Kadant Inc. reported significant financial developments in its latest 10-Q filing for the period ending September 28, 2024. The company achieved total revenue of $271.6 million for the third quarter, marking an 11% increase from $244.2 million in the same quarter of the previous year. For the nine months ended September 28, 2024, revenue reached $795.4 million, up from $719.0 million in the prior year. This growth was driven by increased demand for parts and consumables, particularly in the Industrial Processing segment, which saw a 24% revenue increase to $331.3 million.

Despite the overall revenue growth, Kadant experienced a 1% decline in organic revenue for the third quarter, primarily due to reduced demand for capital equipment in the Material Handling segment. The Flow Control segment reported a 7% revenue increase, while the Industrial Processing segment's revenue rose by 17%. The Material Handling segment also saw a 7% increase in revenue, although organic revenue decreased by 10%.

Kadant's operating income for the third quarter was $49.0 million, up from $43.5 million in the same period last year. Net income attributable to Kadant increased to $31.6 million from $30.9 million, with earnings per share rising to $2.69 from $2.64. However, net income for the nine months decreased slightly to $88.5 million from $89.2 million, primarily due to increased interest expenses related to acquisitions.

The company’s total assets grew to $1.49 billion as of September 28, 2024, up from $1.18 billion at the end of 2023. This increase was largely attributed to acquisitions, including Key Knife, KWS Manufacturing, and Dynamic Sealing Technologies, which contributed to a significant rise in goodwill and intangible assets. Long-term obligations also increased substantially to $323.2 million from $107.7 million, reflecting borrowings primarily for these acquisitions.

Kadant's selling, general, and administrative (SG&A) expenses rose by 19% to $69.0 million in the third quarter, driven by higher costs across all segments. Interest expenses increased to $5.5 million from $2.1 million, reflecting the impact of higher borrowings and interest rates.

The company declared dividends totaling $11.3 million for the quarter and maintained a strong liquidity position, with cash and cash equivalents at $88.4 million. Kadant anticipates stronger capital bookings in the fourth quarter of 2024, despite ongoing macroeconomic uncertainties affecting customer spending.

About KADANT INC

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