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WESTFORD, Mass. - Kadant Inc. (NYSE: KAI), a global supplier of engineered systems and industrial processing technologies with a market capitalization of $3.79 billion, announced today its Board of Directors has given the green light for a stock repurchase program. According to InvestingPro data, the company maintains a strong financial health rating, supported by a healthy current ratio of 2.47 and moderate debt levels. The company is authorized to buy back up to $50 million of its equity securities starting today, with the program set to run for one year, until May 15, 2026.
This repurchase initiative allows for transactions in both public and private markets and may include plans under Securities Exchange Act Rule 10b-5-1. The timing appears strategic, as the stock has declined by 17.35% over the past six months, though InvestingPro analysis suggests the stock is currently trading above its Fair Value, with a P/E ratio of 34.27x. They will be guided by prevailing market conditions and other factors, including the terms of Kadant’s credit agreement from March 1, 2017, which has been amended and restated since.
As of now, Kadant has not executed any repurchases under the soon-to-expire $50 million authorization, which ends tomorrow, May 16, 2025. The company, headquartered in Westford, Massachusetts, employs around 3,500 people across 20 countries and focuses on sustainable industrial processing. Investors seeking deeper insights into Kadant’s valuation and growth prospects can access comprehensive analysis through InvestingPro, which offers exclusive financial metrics and 12 additional ProTips about the company’s performance.
Kadant’s announcement includes a Safe Harbor statement, cautioning that this press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks are detailed in the company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 28, 2024, and subsequent reports.
Investors are reminded that the information is based on a press release statement from Kadant Inc. and should consider the various risk factors, including economic conditions, industry competition, and global operations, that may influence the company’s performance and the execution of its stock repurchase program. The company’s financial stability is evidenced by its liquid assets exceeding short-term obligations and consistent dividend payments maintained for 13 consecutive years.
In other recent news, Kadant Inc reported its financial results for the first quarter of 2025, showing a mixed performance. The company’s earnings per share (EPS) exceeded expectations at $2.10, higher than the forecasted $1.97. However, Kadant fell short of its revenue forecast, posting $239 million against an anticipated $244.72 million. This revenue shortfall led to a downward revision in the company’s full-year guidance. Kadant now expects 2025 revenue to be between $1.020 billion and $1.040 billion, down from the previous range of $1.040 billion to $1.065 billion. The company also adjusted its adjusted EPS guidance to $9.05 to $9.25, from the earlier range of $9.70 to $10.05. Despite these revisions, Kadant anticipates a stronger second half of the year, contingent on increased capital order flow. The company continues to focus on its aftermarket parts business, which now makes up 75% of total revenue. Additionally, analysts from William Blair and Barrington have been in discussions with Kadant’s management regarding the impact of tariffs on project timelines and potential revenue recognition delays.
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