Kadant (NYSE:KAI) Releases Q3 2025 Earnings Guidance

Key Points

• Kadant has provided Q3 2025 earnings guidance with EPS expected between 2.130 and 2.230, below the consensus estimate of 2.736, and revenue guidance of $256.0 million to $263.0 million compared to a consensus of $272.3 million.
• The company declared a quarterly dividend of $0.34 per share, with an annualized yield of 0.39%, while the dividend payout ratio stands at 14.44%.
• Kadant's Board has approved a $50 million stock repurchase program, indicating confidence in the company's stock valuation as it seeks to reacquire up to 1.3% of its shares.

Kadant (NYSE:KAI - Get Free Report) issued an update on its third quarter 2025 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 2.130-2.230 for the period, compared to the consensus estimate of 2.736. The company issued revenue guidance of $256.0 million-$263.0 million, compared to the consensus revenue estimate of $272.3 million. Kadant also updated its FY 2025 guidance to 9.050-9.250 EPS.

Kadant Trading Up 0.1%

Shares of Kadant stock traded up $0.51 during trading on Tuesday, hitting $344.53. The company's stock had a trading volume of 133,654 shares, compared to its average volume of 147,448. The stock has a market cap of $4.06 billion, a price-to-earnings ratio of 36.57 and a beta of 1.25. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.47 and a quick ratio of 1.62. Kadant has a 52 week low of $281.30 and a 52 week high of $429.95. The stock has a 50-day moving average price of $321.84 and a two-hundred day moving average price of $336.03.

Kadant (NYSE:KAI - Get Free Report) last released its earnings results on Tuesday, July 29th. The industrial products company reported $2.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.94 by $0.37. Kadant had a net margin of 10.63% and a return on equity of 13.74%. Equities research analysts anticipate that Kadant will post 9.97 EPS for the current fiscal year.

Kadant Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 7th. Investors of record on Thursday, July 10th will be issued a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a yield of 0.39%. The ex-dividend date of this dividend is Thursday, July 10th. Kadant's dividend payout ratio (DPR) is presently 14.44%.

Kadant announced that its Board of Directors has approved a stock repurchase program on Thursday, May 15th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the industrial products company to reacquire up to 1.3% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several analysts have commented on KAI shares. DA Davidson lowered their price objective on shares of Kadant from $300.00 to $275.00 and set a "neutral" rating on the stock in a research report on Thursday, May 1st. Wall Street Zen upgraded shares of Kadant from a "sell" rating to a "hold" rating in a research note on Saturday, July 5th. Finally, Barrington Research reiterated an "outperform" rating and issued a $380.00 target price on shares of Kadant in a research note on Tuesday.

Hedge Funds Weigh In On Kadant

Several large investors have recently modified their holdings of KAI. United Services Automobile Association bought a new position in shares of Kadant in the first quarter valued at approximately $255,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Kadant by 1.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 30,974 shares of the industrial products company's stock valued at $10,435,000 after purchasing an additional 441 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Kadant by 4.7% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,985 shares of the industrial products company's stock worth $2,353,000 after acquiring an additional 311 shares in the last quarter. AQR Capital Management LLC lifted its stake in shares of Kadant by 11.2% in the 1st quarter. AQR Capital Management LLC now owns 2,763 shares of the industrial products company's stock valued at $931,000 after acquiring an additional 279 shares during the last quarter. Finally, Integrated Wealth Concepts LLC lifted its stake in shares of Kadant by 8.6% in the 1st quarter. Integrated Wealth Concepts LLC now owns 907 shares of the industrial products company's stock valued at $306,000 after acquiring an additional 72 shares during the last quarter. Hedge funds and other institutional investors own 96.13% of the company's stock.

About Kadant

Kadant Inc supplies technologies and engineered systems worldwide. It operates in three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems and equipment, such as rotary joints, syphons, turbulator bars, expansion joints, and engineered steam and condensate systems; and doctoring, cleaning, and filtration systems and related consumables consisting of doctor systems and holders, doctor blades, cleaning shower and fabric-conditioning systems, forming systems and wear surfaces, and water-filtration systems.

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