凯登纸业 2025年度报告

O U R M I S S I O N I S T O E N A B L E O U R C U S T O M E R S T O I M P R O V E E F F I C I E N C Y A N DR E D U C E I N P U T C O S T S T H R O U G H I N N O VAT I V E P R O D U C T S , T E C H N O L O G I E S ,A N D P R O C E S S E X P E R T I S E . Kadant Inc. (NYSE: KAI) is a global supplier of technologies and engineered systems that driveSustainable Industrial Processing®. Our products and services play an integral role in enhancing efficiency,optimizing energy utilization, and maximizing productivity in process industries. Kadant is based inWestford, Massachusetts, with approximately 3,900 employees in 22 countries worldwide. D E A RS T O C K H O L D E R : Kadant delivered solid performance in 2025 despite a challenging macroeconomic environment in many regions ofthe world. Throughout this period, Kadant employees worked diligently to maximize value for our customers and ourstockholders, and I am proud of the innovative work we accomplished. Strong aftermarket demand across all three of our operating segments led to record aftermarket revenue in 2025.This is especially encouraging as one of our core strategies is to pursue profitable growth in this area. Althoughthe timing of large capital investments was negatively impacted by the highly volatile global trade environment andfluctuating tariff rates, our businesses executed well and pursued new opportunities in higher-growth markets suchas factory automation and transitional energy. A meaningful part of our progress this year came from our strategic acquisitions, which we completed in the secondhalf of the year. In July, we acquired Babbini S.p.A. and G.P.S. Engineering S.r.l., two Italy-based companies thatenhance our capabilities in industrial dewatering and engineered power transmission infiber processing, foodprocessing, and rendering. In October, we acquired Clyde Industries Holdings, Inc., a leading provider of boilercleaning technologies and related industrial equipment used primarily in cellulosefiber processing and in powergeneration. This addition expands our footprint in thefiber processing sector, and its large installed base provides asolid platform for aftermarket parts growth. The integration of these businesses into the Kadant family has gone well,and we are excited about the expanded value we can offer to our existing and new customers. We generated revenue of $1.05 billion infiscal year 2025, and aftermarket parts revenue represented a record 71percent of total revenue. Free cashflow* reached $154 million, a 15 percent increase over the prior year, and a newcompany record. These results reflect our disciplined management and the strong demand for aftermarket partsfrom our installed base, which helped to offset the softer activity in the capital project business. We ended 2025 with positive momentum and the successful integration of three strong companies that enhanceour strategic position. I am grateful to our employees for their hard work and dedication throughout the year. Theirefforts continue to strengthen our company and support the trust we have earned from customers around the world. Looking ahead to 2026, we see encouraging signs as capital project activity begins to improve and aftermarketdemand remains steady. While timing of customer investments may be influenced by broader economic andgeopolitical conditions, we believe the long-term fundamentals of our markets remain strong and our businessmodel will continue to deliver results To our stockholders, thank you for your ongoing confidence. We look forward to building on our achievements anddelivering strong performance in 2026.delivering strong performance in 20 (a)Includes a $20.2 million pre-tax ($15.1 million after tax) gain on the sale of a building in 2022 related to the sale of a facility in China.(b)Adjusted diluted EPS was calculated using the weighted average diluted shares as reported in each of the fiscal years presented.(c)Adjusted diluted EPS and adjusted operating income for all periods presented reflect our new methodology announced on February 19,2026 to add back intangibleassetamortization expense to these non-GAAP financial measures.(d)Calculated as adjusted EBITDA divided by revenue in each year.(e)Includes $10.4 million in 2022 and $7.4 million in 2023 related to the construction of a new manufacturing facility in China. Adjusted diluted EPS, adjusted operating income, adjusted EBITDA, adjusted EBITDA margin, and free cash flow are non-GAAP financialmeasures. Our non-GAAP financial measures exclude amortization expense related to acquired intangible assets, profit in inventory andbacklog (collectively, purchase accounting expenses); acquisition costs; restructuring and impairment costs, and other income or expenseas indicated. We exclude acquisition-related purchase accounting expenses to provide a more meaningful and consistent comparison of ouroperating results over time and with peer companies. While we have a history of acquisition acti