Kadant raises 2026 adjusted EPS outlook to $12.58-$12.73
Kadant raised its 2026 adjusted EPS outlook to $12.58 to $12.73, while projecting revenue of $1.195 billion to $1.210 billion.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
KADANT INC (KAI) reported third-quarter revenue of $313.2 million, up 15.3% year over year, and net income attributable to Kadant of $35.1 million, up 26.5%. Adjusted EBITDA was $71.7 million, up 23.6%; diluted GAAP EPS was $2.96 and adjusted EPS was $3.64. Operating cash flow reached $62.9 million, up 33.1%, while gross margin declined 50 basis points to 44.7%.
Results varied by segment: Industrial Processing revenue rose 34.8%, Flow Control revenue rose 8.0%, and Material Handling revenue fell 4.2%; Material Handling adjusted EBITDA declined 9.2%. For 2026, Kadant expects revenue of $1.195 billion to $1.210 billion and GAAP EPS of $9.88 to $10.03. It raised adjusted EPS guidance to $12.58 to $12.73 from $12.43 to $12.68. Fourth-quarter expectations are revenue of $287 million to $302 million, GAAP EPS of $2.01 to $2.16, and adjusted EPS of $2.67 to $2.82. Management said economic and geopolitical uncertainty continues to influence the timing of large capital orders.
3 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRevenue increased 15.3% to $313.2 million in the third quarter.
- Moderate pointNet income attributable to Kadant rose 26.5% to $35.1 million in the third quarter.
- Moderate pointOperating cash flow increased 33.1% to $62.9 million in the third quarter.
Negative
- Moderate pointMaterial Handling adjusted EBITDA declined 9.2% year over year in the third quarter.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $313.2 million
Net income attributable to Kadant: $35.1 million
Adjusted EBITDA: $71.7 million
+5 more
8 metrics
Revenue
$313.2 million
Third quarter ended October 3, 2026; up 15.3% year over year.
Net income attributable to Kadant
$35.1 million
Third quarter ended October 3, 2026; up 26.5% year over year.
Adjusted EBITDA
$71.7 million
Third quarter ended October 3, 2026; up 23.6% year over year.
Diluted GAAP EPS
$2.96 per share
Third quarter ended October 3, 2026; up 26.0% year over year.
Adjusted EPS
$3.64 per share
Third quarter ended October 3, 2026; up 20.9% year over year.
2026 revenue guidance
$1.195 billion to $1.210 billion
Full-year 2026 expectation.
2026 GAAP EPS guidance
$9.88 to $10.03 per share
Full-year 2026 expectation.
2026 adjusted EPS guidance
$12.58 to $12.73 per share
Full-year 2026 expectation; raised from $12.43 to $12.68 per share.
Key Terms
organic revenue, purchase accounting expenses, adjusted EBITDA margin, leverage ratio, +1 more
5 terms
organic revenue financial
"Organic revenue excludes revenue from acquisitions"
Organic revenue is the sales a company generates from its regular business activities after stripping out extra effects like revenue added or lost from buying or selling other businesses and from currency swings. Think of it as measuring how much a store’s own customers increased spending, not growth from opening new stores or temporary price moves; investors use it to judge the true strength and sustainability of a company’s core demand.
purchase accounting expenses financial
"collectively, purchase accounting expenses"
Accounting entries and charges that arise when one company buys another and applies the purchase accounting rules used for business combinations. They cover one-time transaction costs and noncash adjustments like revaluing assets to fair value, recording stepped-up inventory, and later amortization or impairment of acquired intangible assets; like relabeling and reorganizing a bought store, these changes alter reported profits and balance-sheet values even if cash flows haven’t changed. Investors care because these expenses can change headline earnings and balance-sheet metrics without reflecting ongoing operating performance.
adjusted EBITDA margin financial
"Adjusted EBITDA Margin"
Adjusted EBITDA margin shows how much profit a company makes from its core operations, expressed as a percentage of its total revenue, after removing certain one-time or unusual expenses and income. It helps investors understand the company's true earning ability from regular business activities, making it easier to compare performance over time or with other companies. Think of it as measuring the efficiency of a business in turning sales into profits, excluding irregular adjustments.
leverage ratio financial
"Leverage ratio is calculated by dividing total debt by EBITDA."
Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.
cash conversion days financial
"Cash conversion days is based on days in receivables"
Cash conversion days measure how many days a company’s cash is tied up in the normal course of business—how long it takes to turn spending on inventory and receivables back into cash, after accounting for payments deferred to suppliers. Investors use it like a speedometer for working capital: shorter cash conversion days mean a company recovers cash faster and can fund growth or weather shocks more easily.
Earnings Snapshot
Revenue: $313.2 million · Guidance included
Third quarter ended October 3, 2026
Revenue
$313.2 million
Up 15.3% year over year
Net income attributable to Kadant
$35.1 million
Up 26.5% year over year
Adjusted EBITDA
$71.7 million
Up 23.6% year over year
Adjusted EBITDA margin
22.9%
Up 150 basis points year over year
Diluted GAAP EPS
$2.96 per share
Up 26.0% year over year
Adjusted EPS
$3.64 per share
Up 20.9% year over year
Operating cash flow
$62.9 million
Up 33.1% year over year
Guidance
Kadant expects 2026 revenue of $1.195 billion to $1.210 billion, GAAP EPS of $9.88 to $10.03, and adjusted EPS of $12.58 to $12.73. For the fourth quarter of 2026, it expects revenue of $287 million to $302 million, GAAP EPS of $2.01 to $2.16, and adjusted EPS of $2.67 to $2.82.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did KAI perform in the third quarter of 2026?
KAI reported third-quarter revenue of $313.2 million, up 15.3%, and net income attributable to Kadant of $35.1 million, up 26.5%. Diluted GAAP EPS was $2.96, compared with $2.35 a year earlier.
What is KAI's 2026 financial guidance?
Kadant expects 2026 revenue of $1.195 billion to $1.210 billion and GAAP EPS of $9.88 to $10.03; adjusted EPS is expected at $12.58 to $12.73. The adjusted EPS guidance excludes $2.19 per share of intangible amortization expense and $0.51 per share of acquisition-related costs.
How did KAI's business segments perform in Q3 2026?
Industrial Processing revenue rose 34.8% to $143.4 million, while adjusted EBITDA rose 38.7% to $37.5 million. Flow Control revenue rose 8.0% to $102.4 million. Material Handling revenue fell 4.2% to $67.4 million, and adjusted EBITDA fell 9.2% to $14.9 million.
What were KAI's debt and liquidity figures at the end of Q3 2026?
At October 3, 2026, Kadant reported cash, cash equivalents, and restricted cash of $138.6 million, debt of $453.1 million, and net debt of $316.6 million. Its leverage ratio was 1.49.
What does KAI's adjusted EPS exclude?
Kadant's third-quarter adjusted EPS of $3.64 excludes $0.56 per share of intangible asset amortization expense, $0.08 per share of profit in inventory and backlog amortization expense, and $0.03 per share of acquisition costs.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
______________________________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): November 3, 2026
(Exact name of registrant as specified in its charter)
Commission file number 001-11406
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices, including zip code)
(978 ) 776-2000
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
KADANT INC.
Item 2.02. Results of Operations and Financial Condition.
On November 3, 2026, Kadant Inc. (the “Company”) announced its financial results for the fiscal quarter ended October 3, 2026. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 7.01. Regulation FD Disclosure.
On November 4, 2026, the Company will hold a webcast and conference call to discuss its financial results for the fiscal quarter ended October 3, 2026. A copy of the slides that will be presented on the webcast and discussed in the conference call is furnished as Exhibit 99.2 to this Current Report on Form 8-K.
The information in Item 2.02 and Item 7.01 of this Form 8-K (including Exhibits 99.1 and 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
| (d) Exhibits | ||||||||
| The following exhibits relating to Item 2.02 and Item 7.01 shall be deemed to be furnished and not filed. | ||||||||
| Exhibit | ||||||||
No. | Description of Exhibits | |||||||
| 99.1 | Press Release issued by the Company on November 3, 2026 announcing its financial results. | |||||||
| 99.2 | Slides to be presented by the Company on November 4, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
2
KADANT INC.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KADANT INC. | ||||||||
| Date: November 3, 2026 | By | /s/ Michael J. McKenney | ||||||
| Michael J. McKenney Executive Vice President and Chief Financial Officer | ||||||||
3
Exhibit 99.1
 | PRESS RELEASE | |||||||
KADANT INC. | ||||||||
One Technology Park Drive | ||||||||
Westford, MA 01886 USA | ||||||||
Tel: +1 978-776-2000 | ||||||||
www.kadant.com | ||||||||
Kadant Reports Third Quarter 2026 Results
WESTFORD, Mass., November 3, 2026 - Kadant Inc. (NYSE: KAI) reported its financial results for the third quarter ended October 3, 2026.
Third Quarter Financial Highlights
•Bookings increased 22% to $291 million
•Revenue increased 15% to a record $313 million
•Gross margin decreased 50 basis points to 44.7%
•Net income increased 27% to $35 million
•GAAP EPS increased 26% to $2.96
•Adjusted EPS increased 21% to a record $3.64
•Adjusted EBITDA increased 24% to a record $72 million and represented 22.9% of revenue
•Operating cash flow increased 33% to a record $63 million
Note: Percent changes above are based on comparison to the corresponding prior year quarter. 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 delivered an exceptional third quarter, achieving record results across multiple key financial metrics, including revenue, adjusted EPS, and cash flow, while generating strong bookings growth across all three operating segments,” said Jeffrey L. Powell, chief executive officer of Kadant. “The strength of our aftermarket business, combined with disciplined execution and operational excellence, positions us well for a strong finish to the year.”
Third Quarter 2026 Compared to 2025
Revenue increased 15 percent to a record $313.2 million compared to $271.6 million in 2025. Organic revenue increased four percent, which excludes an increase of 11 percent from acquisitions. Gross margin decreased 50 basis points to 44.7 percent, compared to 45.2 percent in 2025.
Net income was $35.1 million, increasing 27 percent compared to $27.7 million in 2025. GAAP EPS increased 26 percent to $2.96 compared to $2.35 in 2025 and adjusted EPS increased 21 percent to a record $3.64 compared to $3.01 in 2025. Adjusted EPS excludes intangible asset amortization expense of $0.56 and acquisition-related costs of $0.11 in 2026, and intangible asset amortization expense of $0.42, acquisition-related costs of $0.22, and other costs of $0.02 in 2025. Acquisition-related costs include acquisition costs and profit in inventory and backlog amortization expense.
Adjusted EBITDA increased 24 percent to a record $71.7 million and represented 22.9 percent of revenue in 2026 compared to $58.0 million and 21.4 percent of revenue in 2025. Operating cash flow increased 33 percent to a record $62.9 million compared to $47.3 million in 2025. Free cash flow increased 32 percent to a record $58.1 million compared to $44.1 million in 2025.
Bookings increased 22 percent to $291.1 million compared to $238.4 million in 2025. Organic bookings increased 10 percent, which excludes an increase of 12 percent from acquisitions.
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| Kadant Reports Third Quarter 2026 Results | | ||||
| November 3, 2026 | |||||
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Summary and Outlook
“Looking ahead to the remainder of the year, we expect aftermarket demand to remain stable and project activity to show some improvement, although the timing of large capital orders continues to be influenced by economic and geopolitical uncertainty,” continued Mr. Powell. “Our strong year-to-date performance positions us to deliver a record-setting 2026. We expect revenue of $1.195 to $1.210 billion in 2026, revised from our previous guidance of $1.190 to $1.210 billion, and GAAP EPS of $9.88 to $10.03, revised from our previous guidance of $9.78 to $10.03. We are raising our adjusted EPS guidance and now expect $12.58 to $12.73 for 2026, revised from our prior guidance of $12.43 to $12.68. Our revised adjusted EPS guidance excludes $2.19 per share of intangible amortization expense and $0.51 per share of acquisition-related costs. For the fourth quarter of 2026, we expect revenue of $287 to $302 million, GAAP EPS of $2.01 to $2.16, and adjusted EPS of $2.67 to $2.82, which excludes $0.55 per share of intangible amortization expense and $0.11 per share of acquisition-related costs.”
Conference Call
Kadant will hold a webcast with a slide presentation for investors on Wednesday, November 4, 2026, at 11:00 a.m. Eastern Time to discuss its third 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 visiting https://register-conf.media-server.com/register/BIca35ab29755e41a68058caaab78e1389 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 December 4, 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 third 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 third quarter of 2026 included $31.0 million from acquisitions and a favorable foreign currency translation effect of $0.6 million compared to the third quarter of 2025. Revenue in the first nine months of 2026 included $98.9 million from acquisitions and a favorable foreign currency translation effect of $14.5 million compared to the first nine months of 2025. Our other non-GAAP financial measures exclude amortization expense related to acquired intangible assets, profit in inventory, and backlog (collectively, purchase accounting expenses); acquisition costs; and other income or expense, as indicated. We exclude purchase accounting expenses and acquisition costs to provide a more meaningful and consistent comparison of our operating results over time and with peer companies. While we have a history of acquisition activity, such transactions do not occur on a predictable cycle, and the size and nature of these transactions will vary. We believe it is important for investors to understand that these intangible assets were recorded as part of purchase accounting and that they contribute to revenue generation. We also exclude other items as they are not indicative of our core operating results and are not comparable to other periods, which have differing levels of incremental costs, expenditures or income, or none at all. Additionally, we use free cash flow in order to provide insight on our ability to generate cash for acquisitions and debt repayments, as well as for other investing and financing activities.
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
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| Kadant Reports Third Quarter 2026 Results | | ||||
| November 3, 2026 | |||||
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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.
Third Quarter
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:
•Pre-tax intangible asset amortization expense of $8.8 million in 2026 and $6.5 million in 2025.
•Pre-tax profit in inventory and backlog amortization expense of $1.3 million in 2026 and $0.6 million in 2025.
•Pre-tax acquisition costs of $0.5 million in 2026 and $2.3 million in 2025.
•Pre-tax indemnification asset reversal of $0.3 million in 2026.
•Pre-tax impairment costs of $0.3 million in 2025.
Adjusted net income and adjusted EPS exclude:
•After-tax intangible asset amortization expense of $6.6 million ($8.8 million net of tax of $2.2 million) in 2026 and $4.9 million ($6.5 million net of tax of $1.6 million) in 2025.
•After-tax profit in inventory and backlog amortization expense of $1.0 million ($1.3 million net of tax of $0.3 million) in 2026 and $0.5 million ($0.6 million net of tax of $0.1 million) in 2025.
•After-tax acquisition costs of $0.4 million ($0.5 million net of tax of $0.1 million) in 2026 and $2.2 million ($2.3 million net of tax of $0.1 million) in 2025.
•After-tax impairment costs of $0.2 million ($0.3 million net of tax of $0.1 million) in 2025.
Free cash flow is calculated as operating cash flow less:
•Capital expenditures of $4.8 million in 2026 and $3.2 million in 2025.
First Nine Months
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:
•Pre-tax intangible asset amortization expense of $25.9 million in 2026 and $19.2 million in 2025.
•Pre-tax profit in inventory and backlog amortization expense of $3.9 million in 2026 and $1.2 million in 2025.
•Pre-tax acquisition costs of $1.7 million in 2026 and $3.5 million in 2025.
•Pre-tax indemnification asset reversal of $0.2 million in 2026.
•Pre-tax impairment costs of $0.3 million in 2025.
Adjusted net income and adjusted EPS exclude:
•After-tax intangible asset amortization expense of $19.4 million ($25.9 million net of tax of $6.5 million) in 2026 and $14.4 million ($19.2 million net of tax of $4.8 million) in 2025.
•After-tax profit in inventory and backlog amortization expense of $2.9 million ($3.9 million net of tax of $1.0 million) in 2026 and $0.9 million ($1.2 million net of tax of $0.3 million) in 2025.
•After-tax acquisition costs of $1.7 million in 2026 and $3.4 million ($3.5 million net of tax of $0.1 million) in 2025.
•After-tax impairment costs of $0.2 million ($0.3 million net of tax of $0.1 million) in 2025.
Free cash flow is calculated as operating cash flow less:
•Capital expenditures of $19.0 million in 2026 and $11.0 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.
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| Kadant Reports Third Quarter 2026 Results | | ||||
| November 3, 2026 | |||||
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| Financial Highlights (unaudited) | |||||||||||||||||||||||||||||
| (In thousands, except per share amounts and percentages) | |||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| Consolidated Statement of Income | October 3, 2026 | September 27, 2025 | October 3, 2026 | September 27, 2025 | |||||||||||||||||||||||||
| Revenue | $ | 313,160 | $ | 271,567 | $ | 907,540 | $ | 766,044 | |||||||||||||||||||||
| Costs and Operating Expenses: | |||||||||||||||||||||||||||||
| Cost of revenue | 173,071 | 148,906 | 503,743 | 416,011 | |||||||||||||||||||||||||
| Selling, general and administrative expenses | 82,705 | 75,839 | 246,884 | 221,001 | |||||||||||||||||||||||||
| Research and development expenses | 3,831 | 3,919 | 12,371 | 11,166 | |||||||||||||||||||||||||
Other costs | — | 287 | — | 287 | |||||||||||||||||||||||||
| 259,607 | 228,951 | 762,998 | 648,465 | ||||||||||||||||||||||||||
| Operating Income | 53,553 | 42,616 | 144,542 | 117,579 | |||||||||||||||||||||||||
| Interest Income | 548 | 373 | 1,394 | 1,329 | |||||||||||||||||||||||||
| Interest Expense | (5,594) | (3,089) | (15,392) | (10,249) | |||||||||||||||||||||||||
| Other Expense, Net | (23) | (19) | (68) | (52) | |||||||||||||||||||||||||
| Income Before Provision for Income Taxes | 48,484 | 39,881 | 130,476 | 108,607 | |||||||||||||||||||||||||
| Provision for Income Taxes | 12,799 | 11,766 | 36,123 | 29,416 | |||||||||||||||||||||||||
| Net Income | 35,685 | 28,115 | 94,353 | 79,191 | |||||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interests | (613) | (393) | (1,304) | (1,247) | |||||||||||||||||||||||||
| Net Income Attributable to Kadant | $ | 35,072 | $ | 27,722 | $ | 93,049 | $ | 77,944 | |||||||||||||||||||||
| Earnings per Share Attributable to Kadant: | |||||||||||||||||||||||||||||
| Basic | $ | 2.97 | $ | 2.35 | $ | 7.88 | $ | 6.62 | |||||||||||||||||||||
| Diluted | $ | 2.96 | $ | 2.35 | $ | 7.87 | $ | 6.61 | |||||||||||||||||||||
| Weighted Average Shares: | |||||||||||||||||||||||||||||
| Basic | 11,809 | 11,777 | 11,804 | 11,771 | |||||||||||||||||||||||||
| Diluted | 11,829 | 11,802 | 11,817 | 11,790 | |||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||
Adjusted Net Income and Adjusted Diluted EPS (a) | October 3, 2026 | October 3, 2026 | September 27, 2025 | September 27, 2025 | ||||||||||||||||||||||||||||
| Net Income and Diluted EPS Attributable to Kadant, as Reported | $ | 35,072 | $ | 2.96 | $ | 27,722 | $ | 2.35 | ||||||||||||||||||||||||
| Adjustments, Net of Tax: | ||||||||||||||||||||||||||||||||
Intangible Asset Amortization | 6,624 | 0.56 | 4,900 | 0.42 | ||||||||||||||||||||||||||||
Profit in Inventory and Backlog Amortization | 965 | 0.08 | 459 | 0.04 | ||||||||||||||||||||||||||||
Acquisition Costs | 413 | 0.03 | 2,172 | 0.18 | ||||||||||||||||||||||||||||
Other Costs | — | — | 216 | 0.02 | ||||||||||||||||||||||||||||
Adjusted Net Income and Adjusted Diluted EPS (a,b) | $ | 43,074 | $ | 3.64 | $ | 35,469 | $ | 3.01 | ||||||||||||||||||||||||
| Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
| October 3, 2026 | October 3, 2026 | September 27, 2025 | September 27, 2025 | |||||||||||||||||||||||||||||
| Net Income and Diluted EPS Attributable to Kadant, as Reported | $ | 93,049 | $ | 7.87 | $ | 77,944 | $ | 6.61 | ||||||||||||||||||||||||
| Adjustments, Net of Tax: | ||||||||||||||||||||||||||||||||
| Intangible Asset Amortization | 19,392 | 1.64 | 14,420 | 1.22 | ||||||||||||||||||||||||||||
| Profit in Inventory and Backlog Amortization | 2,930 | 0.25 | 925 | 0.08 | ||||||||||||||||||||||||||||
| Acquisition Costs | 1,686 | 0.14 | 3,390 | 0.29 | ||||||||||||||||||||||||||||
| Other Costs | — | — | 216 | 0.02 | ||||||||||||||||||||||||||||
Adjusted Net Income and Adjusted Diluted EPS (a,b) | $ | 117,057 | $ | 9.91 | $ | 96,895 | $ | 8.22 | ||||||||||||||||||||||||
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| Kadant Reports Third Quarter 2026 Results | | ||||
| November 3, 2026 | |||||
Page 5 | |||||
| Three Months Ended | Increase (Decrease) Excluding Acquisitions and FX (a,c) | |||||||||||||||||||||||||||||||
| Revenue by Segment | October 3, 2026 | September 27, 2025 | Increase (Decrease) | |||||||||||||||||||||||||||||
| Flow Control | $ | 102,382 | $ | 94,839 | $ | 7,543 | $ | 6,805 | ||||||||||||||||||||||||
| Industrial Processing | 143,402 | 106,393 | 37,009 | 6,334 | ||||||||||||||||||||||||||||
| Material Handling | 67,376 | 70,335 | (2,959) | (3,090) | ||||||||||||||||||||||||||||
| $ | 313,160 | $ | 271,567 | $ | 41,593 | $ | 10,049 | |||||||||||||||||||||||||
| Percentage of Parts and Consumables Revenue | 70% | 69% | ||||||||||||||||||||||||||||||
| Nine Months Ended | Increase Excluding Acquisitions and FX (a,c) | |||||||||||||||||||||||||||||||
| October 3, 2026 | September 27, 2025 | Increase | ||||||||||||||||||||||||||||||
| Flow Control | $ | 301,300 | $ | 283,227 | $ | 18,073 | $ | 10,146 | ||||||||||||||||||||||||
| Industrial Processing | 410,240 | 291,854 | 118,386 | 15,278 | ||||||||||||||||||||||||||||
| Material Handling | 196,000 | 190,963 | 5,037 | 2,705 | ||||||||||||||||||||||||||||
| $ | 907,540 | $ | 766,044 | $ | 141,496 | $ | 28,129 | |||||||||||||||||||||||||
| Percentage of Parts and Consumables Revenue | 71% | 72% | ||||||||||||||||||||||||||||||
| Three Months Ended | Increase Excluding Acquisitions and FX (c) | |||||||||||||||||||||||||||||||
| Bookings by Segment | October 3, 2026 | September 27, 2025 | Increase | |||||||||||||||||||||||||||||
| Flow Control | $ | 100,855 | $ | 93,844 | $ | 7,011 | $ | 6,293 | ||||||||||||||||||||||||
| Industrial Processing | 123,038 | 85,162 | 37,876 | 10,569 | ||||||||||||||||||||||||||||
| Material Handling | 67,187 | 59,349 | 7,838 | 7,998 | ||||||||||||||||||||||||||||
| $ | 291,080 | $ | 238,355 | $ | 52,725 | $ | 24,860 | |||||||||||||||||||||||||
| Percentage of Parts and Consumables Bookings | 72% | 74% | ||||||||||||||||||||||||||||||
| Nine Months Ended | Increase Excluding Acquisitions and FX (c) | |||||||||||||||||||||||||||||||
| October 3, 2026 | September 27, 2025 | Increase | ||||||||||||||||||||||||||||||
| Flow Control | $ | 315,229 | $ | 286,886 | $ | 28,343 | $ | 20,037 | ||||||||||||||||||||||||
| Industrial Processing | 403,483 | 282,902 | 120,581 | 20,521 | ||||||||||||||||||||||||||||
| Material Handling | 205,248 | 194,160 | 11,088 | 8,362 | ||||||||||||||||||||||||||||
| $ | 923,960 | $ | 763,948 | $ | 160,012 | $ | 48,920 | |||||||||||||||||||||||||
| Percentage of Parts and Consumables Bookings | 72% | 71% | ||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
Additional Segment Information | October 3, 2026 | September 27, 2025 | October 3, 2026 | September 27, 2025 | ||||||||||||||||||||||||||||
Gross Margin: | ||||||||||||||||||||||||||||||||
| Flow Control | 53.0% | 51.9% | 52.7% | 53.0% | ||||||||||||||||||||||||||||
| Industrial Processing | 42.0% | 43.6% | 41.7% | 43.4% | ||||||||||||||||||||||||||||
| Material Handling | 37.9% | 38.5% | 37.7% | 38.3% | ||||||||||||||||||||||||||||
| Consolidated | 44.7% | 45.2% | 44.5% | 45.7% | ||||||||||||||||||||||||||||
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| Kadant Reports Third Quarter 2026 Results | | ||||
| November 3, 2026 | |||||
Page 6 | |||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
Additional Segment Information (continued) | October 3, 2026 | September 27, 2025 | October 3, 2026 | September 27, 2025 | ||||||||||||||||||||||||||||
| Operating Income: | ||||||||||||||||||||||||||||||||
| Flow Control | $ | 28,275 | $ | 22,342 | $ | 77,243 | $ | 69,537 | ||||||||||||||||||||||||
Industrial Processing | 26,403 | 18,828 | 73,599 | 51,146 | ||||||||||||||||||||||||||||
| Material Handling | 10,983 | 12,533 | 29,302 | 30,007 | ||||||||||||||||||||||||||||
| Corporate | (12,108) | (11,087) | (35,602) | (33,111) | ||||||||||||||||||||||||||||
| $ | 53,553 | $ | 42,616 | $ | 144,542 | $ | 117,579 | |||||||||||||||||||||||||
Adjusted Operating Income (a,b,d): | ||||||||||||||||||||||||||||||||
| Flow Control | $ | 29,538 | $ | 23,730 | $ | 81,044 | $ | 74,004 | ||||||||||||||||||||||||
| Industrial Processing | 33,339 | 24,417 | 93,394 | 62,555 | ||||||||||||||||||||||||||||
| Material Handling | 13,669 | 15,247 | 37,365 | 38,307 | ||||||||||||||||||||||||||||
| Corporate | (12,108) | (11,087) | (35,602) | (33,111) | ||||||||||||||||||||||||||||
| $ | 64,438 | $ | 52,307 | $ | 176,201 | $ | 141,755 | |||||||||||||||||||||||||
| Capital Expenditures: | ||||||||||||||||||||||||||||||||
| Flow Control (i) | $ | 1,943 | $ | 1,213 | $ | 9,992 | $ | 4,102 | ||||||||||||||||||||||||
Industrial Processing | 1,542 | 783 | 4,771 | 3,703 | ||||||||||||||||||||||||||||
| Material Handling | 1,275 | 1,198 | 3,993 | 3,190 | ||||||||||||||||||||||||||||
| Corporate | 7 | — | 216 | 3 | ||||||||||||||||||||||||||||
| $ | 4,767 | $ | 3,194 | $ | 18,972 | $ | 10,998 | |||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
| Cash Flow and Other Data | October 3, 2026 | September 27, 2025 | October 3, 2026 | September 27, 2025 | ||||||||||||||||||||||||||||
| Operating Cash Flow | $ | 62,901 | $ | 47,252 | $ | 138,327 | $ | 110,569 | ||||||||||||||||||||||||
| Capital Expenditures (i) | (4,767) | (3,194) | (18,972) | (10,998) | ||||||||||||||||||||||||||||
| Free Cash Flow (a) | $ | 58,134 | $ | 44,058 | $ | 119,355 | $ | 99,571 | ||||||||||||||||||||||||
| Depreciation and Amortization Expense | $ | 16,110 | $ | 12,397 | $ | 46,301 | $ | 36,479 | ||||||||||||||||||||||||
| Balance Sheet Data | October 3, 2026 | January 3, 2026 | ||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Cash, Cash Equivalents, and Restricted Cash | $ | 138,607 | $ | 122,681 | ||||||||||||||||||||||||||||
Accounts Receivable, Net | 179,217 | 158,567 | ||||||||||||||||||||||||||||||
| Inventories | 207,027 | 206,854 | ||||||||||||||||||||||||||||||
| Contract Assets | 10,085 | 6,599 | ||||||||||||||||||||||||||||||
Property, Plant, and Equipment, Net | 224,791 | 196,656 | ||||||||||||||||||||||||||||||
| Intangible Assets | 345,385 | 350,376 | ||||||||||||||||||||||||||||||
| Goodwill | 658,096 | 555,621 | ||||||||||||||||||||||||||||||
| Other Assets | 108,708 | 114,824 | ||||||||||||||||||||||||||||||
| $ | 1,871,916 | $ | 1,712,178 | |||||||||||||||||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||||||||
| Accounts Payable | $ | 60,271 | $ | 53,362 | ||||||||||||||||||||||||||||
| Debt Obligations | 453,146 | 372,720 | ||||||||||||||||||||||||||||||
| Other Borrowings | 2,060 | 1,781 | ||||||||||||||||||||||||||||||
| Other Liabilities | 293,224 | 293,248 | ||||||||||||||||||||||||||||||
| Total Liabilities | 808,701 | 721,111 | ||||||||||||||||||||||||||||||
| Stockholders' Equity | 1,063,215 | 991,067 | ||||||||||||||||||||||||||||||
| $ | 1,871,916 | $ | 1,712,178 | |||||||||||||||||||||||||||||
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| Kadant Reports Third Quarter 2026 Results | | ||||
| November 3, 2026 | |||||
Page 7 | |||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
| Adjusted Operating Income and Adjusted EBITDA Reconciliation (a) | October 3, 2026 | September 27, 2025 | October 3, 2026 | September 27, 2025 | ||||||||||||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||||||||||
| Net Income Attributable to Kadant | $ | 35,072 | $ | 27,722 | $ | 93,049 | $ | 77,944 | ||||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interests | 613 | 393 | 1,304 | 1,247 | ||||||||||||||||||||||||||||
| Provision for Income Taxes | 12,799 | 11,766 | 36,123 | 29,416 | ||||||||||||||||||||||||||||
| Interest Expense, Net | 5,046 | 2,716 | 13,998 | 8,920 | ||||||||||||||||||||||||||||
| Other Expense, Net | 23 | 19 | 68 | 52 | ||||||||||||||||||||||||||||
| Operating Income | 53,553 | 42,616 | 144,542 | 117,579 | ||||||||||||||||||||||||||||
Intangible Asset Amortization Expense | 8,843 | 6,521 | 25,854 | 19,174 | ||||||||||||||||||||||||||||
Profit in Inventory Amortization Expense (e) | 1,252 | 465 | 3,862 | 500 | ||||||||||||||||||||||||||||
Backlog Amortization Expense (f) | — | 165 | — | 746 | ||||||||||||||||||||||||||||
| Acquisition Costs | 453 | 2,253 | 1,731 | 3,498 | ||||||||||||||||||||||||||||
| Indemnification Asset Reversal (Provision) (g) | 337 | — | 212 | (29) | ||||||||||||||||||||||||||||
Other Costs | — | 287 | — | 287 | ||||||||||||||||||||||||||||
Adjusted Operating Income (a,b) | 64,438 | 52,307 | 176,201 | 141,755 | ||||||||||||||||||||||||||||
Depreciation Expense | 7,267 | 5,711 | 20,447 | 16,559 | ||||||||||||||||||||||||||||
| Adjusted EBITDA (a) | $ | 71,705 | $ | 58,018 | $ | 196,648 | $ | 158,314 | ||||||||||||||||||||||||
Adjusted EBITDA Margin (a,h) | 22.9% | 21.4% | 21.7% | 20.7% | ||||||||||||||||||||||||||||
| Flow Control | ||||||||||||||||||||||||||||||||
| Operating Income | $ | 28,275 | $ | 22,342 | $ | 77,243 | $ | 69,537 | ||||||||||||||||||||||||
Intangible Asset Amortization Expense | 1,263 | 1,239 | 3,801 | 3,679 | ||||||||||||||||||||||||||||
Profit in Inventory Amortization Expense (e) | — | — | — | 35 | ||||||||||||||||||||||||||||
Backlog Amortization Expense (f) | — | 147 | — | 610 | ||||||||||||||||||||||||||||
| Acquisition Costs | — | 2 | — | 41 | ||||||||||||||||||||||||||||
Indemnification Asset Reversal (g) | — | — | — | 102 | ||||||||||||||||||||||||||||
Adjusted Operating Income (a,b) | 29,538 | 23,730 | 81,044 | 74,004 | ||||||||||||||||||||||||||||
Depreciation Expense | 1,864 | 1,935 | 5,564 | 5,588 | ||||||||||||||||||||||||||||
| Adjusted EBITDA (a) | $ | 31,402 | $ | 25,665 | $ | 86,608 | $ | 79,592 | ||||||||||||||||||||||||
Adjusted EBITDA Margin (a,h) | 30.7% | 27.1% | 28.7% | 28.1% | ||||||||||||||||||||||||||||
| Industrial Processing | ||||||||||||||||||||||||||||||||
| Operating Income | $ | 26,403 | $ | 18,828 | $ | 73,599 | $ | 51,146 | ||||||||||||||||||||||||
Intangible Asset Amortization Expense | 4,894 | 2,600 | 13,990 | 7,414 | ||||||||||||||||||||||||||||
Profit in Inventory Amortization Expense (e) | 1,252 | 465 | 3,862 | 465 | ||||||||||||||||||||||||||||
| Acquisition Costs | 453 | 2,237 | 1,731 | 3,449 | ||||||||||||||||||||||||||||
| Indemnification Asset Reversal (Provision) (g) | 337 | — | 212 | (206) | ||||||||||||||||||||||||||||
| Other Costs | — | 287 | — | 287 | ||||||||||||||||||||||||||||
Adjusted Operating Income (a,b) | 33,339 | 24,417 | 93,394 | 62,555 | ||||||||||||||||||||||||||||
Depreciation Expense | 4,160 | 2,621 | 11,169 | 7,436 | ||||||||||||||||||||||||||||
| Adjusted EBITDA (a) | $ | 37,499 | $ | 27,038 | $ | 104,563 | $ | 69,991 | ||||||||||||||||||||||||
Adjusted EBITDA Margin (a,h) | 26.1% | 25.4% | 25.5% | 24.0% | ||||||||||||||||||||||||||||
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| Kadant Reports Third Quarter 2026 Results | | ||||
| November 3, 2026 | |||||
Page 8 | |||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
| Adjusted Operating Income and Adjusted EBITDA Reconciliation (continued) (a) | October 3, 2026 | September 27, 2025 | October 3, 2026 | September 27, 2025 | ||||||||||||||||||||||||||||
| Material Handling | ||||||||||||||||||||||||||||||||
| Operating Income | $ | 10,983 | $ | 12,533 | $ | 29,302 | $ | 30,007 | ||||||||||||||||||||||||
Intangible Asset Amortization Expense | 2,686 | 2,682 | 8,063 | 8,081 | ||||||||||||||||||||||||||||
Backlog Amortization Expense (f) | — | 18 | — | 136 | ||||||||||||||||||||||||||||
Acquisition Costs | — | 14 | — | 8 | ||||||||||||||||||||||||||||
Indemnification Asset Reversal (g) | — | — | — | 75 | ||||||||||||||||||||||||||||
Adjusted Operating Income (a,b) | 13,669 | 15,247 | 37,365 | 38,307 | ||||||||||||||||||||||||||||
Depreciation Expense | 1,219 | 1,142 | 3,652 | 3,499 | ||||||||||||||||||||||||||||
| Adjusted EBITDA (a) | $ | 14,888 | $ | 16,389 | $ | 41,017 | $ | 41,806 | ||||||||||||||||||||||||
Adjusted EBITDA Margin (a,h) | 22.1% | 23.3% | 20.9% | 21.9% | ||||||||||||||||||||||||||||
| Corporate | ||||||||||||||||||||||||||||||||
| Operating Loss | $ | (12,108) | $ | (11,087) | $ | (35,602) | $ | (33,111) | ||||||||||||||||||||||||
Depreciation Expense | 24 | 13 | 62 | 36 | ||||||||||||||||||||||||||||
| EBITDA (a) | $ | (12,084) | $ | (11,074) | $ | (35,540) | $ | (33,075) | ||||||||||||||||||||||||
| (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. | |||||||||||||||||||||||||||||||
| (i) | Includes $5.8 million paid in the nine months ended October 3, 2026 for the purchase of a previously leased manufacturing facility. | |||||||||||||||||||||||||||||||
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
-more-
| Kadant Reports Third Quarter 2026 Results | | ||||
| November 3, 2026 | |||||
Page 9 | |||||
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
Third Quarter 2026 Business Review November 4, 2026 Exhibit 99.2
Forward-Looking Statements The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation 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 November 3, 2026. 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. 2KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED.
Use of Non-GAAP Financial Measures In addition to the financial measures prepared in accordance with U.S. 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 EPS, adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA), adjusted EBITDA margin, adjusted operating income, and free cash flow. All references to EPS (earnings per share) are to our EPS as calculated on a diluted basis. Specific non-GAAP financial measures have been marked with an * (asterisk) within this presentation. A reconciliation of those numbers to the most directly comparable GAAP financial measures is shown within this presentation and in our third quarter 2026 earnings press release issued November 3, 2026, which is available in the Investors section of our website at investor.kadant.com under the heading News Releases. 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. Our other non-GAAP financial measures exclude amortization expense related to acquired intangible assets, profit in inventory, and backlog (collectively, purchase accounting expenses); acquisition costs; and other income or expense, as indicated. We exclude purchase accounting expenses and acquisition costs to provide a more meaningful and consistent comparison of our operating results over time and with peer companies. While we have a history of acquisition activity, such transactions do not occur on a predictable cycle, and the size and nature of these transactions will vary. We believe it is important for investors to understand that these intangible assets were recorded as part of purchase accounting and that they contribute to revenue generation. We also exclude other items as they are not indicative of our core operating results and are not comparable to other periods, which have differing levels of incremental costs, expenditures or income, or none at all. Additionally, we use free cash flow in order to provide insight on our ability to generate cash for acquisitions and debt repayments, as well as for other investing and financing activities. 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 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 presentation 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 presentation 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. 3 KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED.
BUSINESS REVIEW Jeffrey L. Powell, CEO 4
Third Quarter Highlights 5 KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. • Excellent performance across broad range of key financial metrics • Strong demand for aftermarket parts; capital equipment demand strengthened • Profitability supported by operational discipline and execution 5
Q3 2026 Performance 6 ($ in millions, except per share amounts) Q3 26 Q3 25 Change Bookings $291.1 $238.4 +22.1% Revenue $313.2 $271.6 +15.3% Net Income $35.1 $27.7 +26.5% Adjusted EBITDA* $71.7 $58.0 +23.6% Adjusted EBITDA Margin* 22.9 % 21.4 % +150 bps EPS $2.96 $2.35 +26.0% Adjusted EPS* $3.64 $3.01 +20.9% Operating Cash Flow $62.9 $47.3 +33.1% Free Cash Flow* $58.1 $44.1 +31.9% HIGHLIGHTS • Healthy demand for aftermarket parts continued to drive bookings and revenue • Record revenue performance • Record adjusted EBITDA*, up 24% • Record adjusted EPS* increased 21% • Record cash flows KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED.
$93.8 $93.6 $111.5 $102.8 $100.9 3Q25 4Q25 1Q26 2Q26 3Q26 7 ($ in millions) Q3 26 Q3 25 Change Bookings $100.9 $93.8 +7.5 % Revenue $102.4 $94.8 +8.0 % Adjusted EBITDA* $31.4 $25.7 +22.4 % Adjusted EBITDA Margin* 30.7 % 27.1 % +360 bps HIGHLIGHTS • Solid bookings growth across diverse industrial markets • Record aftermarket parts revenue • Record adjusted EBITDA*, up 22% ($ in millions) BOOKINGS Flow Control KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED.
8 ($ in millions) Q3 26 Q3 25 Change Bookings $123.0 $85.2 +44.5% Revenue $143.4 $106.4 +34.8 % Adjusted EBITDA* $37.5 $27.0 +38.7 % Adjusted EBITDA Margin* 26.1 % 25.4 % +70 bps HIGHLIGHTS • Recent acquisitions and organic growth contributed to excellent Q3 results • Organic bookings up 12% • Excellent adjusted EBITDA* performance • Aftermarket parts business is stable, healthy capital project activity Industrial Processing $85.2 $121.0 $144.5 $135.9 $123.0 3Q25 4Q25 1Q26 2Q26 3Q26 BOOKINGS ($ in millions) KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED.
9 ($ in millions) Q3 26 Q3 25 Change Bookings $67.2 $59.3 +13.2% Revenue $67.4 $70.3 -4.2% Adjusted EBITDA* $14.9 $16.4 -9.2% Adjusted EBITDA Margin* 22.1 % 23.3 % -120 bps HIGHLIGHTS • Strong commercial execution in Q3 • Healthy aftermarket parts demand • Lower capital equipment shipments negatively impacted revenue • Project activity remains solid across all product lines Material Handling $59.3 $55.4 $64.7 $73.3 $67.2 3Q25 4Q25 1Q26 2Q26 3Q26 BOOKINGS ($ in millions) KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED.
Business Outlook • Demand expected to remain stable, potential upside with capital business • Improving capital equipment environment although timing remains uncertain • Geopolitical tensions and economic headwinds are persistent • 2026 expected to be a record year for Kadant 10KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED.
FINANCIAL REVIEW Michael J. McKenney, EVP & CFO 11
Q3 2026 Financial Performance ($ in millions, except per share amounts) Q3 26 Q3 25 Revenue $313.2 $271.6 Gross Margin 44.7% 45.2% SG&A % of Revenue 26.4% 27.9% Operating Income $53.6 $42.6 Net Income $35.1 $27.7 Adjusted EBITDA* $71.7 $58.0 EPS $2.96 $2.35 Adjusted EPS* $3.64 $3.01 Operating Cash Flow $62.9 $47.3 HIGHLIGHTS • Record parts and consumables revenue • Adjusted EBITDA margin* of 22.9% • Adjusted EPS* exceeded guidance • Record operating cash flow KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 12
Key Financial Metrics KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 13 $47.3 $60.8 $21.9 $53.5 $62.9 $44.1 $54.7 $18.7 $42.6 $58.1 FREE CASH FLOW* OPERATING CASH FLOW 3Q25 4Q25 1Q26 2Q26 3Q26 $58.0 $58.0 $56.8 $68.1 $71.7 $27.7 $24.0 $25.5 $32.5 $35.1 21.4% 20.3% 20.2% 21.8% 22.9% NET INCOME ADJUSTED EBITDA* ADJ. EBITDA MARGIN* 3Q25 4Q25 1Q26 2Q26 3Q26 ADJUSTED EBITDA* CASH FLOW ($ in millions)($ in millions)
2Q21 ADJ EPS* 2Q22 ADJ EPS* KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. Q3 25 to Q3 26 Adjusted EPS* $3.01 $0.50 $0.29 $0.04 $(0.15) $(0.02) $(0.02) $(0.01) $3.64 Q3 25 ADJ EPS* ACQUISITIONS REVENUE TAX PROVISION INTEREST EXPENSE GROSS MARGIN NONCONTROLLING INTERESTS CHANGE IN SHARES Q3 26 ADJ EPS* 14
Key Liquidity Metrics KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. ($ in millions) Q3 26 Q2 26 Q3 25 Cash, cash equivalents, and restricted cash $138.6 $137.6 $126.9 Debt $453.1 $508.2 $256.0 Lease obligations $2.1 $2.4 $2.0 Net Debt $316.6 $373.0 $131.1 Leverage ratio1 1.49 1.72 0.94 Working capital % LTM revenue2 17.8 % 19.3 % 18.0 % Cash conversion days3 133 133 131 15
Guidance KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 16 • FY 2026 revenue of $1.195 to $1.210 billion, revised from $1.190 to $1.210 billion • FY 2026 GAAP EPS of $9.88 to $10.03, revised from $9.78 to $10.03 • FY 2026 adjusted EPS* of $12.58 to $12.73, revised from $12.43 to $12.68 • Q4 2026 revenue of $287 to $302 million • Q4 2026 GAAP EPS of $2.01 to $2.16 • Q4 2026 adjusted EPS* of $2.67 to $2.82
Questions & Answers To participate in the live Q&A session, please go to investor.kadant.com and click on the Q&A session link to receive a dial-in number and unique PIN. Please mute the audio on your computer. 17
Delivering Exceptional Stakeholder Value 18KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. Reinforce an entrepreneurial mindset in our decentralized business model to stimulate growth and drive efficiencies. Build leadership capabilities to achieve growth-focused critical outcomes. Cultivate innovation, agility, and discipline for sustainable growth and profitability. Drive operational excellence via our 80/20 Performance System and Lean principles to systematically enhance performance. OUR KEY PRIORITIES
Investor Relations Michael McKenney, 978-776-2000 IR@kadant.com Media Relations Wes Martz, 978-776-2000 media@kadant.com 19 CONTACTS
Third Quarter 2026 Business Review 20 APPENDIX November 4, 2026
Revenue by Customer Location ($ in thousands) Q3 26 Q3 25 Change Change Excluding Acquisitions and FX* North America $185,845 $165,708 $20,137 $8,247 Europe 65,319 65,869 (550) (6,950) Asia 38,046 23,893 14,153 7,995 Rest of World 23,950 16,097 7,853 757 Total $313,160 $271,567 $41,593 $10,049 KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 21 Percentage of Parts and Consumables Revenue Q3 26 Q3 25 Flow Control 76% 74% Industrial Processing 71% 76% Material Handling 57% 52% Consolidated 70 % 69 %
Adjusted EPS* Reconciliation Q3 26 Q3 25 EPS, as Reported $2.96 $2.35 Adjustments, Net of Tax Intangible Asset Amortization Expense 0.56 0.42 Profit in Inventory and Backlog Amortization Expense 0.08 0.04 Acquisition Costs 0.03 0.18 Other Costs — 0.02 Adjusted EPS* $3.64 $3.01 KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 22 ($ in thousands) Q3 26 Q3 25 Operating Cash Flow $62,901 $47,252 Capital Expenditures (4,767) (3,194) Free Cash Flow* $58,134 $44,058 Free Cash Flow* Reconciliation
Adjusted EBITDA* Reconciliation ($ in thousands) Q3 26 Q3 25 Net Income Attributable to Kadant $35,072 $27,722 Net Income Attributable to Noncontrolling Interests 613 393 Provision for Income Taxes 12,799 11,766 Interest Expense, Net 5,046 2,716 Other Expense, Net 23 19 Intangible Asset Amortization Expense 8,843 6,521 Profit in Inventory Amortization Expense 1,252 465 Backlog Amortization Expense — 165 Acquisition Costs 453 2,253 Indemnification Asset Reversal 337 — Other Costs — 287 Depreciation Expense 7,267 5,711 Adjusted EBITDA* $71,705 $58,018 Adjusted EBITDA Margin* 22.9 % 21.4 % KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 23
Notes PRESENTATION NOTES • All references to EPS (earnings per share) are to our EPS as calculated on a diluted basis. • Adjusted EPS* has been calculated using our new methodology announced on February 19, 2026 to exclude intangible asset amortization expense. • Percent change in slides 6-9 is calculated using actual numbers reported in our press release dated November 3, 2026. FOOTNOTES 1) Leverage ratio is calculated by dividing total debt by EBITDA. For purposes of this calculation, EBITDA is calculated by adding or subtracting certain items from Adjusted EBITDA, as required by our amended and restated credit facility (“Credit Facility”). Our Credit Facility defines total debt as debt less worldwide cash of up to $50 million. 2) Working capital is defined as current assets less current liabilities, excluding cash and debt. LTM is defined as last 12 months. 3) Cash conversion days is based on days in receivables plus days in inventory less days in accounts payable. KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 24