Kadant (KAI)
Market Price (5/12/2026): $333.81 | Market Cap: $3.9 BilSector: Industrials | Industry: Industrial Machinery & Supplies & Components
Kadant (KAI)
Market Price (5/12/2026): $333.81Market Cap: $3.9 BilSector: IndustrialsIndustry: Industrial Machinery & Supplies & Components
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 16%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 15% Low stock price volatilityVol 12M is 38% Megatrend and thematic driversMegatrends include Water Infrastructure, Sustainable Resource Management, and Circular Economy & Recycling. Themes include Water Treatment & Delivery, Show more. | Weak multi-year price returns2Y Excs Rtn is -23%, 3Y Excs Rtn is -4.2% Meaningful short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 12% | Key risksKAI key risks include [1] lackluster revenue growth and stalled earnings per share and [2] the potential for delayed capital equipment orders due to challenging global demand cycles. |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 16%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 15% |
| Low stock price volatilityVol 12M is 38% |
| Megatrend and thematic driversMegatrends include Water Infrastructure, Sustainable Resource Management, and Circular Economy & Recycling. Themes include Water Treatment & Delivery, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -23%, 3Y Excs Rtn is -4.2% |
| Meaningful short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 12% |
| Key risksKAI key risks include [1] lackluster revenue growth and stalled earnings per share and [2] the potential for delayed capital equipment orders due to challenging global demand cycles. |
Qualitative Assessment
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Kadant (KAI) stock has gained about 5% since 1/31/2026 because of the following key factors:
1. Strong Earnings Performance Offset by Acquisition-Related Dilution and Margin Compression.
Kadant reported robust financial results for both Q4 2025 and Q1 2026, with adjusted earnings per share (EPS) consistently beating analyst estimates. In Q4 2025, Kadant reported $2.80 EPS, surpassing the consensus by $0.61, on revenue of $286.20 million, which was up 10.9% year-over-year. This strong performance continued into Q1 2026, where the company posted adjusted EPS of $2.84, exceeding the $2.11 consensus estimate by $0.73, and revenue of $281.5 million, beating analyst expectations of $274.95 million. Management subsequently raised its full-year 2026 revenue guidance to a range of $1.178 billion to $1.203 billion. However, this positive momentum was tempered by a slight reduction in the full-year adjusted EPS outlook (to $12.33-$12.68), attributed to short-term dilution of approximately $0.20 per share from the recently completed acquisition of Kadant Profil in April 2026. Additionally, gross margin in Q1 2026 compressed by 110 basis points to 45.0%.
2. Mixed Industrial Sector Outlook and Stable Analyst Sentiment.
The broader industrial and manufacturing sector presented a nuanced picture during the period. While U.S. manufacturing output for 2026 is projected to rise by approximately 3.5% annually, driven by post-pandemic recovery and investments in supply chain resilience, operating conditions for manufacturing companies globally are expected to remain challenging due to persistent cost pressures and the need for increased capital expenditures. Geopolitical issues also contributed to uncertainty regarding the timing of large capital projects. Despite these mixed macroeconomic signals, Wall Street analysts maintained a "Moderate Buy" consensus rating for Kadant, with an average price target of $341.50, implying a modest upside potential from current levels and contributing to the stock's overall stability.
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1. Strong Earnings Performance Offset by Acquisition-Related Dilution and Margin Compression.
Kadant reported robust financial results for both Q4 2025 and Q1 2026, with adjusted earnings per share (EPS) consistently beating analyst estimates. In Q4 2025, Kadant reported $2.80 EPS, surpassing the consensus by $0.61, on revenue of $286.20 million, which was up 10.9% year-over-year. This strong performance continued into Q1 2026, where the company posted adjusted EPS of $2.84, exceeding the $2.11 consensus estimate by $0.73, and revenue of $281.5 million, beating analyst expectations of $274.95 million. Management subsequently raised its full-year 2026 revenue guidance to a range of $1.178 billion to $1.203 billion. However, this positive momentum was tempered by a slight reduction in the full-year adjusted EPS outlook (to $12.33-$12.68), attributed to short-term dilution of approximately $0.20 per share from the recently completed acquisition of Kadant Profil in April 2026. Additionally, gross margin in Q1 2026 compressed by 110 basis points to 45.0%.
2. Mixed Industrial Sector Outlook and Stable Analyst Sentiment.
The broader industrial and manufacturing sector presented a nuanced picture during the period. While U.S. manufacturing output for 2026 is projected to rise by approximately 3.5% annually, driven by post-pandemic recovery and investments in supply chain resilience, operating conditions for manufacturing companies globally are expected to remain challenging due to persistent cost pressures and the need for increased capital expenditures. Geopolitical issues also contributed to uncertainty regarding the timing of large capital projects. Despite these mixed macroeconomic signals, Wall Street analysts maintained a "Moderate Buy" consensus rating for Kadant, with an average price target of $341.50, implying a modest upside potential from current levels and contributing to the stock's overall stability.
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Stock Movement Drivers
Fundamental Drivers
The 4.1% change in KAI stock from 1/31/2026 to 5/11/2026 was primarily driven by a 4.1% change in the company's P/E Multiple.| (LTM values as of) | 1312026 | 5112026 | Change |
|---|---|---|---|
| Stock Price ($) | 320.69 | 333.81 | 4.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,024 | 1,052 | 2.8% |
| Net Income Margin (%) | 10.0% | 9.7% | -2.7% |
| P/E Multiple | 37.0 | 38.6 | 4.1% |
| Shares Outstanding (Mil) | 12 | 12 | 0.0% |
| Cumulative Contribution | 4.1% |
Market Drivers
1/31/2026 to 5/11/2026| Return | Correlation | |
|---|---|---|
| KAI | 4.1% | |
| Market (SPY) | 3.6% | 57.9% |
| Sector (XLI) | 6.1% | 56.8% |
Fundamental Drivers
The 20.9% change in KAI stock from 10/31/2025 to 5/11/2026 was primarily driven by a 25.5% change in the company's P/E Multiple.| (LTM values as of) | 10312025 | 5112026 | Change |
|---|---|---|---|
| Stock Price ($) | 276.04 | 333.81 | 20.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,024 | 1,052 | 2.7% |
| Net Income Margin (%) | 10.3% | 9.7% | -6.2% |
| P/E Multiple | 30.7 | 38.6 | 25.5% |
| Shares Outstanding (Mil) | 12 | 12 | 0.0% |
| Cumulative Contribution | 20.9% |
Market Drivers
10/31/2025 to 5/11/2026| Return | Correlation | |
|---|---|---|
| KAI | 20.9% | |
| Market (SPY) | 5.5% | 52.4% |
| Sector (XLI) | 13.6% | 57.7% |
Fundamental Drivers
The 13.7% change in KAI stock from 4/30/2025 to 5/11/2026 was primarily driven by a 24.7% change in the company's P/E Multiple.| (LTM values as of) | 4302025 | 5112026 | Change |
|---|---|---|---|
| Stock Price ($) | 293.70 | 333.81 | 13.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,053 | 1,052 | -0.1% |
| Net Income Margin (%) | 10.6% | 9.7% | -8.5% |
| P/E Multiple | 30.9 | 38.6 | 24.7% |
| Shares Outstanding (Mil) | 12 | 12 | -0.3% |
| Cumulative Contribution | 13.7% |
Market Drivers
4/30/2025 to 5/11/2026| Return | Correlation | |
|---|---|---|
| KAI | 13.7% | |
| Market (SPY) | 30.4% | 55.8% |
| Sector (XLI) | 35.2% | 59.9% |
Fundamental Drivers
The 82.0% change in KAI stock from 4/30/2023 to 5/11/2026 was primarily driven by a 118.0% change in the company's P/E Multiple.| (LTM values as of) | 4302023 | 5112026 | Change |
|---|---|---|---|
| Stock Price ($) | 183.38 | 333.81 | 82.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 905 | 1,052 | 16.3% |
| Net Income Margin (%) | 13.4% | 9.7% | -27.5% |
| P/E Multiple | 17.7 | 38.6 | 118.0% |
| Shares Outstanding (Mil) | 12 | 12 | -1.0% |
| Cumulative Contribution | 82.0% |
Market Drivers
4/30/2023 to 5/11/2026| Return | Correlation | |
|---|---|---|
| KAI | 82.0% | |
| Market (SPY) | 78.7% | 58.3% |
| Sector (XLI) | 83.0% | 64.4% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| KAI Return | 64% | -23% | 59% | 24% | -17% | 19% | 147% |
| Peers Return | 22% | -17% | 26% | 12% | 20% | 16% | 99% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 8% | 97% |
Monthly Win Rates [3] | |||||||
| KAI Win Rate | 67% | 33% | 67% | 58% | 58% | 80% | |
| Peers Win Rate | 60% | 37% | 57% | 53% | 57% | 64% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | |
Max Drawdowns [4] | |||||||
| KAI Max Drawdown | -2% | -31% | 0% | -8% | -28% | 0% | |
| Peers Max Drawdown | -9% | -36% | -8% | -12% | -22% | -0% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: FLS, ITT, TEX, ASTE, DOV.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 5/11/2026 (YTD)
How Low Can It Go
| Event | KAI | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -30.4% | -24.5% |
| % Gain to Breakeven | 43.6% | 32.4% |
| Time to Breakeven | 356 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -45.5% | -33.7% |
| % Gain to Breakeven | 83.4% | 50.9% |
| Time to Breakeven | 69 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -27.1% | -19.2% |
| % Gain to Breakeven | 37.3% | 23.7% |
| Time to Breakeven | 353 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -27.0% | -12.2% |
| % Gain to Breakeven | 37.0% | 13.9% |
| Time to Breakeven | 97 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -10.6% | -6.8% |
| % Gain to Breakeven | 11.8% | 7.3% |
| Time to Breakeven | 8 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -51.2% | -17.9% |
| % Gain to Breakeven | 104.9% | 21.8% |
| Time to Breakeven | 646 days | 123 days |
In The Past
Kadant's stock fell -5.2% during the 2024 Yen Carry Trade Unwind. Such a loss loss requires a 5.5% gain to breakeven.
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| Event | KAI | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -30.4% | -24.5% |
| % Gain to Breakeven | 43.6% | 32.4% |
| Time to Breakeven | 356 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -45.5% | -33.7% |
| % Gain to Breakeven | 83.4% | 50.9% |
| Time to Breakeven | 69 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -27.1% | -19.2% |
| % Gain to Breakeven | 37.3% | 23.7% |
| Time to Breakeven | 353 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -27.0% | -12.2% |
| % Gain to Breakeven | 37.0% | 13.9% |
| Time to Breakeven | 97 days | 62 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -51.2% | -17.9% |
| % Gain to Breakeven | 104.9% | 21.8% |
| Time to Breakeven | 646 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -79.0% | -53.4% |
| % Gain to Breakeven | 376.5% | 114.4% |
| Time to Breakeven | 792 days | 1085 days |
In The Past
Kadant's stock fell -5.2% during the 2024 Yen Carry Trade Unwind. Such a loss loss requires a 5.5% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Kadant (KAI)
Kadant Inc. supplies technologies and engineered systems worldwide. It operates through three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems and equipment, such as rotary joints, syphons, turbulator bars, expansion joints, and engineered steam and condensate systems; and doctoring, cleaning, and filtration systems and related consumables, consisting of doctor systems and holders, doctor blades, shower and fabric-conditioning systems, formation systems, and water-filtration systems. The Industrial Processing segment develops, manufactures, and markets ring and rotary debarkers, stranders, chippers, logging machinery, industrial automation and control systems, recycling and approach flow systems, and virgin pulping process equipment for use in the packaging, tissue, wood products, and alternative fuel industries. The Material Handling segment offers conveying and vibratory equipment, and balers and related equipment; and manufactures and sells biodegradable absorbent granules for carriers in as carriers in agricultural, home lawn and garden, professional lawn, turf, and ornamental applications, as well as for oil and grease absorption. The company was formerly known as Thermo Fibertek Inc. and changed its name to Kadant Inc. in July 2001. Kadant Inc. was incorporated in 1991 and is headquartered in Westford, Massachusetts.
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```htmlHere are a few analogies to describe Kadant (KAI):
- Similar to a specialized Parker-Hannifin, focusing on engineered systems for fluid and material handling in industrial settings.
- A more niche version of Andritz, providing industrial processing equipment for the pulp, paper, and wood product industries.
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- Fluid-Handling Systems: Develops, manufactures, and markets fluid-handling systems and equipment such as rotary joints, syphons, and expansion joints.
- Doctoring, Cleaning, and Filtration Systems: Offers doctor systems, doctor blades, shower and fabric-conditioning systems, and water-filtration systems.
- Wood Processing Machinery: Provides ring and rotary debarkers, stranders, chippers, and logging machinery for the wood products industry.
- Industrial Automation and Control Systems: Supplies industrial automation and control systems for various applications.
- Recycling and Pulping Process Equipment: Manufactures recycling and approach flow systems, as well as virgin pulping process equipment.
- Conveying and Vibratory Equipment: Offers equipment for conveying and vibratory material handling.
- Balers and Related Equipment: Provides balers and associated equipment for waste and material compression.
- Biodegradable Absorbent Granules: Produces absorbent granules used as carriers in agricultural and lawn applications, and for oil/grease absorption.
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Kadant Inc. (KAI) primarily sells its technologies, engineered systems, and consumables to other companies (B2B) across a diverse range of process industries worldwide.
Kadant does not disclose specific major customer companies by name in its public filings. This is because, according to its annual reports, no single customer accounted for 10% or more of its consolidated revenues in recent fiscal years, indicating a broad and diversified customer base.
Based on the company's operational segments and product descriptions, Kadant's major customers are typically industrial enterprises operating in the following sectors:
- Paper and Packaging Industry: Manufacturers of paper, tissue, and packaging products, utilizing Kadant's flow control, industrial processing (such as virgin pulping, recycling, and approach flow systems), and material handling equipment.
- Wood Products Industry: Companies involved in forestry and wood processing, which use Kadant's specialized equipment like debarkers, stranders, and chippers.
- Alternative Fuel Industry: Businesses engaged in the development and processing of alternative fuels, for which Kadant supplies industrial processing equipment.
- Agriculture and Other Process Industries: Customers in the agricultural sector (for biodegradable absorbent granules) and a broad array of other process-intensive industries (such. as chemicals, mining, food & beverage) that utilize Kadant's fluid-handling, material handling, and industrial processing technologies.
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Jeffrey L. Powell, President, Chief Executive Officer and Director
Mr. Powell has been Kadant's chief executive officer and a director since July 2019 and president since April 2019. He joined Kadant in 2008, initially responsible for acquisition-related activities. Prior to joining Kadant, Mr. Powell was the chairman and chief executive officer of Castion Corporation from April 2003 through December 2007. Before Castion, he held various management positions at Thermo Electron Corporation, including chief executive officer and president of one of its publicly traded subsidiaries.
Michael J. McKenney, Executive Vice President and Chief Financial Officer
Mr. McKenney has served as Executive Vice President and Chief Financial Officer since March 2018, having previously been Senior Vice President and Chief Financial Officer from June 2015 to March 2018. He also held the roles of Vice President, Finance and Chief Accounting Officer from 2002 to 2015, and corporate controller from 1997 to 2007. Mr. McKenney joined Kadant in 1993 as controller of Kadant AES, a division acquired from Albany International Inc. Earlier in his career, he held various financial positions at Albany International and Coopers & Lybrand LLP.
Stacy D. Krause, Senior Vice President, General Counsel, and Secretary
Ms. Krause has been Senior Vice President, General Counsel, and Secretary since November 2021. Prior to this, she served as Vice President, General Counsel and Secretary from July 2018 to November 2021, and as Deputy General Counsel from December 2017 to June 2018. Before joining Kadant, Ms. Krause was head of commerce cloud commercial legal at salesforce.com, inc., from July 2016 to December 2017.
Michael C. Colwell, Senior Vice President
Mr. Colwell has served as Senior Vice President since December 2024, after being Vice President responsible for the Industrial Processing segment from August 2022 to December 2024. He previously served as the president of Kadant Carmanah Design, a division of Kadant Canada Corp., from 2013 to 2019. From April 2010 until Kadant's acquisition of the company in November 2013, Mr. Colwell was the president and chief executive officer of Carmanah Design and Manufacturing Inc.
Dara F. Mitchell, Senior Vice President, Corporate Development
Ms. Mitchell has been Senior Vice President, Corporate Development, since May 2019. Her tenure at Kadant also includes roles as Vice President, Corporate Development from 2016 to 2019, and Director of Corporate Development from 2013 to 2016. Before joining Kadant, Ms. Mitchell was a principal at NewDelta Partners, an investment banking and strategic advisory firm, and an investment director at 3i, a global private equity firm where she focused on investing in technology companies.
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```htmlKey Risks to Kadant Inc. (KAI)
- Sensitivity to Global Economic Conditions and Cyclical Demand for Capital Equipment: Kadant's financial performance is significantly influenced by global economic conditions and the cyclical nature of demand for its capital equipment, which constituted approximately 29% of its 2025 revenue. Economic downturns can lead to reduced demand for its products and services, making revenue and operating results challenging to forecast. Management has noted softness in capital project activity and delayed capital orders, indicating ongoing vulnerability to these cycles.
- Acquisition-Related Risks: Kadant pursues an active acquisition strategy to drive growth. This strategy inherently carries risks, including challenges in successfully integrating acquired businesses and their employees, potential disruptions to existing business relationships, difficulties in realizing anticipated synergies and cost savings, and unexpected costs associated with acquisitions.
- Exposure to Global Trade, Geopolitical, and Regulatory Risks: A substantial portion of Kadant's consolidated revenue (approximately 50% in 2024) is derived from customers outside the United States, primarily in Europe, Asia, and Canada. This global presence subjects the company to various international risks, including changes in government regulations and policies, tariffs, trade barriers, exchange controls, and political instability, which can negatively impact its business. Kadant has specifically cited "tariff volatility" and "global trade uncertainties" as contributing to challenges.
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Kadant Inc. operates in several addressable markets globally, supplying technologies and engineered systems across its Flow Control, Industrial Processing, and Material Handling segments.
Flow Control Segment
- Fluid-handling systems and equipment: The global fluid handling systems market was valued at USD 71.35 billion in 2024 and is projected to reach USD 113.59 billion by 2034, growing at a Compound Annual Growth Rate (CAGR) of 4.76% from 2025 to 2034. Another estimate places the market at US$75.4 billion in 2026, expected to reach US$113.2 billion by 2033, with a CAGR of 6.0% from 2026 to 2033.
- Rotary joints: The global rotary and RF rotary joints market is projected to reach USD 1.90 billion by 2029 from USD 1.46 billion in 2024, at a CAGR of 5.4% from 2024 to 2029. This market was valued at USD 1.61 billion in 2023 and is expected to reach USD 2.52 billion by 2032, growing at a CAGR of 5.09% from 2024 to 2032.
Industrial Processing Segment
- Industrial automation and control systems: The global industrial automation and control systems market was valued at over USD 165 billion in 2023 and is estimated to reach USD 380 billion by 2032, registering a CAGR of over 9.5% between 2024 and 2032. Another report values this market at USD 228.88 billion in 2025, projected to hit USD 576.99 billion by 2034, representing a CAGR of 10.82% from 2025 to 2034.
- Process equipment (including pulping process equipment): The global process equipment market is projected to reach approximately USD 200 billion by 2033, growing at a CAGR of 5.5% from 2025 to 2033. This market was valued at USD 91.64 billion in 2024 and is anticipated to reach USD 131.79 billion by 2033, growing at a CAGR of 4.12% from 2025 to 2033.
Material Handling Segment
- Conveying equipment: The global conveying equipment market size was estimated at USD 54.88 billion in 2023 and is projected to reach USD 71.57 billion by 2030, growing at a CAGR of 3.9% from 2024 to 2030. Another report indicates a market size of USD 56.6 billion in 2024, projected to grow to USD 83.7 billion by 2034, at a CAGR of 4% between 2025 and 2034.
- Vibratory equipment: The global vibratory feeder market is projected to reach USD 2.1-2.5 billion by 2025, with an estimated CAGR of 5%-7% through 2030. The vibrating conveyer market is estimated to be valued at USD 533.2 million in 2025 and is projected to reach USD 852.2 million by 2035, registering a CAGR of 4.8%. The industrial vibrator market was valued at USD 1.8 billion in 2020 and is projected to reach USD 3.1 billion by 2028, growing at a CAGR of 7.3% from 2021 to 2028.
- Balers and related equipment: The global baler machines market size was valued at $6.1 billion in 2024 and is projected to reach $10.4 billion by 2034, growing at a CAGR of 5.4% from 2025 to 2034. Other estimates show the global baler market at USD 6.40 billion in 2024, projected to reach USD 11.90 billion by 2030, growing at a CAGR of 10.6% from 2025 to 2030.
- Biodegradable absorbent granules: The global biodegradable superabsorbent materials market size was valued at USD 143.4 million in 2022 and is expected to reach USD 278.0 million by 2032, at a CAGR of 6.84% during the projected period. The industrial absorbent market, which includes granules, is expected to surpass USD 8.56 billion by 2035.
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Kadant Inc. (KAI) is anticipated to drive future revenue growth over the next 2-3 years through several key initiatives and market dynamics:
- Strategic Acquisitions: Recent acquisitions significantly contributed to revenue growth in 2025 and are expected to continue to bolster sales. For example, the pending acquisition of voestalpine BÖHLER Profil GmbH is noted as a factor that will influence future financial performance.
- Robust Aftermarket Parts Business: The company's aftermarket parts business has demonstrated strong and consistent demand, achieving record performance and contributing a substantial portion (71% in fiscal 2025) of total revenue. This segment is expected to remain a stable and significant driver of future revenue.
- Improved Capital Project Activity: After experiencing softness in capital project activity in 2025, Kadant's management is forecasting improved activity in 2026. The company's year-end backlog shows a considerable weighting towards capital projects, suggesting a potential upside for revenue as these delayed orders are fulfilled.
- Focus on Sustainable Industrial Processing and Innovation: Kadant's commitment to "Sustainable Industrial Processing" positions its products and services to enhance efficiency, optimize energy utilization, and maximize productivity for its customers. This emphasis on sustainability and innovation in its engineered systems and technologies is expected to attract environmentally conscious customers and drive demand.
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Share Repurchases
- Kadant's Board of Directors authorized a share repurchase program of up to $50 million, effective from May 16, 2024, through May 16, 2025, under which no shares were repurchased.
- A subsequent share repurchase program of up to $50 million was authorized, effective from May 15, 2025, through May 15, 2026.
Share Issuance
- In the period ending June 28, 2025, Kadant issued common stock worth $5.45 million due to the vesting of restricted stock units.
- The company had approximately 11.78 million shares of common stock outstanding as of July 25, 2025.
Outbound Investments
- Kadant completed the acquisition of Clyde Industries Holdings, Inc. for $175 million in cash on October 7, 2025, primarily financed through its revolving credit facility.
- On July 15, 2025, Kadant acquired Babbini S.p.A. and G.P.S. Engineering S.r.l., both Italy-based companies specializing in industrial dewatering and engineered power transmission solutions, for an undisclosed amount.
- Kadant announced a definitive agreement to acquire voestalpine BÖHLER Profil GmbH & Co KG, expected to close in the first quarter of 2026, financed through its revolving credit facility.
Capital Expenditures
- Kadant's capital expenditures were $17.0 million in 2025 and $21.0 million in 2024.
- For the last 12 months (ending Q4 2025 or Q1 2026), capital expenditures totaled -$17.05 million.
- Kadant invested $6.0 million in capital expenditures in Q1 2026.
Latest Trefis Analyses
| Title | Date | |
|---|---|---|
| DASHBOARDS | ||
| Kadant Earnings Notes | 12/27/2025 | |
| Kadant Stock Jump Looks Great, But How Secure Is That Gain? | 10/17/2025 | |
| Kadant vs Alphabet: Which Is A Better Investment? | 08/18/2025 | |
| Kadant vs Honeywell International: Which Is A Better Investment? | 08/18/2025 | |
| Kadant vs Ingersoll Rand: Which Is A Better Investment? | 08/18/2025 | |
| Kadant Stock vs Competition: Who Wins? | 08/13/2025 | |
| Better Bet Than KAI Stock: Pay Less Than Kadant To Get More From GOOGL, BKNG | 08/12/2025 |
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| 04302026 | GEO | GEO | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
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| 04172026 | RSG | Republic Services | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.8% | 0.8% | -1.1% |
| 04102026 | VRSK | Verisk Analytics | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 12.3% | 12.3% | 0.0% |
| 04102026 | UHAL | U-Haul | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.3% | 0.3% | -1.0% |
| 12312017 | KAI | Kadant | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | -3.8% | -18.1% | -22.4% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 138.80 |
| Mkt Cap | 7.6 |
| Rev LTM | 4,445 |
| Op Inc LTM | 417 |
| FCF LTM | 379 |
| FCF 3Y Avg | 294 |
| CFO LTM | 471 |
| CFO 3Y Avg | 395 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 9.3% |
| Rev Chg 3Y Avg | 6.4% |
| Rev Chg Q | 15.6% |
| QoQ Delta Rev Chg LTM | 3.7% |
| Op Inc Chg LTM | -0.4% |
| Op Inc Chg 3Y Avg | 7.2% |
| Op Mgn LTM | 13.0% |
| Op Mgn 3Y Avg | 13.0% |
| QoQ Delta Op Mgn LTM | -0.6% |
| CFO/Rev LTM | 12.5% |
| CFO/Rev 3Y Avg | 11.4% |
| FCF/Rev LTM | 10.4% |
| FCF/Rev 3Y Avg | 9.3% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 7.6 |
| P/S | 2.8 |
| P/Op Inc | 22.0 |
| P/EBIT | 20.0 |
| P/E | 39.0 |
| P/CFO | 19.7 |
| Total Yield | 3.2% |
| Dividend Yield | 0.8% |
| FCF Yield 3Y Avg | 3.9% |
| D/E | 0.2 |
| Net D/E | 0.2 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -1.7% |
| 3M Rtn | -1.6% |
| 6M Rtn | 18.2% |
| 12M Rtn | 40.4% |
| 3Y Rtn | 69.1% |
| 1M Excs Rtn | -10.4% |
| 3M Excs Rtn | -8.0% |
| 6M Excs Rtn | 9.8% |
| 12M Excs Rtn | 9.9% |
| 3Y Excs Rtn | -13.1% |
Price Behavior
Price Behavior
| Market Price | $333.81 | |
| Market Cap ($ Bil) | 3.9 | |
| First Trading Date | 11/03/1992 | |
| Distance from 52W High | -6.6% | |
| 50 Days | 200 Days | |
| DMA Price | $314.87 | $308.72 |
| DMA Trend | indeterminate | down |
| Distance from DMA | 6.0% | 8.1% |
| 3M | 1YR | |
| Volatility | 48.4% | 38.2% |
| Downside Capture | 0.63 | 0.74 |
| Upside Capture | 99.67 | 115.24 |
| Correlation (SPY) | 44.5% | 50.7% |
KAI Betas & Captures as of 4/30/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.83 | 1.66 | 1.51 | 1.45 | 1.61 | 1.32 |
| Up Beta | 1.86 | 1.79 | 1.90 | 1.76 | 2.10 | 1.45 |
| Down Beta | 4.70 | 2.51 | 2.32 | 1.68 | 1.76 | 1.23 |
| Up Capture | 89% | 98% | 106% | 131% | 115% | 203% |
| Bmk +ve Days | 15 | 22 | 31 | 66 | 141 | 428 |
| Stock +ve Days | 12 | 19 | 31 | 61 | 121 | 384 |
| Down Capture | 126% | 170% | 118% | 120% | 135% | 107% |
| Bmk -ve Days | 4 | 18 | 30 | 56 | 108 | 321 |
| Stock -ve Days | 10 | 24 | 33 | 64 | 131 | 365 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with KAI | |
|---|---|---|---|---|
| KAI | 11.5% | 38.5% | 0.36 | - |
| Sector ETF (XLI) | 30.6% | 15.6% | 1.51 | 59.6% |
| Equity (SPY) | 28.1% | 12.5% | 1.78 | 55.3% |
| Gold (GLD) | 42.9% | 26.9% | 1.30 | 0.7% |
| Commodities (DBC) | 48.6% | 18.0% | 2.14 | -17.2% |
| Real Estate (VNQ) | 13.6% | 13.5% | 0.70 | 38.1% |
| Bitcoin (BTCUSD) | -22.4% | 41.7% | -0.50 | 24.9% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with KAI | |
|---|---|---|---|---|
| KAI | 13.7% | 34.1% | 0.44 | - |
| Sector ETF (XLI) | 12.8% | 17.4% | 0.58 | 64.4% |
| Equity (SPY) | 12.9% | 17.1% | 0.59 | 59.7% |
| Gold (GLD) | 21.2% | 17.9% | 0.96 | 5.2% |
| Commodities (DBC) | 13.5% | 19.1% | 0.58 | 11.1% |
| Real Estate (VNQ) | 3.6% | 18.8% | 0.09 | 46.6% |
| Bitcoin (BTCUSD) | 8.5% | 56.0% | 0.36 | 23.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with KAI | |
|---|---|---|---|---|
| KAI | 22.3% | 34.9% | 0.67 | - |
| Sector ETF (XLI) | 14.0% | 20.0% | 0.62 | 62.4% |
| Equity (SPY) | 15.0% | 17.9% | 0.72 | 57.9% |
| Gold (GLD) | 13.4% | 15.9% | 0.70 | 3.2% |
| Commodities (DBC) | 9.5% | 17.7% | 0.45 | 20.0% |
| Real Estate (VNQ) | 5.6% | 20.7% | 0.24 | 46.5% |
| Bitcoin (BTCUSD) | 68.1% | 66.9% | 1.07 | 16.8% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/5/2026 | 13.4% | ||
| 2/18/2026 | 2.1% | 5.8% | -6.9% |
| 10/28/2025 | 0.8% | -8.4% | -7.0% |
| 7/29/2025 | 4.1% | -5.5% | -2.2% |
| 4/29/2025 | -6.5% | -8.6% | 0.6% |
| 2/12/2025 | -0.7% | 8.6% | -1.2% |
| 10/29/2024 | 4.7% | 12.2% | 25.9% |
| 7/30/2024 | -1.4% | -15.0% | -10.7% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 12 | 12 | 12 |
| # Negative | 11 | 10 | 10 |
| Median Positive | 4.4% | 6.3% | 4.9% |
| Median Negative | -3.3% | -5.5% | -4.1% |
| Max Positive | 13.4% | 13.9% | 25.9% |
| Max Negative | -6.6% | -15.0% | -10.7% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 12/31/2025 | 03/03/2026 | 10-K |
| 09/30/2025 | 11/05/2025 | 10-Q |
| 06/30/2025 | 08/06/2025 | 10-Q |
| 03/31/2025 | 05/07/2025 | 10-Q |
| 12/31/2024 | 02/25/2025 | 10-K |
| 09/30/2024 | 11/06/2024 | 10-Q |
| 06/30/2024 | 08/07/2024 | 10-Q |
| 03/31/2024 | 05/08/2024 | 10-Q |
| 12/31/2023 | 02/27/2024 | 10-K |
| 09/30/2023 | 11/08/2023 | 10-Q |
| 06/30/2023 | 08/09/2023 | 10-Q |
| 03/31/2023 | 05/10/2023 | 10-Q |
| 12/31/2022 | 02/28/2023 | 10-K |
| 09/30/2022 | 11/09/2022 | 10-Q |
| 06/30/2022 | 08/10/2022 | 10-Q |
| 03/31/2022 | 05/11/2022 | 10-Q |
Recent Forward Guidance [BETA]
Latest: Q1 2026 Earnings Reported 5/5/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | 296.00 Mil | 301.00 Mil | 306.00 Mil | 9.5% | Higher New | Actual: 275.00 Mil for Q1 2026 | |
| Q2 2026 GAAP EPS | 2.26 | 2.31 | 2.36 | 32.8% | Higher New | Actual: 1.74 for Q1 2026 | |
| Q2 2026 Adjusted EPS | 2.88 | 2.93 | 2.98 | 60.1% | Higher New | Actual: 1.83 for Q1 2026 | |
| 2026 Revenue | 1.18 Bil | 1.19 Bil | 1.20 Bil | 1.5% | Raised | Guidance: 1.17 Bil for 2026 | |
| 2026 GAAP EPS | 9.8 | 9.97 | 10.2 | -4.5% | Lowered | Guidance: 10.4 for 2026 | |
| 2026 Adjusted EPS | 12.3 | 12.5 | 12.7 | 18.3% | Raised | Guidance: 10.6 for 2026 | |
Prior: Q4 2025 Earnings Reported 2/18/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Revenue | 270.00 Mil | 275.00 Mil | 280.00 Mil | 0 | Same New | Guidance: 275.00 Mil for Q4 2025 | |
| Q1 2026 GAAP EPS | 1.69 | 1.74 | 1.79 | -13.4% | Lowered | Guidance: 2.01 for Q4 2025 | |
| Q1 2026 Adjusted EPS | 1.78 | 1.83 | 1.88 | -14.9% | Lowered | Guidance: 2.15 for Q4 2025 | |
| 2026 Revenue | 1.16 Bil | 1.17 Bil | 1.19 Bil | 12.6% | Higher New | Guidance: 1.04 Bil for 2025 | |
| 2026 GAAP EPS | 10.3 | 10.4 | 10.6 | 21.2% | Higher New | Guidance: 8.62 for 2025 | |
| 2026 Adjusted EPS | 10.4 | 10.6 | 10.8 | 15.6% | Higher New | Guidance: 9.15 for 2025 | |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Russell, Erin L | Direct | Sell | 11262025 | 282.36 | 1,435 | 405,180 | 865,702 | Form | |
| 2 | O'Mara, Rebecca Martinez | Direct | Sell | 11122025 | 266.91 | 699 | 186,569 | 304,543 | Form | |
| 3 | Leonard, Thomas C | Direct | Sell | 8282025 | 338.41 | 415 | 140,442 | 1,438,259 | Form | |
| 4 | Blanchard, Thomas Andrew | Vice President | Direct | Sell | 8192025 | 343.00 | 714 | 244,902 | 407,484 | Form |
| 5 | Flynn, Peter J | Senior Vice President | Direct | Sell | 6132025 | 320.00 | 1,500 | 480,000 | 837,947 | Form |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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