WESTFORD, Mass., May 05, 2026 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) reported its financial results for the first quarter ended April 4, 2026.
First Quarter Financial Highlights
- Bookings increased 25% to a record $321 million
- Revenue increased 18% to $282 million
- Gross margin decreased 110 basis points to 45.0%
- Net income increased 6% to $26 million
- GAAP EPS increased 6% to $2.16
- Adjusted EPS increased 14% to $2.84
- Adjusted EBITDA increased 19% to $57 million and represented 20.2% of revenue
- Operating cash flow decreased 4% to $22 million
- Backlog was $326 million
Note: Percent changes above are based on comparison to the prior year period. All references to earnings per share (EPS) are to our EPS as calculated on a diluted basis. Adjusted EPS, adjusted EBITDA, adjusted EBITDA margin, free cash flow, and changes in organic revenue are non-GAAP financial measures that exclude certain items as detailed later in this press release under the heading “Use of Non-GAAP Financial Measures.”
Management Commentary
“We had an excellent start to the year highlighted by robust demand and solid earnings growth,” said Jeffrey L. Powell, president and chief executive officer of Kadant. “Strong demand for our aftermarket parts combined with our recent acquisitions led to record bookings and aftermarket parts revenue along with healthy margin performance.”
First Quarter 2026 Compared to 2025
Revenue increased 18 percent to $281.5 million compared to $239.2 million in 2025. Organic revenue decreased one percent, which excludes an increase of 14 percent from acquisitions. Gross margin was 45.0 percent, which includes a 50 basis point decrease from acquisition-related costs, compared to 46.1 percent in 2025.
Net income was $25.5 million, increasing six percent compared to $24.1 million in 2025. GAAP EPS increased six percent to $2.16 compared to $2.04 in 2025 and adjusted EPS increased 14 percent to $2.84 compared to $2.50 in 2025. Adjusted EPS excludes intangible asset amortization expense of $0.53 and acquisition-related costs of $0.15 in 2026, and intangible asset amortization expense of $0.40 and acquisition-related costs of $0.06 in 2025.
Adjusted EBITDA increased 19 percent to $56.8 million and represented 20.2 percent of revenue in 2026 compared to $47.9 million and 20.0 percent of revenue in 2025. Operating cash flow decreased four percent to $21.9 million compared to $22.8 million in 2025. Free cash flow decreased two percent to $18.7 million compared to $19.0 million in 2025.
Bookings increased 25 percent to a record $320.8 million compared to $256.2 million in 2025. Organic bookings increased ten percent, which excludes increases of 11 percent from acquisitions and four percent from the favorable effect of foreign currency translation.
Summary and Outlook
“Our strong start to the year is encouraging, and we expect capital project activity to continue improving,” Mr. Powell continued. “That said, project timing is more uncertain due to heightened geopolitical challenges. We are revising our guidance to reflect our recent acquisition and expect revenue of $1.178 to $1.203 billion in 2026, up from our previous guidance of $1.160 to $1.185 billion. We now expect GAAP EPS of $9.80 to $10.15 in 2026, revised from our previous guidance of $10.27 to $10.62, and adjusted EPS of $12.33 to $12.68, revised from our prior guidance of $12.53 to $12.88. The $0.20 decrease in adjusted EPS relates to our recent acquisition, which will be dilutive in the short term as income is deferred until Kadant's previously acquired inventory is sold to third-party customers. The 2026 adjusted EPS guidance excludes $2.53 of acquisition-related costs, revised from $2.26 in our previous guidance. For the second quarter of 2026, we expect revenue of $296 to $306 million, GAAP EPS of $2.26 to $2.36 and, after excluding $0.62 of acquisition-related costs, adjusted EPS of $2.88 to $2.98.”
Conference Call
Kadant will hold a webcast with a slide presentation for investors on Wednesday, May 6, 2026, at 11:00 a.m. Eastern Time to discuss its first quarter financial performance, as well as future expectations. To listen to the call live and view the webcast, go to the “Investors” section of the Company’s website at kadant.com. Participants interested in joining the call’s live question and answer session are required to register by clicking here or selecting the Q&A link on our website to receive a dial-in number and unique PIN. It is recommended that you join the call 10 minutes prior to the start of the event. A replay of the webcast presentation will be available on our website through June 5, 2026.
Prior to the call, our earnings release and the slides used in the webcast presentation will be filed with the Securities and Exchange Commission and will be available at sec.gov. After the webcast, Kadant will post its updated general investor presentation incorporating the first quarter results on its website at kadant.com under the “Investors” section.
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including increases or decreases in revenue excluding the effect of acquisitions and foreign currency translation (organic revenue), adjusted operating income, adjusted net income, adjusted EPS, earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA, adjusted EBITDA margin, and free cash flow.
We use organic revenue to understand our trends and to forecast and evaluate our financial performance and compare revenue to prior periods. Organic revenue excludes revenue from acquisitions for the four quarterly reporting periods following the date of the acquisition and the effect of foreign currency translation. Revenue in the first quarter of 2026 included $34.0 million from acquisitions and a favorable foreign currency translation effect of $9.8 million compared to the first quarter of 2025. Our other non-GAAP financial measures exclude amortization expense related to acquired intangible assets, profit in inventory, and backlog (collectively, purchase accounting expenses); acquisition costs; and other income or expense, as indicated. We exclude purchase accounting expenses and acquisition costs to provide a more meaningful and consistent comparison of our operating results over time and with peer companies. While we have a history of acquisition activity, such transactions do not occur on a predictable cycle, and the size and nature of these transactions will vary. We believe it is important for investors to understand that these intangible assets were recorded as part of purchase accounting and that they contribute to revenue generation. We also exclude other items as they are not indicative of our core operating results and are not comparable to other periods, which have differing levels of incremental costs, expenditures or income, or none at all. Additionally, we use free cash flow in order to provide insight on our ability to generate cash for acquisitions and debt repayments, as well as for other investing and financing activities.
We believe these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business, operating results, or future outlook. We believe that the inclusion of such measures helps investors gain an understanding of our underlying operating performance and future prospects, consistent with how management measures and forecasts our performance, especially when comparing such results to previous periods or forecasts and to the performance of our competitors. Such measures are also used by us in our financial and operating decision-making and for compensation purposes. We also believe this information is responsive to investors' requests and gives them additional measures of our performance.
The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for the results of operations or cash flows prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this press release have limitations associated with their use as compared to the most directly comparable GAAP measures, in that they may be different from, and therefore not comparable to, similar measures used by other companies.
First Quarter
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:
- Pre-tax intangible asset amortization expense of $8.4 million in 2026 and $6.3 million in 2025.
- Pre-tax profit in inventory and backlog amortization expense of $1.4 million in 2026 and $0.4 million in 2025.
- Pre-tax acquisition costs of $0.7 million in 2026 and $0.3 million in 2025.
Adjusted net income and adjusted EPS exclude:
- After-tax intangible asset amortization expense of $6.3 million ($8.4 million plus tax of $2.1 million) in 2026 and $4.8 million ($6.3 million net of tax of $1.5 million) in 2025.
- After-tax profit in inventory and backlog amortization expense of $1.1 million ($1.4 million net of tax of $0.3 million) in 2026 and $0.3 million ($0.4 million net of tax of $0.1 million) in 2025.
- After-tax acquisition costs of $0.7 million in 2026 and $0.3 million in 2025.
Free cash flow is calculated as operating cash flow less:
- Capital expenditures of $3.3 million in 2026 and $3.8 million in 2025.
Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in this press release.
Financial Highlights (unaudited)(In thousands, except per share amounts and percentages) Three Months EndedConsolidated Statement of Income April 4,2026 March 29,
2025Revenue $281,505 $239,210 Costs and Operating Expenses: Cost of revenue 154,802 128,880 Selling, general, and administrative expenses 82,538 71,221 Research and development expenses 4,056 3,523 241,396 203,624 Operating Income 40,109 35,586 Interest Income 351 517 Interest Expense (4,484) (3,822)Other Expense, Net (13) (16)Income Before Provision for Income Taxes 35,963 32,265 Provision for Income Taxes 10,142 7,828 Net Income 25,821 24,437 Net Income Attributable to Noncontrolling Interests (312) (374)Net Income Attributable to Kadant $25,509 $24,063 Earnings per Share Attributable to Kadant: Basic $2.16 $2.05 Diluted $2.16 $2.04 Weighted Average Shares: Basic 11,794 11,760 Diluted 11,802 11,776
2026 April 4,
2026 March 29,
2025 March 29,
2025Net Income and Diluted EPS Attributable to Kadant, as Reported$25,509 $2.16 $24,063 $2.04Adjustments, Net of Tax: Intangible Asset Amortization 6,308 0.53 4,753 0.40 Profit in Inventory and Backlog Amortization 1,057 0.09 296 0.03 Acquisition Costs 671 0.06 315 0.03Adjusted Net Income and Adjusted Diluted EPS (a,b)$33,545 $2.84 $29,427 $2.50
Excluding Acquisitions and FX (a,c)Revenue by Segment April 4,
2026 March 29,
2025 Increase Flow Control $98,608 $92,441 $6,167 $1,372 Industrial Processing 123,038 89,524 33,514 (3,957)Material Handling 59,859 57,245 2,614 1,058 $281,505 $239,210 $42,295 $(1,527) Percentage of Parts and Consumables Revenue 74% 75% Three Months Ended Increase
Increase (Decrease)
Excluding Acquisitions and FX (c)Bookings by Segment April 4,
2026 March 29,
2025 Flow Control $111,546 $99,987 $11,559 $6,392 Industrial Processing 144,502 92,366 52,136 21,022 Material Handling 64,747 63,865 882 (1,057) $320,795 $256,218 $64,577 $26,357 Percentage of Parts and Consumables Bookings 71% 74%
2026 March 29,
2025Gross Margin: Flow Control 52.7% 53.3% Industrial Processing 42.5% 44.1% Material Handling 37.5% 37.7% Consolidated 45.0% 46.1% Operating Income: Flow Control $24,204 $22,752 Industrial Processing 19,913 16,832 Material Handling 7,466 7,535 Corporate (11,474) (11,533) $40,109 $35,586 Adjusted Operating Income (a,b,d): Flow Control $25,474 $24,366 Industrial Processing 26,423 19,344 Material Handling 10,154 10,427 Corporate (11,474) (11,533) $50,577 $42,604 Capital Expenditures: Flow Control $1,022 $1,509 Industrial Processing 863 1,325 Material Handling 1,236 999 Corporate 137 3 $3,258 $3,836 Three Months EndedCash Flow and Other Data April 4,
2026 March 29,
2025Operating Cash Flow $21,916 $22,835 Capital Expenditures (3,258) (3,836)Free Cash Flow (a) $18,658 $18,999 Depreciation and Amortization Expense $14,647 $12,013
2026 January 3,
2026Assets Cash, Cash Equivalents, and Restricted Cash $119,817 $122,681 Accounts Receivable, Net 172,376 158,567 Inventories 214,831 206,854 Contract Assets 5,921 6,599 Property, Plant, and Equipment, Net 193,286 196,656 Intangible Assets 341,170 350,376 Goodwill 551,088 555,621 Other Assets 116,163 114,824 $1,714,652 $1,712,178 Liabilities and Stockholders' Equity Accounts Payable $55,481 $53,362 Debt Obligations 361,256 372,720 Other Borrowings 2,105 1,781 Other Liabilities 289,661 293,248 Total Liabilities 708,503 721,111 Stockholders' Equity 1,006,149 991,067 $1,714,652 $1,712,178 Three Months EndedAdjusted Operating Income and Adjusted EBITDA Reconciliation (a) April 4,
2026 March 29,
2025Consolidated Net Income Attributable to Kadant $25,509 $24,063 Net Income Attributable to Noncontrolling Interests 312 374 Provision for Income Taxes 10,142 7,828 Interest Expense, Net 4,133 3,305 Other Expense, Net 13 16 Operating Income 40,109 35,586 Intangible Asset Amortization Expense 8,385 6,320 Profit in Inventory Amortization Expense (e) 1,409 11 Backlog Amortization Expense (f) — 379 Acquisition Costs 674 337 Indemnification Asset Provision (g) — (29) Adjusted Operating Income (a,b) 50,577 42,604 Depreciation Expense 6,262 5,314 Adjusted EBITDA (a) $56,839 $47,918 Adjusted EBITDA Margin (a,h) 20.2% 20.0% Flow Control Operating Income $24,204 $22,752 Intangible Asset Amortization Expense 1,270 1,214 Profit in Inventory Amortization Expense (e) — 11 Backlog Amortization Expense (f) — 279 Acquisition Costs — 8 Indemnification Asset Reversal (g) — 102 Adjusted Operating Income (a,b) 25,474 24,366 Depreciation Expense 1,927 1,798 Adjusted EBITDA (a) $27,401 $26,164 Adjusted EBITDA Margin (a,h) 27.8% 28.3% Industrial Processing Operating Income $19,913 $16,832 Intangible Asset Amortization Expense 4,427 2,378 Profit in Inventory Amortization Expense (e) 1,409 — Acquisition Costs 674 340 Indemnification Asset Provision (g) — (206) Adjusted Operating Income (a,b) 26,423 19,344 Depreciation Expense 3,110 2,347 Adjusted EBITDA (a) $29,533 $21,691 Adjusted EBITDA Margin (a,h) 24.0% 24.2% Material Handling Operating Income $7,466 $7,535 Intangible Asset Amortization Expense 2,688 2,728 Backlog Amortization Expense (f) — 100 Acquisition Costs — (11) Indemnification Asset Reversal (g) — 75 Adjusted Operating Income (a,b) 10,154 10,427 Depreciation Expense 1,212 1,158 Adjusted EBITDA (a) $11,366 $11,585 Adjusted EBITDA Margin (a,h) 19.0% 20.2% Corporate Operating Loss $(11,474) $(11,533) Depreciation Expense 13 11 EBITDA (a) $(11,461) $(11,522) (a) Represents a non-GAAP financial measure. (b) Reflects new methodology, announced on February 19, 2026, to exclude intangible asset amortization expense. (c) Represents the increase (decrease) resulting from the exclusion of acquisitions and from the conversion of current period amounts reported in local currencies into U.S. dollars at the exchange rate of the prior period compared to the U.S. dollar amount reported in the prior period. (d) See reconciliation to the most directly comparable GAAP financial measure under “Adjusted Operating Income and Adjusted EBITDA Reconciliation.” (e) Represents amortization expense within cost of revenue associated with acquired profit in inventory. (f) Represents intangible amortization expense associated with acquired backlog. (g) Represents the reversal of or provision for indemnification assets related to the release of or establishment of tax reserves associated with uncertain tax positions. (h) Calculated as adjusted EBITDA divided by revenue in each period.
About Kadant
Kadant Inc. is a global supplier of technologies and engineered systems that drive Sustainable Industrial Processing®. The Company’s products and services play an integral role in enhancing efficiency, optimizing energy utilization, and maximizing productivity in process industries. Kadant is based in Westford, Massachusetts, with approximately 4,000 employees in 22 countries worldwide. For more information, visit kadant.com.
Safe Harbor Statement
The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about our future financial and operating performance, demand for our products, and economic and industry outlook. These forward-looking statements represent our expectations as of the date of this press release. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements as a result of various important factors, including those set forth under the heading “Risk Factors” in Kadant’s Annual Report on Form 10-K for the fiscal year ended January 3, 2026 and subsequent filings with the Securities and Exchange Commission. These include risks and uncertainties relating to adverse changes in global and local economic conditions; the variability and difficulty in accurately predicting revenues from large capital equipment and systems projects; our acquisition strategy; levels of residential construction activity; reductions by our wood processing customers of their capital spending or production of oriented strand board; changes to the global timber supply; development and use of digital media; cyclical economic conditions affecting the global mining industry; demand for coal, including economic and environmental risks associated with coal; failure of our information systems or breaches of data security and cybersecurity incidents; implementation of our internal growth strategy; competition; our ability to successfully manage our manufacturing operations; supply chain constraints, inflationary pressure, price increases or shortages in raw materials; loss of key personnel and effective succession planning; future restructurings; protection of intellectual property; changes to tax laws and regulations; climate change; adequacy of our insurance coverage; global operations; policies of the Chinese government; the variability and uncertainties in sales of capital equipment in China; currency fluctuations; changes to government regulations and policies around the world; compliance with government regulations and policies and compliance with laws; environmental laws and regulations; environmental, health and safety laws and regulations impacting the mining industry; our debt obligations; restrictions in our credit agreement and note purchase agreement; soundness of financial institutions; fluctuations in our share price; and anti-takeover provisions.
Contacts
Investor Contact Information:
Michael McKenney, 978-776-2000
[email protected]
Media Contact Information:
Wes Martz, 978-776-2000
[email protected]