Kadant Reports First Quarter 2026 Results
Rhea-AI Summary
Kadant (NYSE: KAI) reported Q1 2026 results: revenue $281.5M (+18% YoY), record bookings $320.8M (+25%), adjusted EPS $2.84 (+14%), and adjusted EBITDA $56.8M (+19%, 20.2% margin). Gross margin declined 110 bps to 45.0% and operating cash flow fell to $21.9M.
Management raised 2026 revenue guidance to $1.178–$1.203B, revised GAAP EPS to $9.80–$10.15 and adjusted EPS to $12.33–$12.68, citing acquisition-related short-term dilution.
Positive
- Revenue +18% to $281.5M
- Record bookings $320.8M (+25%)
- Adjusted EPS +14% to $2.84
- Adjusted EBITDA +19% to $56.8M (20.2% margin)
- Backlog $326M
Negative
- Gross margin down 110 bps to 45.0%
- Operating cash flow down 4% to $21.9M
- Guidance: GAAP EPS range lowered to $9.80–$10.15
- Acquisition-related short-term dilution reducing adjusted EPS by ~$0.20
Key Figures
Market Reality Check
Peers on Argus
KAI showed only a 0.17% pre-news move with mixed peer action: MWA appeared in momentum down ~2.5%, while FELE and ATS were up and CXT was down, pointing to stock-specific focus rather than a unified sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 18 | Q4 and FY 2025 earnings | Positive | +2.1% | Revenue and EBITDA growth with record 2025 bookings and 2026 guidance initiation. |
| Oct 28 | Q3 2025 earnings | Neutral | +0.8% | Flat revenue, softer earnings but higher gross margin and modestly raised revenue guidance. |
| Jul 29 | Q2 2025 earnings | Negative | +4.1% | Revenue and net income decline despite stronger bookings and cash flow, guidance maintained. |
| Apr 29 | Q1 2025 earnings | Negative | -6.5% | Revenue decline and downward 2025 guidance revision amid tariff and geopolitical headwinds. |
| Feb 12 | Q4 and FY 2024 earnings | Neutral | -0.7% | Record 2024 revenue and EBITDA but lower earnings, paired with solid 2025 guidance ranges. |
Earnings reactions have generally been modest, with an average move of -0.06% and a mix of aligned and divergent responses to fundamentally mixed reports.
Recent earnings releases show Kadant delivering steady revenue around or above $250M per quarter with varying EPS trends. Q1–Q3 2025 featured flat-to-declining EPS despite resilient bookings and margins, while FY 2024 revenue grew to about $1.05B. The Q4 2025 release on Feb 18, 2026 introduced 2026 guidance of revenue $1.160–1.185B and GAAP EPS $10.27–10.62. Today’s Q1 2026 update builds on that framework with higher bookings and a guidance tweak.
Historical Comparison
Across the last 5 earnings releases, average next-day move was only -0.06%, indicating typically muted reactions. Today’s Q1 2026 report fits into this pattern of measured responses to incremental updates.
Earnings releases from FY 2024 through 2025 show Kadant shifting from record revenue with pressured EPS to more balanced results and detailed guidance for 2026. The current Q1 2026 report continues this progression with stronger bookings and revenue growth while refining the full-year outlook.
Market Pulse Summary
This announcement highlights strong Q1 2026 execution, with revenue up 18%, adjusted EPS up 14%, and record bookings of $320.8M. Management raised full-year revenue guidance to $1.178–$1.203B but trimmed GAAP and adjusted EPS ranges due to acquisition-related effects. Compared with prior earnings releases, the story continues a pattern of resilient demand and active M&A. Key metrics to watch include margins, cash flow, and progress toward the updated 2026 guidance.
Key Terms
adjusted eps financial
adjusted ebitda financial
free cash flow financial
organic revenue financial
non-gaap financial measures financial
ebitda financial
acquisition costs financial
basis points financial
AI-generated analysis. Not financial advice.
WESTFORD, Mass., May 05, 2026 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) reported its financial results for the first quarter ended April 4, 2026.
First Quarter Financial Highlights
- Bookings increased
25% to a record$321 million - Revenue increased
18% to$282 million - Gross margin decreased 110 basis points to
45.0% - Net income increased
6% to$26 million - GAAP EPS increased
6% to$2.16 - Adjusted EPS increased
14% to$2.84 - Adjusted EBITDA increased
19% to$57 million and represented20.2% of revenue - Operating cash flow decreased
4% to$22 million - Backlog was
$326 million
Note: Percent changes above are based on comparison to the prior year period. All references to earnings per share (EPS) are to our EPS as calculated on a diluted basis. Adjusted EPS, adjusted EBITDA, adjusted EBITDA margin, free cash flow, and changes in organic revenue are non-GAAP financial measures that exclude certain items as detailed later in this press release under the heading “Use of Non-GAAP Financial Measures.”
Management Commentary
“We had an excellent start to the year highlighted by robust demand and solid earnings growth,” said Jeffrey L. Powell, president and chief executive officer of Kadant. “Strong demand for our aftermarket parts combined with our recent acquisitions led to record bookings and aftermarket parts revenue along with healthy margin performance.”
First Quarter 2026 Compared to 2025
Revenue increased 18 percent to
Net income was
Adjusted EBITDA increased 19 percent to
Bookings increased 25 percent to a record
Summary and Outlook
“Our strong start to the year is encouraging, and we expect capital project activity to continue improving,” Mr. Powell continued. “That said, project timing is more uncertain due to heightened geopolitical challenges. We are revising our guidance to reflect our recent acquisition and expect revenue of
Conference Call
Kadant will hold a webcast with a slide presentation for investors on Wednesday, May 6, 2026, at 11:00 a.m. Eastern Time to discuss its first quarter financial performance, as well as future expectations. To listen to the call live and view the webcast, go to the “Investors” section of the Company’s website at kadant.com. Participants interested in joining the call’s live question and answer session are required to register by clicking here or selecting the Q&A link on our website to receive a dial-in number and unique PIN. It is recommended that you join the call 10 minutes prior to the start of the event. A replay of the webcast presentation will be available on our website through June 5, 2026.
Prior to the call, our earnings release and the slides used in the webcast presentation will be filed with the Securities and Exchange Commission and will be available at sec.gov. After the webcast, Kadant will post its updated general investor presentation incorporating the first quarter results on its website at kadant.com under the “Investors” section.
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including increases or decreases in revenue excluding the effect of acquisitions and foreign currency translation (organic revenue), adjusted operating income, adjusted net income, adjusted EPS, earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA, adjusted EBITDA margin, and free cash flow.
We use organic revenue to understand our trends and to forecast and evaluate our financial performance and compare revenue to prior periods. Organic revenue excludes revenue from acquisitions for the four quarterly reporting periods following the date of the acquisition and the effect of foreign currency translation. Revenue in the first quarter of 2026 included
We believe these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business, operating results, or future outlook. We believe that the inclusion of such measures helps investors gain an understanding of our underlying operating performance and future prospects, consistent with how management measures and forecasts our performance, especially when comparing such results to previous periods or forecasts and to the performance of our competitors. Such measures are also used by us in our financial and operating decision-making and for compensation purposes. We also believe this information is responsive to investors' requests and gives them additional measures of our performance.
The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for the results of operations or cash flows prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this press release have limitations associated with their use as compared to the most directly comparable GAAP measures, in that they may be different from, and therefore not comparable to, similar measures used by other companies.
First Quarter
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:
- Pre-tax intangible asset amortization expense of
$8.4 million in 2026 and$6.3 million in 2025. - Pre-tax profit in inventory and backlog amortization expense of
$1.4 million in 2026 and$0.4 million in 2025. - Pre-tax acquisition costs of
$0.7 million in 2026 and$0.3 million in 2025.
Adjusted net income and adjusted EPS exclude:
- After-tax intangible asset amortization expense of
$6.3 million ($8.4 million plus tax of$2.1 million ) in 2026 and$4.8 million ($6.3 million net of tax of$1.5 million ) in 2025. - After-tax profit in inventory and backlog amortization expense of
$1.1 million ($1.4 million net of tax of$0.3 million ) in 2026 and$0.3 million ($0.4 million net of tax of$0.1 million ) in 2025. - After-tax acquisition costs of
$0.7 million in 2026 and$0.3 million in 2025.
Free cash flow is calculated as operating cash flow less:
- Capital expenditures of
$3.3 million in 2026 and$3.8 million in 2025.
Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in this press release.
| Financial Highlights (unaudited) | ||||||||||
| (In thousands, except per share amounts and percentages) | ||||||||||
| Three Months Ended | ||||||||||
| Consolidated Statement of Income | April 4, 2026 | March 29, 2025 | ||||||||
| Revenue | $ | 281,505 | $ | 239,210 | ||||||
| Costs and Operating Expenses: | ||||||||||
| Cost of revenue | 154,802 | 128,880 | ||||||||
| Selling, general, and administrative expenses | 82,538 | 71,221 | ||||||||
| Research and development expenses | 4,056 | 3,523 | ||||||||
| 241,396 | 203,624 | |||||||||
| Operating Income | 40,109 | 35,586 | ||||||||
| Interest Income | 351 | 517 | ||||||||
| Interest Expense | (4,484 | ) | (3,822 | ) | ||||||
| Other Expense, Net | (13 | ) | (16 | ) | ||||||
| Income Before Provision for Income Taxes | 35,963 | 32,265 | ||||||||
| Provision for Income Taxes | 10,142 | 7,828 | ||||||||
| Net Income | 25,821 | 24,437 | ||||||||
| Net Income Attributable to Noncontrolling Interests | (312 | ) | (374 | ) | ||||||
| Net Income Attributable to Kadant | $ | 25,509 | $ | 24,063 | ||||||
| Earnings per Share Attributable to Kadant: | ||||||||||
| Basic | $ | 2.16 | $ | 2.05 | ||||||
| Diluted | $ | 2.16 | $ | 2.04 | ||||||
| Weighted Average Shares: | ||||||||||
| Basic | 11,794 | 11,760 | ||||||||
| Diluted | 11,802 | 11,776 | ||||||||
| Three Months Ended | Three Months Ended | |||||||||||||
| Adjusted Net Income and Adjusted Diluted EPS (a) | April 4, 2026 | April 4, 2026 | March 29, 2025 | March 29, 2025 | ||||||||||
| Net Income and Diluted EPS Attributable to Kadant, as Reported | $ | 25,509 | $ | 2.16 | $ | 24,063 | $ | 2.04 | ||||||
| Adjustments, Net of Tax: | ||||||||||||||
| Intangible Asset Amortization | 6,308 | 0.53 | 4,753 | 0.40 | ||||||||||
| Profit in Inventory and Backlog Amortization | 1,057 | 0.09 | 296 | 0.03 | ||||||||||
| Acquisition Costs | 671 | 0.06 | 315 | 0.03 | ||||||||||
| Adjusted Net Income and Adjusted Diluted EPS (a,b) | $ | 33,545 | $ | 2.84 | $ | 29,427 | $ | 2.50 | ||||||
| Three Months Ended | Increase (Decrease) Excluding Acquisitions and FX (a,c) | ||||||||||||||||
| Revenue by Segment | April 4, 2026 | March 29, 2025 | Increase | ||||||||||||||
| Flow Control | $ | 98,608 | $ | 92,441 | $ | 6,167 | $ | 1,372 | |||||||||
| Industrial Processing | 123,038 | 89,524 | 33,514 | (3,957 | ) | ||||||||||||
| Material Handling | 59,859 | 57,245 | 2,614 | 1,058 | |||||||||||||
| $ | 281,505 | $ | 239,210 | $ | 42,295 | $ | (1,527 | ) | |||||||||
| Percentage of Parts and Consumables Revenue | 74 | % | 75 | % | |||||||||||||
| Three Months Ended | Increase | Increase (Decrease) Excluding Acquisitions and FX (c) | |||||||||||||||
| Bookings by Segment | April 4, 2026 | March 29, 2025 | |||||||||||||||
| Flow Control | $ | 111,546 | $ | 99,987 | $ | 11,559 | $ | 6,392 | |||||||||
| Industrial Processing | 144,502 | 92,366 | 52,136 | 21,022 | |||||||||||||
| Material Handling | 64,747 | 63,865 | 882 | (1,057 | ) | ||||||||||||
| $ | 320,795 | $ | 256,218 | $ | 64,577 | $ | 26,357 | ||||||||||
| Percentage of Parts and Consumables Bookings | 71 | % | 74 | % | |||||||||||||
| Three Months Ended | ||||||||||
| Additional Segment Information | April 4, 2026 | March 29, 2025 | ||||||||
| Gross Margin: | ||||||||||
| Flow Control | 52.7 | % | 53.3 | % | ||||||
| Industrial Processing | 42.5 | % | 44.1 | % | ||||||
| Material Handling | 37.5 | % | 37.7 | % | ||||||
| Consolidated | 45.0 | % | 46.1 | % | ||||||
| Operating Income: | ||||||||||
| Flow Control | $ | 24,204 | $ | 22,752 | ||||||
| Industrial Processing | 19,913 | 16,832 | ||||||||
| Material Handling | 7,466 | 7,535 | ||||||||
| Corporate | (11,474 | ) | (11,533 | ) | ||||||
| $ | 40,109 | $ | 35,586 | |||||||
| Adjusted Operating Income (a,b,d): | ||||||||||
| Flow Control | $ | 25,474 | $ | 24,366 | ||||||
| Industrial Processing | 26,423 | 19,344 | ||||||||
| Material Handling | 10,154 | 10,427 | ||||||||
| Corporate | (11,474 | ) | (11,533 | ) | ||||||
| $ | 50,577 | $ | 42,604 | |||||||
| Capital Expenditures: | ||||||||||
| Flow Control | $ | 1,022 | $ | 1,509 | ||||||
| Industrial Processing | 863 | 1,325 | ||||||||
| Material Handling | 1,236 | 999 | ||||||||
| Corporate | 137 | 3 | ||||||||
| $ | 3,258 | $ | 3,836 | |||||||
| Three Months Ended | ||||||||||
| Cash Flow and Other Data | April 4, 2026 | March 29, 2025 | ||||||||
| Operating Cash Flow | $ | 21,916 | $ | 22,835 | ||||||
| Capital Expenditures | (3,258 | ) | (3,836 | ) | ||||||
| Free Cash Flow (a) | $ | 18,658 | $ | 18,999 | ||||||
| Depreciation and Amortization Expense | $ | 14,647 | $ | 12,013 | ||||||
| Balance Sheet Data | April 4, 2026 | January 3, 2026 | ||||||||||||||
| Assets | ||||||||||||||||
| Cash, Cash Equivalents, and Restricted Cash | $ | 119,817 | $ | 122,681 | ||||||||||||
| Accounts Receivable, Net | 172,376 | 158,567 | ||||||||||||||
| Inventories | 214,831 | 206,854 | ||||||||||||||
| Contract Assets | 5,921 | 6,599 | ||||||||||||||
| Property, Plant, and Equipment, Net | 193,286 | 196,656 | ||||||||||||||
| Intangible Assets | 341,170 | 350,376 | ||||||||||||||
| Goodwill | 551,088 | 555,621 | ||||||||||||||
| Other Assets | 116,163 | 114,824 | ||||||||||||||
| $ | 1,714,652 | $ | 1,712,178 | |||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||
| Accounts Payable | $ | 55,481 | $ | 53,362 | ||||||||||||
| Debt Obligations | 361,256 | 372,720 | ||||||||||||||
| Other Borrowings | 2,105 | 1,781 | ||||||||||||||
| Other Liabilities | 289,661 | 293,248 | ||||||||||||||
| Total Liabilities | 708,503 | 721,111 | ||||||||||||||
| Stockholders' Equity | 1,006,149 | 991,067 | ||||||||||||||
| $ | 1,714,652 | $ | 1,712,178 | |||||||||||||
| Three Months Ended | ||||||||||||||||
| Adjusted Operating Income and Adjusted EBITDA Reconciliation (a) | April 4, 2026 | March 29, 2025 | ||||||||||||||
| Consolidated | ||||||||||||||||
| Net Income Attributable to Kadant | $ | 25,509 | $ | 24,063 | ||||||||||||
| Net Income Attributable to Noncontrolling Interests | 312 | 374 | ||||||||||||||
| Provision for Income Taxes | 10,142 | 7,828 | ||||||||||||||
| Interest Expense, Net | 4,133 | 3,305 | ||||||||||||||
| Other Expense, Net | 13 | 16 | ||||||||||||||
| Operating Income | 40,109 | 35,586 | ||||||||||||||
| Intangible Asset Amortization Expense | 8,385 | 6,320 | ||||||||||||||
| Profit in Inventory Amortization Expense (e) | 1,409 | 11 | ||||||||||||||
| Backlog Amortization Expense (f) | — | 379 | ||||||||||||||
| Acquisition Costs | 674 | 337 | ||||||||||||||
| Indemnification Asset Provision (g) | — | (29 | ) | |||||||||||||
| Adjusted Operating Income (a,b) | 50,577 | 42,604 | ||||||||||||||
| Depreciation Expense | 6,262 | 5,314 | ||||||||||||||
| Adjusted EBITDA (a) | $ | 56,839 | $ | 47,918 | ||||||||||||
| Adjusted EBITDA Margin (a,h) | 20.2 | % | 20.0 | % | ||||||||||||
| Flow Control | ||||||||||||||||
| Operating Income | $ | 24,204 | $ | 22,752 | ||||||||||||
| Intangible Asset Amortization Expense | 1,270 | 1,214 | ||||||||||||||
| Profit in Inventory Amortization Expense (e) | — | 11 | ||||||||||||||
| Backlog Amortization Expense (f) | — | 279 | ||||||||||||||
| Acquisition Costs | — | 8 | ||||||||||||||
| Indemnification Asset Reversal (g) | — | 102 | ||||||||||||||
| Adjusted Operating Income (a,b) | 25,474 | 24,366 | ||||||||||||||
| Depreciation Expense | 1,927 | 1,798 | ||||||||||||||
| Adjusted EBITDA (a) | $ | 27,401 | $ | 26,164 | ||||||||||||
| Adjusted EBITDA Margin (a,h) | 27.8 | % | 28.3 | % | ||||||||||||
| Industrial Processing | ||||||||||||||||
| Operating Income | $ | 19,913 | $ | 16,832 | ||||||||||||
| Intangible Asset Amortization Expense | 4,427 | 2,378 | ||||||||||||||
| Profit in Inventory Amortization Expense (e) | 1,409 | — | ||||||||||||||
| Acquisition Costs | 674 | 340 | ||||||||||||||
| Indemnification Asset Provision (g) | — | (206 | ) | |||||||||||||
| Adjusted Operating Income (a,b) | 26,423 | 19,344 | ||||||||||||||
| Depreciation Expense | 3,110 | 2,347 | ||||||||||||||
| Adjusted EBITDA (a) | $ | 29,533 | $ | 21,691 | ||||||||||||
| Adjusted EBITDA Margin (a,h) | 24.0 | % | 24.2 | % | ||||||||||||
| Material Handling | ||||||||||||||||
| Operating Income | $ | 7,466 | $ | 7,535 | ||||||||||||
| Intangible Asset Amortization Expense | 2,688 | 2,728 | ||||||||||||||
| Backlog Amortization Expense (f) | — | 100 | ||||||||||||||
| Acquisition Costs | — | (11 | ) | |||||||||||||
| Indemnification Asset Reversal (g) | — | 75 | ||||||||||||||
| Adjusted Operating Income (a,b) | 10,154 | 10,427 | ||||||||||||||
| Depreciation Expense | 1,212 | 1,158 | ||||||||||||||
| Adjusted EBITDA (a) | $ | 11,366 | $ | 11,585 | ||||||||||||
| Adjusted EBITDA Margin (a,h) | 19.0 | % | 20.2 | % | ||||||||||||
| Corporate | ||||||||||||||||
| Operating Loss | $ | (11,474 | ) | $ | (11,533 | ) | ||||||||||
| Depreciation Expense | 13 | 11 | ||||||||||||||
| EBITDA (a) | $ | (11,461 | ) | $ | (11,522 | ) | ||||||||||
| (a) | Represents a non-GAAP financial measure. | |||||||||||||||
| (b) | Reflects new methodology, announced on February 19, 2026, to exclude intangible asset amortization expense. | |||||||||||||||
| (c) | Represents the increase (decrease) resulting from the exclusion of acquisitions and from the conversion of current period amounts reported in local currencies into U.S. dollars at the exchange rate of the prior period compared to the U.S. dollar amount reported in the prior period. | |||||||||||||||
| (d) | See reconciliation to the most directly comparable GAAP financial measure under “Adjusted Operating Income and Adjusted EBITDA Reconciliation.” | |||||||||||||||
| (e) | Represents amortization expense within cost of revenue associated with acquired profit in inventory. | |||||||||||||||
| (f) | Represents intangible amortization expense associated with acquired backlog. | |||||||||||||||
| (g) | Represents the reversal of or provision for indemnification assets related to the release of or establishment of tax reserves associated with uncertain tax positions. | |||||||||||||||
| (h) | Calculated as adjusted EBITDA divided by revenue in each period. | |||||||||||||||
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 4,000 employees in 22 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 future financial and operating performance, demand for our products, and economic and industry outlook. 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 January 3, 2026 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
Media Contact Information:
Wes Martz, 978-776-2000
media@kadant.com
