Kadant (NYSE:KAI) Issues Earnings Results

Kadant (NYSE:KAI) announced its quarterly earnings results on Tuesday. The industrial products company reported $3.42 EPS for the quarter, beating the consensus estimate of $2.94 by $0.48, FiscalAI reports. The business had revenue of $312.88 million for the quarter, compared to analyst estimates of $299.17 million. Kadant had a return on equity of 12.13% and a net margin of 9.45%.The company’s quarterly revenue was up 22.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.31 EPS. Kadant updated its FY 2026 guidance to 12.430-12.680 EPS and its Q3 2026 guidance to 2.900-3.000 EPS.

Kadant Stock Down 3.5%

Shares of KAI stock traded down $11.86 during trading hours on Wednesday, reaching $323.06. 86,168 shares of the stock were exchanged, compared to its average volume of 155,749. The business’s fifty day moving average is $306.59 and its two-hundred day moving average is $315.99. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.47 and a quick ratio of 1.53. Kadant has a 12-month low of $244.87 and a 12-month high of $357.65. The firm has a market capitalization of $3.82 billion, a P/E ratio of 36.84 and a beta of 1.20.

Kadant Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 13th. Stockholders of record on Thursday, July 16th will be given a dividend of $0.36 per share. The ex-dividend date of this dividend is Thursday, July 16th. This represents a $1.44 dividend on an annualized basis and a dividend yield of 0.4%. Kadant’s payout ratio is currently 16.42%.

Insider Transactions at Kadant

In other Kadant news, SVP Stacy D. Krause sold 1,227 shares of the business’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $334.17, for a total transaction of $410,026.59. Following the completion of the transaction, the senior vice president owned 1,363 shares in the company, valued at $455,473.71. The trade was a 47.37% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 1.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Kadant

Institutional investors and hedge funds have recently modified their holdings of the company. AQR Capital Management LLC lifted its stake in Kadant by 11.2% during the first quarter. AQR Capital Management LLC now owns 2,763 shares of the industrial products company’s stock worth $931,000 after purchasing an additional 279 shares during the last quarter. Integrated Wealth Concepts LLC raised its holdings in Kadant by 8.6% during the first quarter. Integrated Wealth Concepts LLC now owns 907 shares of the industrial products company’s stock worth $306,000 after purchasing an additional 72 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Kadant by 4.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,985 shares of the industrial products company’s stock worth $2,353,000 after buying an additional 311 shares during the last quarter. United Services Automobile Association acquired a new position in shares of Kadant in the 1st quarter valued at $255,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of Kadant by 1.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 30,974 shares of the industrial products company’s stock valued at $10,435,000 after buying an additional 441 shares during the last quarter. Institutional investors and hedge funds own 96.13% of the company’s stock.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on KAI. Barrington Research restated an “outperform” rating and issued a $380.00 price objective on shares of Kadant in a report on Monday, May 4th. Wall Street Zen raised shares of Kadant from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Zacks Research cut shares of Kadant from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 20th. Finally, Weiss Ratings downgraded shares of Kadant from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, Kadant has a consensus rating of “Hold” and a consensus target price of $341.50.

Kadant News Summary

Here are the key news stories impacting Kadant this week:

• Positive Sentiment: Kadant reported record second-quarter revenue of approximately $312.9 million, up 22.6% year over year and ahead of the $299.2 million consensus estimate. Adjusted EPS was $3.42, beating expectations of $2.94 and rising from $2.31 a year earlier. Kadant Q2 earnings report
• Positive Sentiment: The company raised its fiscal 2026 adjusted EPS outlook to $12.43-$12.68, above the prior consensus estimate of $11.55. Full-year revenue is expected at roughly $1.2 billion, broadly in line with estimates. Kadant raises 2026 guidance
• Positive Sentiment: Operating trends were constructive: bookings increased 16% to $312.1 million, backlog stood at $340 million, and operating cash flow rose 32% to $53.5 million. Adjusted EBITDA reached $68.1 million.
• Neutral Sentiment: Despite strong demand, gross margin declined to 43.8% from 45.9% a year earlier, suggesting cost or mix pressures that investors will monitor.
• Neutral Sentiment: Institutional positioning was mixed, with 138 investors adding shares and 132 reducing positions in their latest reported quarters. Two company insiders also sold shares, with no reported insider purchases.
• Negative Sentiment: Third-quarter guidance calls for revenue of $297 million-$307 million and adjusted EPS of $2.90-$3.00, below consensus estimates of $311.8 million and $3.29, respectively. This cautious near-term outlook could offset some of the bullish impact from the second-quarter beat and full-year guidance increase. Kadant second-quarter results

Kadant declared that its Board of Directors has approved a share buyback program on Thursday, May 21st that authorizes the company to buyback $50.00 million in shares. This buyback authorization authorizes the industrial products company to purchase up to 1.4% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s board believes its stock is undervalued.

Kadant Company Profile

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.