Kadant Reports First Quarter 2026 Results

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 represented 20.2% 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 $281.5 million compared to $239.2 million in 2025. Organic revenue decreased one percent, which excludes an increase of 14 percent from acquisitions. Gross margin was 45.0 percent, which includes a 50 basis point decrease from acquisition-related costs, compared to 46.1 percent in 2025.

Net income was $25.5 million, increasing six percent compared to $24.1 million in 2025. GAAP EPS increased six percent to $2.16 compared to $2.04 in 2025 and adjusted EPS increased 14 percent to $2.84 compared to $2.50 in 2025. Adjusted EPS excludes intangible asset amortization expense of $0.53 and acquisition-related costs of $0.15 in 2026, and intangible asset amortization expense of $0.40 and acquisition-related costs of $0.06 in 2025.

Adjusted EBITDA increased 19 percent to $56.8 million and represented 20.2 percent of revenue in 2026 compared to $47.9 million and 20.0 percent of revenue in 2025. Operating cash flow decreased four percent to $21.9 million compared to $22.8 million in 2025. Free cash flow decreased two percent to $18.7 million compared to $19.0 million in 2025.

Bookings increased 25 percent to a record $320.8 million compared to $256.2 million in 2025. Organic bookings increased ten percent, which excludes increases of 11 percent from acquisitions and four percent from the favorable effect of foreign currency translation.

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 $1.178 to $1.203 billion in 2026, up from our previous guidance of $1.160 to $1.185 billion. We now expect GAAP EPS of $9.80 to $10.15 in 2026, revised from our previous guidance of $10.27 to $10.62, and adjusted EPS of $12.33 to $12.68, revised from our prior guidance of $12.53 to $12.88. The $0.20 decrease in adjusted EPS relates to our recent acquisition, which will be dilutive in the short term as income is deferred until Kadant's previously acquired inventory is sold to third-party customers. The 2026 adjusted EPS guidance excludes $2.53 of acquisition-related costs, revised from $2.26 in our previous guidance. For the second quarter of 2026, we expect revenue of $296 to $306 million, GAAP EPS of $2.26 to $2.36 and, after excluding $0.62 of acquisition-related costs, adjusted EPS of $2.88 to $2.98."

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 $34.0 million from acquisitions and a favorable foreign currency translation effect of $9.8 million compared to the first quarter 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 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