Kadant (NYSE:KAI) Issues Q3 2026 Earnings Guidance

Kadant (NYSE:KAI) issued an update on its third quarter 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 2.900-3.000 for the period, compared to the consensus EPS estimate of 3.290. The company issued revenue guidance of $297.0 million-$307.0 million, compared to the consensus revenue estimate of $311.8 million. Kadant also updated its FY 2026 guidance to 12.430-12.680 EPS.

Kadant Trading Down 0.3%

Kadant stock traded down $1.11 during midday trading on Thursday, hitting $336.01. 90,492 shares of the stock were exchanged, compared to its average volume of 156,568. The stock has a market capitalization of $3.97 billion, a PE ratio of 36.13 and a beta of 1.20. The company has a fifty day simple moving average of $306.66 and a two-hundred day simple moving average of $316.06. The company has a quick ratio of 1.53, a current ratio of 2.47 and a debt-to-equity ratio of 0.36. Kadant has a 52 week low of $244.87 and a 52 week high of $357.65.

Kadant (NYSE:KAI) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $3.42 earnings per share for the quarter, topping the consensus estimate of $2.94 by $0.48. Kadant had a net margin of 9.52% and a return on equity of 13.32%. The company had revenue of $312.88 million for the quarter, compared to analyst estimates of $299.17 million. During the same period last year, the business posted $2.31 earnings per share. The business’s revenue for the quarter was up 22.6% compared to the same quarter last year. Kadant has set its FY 2026 guidance at 12.430-12.680 EPS and its Q3 2026 guidance at 2.900-3.000 EPS. Equities research analysts anticipate that Kadant will post 12.42 EPS for the current fiscal year.

Kadant Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 13th. Shareholders of record on Thursday, July 16th will be issued a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Thursday, July 16th. Kadant’s dividend payout ratio is 15.48%.

Kadant announced that its Board of Directors has initiated a stock repurchase program on Thursday, May 21st that allows the company to repurchase $50.00 million in shares. This repurchase authorization allows the industrial products company to purchase up to 1.4% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

Analyst Ratings Changes

Several brokerages have commented on KAI. Barrington Research restated an “outperform” rating and set a $380.00 target price on shares of Kadant in a report on Monday, May 4th. DA Davidson set a $335.00 price target on shares of Kadant in a research note on Thursday. Weiss Ratings lowered shares of Kadant from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday. Zacks Research lowered shares of Kadant from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 20th. Finally, Wall Street Zen raised Kadant from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. One investment analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $357.50.

Insider Activity

In related news, SVP Stacy D. Krause sold 1,227 shares of the company’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $334.17, for a total transaction of $410,026.59. Following the completion of the sale, the senior vice president directly owned 1,363 shares in the company, valued at $455,473.71. This represents a 47.37% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Company insiders own 1.30% of the company’s stock.

Institutional Investors Weigh In On Kadant

Institutional investors have recently modified their holdings of the business. MetLife Investment Management LLC boosted its stake in Kadant by 723.4% during the 4th quarter. MetLife Investment Management LLC now owns 56,425 shares of the industrial products company’s stock valued at $16,082,000 after acquiring an additional 49,572 shares during the last quarter. Southernsun Asset Management LLC bought a new position in shares of Kadant during the 4th quarter valued at about $12,835,000. Wasatch Advisors LP lifted its holdings in shares of Kadant by 3.6% during the second quarter. Wasatch Advisors LP now owns 984,193 shares of the industrial products company’s stock valued at $312,432,000 after purchasing an additional 34,561 shares during the last quarter. Amundi boosted its stake in Kadant by 163.8% in the 3rd quarter. Amundi now owns 55,036 shares of the industrial products company’s stock worth $16,374,000 after purchasing an additional 34,170 shares during the period. Finally, Bank of America Corp DE increased its holdings in shares of Kadant by 23.8% in the 2nd quarter. Bank of America Corp DE now owns 147,463 shares of the industrial products company’s stock valued at $46,812,000 after purchasing an additional 28,380 shares during the period. 96.13% of the stock is owned by hedge funds and other institutional investors.

About Kadant

Kadant Inc, headquartered in Westford, Massachusetts, is a global supplier of high?value, critical components and engineered systems for the pulp and paper industry and other process industries. The company’s product portfolio spans stock preparation technologies, refiners and pulpers, fluid handling systems, and web?handling equipment designed to optimize the efficiency and quality of paper production. In addition to capital equipment, Kadant offers aftermarket services, including spare parts, maintenance programs and process optimization consulting, which together support long?term customer productivity and reliability.

Originally part of a larger industrial conglomerate, Kadant was established as an independent public company in 1991.