Kadant Authorizes Share Repurchase

Rhea-AI Summary

Kadant Inc. (NYSE: KAI) has announced a new share repurchase program authorized by its Board of Directors. The program allows for the repurchase of up to $50 million of equity securities between May 15, 2025 and May 15, 2026. The repurchases can be executed through both public and private transactions, including under Securities Exchange Act Rule 10b-5-1 trading plans. The timing and volume of repurchases will be determined by management based on market conditions and credit agreement limitations. Notably, the company has not utilized its previous $50 million authorization set to expire on May 16, 2025.

Positive

• New $50 million share repurchase authorization demonstrates company's commitment to returning value to shareholders
• One-year program provides flexibility for strategic share repurchases based on market conditions
• Company maintains strong financial position to support buyback program

Negative

• Previous $50 million buyback authorization remained unused, potentially indicating limited execution of shareholder return initiatives
• Repurchase program is subject to limitations from credit agreement
• Actual repurchase amount may vary or not occur based on management's discretion and market conditions

WESTFORD, Mass., May 15, 2025 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) announced today that its Board of Directors has authorized the repurchase of up to $50 million of its equity securities effective May 15, 2025 through May 15, 2026. Repurchases may be made in public or private transactions, including under Securities Exchange Act Rule 10b-5-1 trading plans. The timing and amount of any repurchases will be at the discretion of Company management and will be based on market conditions and other considerations, including limitations contained in our credit agreement entered into on March 1, 2017, as amended and restated. The Company has not repurchased any shares of its common stock under the $50 million authorization that will expire on May 16, 2025.

About Kadant
Kadant Inc. is a global supplier of technologies and engineered systems that drive Sustainable Industrial Processing^®. The Company’s products and services play an integral role in enhancing efficiency, optimizing energy utilization, and maximizing productivity in process industries. Kadant is based in Westford, Massachusetts, with approximately 3,500 employees in 20 countries worldwide. For more information, visit kadant.com.

Safe Harbor Statement
The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about our business, financial performance and any plans to repurchase our equity securities. These forward-looking statements represent our expectations as of the date of this press release. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements as a result of various important factors, including those set forth under the heading “Risk Factors” in Kadant’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024 and subsequent filings with the Securities and Exchange Commission. These include risks and uncertainties relating to adverse changes in global and local economic conditions; the variability and difficulty in accurately predicting revenues from large capital equipment and systems projects; our acquisition strategy; levels of residential construction activity; reductions by our wood processing customers of their capital spending or production of oriented strand board; changes to the global timber supply; development and use of digital media; cyclical economic conditions affecting the global mining industry; demand for coal, including economic and environmental risks associated with coal; failure of our information systems or breaches of data security and cybersecurity incidents; implementation of our internal growth strategy; competition; our ability to successfully manage our manufacturing operations; supply chain constraints, inflationary pressure, price increases or shortages in raw materials; loss of key personnel and effective succession planning; future restructurings; protection of intellectual property; changes to tax laws and regulations; climate change; adequacy of our insurance coverage; global operations; policies of the Chinese government; the variability and uncertainties in sales of capital equipment in China; currency fluctuations; changes to government regulations and policies around the world; compliance with government regulations and policies and compliance with laws; environmental laws and regulations; environmental, health and safety laws and regulations impacting the mining industry; our debt obligations; restrictions in our credit agreement and note purchase agreement; soundness of financial institutions; fluctuations in our share price; and anti-takeover provisions.

Contacts
Investor Contact Information:
Michael McKenney, 978-776-2000
IR@kadant.com 
or
Media Contact Information:
Wes Martz, 269-278-1715
media@kadant.com 

FAQ

What is the size and duration of Kadant's (KAI) new share repurchase program?

Kadant's new share repurchase program authorizes up to $50 million in equity securities repurchases from May 15, 2025 through May 15, 2026.

How much stock did Kadant (KAI) repurchase under its previous authorization?

Kadant did not repurchase any shares under its previous $50 million authorization that expires on May 16, 2025.

What factors will determine Kadant's (KAI) share repurchase execution?

The timing and amount of repurchases will be based on management's discretion, market conditions, and limitations in the company's credit agreement.

What methods can Kadant (KAI) use for its share repurchase program?

Kadant can execute repurchases through both public and private transactions, including under Securities Exchange Act Rule 10b-5-1 trading plans.