Kadant (NYSE:KAI) Issues Q3 2026 Earnings Guidance

Key Points

• Kadant issued weaker-than-consensus Q3 2026 guidance, forecasting EPS of $2.90–$3.00 versus analysts’ $3.29 estimate and revenue of $297 million–$307 million versus $311.8 million. Full-year 2026 EPS guidance was set at $12.43–$12.68.
• The company declared a quarterly dividend of $0.36 per share, equivalent to a 0.4% yield, and authorized a $50 million share repurchase program covering up to 1.4% of outstanding shares.
• Analyst sentiment remains cautious, with one Buy and three Hold ratings and an average price target of $341.50; shares recently traded at $334.67.

Kadant (NYSE:KAI - Get Free Report) issued an update on its third quarter 2026 earnings guidance on Tuesday. 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 Price Performance

Shares of KAI stock traded up $10.11 during trading hours on Tuesday, hitting $334.67. The company had a trading volume of 121,653 shares, compared to its average volume of 156,276. Kadant has a 12 month low of $244.87 and a 12 month high of $357.65. The firm has a market capitalization of $3.95 billion, a price-to-earnings ratio of 38.16 and a beta of 1.20. The firm's fifty day moving average is $306.50 and its 200 day moving average is $315.86. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.53 and a current ratio of 2.47.

Kadant (NYSE:KAI - Get Free Report) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $3.42 EPS for the quarter, topping the consensus estimate of $2.94 by $0.48. The business had revenue of $312.88 million during the quarter, compared to the consensus estimate of $299.17 million. Kadant had a return on equity of 12.13% and a net margin of 9.45%.Kadant has set its FY 2026 guidance at 12.430-12.680 EPS and its Q3 2026 guidance at 2.900-3.000 EPS. On average, sell-side analysts predict that Kadant will post 12.42 EPS for the current fiscal year.

Kadant Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 13th. Shareholders of record on Thursday, July 16th will be issued a dividend of $0.36 per share. The ex-dividend date of this dividend is Thursday, July 16th. This represents a $1.44 dividend on an annualized basis and a dividend yield of 0.4%. Kadant's dividend payout ratio (DPR) is presently 16.42%.

Kadant declared that its Board of Directors has initiated a share buyback plan on Thursday, May 21st that authorizes the company to buyback $50.00 million in shares. This buyback authorization authorizes the industrial products company to repurchase up to 1.4% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board believes its shares are undervalued.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the stock. Weiss Ratings raised shares of Kadant from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, May 14th. Barrington Research reissued an "outperform" rating and set a $380.00 price target on shares of Kadant in a report on Monday, May 4th. Wall Street Zen raised shares of Kadant from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Finally, Zacks Research lowered shares of Kadant from a "strong-buy" rating to a "hold" rating in a report on Wednesday, May 20th. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $341.50.

Insiders Place Their Bets

In other Kadant news, SVP Stacy D. Krause sold 1,227 shares of the business's stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $334.17, for a total value of $410,026.59. Following the completion of the transaction, the senior vice president directly owned 1,363 shares of the company's stock, valued at approximately $455,473.71. The trade was a 47.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 1.30% of the company's stock.

Institutional Trading of Kadant

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd lifted its holdings in Kadant by 1,300.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 84 shares of the industrial products company's stock worth $25,000 after buying an additional 78 shares in the last quarter. Kestra Advisory Services LLC bought a new position in Kadant in the 4th quarter valued at $27,000. Kestra Investment Management LLC acquired a new stake in shares of Kadant in the 2nd quarter valued at $27,000. Allworth Financial LP increased its stake in shares of Kadant by 89.1% in the 3rd quarter. Allworth Financial LP now owns 104 shares of the industrial products company's stock valued at $31,000 after buying an additional 49 shares during the period. Finally, Smartleaf Asset Management LLC raised its position in shares of Kadant by 278.0% during the second quarter. Smartleaf Asset Management LLC now owns 189 shares of the industrial products company's stock worth $59,000 after acquiring an additional 139 shares during the last quarter. Institutional investors and hedge funds own 96.13% of the company's stock.

Kadant Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source