Kadant Inc. (KAI) AI Stock Analysis

Kadant Inc. is a global provider of advanced technologies and engineered systems operating through three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment supplies fluid-handling equipment like rotary joints, expansion joints, engineered steam systems, filtration systems, and doctor blades. Industrial Processing designs and manufactures debarkers, stranders, chippers, logging machinery, recycling solutions, and automation systems for packaging, tissue, and wood products. Material Handling provides conveying and vibratory equipment, balers, and biodegradable absorbent granules used in agricultural, lawn, and turf applications.

Revenue grew from $786.6M in FY2021 to $1.05B in FY2024, before edging down 0.1% to $1.05B in FY2025. Gross margin expanded across this timeframe from 42.9% in FY2021 to 45.2% in FY2025, while operating margin shifted from 14.8% to 14.9%. Net income decreased from a peak of $120.9M in FY2022 to $102.0M in FY2025, with EPS finishing at $9.27. For the latest quarter ended June 30, 2026, quarterly revenue grew 22.6% year-over-year and quarterly earnings grew 23.9% year-over-year, lifting trailing twelve month revenue to $1.15B and net profit margin to 9.5%.

As of June 30, 2026, Kadant held $134.5M in cash and short-term investments against total debt of $510.6M, resulting in net debt of $376.1M. Total assets stood at $1.89B and shareholders' equity was $1.02B, supporting a current ratio of 2.59 and a debt-to-equity ratio of 0.50. In FY2025, operating cash flow reached $171.3M and free cash flow was $154.3M. Capital allocation in FY2025 included $17.0M in capital expenditures, $15.8M in dividends paid, and $4.6M from share issuance.

At a last close of $264.15 on October 16, 2026, Kadant traded at a trailing P/E of 28.4x and a forward P/E of 20.2x, both above the median of its US-listed Industrials peers of 24.8x and 17.2x, respectively. The stock's price-to-sales ratio of 2.7x and enterprise value-to-EBITDA of 15.2x also sit above peer medians of 1.5x and 13.9x. Over the past year, KAI fell 10.6% while the S&P 500 (SPY) gained 16.8%. Over five years, the stock returned 31.3% compared to 83.0% for SPY.

Kadant pays a quarterly dividend with a forward annual rate of $1.44 per share, representing a dividend yield of 0.55%. The payout ratio stands at 12.8%, and the company has paid dividends for 14 consecutive years. Over the past five years, dividend growth annualized at 7.1%. The most recent ex-dividend date was October 15, 2026.

Wall Street coverage consists of 1 Strong Buy, 1 Buy, and 2 Hold ratings. The mean price target of $361.67 implies 36.9% upside from the last close of $264.15. For the fiscal year ending December 31, 2026, analysts estimate EPS of $12.04 on revenue of $1.20B. For the following fiscal year, 4 analysts project EPS of $13.51 on revenue of $1.27B. Kadant has beaten EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for October 27, 2026.

This page is an AI-written research summary of Kadant Inc. (KAI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: KAI income statement, KAI balance sheet, KAI key metrics, KAI analyst forecast, KAI chart. See the KAI stock overview for the latest quote and news.