KAI - Earnings call transcript Q3 2024

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Operator

Good day, and thank you for standing by. Welcome to Kadant's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note that today's conference is being recorded.

I will now hand the conference over to your speaker host, Michael McKenney, Executive Vice President and Chief Financial Officer. Please go ahead, sir.

Michael McKenney

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

our materially year the forward-looking Before the the are future ended report and Factors provisions Securities subsequent and plans harbor are expectations, in as factors, known statements financial safe our results statements we fiscal me and harbor results of under make cause for on may and various we filings and Litigation and with those heading purposes Risk Form and including operating actual of remarks presentation the prospects to under may beginning from Kadant's these Private important Various discussed XXXX. annual of statements to the result Reform differ that Commission. December our safe our forward-looking for at risks about today Securities and begin, XXXX, let forward-looking the These XX-K outlined statement. XX, subject slide Act unknown read a those that of Exchange uncertainties

only addition, webcast represent estimates during any make today. as this of forward-looking and views In our statements we

the specifically forward-looking update at While elect change. if estimates we so may to our disclaim to even some future, point do statements obligation in we any views or

are principles. generally to accounting non-GAAP comparable These measures measures non-GAAP the directly the www.kadant.com. accepted prepared on earnings reconciliation our non-GAAP contained measures. Investors accordance and to in slides release financial conference available this webcast GAAP webcast, we'll with some presented section most the refer discussed During is at third are not of the in of and quarter financial in A the website in press measures our call, which the

when a basis. measures on each that calculated to be on or and share EPS call, to earnings refer diluted this as to of adjusted I wanted these EPS GAAP per note we'll we Finally, referring

I'll give prospects. that, Powell, on turn who will and With to future over update Jeff an business you the call Kadant's

give quarter, and we of Following financial Jeff? remarks, a overview results I'll our Jeff's an will have session. Q&A then for the

Jeffrey Powell

Mike. joining remainder quarter the us review our for and third outlook to of our results Thanks, the discuss year. Thank everyone. this for Hello, you morning

Before I to we are of Mike segments. growth financial an targets will with provide our each we more beginning December this you in take initiatives share New in his our new Day our on QX this will York place operating At review, want outline to during City. that XX hosting details X Investor present on event, and our X-year remarks.

turn let's third to Now our highlights. quarter

segments EBITDA, adjusted another revenue. record Third EPS excellent record execution record This benefiting our parts operating quarter quarter. third the in was margin led from record-setting adjusted adjusted and across to EBITDA performance aftermarket and record

regions. one business the As this know, is was business see our to Europe you and encouraging parts strategic continues core reflected demand Asia in of those part our demand Americas, thrive. and economies Overall, our development to is while in sluggish the stronger in market areas, aftermarket it of

value third As results the case work customers. the generated, delivered has the world the want only they I our around XXXX, not thank outstanding but and for exceptional to been in throughout their them teams year. throughout the operations to our quarter

to like Turning financial our I'd Slide review X, next to QX performance.

up our quarter contributions a benefited parts third from from to with number XX% financial Revenue of the million Our and of QX performance was record business compared acquisitions. to and $XXX XXXX records achieved. aftermarket was excellent

adjusted to XX.X%. contributed our execution Solid of of $XX EBITDA and million EBITDA a record margin adjusted record

due the to million third our and strength at respectively, business Bookings to XX% flow $XX acquisitions America. outstanding cash the strong period quarter were Cash increased of our model. last demonstrating and compared flow from operations activity million, in and year, North $XX free in the same

by segments our in record were last led Control execution I'll Bookings million, demand both Robust aftermarket order to strong our the an beginning operational our of Flow year. XX.X%. same review new quarter, EBITDA up in Control demand XX% market period and and the commercial made our $XX business the with parts third compared segment. Flow operating EBITDA of up for which to activity. aftermarket up segment led next, X%, led of strong X% Excellent performance margin adjusted parts, in the areas for of to revenue adjusted performance

particularly in levels our in reflects good the persistent end-markets and segment continue strong those activity project the Americas. has Control activity, in Project in Flow and and Asia strong, economic of Europe remain to regions. see Many headwinds and we moderated

record segment, Processing up a led parts remain up XX% demand XX% was in Capital by in activity In year. this parts long-term made business, record last our million, our strengthening, EBITDA strong total XX%, $XXX drivers also compared aftermarket increased revenue revenue margin end-markets and to believe adjusted our is and and Bookings same of Industrial we our was strong. of XX% the to Adjusted benefited QX. were project up XX.X%. which from EBITDA the period segment growth

aftermarket million, our material and led third our bookings, and bulk quarter. last year. our strong $XX biller period to while In high-performance and demand product Handling products, Material by from bookings up X% demand handling for solid the to was segment, revenue was latest capital acquisitions. compared XX% in experienced our same the for bookings our We Revenue up parts were high benefited line project

revenue mix due EBITDA in Adjusted declined year, to basis this and segment. QX to by points our compared product some margin businesses XXX largely of lower in volume last of

see in handling to level material term, America. a high the the in stabilize aggregate While demand activity we particularly we North continue near in expect sector, to

we remainder we XXXX expect financial As full again. look results the year, deliver ahead of and to to record the

activity, though lot macroeconomic to can and other seeing uncertainty the order shift of new and a timing projects, projects to uncertain is could factors. are around of our to capital or be these We a due activity QX this contributor meaningful be expected

I will call financial his the Mike the now for performance. QX review over to pass of Mike?

Michael McKenney

up quarter third XX% to XXX This projects. third quarter the XX.X% from start basis points higher Revenue was XX% in up I'll in compared on increase the Jeff. principally third achieved increase a million, the margin $XXX.X performance. was was our 'XX, capital quarter to quarter 'XX. acquisitions. including 'XX, due XX.X% Gross to you, with of compared third Thank margins

increased higher was to compared factor percentage and to revenue, the Another of prior XX% contributing quarter XX% consumable of year. which third the parts in revenue in of a 'XX

included acquired margins inventory. XX a and gross quarter from negative point of basis amortization impact of XX.X% Third profit the

gross basis margin over our in points quarter performance third XXX of were quarterly 'XX. This this margins the the up 'XX. achieved continues over impact, results Excluding strong gross

revenue nonrecurring expenses $XX million of $XX.X of of in 'XX, million to XX.X% included acquisition-related quarter 'XX. SG&A XX.X% increased in and the the SG&A This expenses $XX.X from third our of to 'XX, our third acquisition-related an compared the acquisitions, to million in the acquisitions $X.X quarter increasing compared costs. prior increase which as $X.X to of quarter costs. in million in due a third were primarily included year percentage period, million

third the Our quarter GAAP and compared third quarter, the to X% EPS in gross revenue $X.XX in higher $X.XX due margins. of to increased 'XX, principally to

in in the EPS adjusted of third record $X.XX the up $X.XX to a third quarter quarter was compared 'XX. Our 'XX, X%

$X.XX to our the end revenue especially forecasted, Processing 'XX high adjusted our due of range EPS of guidance exceeded higher quarter segment. than Industrial Third by at

We margins. also gross had higher-than-expected

quarter had results. adjusted We EBITDA another with record

in Industrial Third 'XX quarter adjusted EBITDA our due XX% record to million, was the Processing third increasing performance Control $XX.X Flow quarter record a segments. compared to and

to in As XX.X% in a record 'XX. adjusted revenue, a This the margin adjusted XX.X% record segment. third our Processing EBITDA quarter compared of percentage EBITDA included XX.X%, Industrial a was of

contributions our segments. in Industrial Processing increased adjusted with 'XX each Our and Control from EBITDA strong has quarter Flow

EBITDA of XX.X% adjusted exceeded first Our XX%. we third represents in the quarter quarter have margin 'XX the

quarter in had strong sequentially. $XX.X our quarter increasing flow quarter XX% Free the up operating flows XX% Turning third cash third to the of to 'XX, in XX% third 'XX, $XX.X million to cash increased We was million. third cash cash to the 'XX, compared in to quarter flow 'XX. million Compared $XX.X the flows.

$XX paid for funded million and debt by We in $XX.X by million down paid quarter. acquisitions borrowings the

the of on expenditures our and in dividend million other third million stock. nonoperating for included common for 'XX $X.X of capital uses $X.X quarter Our cash

me EPS turn back costs, the adjusted adding quarter. was and $X.XX, In restructuring $X.XX next relocation the the 'XX, EPS of was $X.XX $X.XX $X.XX, of GAAP results after 'XX, our our for impairment adding acquisition-related to and after of Let costs, third of $X.XX. costs In GAAP of was third was back EPS and $X.XX. quarter EPS and quarter EPS adjusted

a higher our borrowing shares due the included higher third third associated from to increase higher were of $X.XX in increases the to outstanding. $X.XX costs. increases acquisitions in the higher weighted $X.XX to $X.XX EPS operating revenue, margin due of results to the interest due These compared expense, average of the offset $X.XX higher $X.XX and shown quarter percentage $X.XX in excluding 'XX operating quarter to $X.XX rate, As expenses, to chart, due to partially gross the tax a due due lower and by adjusted

results. contributed last 'XX operating translation in our the effect to the due process year mentioned, quarter the The third certain is the the segment of U.S. just in operating of foreign included from are $X.XX included our I unfavorable compared the acquisition-related going currency to was Recent all dollar acquisitions, and an quarter costs to currencies. of each well. against quarter in categories Collectively, third excluding $X.XX strengthening third results, integration acquisitions

on Slide Looking liquidity at metrics our XX.

prior days cash as in calculation the increased the compared to to XX.X% subtracting Our XX.X% of quarter taking decreased due the days quarter in quarter. to in Working accounts in compared acquisitions. in payable, 'XX, to year we a calculate the of plus at of and XXX third in to the of revenue quarter for the 'XX, third XXX recent days, by capital third our of full receivables a end conversion lack which inventory year the 'XX percentage in days revenue

less million. or that cash, decreased debt, sequentially $XXX.X is $XX.X net million XX% Our debt to

facility. to in of revolving credit the decreased and agreement accordance X.XX of the borrowing 'XX. credit end leverage committed Our of ratio of our end third At an capacity capacity second we $XXX $XX calculated to borrowing the our at had million of compared additional million uncommitted quarter X.XX, under quarter the with

allow strong of our balance low and sources access leverage sheet capital if would ratio needed. to addition, us In additional

in full 'XX. demand We've to a quarter, financial turning quarter our guidance fourth industrial sequential for year date fourth expect in our Now for strong a performance capital equipment. the and increase the to 'XX. In had we

majority not 'XX. However, these until of ship projects will the

quarter, by the the should fourth timing the both that for opportunity comparatively earnings in risk capital Lower our due shipments of quarter can mix period projects shift the expectations. with quarter. gross fourth lower to here margins creating to contribute I will note upside downside and of

our We to billion are $X.XXX to narrowing full $X.XXX guidance to $X.XXX range billion. billion year $X.XXX from revenue billion

raising our up $X.XX EPS $XX.XX, We expect of $X.XX $X.XX to excludes to guidance 'XX, and now which adjusted $XX.XX are costs. for acquisition-related from

$X.XX We of of costs included revised from expect EPS to $X.XX, $X.XX $X.XX. guidance $X.XX, our which GAAP previous to of acquisition-related

Our actions may by the $X.XX the guidance currency from our have effect dollar on at which currencies, XXXX to the U.S. impact negative includes guidance. beginning central foreign an compared banks the the Future given guidance of impact and a other could translation year.

acquisitions. EPS accounting and are 'XX change of are estimates purchase finalize to guidance our calculated the Both adjusted review for GAAP subject initial using valuation we which our work as adjustments, and

'XX and related to $X.XX, inventory Our revenue profit $X.XX EPS for $X.XX $XXX million to associated is amortization of backlog. $X.XX guidance million expense excludes guidance and and of quarter acquired adjusted which fourth to acquired the our with is $XXX

'XX gross be amortization will inventory. projects. be for point includes This XX% fourth XX.X%. range, to to primarily in low mix million quarter the currently anticipate We expense impact margins associated acquired will gross We profit basis to the mid negative of a with XX% due $X.X XX anticipate from of and margin

from basis a $X.X expect costs SG&A negative for onetime impact of We XX 'XX This includes revenue. XX.X% point will million. acquisition-related of approximately be

our will for XX.X% million 'XX, quarter comments be net fourth tax now we are of helpful. hope these the guidance approximately expect XX%. interest expect and I expense $XX.X rate We to for approximately

on will product growth major program. including be an our great is market This finally, from for Jeff December And leaders Day as will to product we'll an on York a in provide hear trends demonstrations. in the acquisitions discuss XX/XX New XX and and Palace Lotte New City. mentioned, York be at view attendees opportunity and event Investor to each and lines, update Hotel you of strategic hosting they We'll opportunities, growth our initiatives, our able

We in set new last forward look there. and we outline will against We the X-year financial seeing to you you also update on XXXX Kadant's Day our goals. our financial performance goals Investor at

I'll the to now Liv? turn over questions. the call for operator back our

Operator

our the from And Instructions] Barrington. Prestopino question Gary first [Operator coming line of with

Gary Prestopino

of couple A questions.

Flow for they've prior you of year's various all, parts grown. aftermarket idea Handling, get of want can were Control, the First Industrial Material percentage that divisions, give in how Just the QX? and of to the us an

Michael McKenney

Yes.

Let's see.

course, of all So this is in.

now Flow revenue, year, for -- you're Control, this talking So Gary?

Gary Prestopino

Yes.

Michael McKenney

XX% parts the Revenue, last compared in last it last it XX% XX% Handling, Industrial was year. XX% to were compared Material year. to comparing Processing, was versus the XX% In quarter And in XX% year.

Gary Prestopino

to you're out regards very X at quarter, quickly can as over you're Okay. the the puts just takes seeing maybe the that you go just -- of as looking there you then And it some fourth segments? can and

Michael McKenney

broadly. Well, quarter. case people get shipments the some customers ask that 'XX. a I'll in very shipped say, quarter a being to into I'd fourth was for versus to conservative address are 'XX in there capital field, In project quarter, the first that may fourth little the some in for we're the I'd of a concern just bit talking delayed say

wanted -- that to wanted in I we be conservative So regard.

be be on the nothing a a And also for year-to-date a kind us. performance. quarter quarter And say, peg. stuff This to fourth fourth This we've I'd a a bit had good wildcard. front, of is can unusual. and parts can the standard It of bit is challenging little consumables very

bit little whether have as even to or sometimes they the buying will as of extra. a customers year, uncertainty buying there's continue So through

in we maybe may maintenance quarter. So uplift. maintenance budgets, their a extra if their the And they've get in softer used a little they budgets, little fourth if have

a that a kind a So one. on mixed little bit bag of of

Gary Prestopino

it that America, is I going Okay. Europe But segment, the down seems that for of and North to the what Is jotted in project a kind correct U.S. still my in capital notes, sluggish of through be good just like each activity going just pretty Asia. and assumption? but kind

Michael McKenney

that's correct. Yes,

Gary Prestopino

Okay. And acquisitions for point? just look lastly, how pipeline future this does any the at

Jeffrey Powell

And I the strong we've to our is busy. last I has that years. relative stronger. of been And think hasn't mentioned be development quite year So would most is group that to very slowed corporate I are certainly there's few through telling the that activity, the say going what bankers even think year been down. really us next

a is it's market the out pretty right there So challenge now. The active for always us same.

that now, and to First, -- for, finding something that's the looking a is market that a -- big very good strategic right I beginning what we're being able And our price. what is of reasonable at get price. ultimately say meets is think the would a then out there But fair a we that fit it attributes we think is it's a pretty robust challenge, a it's activity. lot at

Operator

D.A. Our question line from Kurt next with Yinger coming the Davidson.

Kurt Yinger

Wondering the in capital that a in do there's you just whether magnitude don't think expect to maybe of you any kind equipment too there well if seasonal anticipating, pickup about bookings of directionally or could that I and as want talk as sounds that but kind could like sustain into dramatic, something be you It factors you're in might going inflection next an year? if represent, QX.

Jeffrey Powell

are things strengthening. to I We see change. Yes. step expect think think we a don't

to to expect we next -- As in that then climb for think, start and strong. to second a I it's they're of the they talk customers, be be pretty here, improve the 'XX they're are to so next they few But into quarters. and really things saying slow going think our 'XX, year, half going to

comfortable. an a build to increase, we expect should and be people about significant an incremental going to It's talking it's to increase. not but get going we're start increase as be So it continue to

I now think of waiting everybody I would depend is they the does on what next of Fed right their think a a the bit in little U.S. couple to the election of frankly, bit hands the meetings on see the little in And have. outcome sitting it

get it things hopefully then to out, together But And to China package which on, going country at. is course, Europe, you're bottoming to they're there. start growing try to another make investments. some looking putting of depends stimulus are

We've out. can't they and they're get the of kind seen wear this forever continues That's been quiet, than equipment why equipment traditionally is it when consumables so because would. longer parts rates, before strong, record investments to and last running just our because business has

to start have going they're making next really really some see to of half point, they're hearing improvement. to expecting the investments. going So And at and year is start from the what marketplace marked to strengthening to start back a we're

Kurt Yinger

it. Got

appreciate areas kind I think compelling are. I of of into where what weakness particularly And an where market guess opportunities geographically, year? portfolio end that. in strength perspective, see clear, of stand of it's the kind going from pockets of out and Okay, next pretty capital I the terms you

Jeffrey Powell

been market with The has to its been strength the -- continued the it's market market. surprise us strandboard oriented OSB has that

fact, In hour today order about we new booked the an mill call this started. just morning before another

one of and situations around strong it's world, it to through we're So the these push where continues pretty globally. just

continues -- course, Europe. in increase, base North as our to have America Of in we and China does installed

that's strongest. probably the So

packaging, held in consumables parts say up quite the and side, certainly would well. I it's

got that. market, with metals So The we've for well. increasing and defense, other to growing. has defense that's exposure smaller markets And sure. doing are been we've have then been Capital quite pleased the market, slower that we frankly,

a markets to lot some call are what there's So show that renewed strength. starting we'll of kind industrial of

Kurt Yinger

would by kind sales the we still And mind? of Or kind of work-down normalize is Is of Okay. the quarter, Mike, pretty in about you continue capital little how talked to into a know your next I it. we margin. long move just And bookings will dynamic persist that outpace wide equipment but a expect as Got kind could that that that year? backlog? for last of bit something

Michael McKenney

we get happened No, of should be it's 'XX, the kind Yes. We may And just in Kurt, bit -- through into say, third. that it's discussed, normalized, excess that yes, I'd as it of go again the relatively worked here had. certainly the we as little we you're we a fourth. then -- in while

Kurt Yinger

Mix the this it's then would sustainable And biggest is the but Perfect. capital that? the strong performance side to the in element, like Obviously, the gross a that lastly seems just on surprise. quarter. attribute what one of been kind upside of margin what's Okay. upside very driven front. margins on there? And is again you of kind terms How

Michael McKenney

question. would a be of frank the Well, there's it, mix great capital a can component it's be the say Kurt, of I on is to that, projects. quite mix,

but we take large So when little take you when you better performance, gross margin a leverage. projects, capital pressure -- get oftentimes will create very on that operating

you So end. pay get to the at off

projects -- think, think down. of are we're prices are And we've not would say what frankly, So I now, helpful commodity I been picked little coming what's the the shipping up achieving And the say, margin the from I bit front. exercise projects. large that a terms capital on has I'd in XX/XX

one always year. outperformed been things. particular as So our I'm the And year. frankly, every every happy I this We've outperformed is forecasting it's margin 'XX think expectations It's this there's factor. performance -- very quarter. gross But own quarter we've several the almost with never case,

Operator

of Sparenblek the Ross with Blair. from coming William line question next Our

Ross Sparenblek

there's first you backlog in I the in us some year. M&A the know the Can out of impact here help with half quarter? the been

we're sure make the same to page. on want Just

Michael McKenney

Yes.

million. at right we it's Ross, now, As stand $XXX

Ross Sparenblek

a that And of might depending Okay. to stabilize fourth of timing? than of $XXX give half book-to-bill year in stabilizes? maybe And kind on just on lower then the threshold mean, sense little here second come then that million I quarter orders next and for a kind

Michael McKenney

Kurt aren't to using say, I on Yes. But the sequential I'm markers. anticipating million, the would your million Certainly, I $XXX mean go consumption careful we're in increase. that on bookings forecasting the -- moment, to a as it's $XXX number, more at million far let's a bad those -- with point, imply, backlog. $XXX not depending little the we always But to range would to mentioned on front. too guidance

Ross Sparenblek

yourself than you're on. give guys, credit, you you mean forecasters more better I Okay. let

equipment quarter, Looking orders any at price in steel the sense third volume give there's $XX million the us of of from impact and pass-through? capital and a if

Michael McKenney

anything I quarter, of terms third was special in what don't there in frankly. transpired the think

Ross Sparenblek

there's It but to of kind is into of sounded come bit there? like read consistent. Nothing demand volume picking up because, maybe a still maybe still pretty little so in, was to price,

Jeffrey Powell

Yes.

so. think I

I -- the capital you you with projects. you to these -- input equipment, as got think current prices collect cost know when your bid

commodity get we're too so they whack the prices actual out far tend experiencing. And of to not that

Ross Sparenblek

All activity mix you're book right. of that the and maintenance versus cycle today? And we're the the in then at seeing greenfield kind maybe order where just kind of of

Jeffrey Powell

Yes.

lot capital I fewer replacements is think awful greenfields. you with the as would expect, of an and repairs

we with course, side. Of quieter. there. opportunities not some booking majority market there, world it's the projects in it developing on is kind as certainly of been. The are one being greenfield the the we had happening the greenfields And still And the greenfield are been it's are strong exception seeing as wood of Asia but certainly largest

have be the pretty best side. endured awful been the the American And strip cards to probably goods, mentioned and would at earlier, North when OSB slow. economy out, grow, continued equipment globally that it's mean the tends been I -- to -- say has industrial you market during has been it's this that's markets market on sluggish. service -- the So has capital I I it's lot the time. been an been look but durable take this

held endured we all the up the of side, markets. I And probably OSB, as said, well wood we've best have. particular, probably in are pleased And as quite so we actually that those as has

Ross Sparenblek

the also Yes. signs well been seriously curious P&C equipment and that say of sense I capital inflection. that I the has kind of the was OCC doing gotten mean was I strong around fairly you but packaging,

Jeffrey Powell

know that It's got -- we've declare demand. of yet robust not And the been Yes. parts we're back good. kind to to okay. held very have ready consumables victory don't up I

benefited mentioned XX%. XX% I the one XXXX, this was year. a fiber recycled from it I of being made packaging of give that, that you percent we To is the think in is things paper at the and in sense call, of last from

has packaging So And the of to grown. fiber on percentage record from paper focus, and recycled made grow being at that's The it course, know, of recycled continues side. as level. is a our is and you

why So continuing we see paper packaging more recycled the and have grow, of clearly produced to coming benefited, you that's the parts fiber. is being and high, is consumables being more and from because

And And of that of all -- recycled price that and it has recycled so new suspect in pretty probably decent difference and pulp. a almost -- online, capacity come There's that's the between fact, been I fiber virgin will continue. fiber. most

old production capacity. they've pulp and some bringing recycled offline fiber So on taken

And so we'll continue to benefit from that.

Ross Sparenblek

APAC It just maybe searching Very updates region? again... characterized seems was utilization the looks Europe like was rates of P&C, kind for more. as a by helpful. previously Maybe decelerating. on like and one any Think about It bottom

Jeffrey Powell

North XXs, America region but It I varies slow. you're in looking Europe, which held up now reasonably looking you're of little XXs depending bit in has China at. kind the of mid-XXs, the on still still higher is on would a depending Europe and which area is is Asia again say well. at. maybe XXs in kind

a surprise. not big So clearly the best. And America North has up it's held

correlated look packaging, you at GDP closely is GDP paper growth, closely correlated, growth. just to and If pretty

I held and and done up with has They've the America it's production better mergers best. in rationalizing done think, well acquisitions. So job, a

their And Asia. higher operating in so than Europe rates up able they've to and been keep certainly than higher

Ross Sparenblek

All right.

no sounds next it presumably P&C. year on like for So news

Jeffrey Powell

are which see stronger. things year. back 'XX, then strengthen hoping customers, ready be expect to seem they telling half year. our is year think to to is paper our they packaging the they're robust going I And customers a second really going all customers to be pretty think next the much and getting they're And us half, of for

for get investments make to start that. they'll to year ready So next

Operator

have we Davidson. follow-up with Kurt And from D.A. question a Yinger

Kurt Yinger

Just ones. X quick

First, Is you in QX? it was are impact that so or Mike? -- QX. $X of an million guess, terms I how FX or looked maybe And headwind about like thinking right, a assuming in

Michael McKenney

Yes, $X you're right, million. Kurt. Rounded, it's

we're So the And unfavorable million. with QX we're it to rates was actually favorable. be using, anticipating right now, $X

Kurt Yinger

Got it.

Okay. Perfect. And products it, just the at in bucket the relative several this stage? terms how to kind then of maybe traditional some of us mix there maybe biggest call you on industrial of components you've update last end-markets? forest years. sales that grown is within that, And the trending Can piece the

Jeffrey Powell

there. Yes. the the of broadest and like of big X and ones. things are we defense there's think big have we next Flow opportunities There's energy, is the others. a lot that, grown. alternative markets think that have There's where them, most think But I those there. are I the mean the food, I Control metals range serve after markets And packaging, I

I baler recycle of as trying and has continued well recapture do the Handling world is materials. the quite Material say more to side, our to more would business separating On that and and

America, And strong, the in Act. material globally. Infrastructure we're then particular, where you've Bill, you've the is handling you've in So that continues to the grow -- side, the got course, got which of CHIPS got on bulk

are those those drivers So big for markets.

Kurt Yinger

sneak more just to curious a in you Obviously, Got do answer it. lot and one level, but what should specific And just I of plants? any But selling know guys box you're this. the at exposure within there? have kind to middle in, maybe the

Jeffrey Powell

they've box got of. handle waste and that of lot got Yes, package plant, they packaging any balers. mean to I a to dispose in

for that's so market big them. And us, a is selling balers into

Operator

any Mr. the this time. to I queue will back over no Q&A Jeff questions [Operator at further the Instructions] now call remarks. I'm closing in showing Powell turn for

Jeffrey Powell

Thanks, Olivia.

year today, we and And wide flow call want we all macroeconomic made we in challenging And we shaping excellent Investor regions to metrics. of the New a just that, York as this despite always, boost our growth across our before want for few shareholders. With good world. takeaways. with I up be thank I various in up Day. you value profitability efforts you to capital optimize of an XXXX, year joining just I see to So excellent you in a the said, revenue progress expect And at the leave as maximize wrapping environment to range the the hope and cash to accelerate our allocation to of you. for deliver Thank today.

Operator

Thank that your gentlemen, may you conclude conference you does and disconnect. our for now and today. Ladies participation, for

Kadant (KAI) 30 Oct 242024 Q3 Earnings call transcript