Kadant (NYSE:KAI) Updates Q2 2026 Earnings Guidance

Kadant (NYSE:KAI) issued an update on its second quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 2.880-2.980 for the period, compared to the consensus earnings per share estimate of 2.950. The company issued revenue guidance of $296.0 million-$306.0 million, compared to the consensus revenue estimate of $296.3 million. Kadant also updated its FY 2026 guidance to 12.330-12.680 EPS.

Kadant Trading Up 0.7%

Kadant stock traded up $1.90 during midday trading on Tuesday, hitting $288.23. 130,407 shares of the stock were exchanged, compared to its average volume of 157,134. The company has a fifty day simple moving average of $317.39 and a two-hundred day simple moving average of $304.71. Kadant has a 52 week low of $244.87 and a 52 week high of $369.97. The stock has a market capitalization of $3.40 billion, a PE ratio of 33.32 and a beta of 1.19. The company has a quick ratio of 1.47, a current ratio of 2.38 and a debt-to-equity ratio of 0.37.

Kadant (NYSE:KAI) last released its quarterly earnings data on Tuesday, May 5th. The industrial products company reported $2.84 earnings per share for the quarter, topping the consensus estimate of $2.11 by $0.73. Kadant had a net margin of 9.69% and a return on equity of 11.57%. The business had revenue of $281.51 million for the quarter, compared to analyst estimates of $274.95 million. Kadant has set its Q2 2026 guidance at 2.880-2.980 EPS and its FY 2026 guidance at 12.330-12.680 EPS. Equities research analysts anticipate that Kadant will post 12.63 EPS for the current fiscal year.

Kadant Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 13th. Investors of record on Wednesday, April 15th will be paid a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Wednesday, April 15th. This is a positive change from Kadant’s previous quarterly dividend of $0.34. Kadant’s payout ratio is 16.65%.

Wall Street Analysts Forecast Growth

KAI has been the topic of several recent analyst reports. Weiss Ratings reissued a “hold (c)” rating on shares of Kadant in a research note on Friday, March 27th. DA Davidson set a $303.00 price objective on shares of Kadant in a research note on Friday, February 20th. Barrington Research reissued an “outperform” rating and set a $380.00 price objective on shares of Kadant in a research note on Monday. Finally, Zacks Research raised shares of Kadant from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $341.50.

Hedge Funds Weigh In On Kadant

A number of institutional investors have recently added to or reduced their stakes in KAI. Caitong International Asset Management Co. Ltd increased its holdings in Kadant by 1,300.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 84 shares of the industrial products company’s stock worth $25,000 after buying an additional 78 shares during the last quarter. Kestra Advisory Services LLC acquired a new position in Kadant during the fourth quarter worth $27,000. Kestra Investment Management LLC acquired a new position in Kadant during the second quarter worth $27,000. Allworth Financial LP increased its holdings in Kadant by 89.1% during the third quarter. Allworth Financial LP now owns 104 shares of the industrial products company’s stock worth $31,000 after buying an additional 49 shares during the last quarter. Finally, Smartleaf Asset Management LLC increased its holdings in Kadant by 278.0% during the second quarter. Smartleaf Asset Management LLC now owns 189 shares of the industrial products company’s stock worth $59,000 after buying an additional 139 shares during the last quarter. 96.13% of the stock is currently owned by institutional investors and hedge funds.

About Kadant

Kadant Inc, headquartered in Westford, Massachusetts, is a global supplier of high‐value, critical components and engineered systems for the pulp and paper industry and other process industries. The company’s product portfolio spans stock preparation technologies, refiners and pulpers, fluid handling systems, and web‐handling equipment designed to optimize the efficiency and quality of paper production. In addition to capital equipment, Kadant offers aftermarket services, including spare parts, maintenance programs and process optimization consulting, which together support long‐term customer productivity and reliability.

Originally part of a larger industrial conglomerate, Kadant was established as an independent public company in 1991.