– JULY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. • Solid demand for aftermarket parts and improving capital equipment order activity • North America demand was particularly strong • Excellent execution by our commercial teams • Solid margin perfo
Slide 6: Q2 2025 Performance
Q2 2025 Performance 6 ($ in millions, except per share amounts) Q2 25 Q2 24 Change Bookings $269.4 $251.7 +7.0% Revenue $255.3 $274.8 -7.1% Net Income $26.2 $31.3 -16.4% Adjusted EBITDA* $52.4 $61.8 -15.2% Adjusted EBITDA Margin* 20.5 % 22.5 % -200 bps EPS $2.22 $2.66 -16.5% Adjusted EPS* $2.31 $2.8
Slide 7: Flow Control
$94.1 $89.0 $87.4 $100.0 $93.1 2Q24 3Q24 4Q24 1Q25 2Q25 7 ($ in millions) Q2 25 Q2 24 Change Revenue $95.9 $92.3 +4.0 % Bookings $93.1 $94.1 -1.1 % Adjusted EBITDA* $27.8 $26.9 +3.1 % Adjusted EBITDA Margin* 28.9 % 29.2 % -30 bps HIGHLIGHTS • Stronger performance in North America offset softness in
Slide 8: Industrial Processing
8 ($ in millions) Q2 25 Q2 24 Change Revenue $95.9 $114.8 -16.4% Bookings $105.4 $96.7 +9.0% Adjusted EBITDA* $21.3 $29.5 -28.0% Adjusted EBITDA Margin* 22.2 % 25.7% -350 bps HIGHLIGHTS • New order activity up 9% led by capital bookings • Strong aftermarket parts revenue could not offset weaker capi
Slide 9: Material Handling
9 ($ in millions) Q2 25 Q2 24 Change Revenue $63.4 $67.7 -6.4% Bookings $70.9 $60.9 +16.5% Adjusted EBITDA* $13.8 $15.7 -12.1% Adjusted EBITDA Margin* 21.8 % 23.2% -140 bps HIGHLIGHTS • Excellent bookings performance with strong demand for our bulk material handling equipment • Aftermarket parts rev
Slide 10: Business Outlook
Business Outlook • Our operations teams continue to execute strategic initiatives to create and capture increased value • Timing of project execution affected by ambiguity in global trade • Aftermarket demand expected to remain healthy • Our strong cash flow and healthy balance sheet position us wel
Slide 11: Financial Review
Financial Review Michael J. McKenney, EVP & CFO 11
Slide 12: Q2 2025 Financial Performance
Q2 2025 Financial Performance ($ in millions, except per share amounts) Q2 25 Q2 24 Revenue $255.3 $274.8 Gross Margin 45.9% 44.4% SG&A % of Revenue 29.0% 25.5% Operating Income $39.4 $48.4 Net Income $26.2 $31.3 Adjusted EBITDA* $52.4 $61.8 EPS $2.22 $2.66 Adjusted EPS* $2.31 $2.81 Operating Cash F
Slide 13: Key Financial Metrics
Key Financial Metrics KAI 2Q25 BUSINESS REVIEW– JULY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 13 $28.1 $52.5 $51.9 $22.8 $40.5 $23.1 $48.3 $46.3 $19.0 $36.5 FREE CASH FLOW* OPERATING CASH FLOW 2Q24 3Q24 4Q24 1Q25 2Q25 $61.8 $63.3 $52.4 $47.9 $52.4 $31.3 $31.6 $24.0 $24.1 $26.2 22.5% 23.3% 20.3
Slide 14: Q2 to Q2 Adjusted EPS Bridge
2Q21 ADJ EPS* 2Q22 ADJ EPS* KAI 2Q25 BUSINESS REVIEW– JULY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. Q2 24 to Q2 25 Adjusted EPS* 14 $2.81 $(0.56) $(0.26) $(0.02) $(0.01) $0.21 $0.12 $0.02 $2.31 Q2 24 ADJ EPS* REVENUE OPERATING EXPENSES NONCONTROLLING INTERESTS CHANGE IN SHARES GROSS MARGIN INT
Slide 15: Key Liquidity Metrics
Key Liquidity Metrics KAI 2Q25 BUSINESS REVIEW– JULY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 15 ($ in millions) Q2 25 Q1 25 Q2 24 Cash, cash equivalents, and restricted cash $97.2 $93.8 $75.2 Debt $247.2 $274.9 $343.3 Lease obligations $1.7 $1.9 $2.0 Net Debt $151.7 $183.1 $270.1 Leverage rat
Slide 16: Guidance
Guidance KAI 2Q25 BUSINESS REVIEW– JULY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 16 • FY 2025 revenue of $1.020 to $1.040 billion • FY 2025 GAAP EPS of $8.89 to $9.09, revised from $8.97 to $9.17 • FY 2025 adjusted EPS* of $9.05 to $9.25 • Q3 2025 revenue of $256 to $263 million • Q3 2025 GAAP
Slide 17: Questions & Answers
Questions & Answers To participate in the live Q&A session, please go to investor.kadant.com and click on the Q&A session link to receive a dial-in number and unique PIN. Please mute the audio on your computer. 17
Slide 18: 2025 Key Priorities
2025 Key Priorities 18 ENABLE SUSTAINABLE INDUSTRIAL PROCESSING® DELIVER EXCEPTIONAL STAKEHOLDER VALUE PROVIDE STRONG CASH FLOW CAPITALIZE ON NEW OPPORTUNITIES KAI 2Q25 BUSINESS REVIEW– JULY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED.
Slide 19: Investor Relations Contact
Investor Relations Contact Michael McKenney, 978-776-2000 IR@kadant.com Media Relations Contact Wes Martz, 269-278-1715 media@kadant.com 19
Slide 20: Appendix
Second Quarter 2025 Business Review 20 Appendix July 30, 2025
Slide 21: Revenue by Customer Location
Revenue by Customer Location ($ in thousands) Q2 25 Q2 24 Change Change Excluding Acquisitions and FX* North America $157,968 $172,543 $(14,575) $(14,564) Europe 63,230 63,193 37 (3,134) Asia 20,941 24,970 (4,029) (4,264) Rest of World 13,128 14,059 (931) (468) Total $255,267 $274,765 $(19,498) $(22
Slide 22: Adjusted EPS and Free Cash Flow Reconciliation
Adjusted EPS* Reconciliation Q2 25 Q2 24 EPS, as Reported $2.22 $2.66 Adjustments, Net of Tax Acquired Profit in Inventory and Backlog Amortization 0.01 0.08 Acquisition Costs 0.08 0.07 Adjusted EPS* $2.31 $2.81 KAI 2Q25 BUSINESS REVIEW– JULY 2025 | © 2025 KADANT INC. ALL RIGHTS RESERVED. 22 ($ in t
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA* Reconciliation ($ in thousands) Q2 25 Q2 24 Net Income Attributable to Kadant $26,159 $31,291 Net Income Attributable to Noncontrolling Interests 480 283 Provision for Income Taxes 9,822 11,992 Interest Expense, Net 2,899 4,833 Other Expense, Net 17 2 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 July 29, 2025. FOOTNOTES 1) Leverage ratio is calculated by dividing total debt