Kadant (NYSE:KAI) Updates Q3 2026 Earnings Guidance

Posted by Geri Gentry on Aug 5th, 2026

Kadant (NYSE:KAI – Get Free Report) issued an update on its third quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 2.900-3.000 for the period, compared to the consensus earnings per share 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.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on KAI shares. Wall Street Zen raised shares of Kadant from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Weiss Ratings lowered shares of Kadant from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday. Zacks Research downgraded shares of Kadant from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 20th. Finally, Barrington Research reiterated an “outperform” rating and issued a $380.00 target price on shares of Kadant in a research note on Monday, May 4th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $341.50.

Check Out Our Latest Stock Analysis on KAI

Kadant Price Performance

Shares of KAI stock traded down $1.67 during mid-day trading on Wednesday, reaching $333.25. The company’s stock had a trading volume of 147,589 shares, compared to its average volume of 156,142. Kadant has a 1-year low of $244.87 and a 1-year high of $357.65. The company has a market cap of $3.94 billion, a P/E ratio of 37.86 and a beta of 1.20. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.53 and a current ratio of 2.47. The firm’s 50-day moving average is $306.59 and its two-hundred day moving average is $315.99.

Kadant (NYSE:KAI – Get Free Report) last issued its earnings results on Tuesday, August 4th. The industrial products company reported $3.42 earnings per share for the quarter, beating the consensus estimate of $2.94 by $0.48. The business had revenue of $312.88 million for the quarter, compared to analyst estimates of $299.17 million. Kadant had a net margin of 9.45% and a return on equity of 12.13%. The firm’s revenue was up 22.6% on a year-over-year basis. During the same period in the previous year, the business earned $2.31 EPS. 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, research analysts predict that Kadant will post 12.42 earnings per share for the current year.

Kadant Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 13th. Shareholders of record on Thursday, July 16th will be given a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Thursday, July 16th. Kadant’s dividend payout ratio is 16.42%.

Kadant announced that its Board of Directors has authorized a share repurchase plan on Thursday, May 21st that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the industrial products company to repurchase up to 1.4% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other news, SVP Stacy D. Krause sold 1,227 shares of the business’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $334.17, for a total value of $410,026.59. Following the sale, the senior vice president owned 1,363 shares in the company, valued at approximately $455,473.71. The trade was a 47.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 1.30% of the company’s stock.

Key Stories Impacting Kadant

Here are the key news stories impacting Kadant this week:

Positive Sentiment: Kadant reported second-quarter adjusted earnings of $3.42 per share, well above the $2.94 analyst consensus and up from $2.31 a year earlier. Revenue increased 22.6% year over year to a record $312.9 million, exceeding expectations of approximately $299.2 million. Kadant Q2 earnings report
Positive Sentiment: Management raised its full-year 2026 adjusted EPS outlook to $12.43-$12.68, above the prior outlook and the $11.55 analyst consensus. Full-year revenue is projected at approximately $1.2 billion. Bookings rose 16% to $312.1 million, while operating cash flow increased 32% to $53.5 million. Kadant raises 2026 guidance
Neutral Sentiment: Second-quarter backlog was approximately $340 million, supporting future demand. However, gross margin declined to 43.8% from 45.9% a year earlier, which could limit the benefit of strong sales growth.
Negative Sentiment: Third-quarter guidance calls for adjusted EPS of $2.90-$3.00 and revenue of $297 million-$307 million, below analyst estimates of $3.29 and $311.8 million, respectively. The weaker near-term outlook is likely the main reason the stock has decreased following the earnings release. Kadant Q2 revenue and outlook
Negative Sentiment: Recent insider activity showed two open-market sales totaling more than 2,600 shares, with no reported insider purchases. This is a secondary cautionary signal but is less significant than the company’s earnings and guidance.

Institutional Investors Weigh In On Kadant

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd raised its position in Kadant by 1,300.0% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 84 shares of the industrial products company’s stock valued at $25,000 after purchasing an additional 78 shares during the last quarter. Kestra Advisory Services LLC bought a new position in shares of Kadant in the fourth quarter valued at about $27,000. Kestra Investment Management LLC acquired a new stake in Kadant in the 2nd quarter valued at about $27,000. Allworth Financial LP raised its stake in shares of Kadant by 89.1% in the third quarter. Allworth Financial LP now owns 104 shares of the industrial products company’s stock worth $31,000 after acquiring an additional 49 shares during the last quarter. Finally, Smartleaf Asset Management LLC lifted 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 purchasing an additional 139 shares in the last quarter. 96.13% of the stock is owned by institutional investors and hedge funds.

Kadant Company Profile

(Get Free Report)

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.