Kadant (NYSE:KAI) Issues Q3 2026 Earnings Guidance

Kadant (NYSE:KAI) issued an update on its third quarter 2026 earnings guidance on Tuesday. The company provided EPS guidance of 2.900-3.000 for the period, compared to the consensus earnings per share estimate of 3.290. The company issued revenue guidance of $297.0 million-$307.0 million, compared to the consensus revenue estimate of $311.8 million. Kadant also updated its FY 2026 guidance to 12.430-12.680 EPS.

Wall Street Analyst Weigh In

KAI has been the topic of a number of analyst reports. Weiss Ratings lowered shares of Kadant from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday. Zacks Research cut Kadant from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 20th. Barrington Research reiterated an “outperform” rating and issued a $380.00 target price on shares of Kadant in a research note on Monday, May 4th. Finally, Wall Street Zen upgraded Kadant from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Kadant has an average rating of “Hold” and a consensus target price of $341.50.

Kadant Trading Up 3.1%

Kadant stock traded up $10.11 during trading on Tuesday, reaching $334.67. The company had a trading volume of 121,657 shares, compared to its average volume of 156,276. Kadant has a 12-month low of $244.87 and a 12-month high of $357.65. The stock’s 50 day moving average price is $306.50 and its two-hundred day moving average price is $315.86. The firm has a market capitalization of $3.95 billion, a price-to-earnings ratio of 38.16 and a beta of 1.20. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.53 and a current ratio of 2.47.

Kadant (NYSE:KAI) last issued its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $3.42 EPS for the quarter, topping the consensus estimate of $2.94 by $0.48. The firm had revenue of $312.88 million during the quarter, compared to analyst estimates of $299.17 million. Kadant had a net margin of 9.45% and a return on equity of 12.13%. Kadant’s revenue for the quarter was up 22.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.31 earnings per share. Kadant has set its FY 2026 guidance at 12.430-12.680 EPS and its Q3 2026 guidance at 2.900-3.000 EPS. As a group, equities analysts expect that Kadant will post 12.42 earnings per share for the current fiscal year.

Kadant Dividend Announcement

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

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

Insider Buying and Selling at Kadant

In related news, SVP Stacy D. Krause sold 1,227 shares of Kadant stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $334.17, for a total value of $410,026.59. Following the transaction, the senior vice president owned 1,363 shares in the company, valued at approximately $455,473.71. This trade represents a 47.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 1.30% of the company’s stock.

Hedge Funds Weigh In On Kadant

A number of large investors have recently modified their holdings of KAI. Caitong International Asset Management Co. Ltd lifted its stake in shares of Kadant by 1,300.0% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 84 shares of the industrial products company’s stock valued at $25,000 after purchasing an additional 78 shares in the last quarter. Kestra Advisory Services LLC purchased a new stake in shares of Kadant during the 4th quarter worth about $27,000. Kestra Investment Management LLC acquired a new stake in Kadant during the 2nd quarter worth approximately $27,000. Allworth Financial LP increased its position in Kadant by 89.1% during the 3rd quarter. Allworth Financial LP now owns 104 shares of the industrial products company’s stock worth $31,000 after purchasing an additional 49 shares in the last quarter. Finally, Smartleaf Asset Management LLC raised its holdings in Kadant by 278.0% in the second quarter. Smartleaf Asset Management LLC now owns 189 shares of the industrial products company’s stock valued at $59,000 after buying an additional 139 shares during the period. 96.13% of the stock is currently owned by hedge funds and other institutional investors.

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.