Kadant (NYSE:KAI) Releases Q2 2026 Earnings Guidance

Key Points

• Q2 2026 guidance: Kadant set Q2 EPS guidance of 2.880–2.980 (consensus 2.950) and revenue guidance of $296.0–$306.0 million (consensus $296.3M), and updated FY2026 EPS guidance to 12.330–12.680.
• Recent quarter beat: The company reported earnings of $2.84 per share (vs. $2.11 consensus) and revenue of $281.51 million (vs. $274.95M consensus), topping estimates for the period.
• Dividend increase: Kadant raised its quarterly dividend to $0.36 (annualized $1.44) from $0.34, reflecting a ~0.5% yield.

Kadant (NYSE:KAI - Get Free Report) issued an update on its second quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 2.880-2.980 for the period, compared to the consensus estimate of 2.950. The company issued revenue guidance of $296.0 million-$306.0 million, compared to the consensus revenue estimate of $296.3 million. Kadant also updated its FY 2026 guidance to 12.330-12.680 EPS.

Kadant Price Performance

Shares of KAI traded up $1.90 during trading hours on Tuesday, hitting $288.23. The stock had a trading volume of 130,407 shares, compared to its average volume of 157,134. The company's fifty day moving average is $317.39 and its two-hundred day moving average is $304.71. The company has a debt-to-equity ratio of 0.37, a current ratio of 2.38 and a quick ratio of 1.47. Kadant has a 52 week low of $244.87 and a 52 week high of $369.97. The stock has a market capitalization of $3.40 billion, a price-to-earnings ratio of 33.32 and a beta of 1.19.

Kadant (NYSE:KAI - Get Free Report) last posted its earnings results on Tuesday, May 5th. The industrial products company reported $2.84 earnings per share for the quarter, topping the consensus estimate of $2.11 by $0.73. Kadant had a net margin of 9.69% and a return on equity of 11.57%. The business had revenue of $281.51 million for the quarter, compared to analyst estimates of $274.95 million. Kadant has set its Q2 2026 guidance at 2.880-2.980 EPS and its FY 2026 guidance at 12.330-12.680 EPS. On average, analysts anticipate that Kadant will post 12.63 EPS for the current year.

Kadant Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, May 13th. Stockholders of record on Wednesday, April 15th will be issued a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend is Wednesday, April 15th. This is a positive change from Kadant's previous quarterly dividend of $0.34. Kadant's payout ratio is currently 16.65%.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on KAI shares. DA Davidson set a $303.00 price objective on shares of Kadant in a report on Friday, February 20th. Zacks Research raised shares of Kadant from a "hold" rating to a "strong-buy" rating in a report on Tuesday, April 21st. Barrington Research reissued an "outperform" rating and set a $380.00 price objective on shares of Kadant in a report on Monday. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Kadant in a report on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, Kadant currently has an average rating of "Moderate Buy" and a consensus price target of $341.50.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Smartleaf Asset Management LLC lifted its position in Kadant by 14.4% during the 4th quarter. Smartleaf Asset Management LLC now owns 254 shares of the industrial products company's stock valued at $75,000 after purchasing an additional 32 shares during the period. Pacer Advisors Inc. lifted its position in Kadant by 9.4% during the 4th quarter. Pacer Advisors Inc. now owns 374 shares of the industrial products company's stock valued at $107,000 after purchasing an additional 32 shares during the period. Maryland State Retirement & Pension System lifted its position in Kadant by 2.3% during the 4th quarter. Maryland State Retirement & Pension System now owns 1,732 shares of the industrial products company's stock valued at $494,000 after purchasing an additional 39 shares during the period. SkyView Investment Advisors LLC lifted its position in Kadant by 1.5% during the 4th quarter. SkyView Investment Advisors LLC now owns 2,995 shares of the industrial products company's stock valued at $854,000 after purchasing an additional 44 shares during the period. Finally, Allworth Financial LP lifted its position in Kadant by 89.1% during the 3rd quarter. Allworth Financial LP now owns 104 shares of the industrial products company's stock valued at $31,000 after purchasing an additional 49 shares during the period. 96.13% of the stock is currently owned by institutional investors and hedge funds.

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.

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