Kadant (NYSE:KAI) Issues FY 2026 Earnings Guidance

Kadant (NYSE:KAI) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 12.430-12.680 for the period, compared to the consensus earnings per share estimate of 11.550. The company issued revenue guidance of $1.2 billion-$1.2 billion, compared to the consensus revenue estimate of $1.2 billion. Kadant also updated its Q3 2026 guidance to 2.900-3.000 EPS.

Analysts Set New Price Targets

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

Kadant Trading Down 0.5%

Shares of NYSE KAI traded down $1.67 on Wednesday, reaching $333.25. 147,589 shares of the company traded hands, compared to its average volume of 156,142. The company has a 50 day moving average of $306.59 and a 200 day moving average of $315.99. The company has a current ratio of 2.47, a quick ratio of 1.53 and a debt-to-equity ratio of 0.36. Kadant has a fifty-two week low of $244.87 and a fifty-two week high of $357.65. The stock has a market capitalization of $3.94 billion, a PE ratio of 37.86 and a beta of 1.20.

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

Kadant Dividend Announcement

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

Kadant announced that its Board of Directors has authorized a share repurchase program on Thursday, May 21st that allows the company to buyback $50.00 million in shares. This buyback authorization allows the industrial products company to repurchase up to 1.4% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s management believes its shares are undervalued.

Insider Buying and Selling at Kadant

In related news, SVP Stacy D. Krause sold 1,227 shares of the business’s stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $334.17, for a total transaction of $410,026.59. Following the transaction, the senior vice president directly owned 1,363 shares of the company’s stock, valued at approximately $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 accessible through the SEC website. 1.30% of the stock is owned by insiders.

Trending Headlines about Kadant

Here are the key news stories impacting Kadant this week:

• Positive Sentiment: Kadant reported second-quarter adjusted earnings of $3.42 per share, well above the $2.94 analyst consensus and up from $2.31 a year earlier. Revenue increased 22.6% year over year to a record $312.9 million, exceeding expectations of approximately $299.2 million. Kadant Q2 earnings report
• Positive Sentiment: Management raised its full-year 2026 adjusted EPS outlook to $12.43-$12.68, above the prior outlook and the $11.55 analyst consensus. Full-year revenue is projected at approximately $1.2 billion. Bookings rose 16% to $312.1 million, while operating cash flow increased 32% to $53.5 million. Kadant raises 2026 guidance
• Neutral Sentiment: Second-quarter backlog was approximately $340 million, supporting future demand. However, gross margin declined to 43.8% from 45.9% a year earlier, which could limit the benefit of strong sales growth.
• Negative Sentiment: Third-quarter guidance calls for adjusted EPS of $2.90-$3.00 and revenue of $297 million-$307 million, below analyst estimates of $3.29 and $311.8 million, respectively. The weaker near-term outlook is likely the main reason the stock has decreased following the earnings release. Kadant Q2 revenue and outlook
• Negative Sentiment: Recent insider activity showed two open-market sales totaling more than 2,600 shares, with no reported insider purchases. This is a secondary cautionary signal but is less significant than the company’s earnings and guidance.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd raised its position 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 bought a new stake in shares of Kadant in the fourth quarter worth $27,000. Kestra Investment Management LLC bought a new position in Kadant during the 2nd quarter valued at $27,000. Allworth Financial LP grew its holdings 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 acquiring an additional 49 shares in the last quarter. Finally, Smartleaf Asset Management LLC increased its position in shares of Kadant by 278.0% in the 2nd quarter. Smartleaf Asset Management LLC now owns 189 shares of the industrial products company’s stock worth $59,000 after purchasing an additional 139 shares during the last quarter. Institutional investors and hedge funds own 96.13% of the company’s stock.

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.