Kadant Financials
Kadant (KAI) reported $1.2B in revenue over the twelve months to Jul 4, 2026, up 12.5% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
KAI operates like a cash-generative industrial consolidator, using balance-sheet expansion more than heavy capital spending to enlarge the business.
From FY2023 to FY2025, total assets expanded by$537M even though cumulative capital spending was only$70M , which means the larger asset base was not built mainly through internal projects. Goodwill rose by$164M while long-term debt increased by$264M , pointing to growth that was purchased and financed rather than equipment-led.
FY2025 operating cash flow of
The FY2025 earnings squeeze happened below the gross line: gross margin improved to
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Kadant's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Kadant has an operating margin of 14.9%, meaning the company retains $15 of operating profit per $100 of revenue. This strong profitability earns a score of 84/100, reflecting efficient cost management and pricing power. This is down from 16.3% the prior year.
Kadant's revenue declined 0.1% year-over-year, from $1.1B to $1.1B. This contraction results in a growth score of 50/100.
Kadant has a moderate D/E ratio of 0.38. This balance of debt and equity financing earns a leverage score of 42/100.
With a current ratio of 2.38, Kadant holds $2.38 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 66/100.
Kadant converts 14.7% of revenue into free cash flow ($154.3M). This strong cash generation earns a score of 77/100.
Kadant earns a strong 10.4% return on equity (ROE), meaning it generates $10 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 79/100. This is down from 13.2% the prior year.
Kadant scores 4.87, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($3.6B) relative to total liabilities ($732.4M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Kadant passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Kadant generates $1.68 in operating cash flow ($171.3M OCF vs $102.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Kadant earns $10.10 in operating income for every $1 of interest expense ($157.3M vs $15.6M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Kadant generated $1.1B in revenue in fiscal year 2025. This represents a decrease of 0.1% from the prior year.
Kadant's EBITDA was $208.5M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 5.6% from the prior year.
Kadant reported $102.0M in net income in fiscal year 2025. This represents a decrease of 8.6% from the prior year.
Kadant earned $8.65 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 8.8% from the prior year.
Cash & Balance Sheet
Kadant generated $154.3M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 14.9% from the prior year.
Kadant held $119.6M in cash against $371.4M in long-term debt as of fiscal year 2025.
Kadant paid $1.36 per share in dividends in fiscal year 2025. This represents an increase of 6.3% from the prior year.
Margins & Returns
Kadant's gross margin was 45.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 1.0 percentage points from the prior year.
Kadant's operating margin was 14.9% in fiscal year 2025, reflecting core business profitability. This is down 1.3 percentage points from the prior year.
Kadant's net profit margin was 9.7% in fiscal year 2025, showing the share of revenue converted to profit. This is down 0.9 percentage points from the prior year.
Kadant's ROE was 10.4% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 2.8 percentage points from the prior year.
Capital Allocation
Kadant invested $15.3M in research and development in fiscal year 2025. This represents an increase of 6.6% from the prior year.
Kadant invested $17.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 18.8% from the prior year.
Not reported for fiscal year 2025.
KAI Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'27 | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $312.9M+11.1% | $281.5M-1.6% | $286.2M+5.4% | $271.6M+6.4% | $255.3M+6.7% | $239.2M-7.3% | $258.0M-5.0% | $271.6M |
| Cost of Revenue | $175.9M+13.6% | $154.8M-3.6% | $160.5M+7.8% | $148.9M+7.7% | $138.2M+7.3% | $128.9M-11.8% | $146.2M-2.7% | $150.2M |
| Gross Profit | $137.0M+8.1% | $126.7M+0.8% | $125.7M+2.5% | $122.7M+4.8% | $117.0M+6.1% | $110.3M-1.4% | $111.9M-7.9% | $121.4M |
| R&D Expenses | $4.5M+10.6% | $4.1M-1.0% | $4.1M+4.6% | $3.9M+5.2% | $3.7M+5.7% | $3.5M-4.7% | $3.7M+8.4% | $3.4M |
| SG&A Expenses | $81.6M-1.1% | $82.5M+2.1% | $80.9M+6.6% | $75.8M+2.6% | $73.9M+3.8% | $71.2M+0.9% | $70.6M+2.2% | $69.0M |
| Operating Income | $50.9M+26.9% | $40.1M+1.0% | $39.7M-6.8% | $42.6M+8.2% | $39.4M+10.7% | $35.6M-3.7% | $36.9M-24.6% | $49.0M |
| Interest Expense | $5.3M+18.5% | $4.5M-15.7% | $5.3M+72.3% | $3.1M-7.5% | $3.3M-12.7% | $3.8M-17.7% | $4.6M-15.8% | $5.5M |
| Income Tax | $13.2M+30.0% | $10.1M-3.3% | $10.5M-10.9% | $11.8M+19.8% | $9.8M+25.5% | $7.8M-10.1% | $8.7M-27.2% | $12.0M |
| Net Income | $32.5M+27.3% | $25.5M+6.2% | $24.0M-13.3% | $27.7M+6.0% | $26.2M+8.7% | $24.1M+0.1% | $24.0M-23.9% | $31.6M |
| EPS (Diluted) | $2.75+27.3% | $2.16+5.9% | $2.04-13.2% | $2.35+5.9% | $2.22+8.8% | $2.040.0% | $2.04-23.9% | $2.68 |
KAI Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'27 | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $1.9B+10.2% | $1.7B+0.1% | $1.7B+11.7% | $1.5B+3.2% | $1.5B+3.4% | $1.4B+0.4% | $1.4B-4.0% | $1.5B |
| Current Assets | $580.8M+3.2% | $562.6M+3.8% | $541.9M+4.2% | $520.0M+9.5% | $474.7M+6.3% | $446.7M+1.0% | $442.3M-5.8% | $469.6M |
| Cash & Equivalents | $134.5M+15.0% | $117.0M-2.1% | $119.6M-4.0% | $124.5M+30.6% | $95.3M+4.0% | $91.7M-3.2% | $94.7M+7.1% | $88.4M |
| Inventory | $216.5M+0.8% | $214.8M+3.9% | $206.9M+15.1% | $179.7M+6.6% | $168.6M+9.8% | $153.5M+5.1% | $146.1M-13.7% | $169.3M |
| Accounts Receivable | $168.7M-2.1% | $172.4M+8.7% | $158.6M-0.1% | $158.8M+4.1% | $152.6M+4.6% | $145.9M+2.4% | $142.5M-8.1% | $155.0M |
| Goodwill | $660.9M+19.9% | $551.1M-0.8% | $555.6M+11.8% | $497.1M-0.1% | $497.8M+2.7% | $484.5M+1.1% | $479.2M-2.8% | $493.1M |
| Total Liabilities | $866.3M+20.5% | $719.0M-1.8% | $732.4M+25.8% | $582.4M+4.3% | $558.5M-0.2% | $559.5M-4.1% | $583.2M-8.5% | $637.6M |
| Current Liabilities | $224.2M-1.4% | $227.4M-0.3% | $228.2M+7.4% | $212.5M+6.4% | $199.8M+10.6% | $180.6M-5.7% | $191.6M-6.7% | $205.2M |
| Long-Term Debt | $507.5M+40.9% | $360.2M-3.0% | $371.4M+45.9% | $254.6M+3.6% | $245.7M-10.2% | $273.5M-4.1% | $285.2M-11.8% | $323.2M |
| Total Equity | $1.0B+2.7% | $995.6M+1.6% | $979.8M+3.2% | $949.8M+2.6% | $926.0M+5.7% | $876.0M+3.4% | $847.1M-0.5% | $851.7M |
| Retained Earnings | $995.1M+2.9% | $966.9M+2.2% | $945.6M+2.2% | $925.6M+2.6% | $901.9M+2.5% | $879.8M+2.3% | $859.7M+2.4% | $839.4M |
KAI Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'27 | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $53.5M+144.2% | $21.9M-63.9% | $60.8M+28.6% | $47.3M+16.7% | $40.5M+77.3% | $22.8M-56.0% | $51.9M-1.1% | $52.5M |
| Capital Expenditures | $10.9M+236.0% | $3.3M-46.1% | $6.0M+89.4% | $3.2M-19.5% | $4.0M+3.4% | $3.8M-31.2% | $5.6M+33.2% | $4.2M |
| Free Cash Flow | $42.6M+128.1% | $18.7M-65.9% | $54.7M+24.2% | $44.1M+20.7% | $36.5M+92.2% | $19.0M-59.0% | $46.3M-4.1% | $48.3M |
| Investing Cash Flow | -$181.2M-4514.5% | -$3.9M+97.8% | -$179.2M-829.1% | -$19.3M-521.4% | -$3.1M+19.1% | -$3.8M-17.5% | -$3.3M+77.2% | -$14.4M |
| Financing Cash Flow | $147.4M+835.3% | -$20.1M-117.7% | $113.3M+5112.2% | $2.2M+105.7% | -$38.4M-66.3% | -$23.1M+37.4% | -$36.9M-41.4% | -$26.1M |
| Dividends Paid | $4.3M+6.1% | $4.0M+0.1% | $4.0M0.0% | $4.0M0.0% | $4.0M+6.4% | $3.8M+0.1% | $3.8M0.0% | $3.8M |
Not reported in any period shown, so not listed: Share Buybacks.
KAI Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | Q2'27 | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 43.8%-1.2pp | 45.0%+1.1pp | 43.9%-1.3pp | 45.2%-0.7pp | 45.9%-0.3pp | 46.1%+2.8pp | 43.4%-1.4pp | 44.7% |
| Operating Margin | 16.3%+2.0pp | 14.2%+0.4pp | 13.9%-1.8pp | 15.7%+0.3pp | 15.4%+0.6pp | 14.9%+0.6pp | 14.3%-3.7pp | 18.0% |
| Net Margin | 10.4%+1.3pp | 9.1%+0.7pp | 8.4%-1.8pp | 10.2%0.0pp | 10.3%+0.2pp | 10.1%+0.7pp | 9.3%-2.3pp | 11.6% |
| Return on Equity | 3.2%+0.6pp | 2.6%+0.1pp | 2.5%-0.5pp | 2.9%+0.1pp | 2.8%+0.1pp | 2.8%-0.1pp | 2.8%-0.9pp | 3.7% |
| Return on Assets | 1.7%+0.2pp | 1.5%+0.1pp | 1.4%-0.4pp | 1.8%+0.1pp | 1.8%+0.1pp | 1.7%0.0pp | 1.7%-0.4pp | 2.1% |
| Current Ratio | 2.59+0.1x | 2.47+0.1x | 2.38-0.1x | 2.45+0.1x | 2.38-0.1x | 2.47+0.2x | 2.310.0x | 2.29 |
| Debt-to-Equity | 0.50+0.1x | 0.360.0x | 0.38+0.1x | 0.270.0x | 0.270.0x | 0.310.0x | 0.340.0x | 0.38 |
| FCF Margin | 13.6%+7.0pp | 6.6%-12.5pp | 19.1%+2.9pp | 16.2%+1.9pp | 14.3%+6.4pp | 7.9%-10.0pp | 17.9%+0.2pp | 17.8% |
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Where Kadant Ranks
Frequently Asked Questions
What is Kadant's annual revenue?
Kadant (KAI) reported $1.1B in total revenue for fiscal year 2025. This represents a -0.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Kadant's revenue growing?
Kadant (KAI) revenue declined by 0.1% year-over-year, from $1.1B to $1.1B in fiscal year 2025.
Is Kadant profitable?
Yes, Kadant (KAI) reported a net income of $102.0M in fiscal year 2025, with a net profit margin of 9.7%.
What is Kadant's EBITDA?
Kadant (KAI) had EBITDA of $208.5M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Kadant have?
As of fiscal year 2025, Kadant (KAI) had $119.6M in cash and equivalents against $371.4M in long-term debt.
What is Kadant's gross margin?
Kadant (KAI) had a gross margin of 45.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Kadant's operating margin?
Kadant (KAI) had an operating margin of 14.9% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Kadant's net profit margin?
Kadant (KAI) had a net profit margin of 9.7% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Kadant pay dividends?
Yes, Kadant (KAI) paid $1.36 per share in dividends during fiscal year 2025.
What is Kadant's return on equity (ROE)?
Kadant (KAI) has a return on equity of 10.4% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Kadant's free cash flow?
Kadant (KAI) generated $154.3M in free cash flow during fiscal year 2025. This represents a 14.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Kadant's operating cash flow?
Kadant (KAI) generated $171.3M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Kadant's total assets?
Kadant (KAI) had $1.7B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Kadant's capital expenditures?
Kadant (KAI) invested $17.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Kadant spend on research and development?
Kadant (KAI) invested $15.3M in research and development during fiscal year 2025.
What is Kadant's current ratio?
Kadant (KAI) had a current ratio of 2.38 as of fiscal year 2025, which is generally considered healthy.
What is Kadant's debt-to-equity ratio?
Kadant (KAI) had a debt-to-equity ratio of 0.38 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Kadant's return on assets (ROA)?
Kadant (KAI) had a return on assets of 6.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Kadant's Altman Z-Score?
Kadant (KAI) has an Altman Z-Score of 4.87, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Kadant's Piotroski F-Score?
Kadant (KAI) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Kadant's earnings high quality?
Kadant (KAI) has an earnings quality ratio of 1.68x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Kadant cover its interest payments?
Kadant (KAI) has an interest coverage ratio of 10.10x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Kadant?
Kadant (KAI) scores 66 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.