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/KAI
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Kadant Inc

Kadant Inc

KAI
$311.01USD↓-2.51%-8.02 today

MARKET CAP

3.7B

P/E (TTM)

31.1x

FWD P/E

23.2x

DAY RANGE

$308 – $321

52W RANGE

$245
$370

AI Summary

Stalk
StalkMedium

In an early Stage 1 consolidation, EMAs have repaired and the Bullish Pivot Point confirms downside control has failed, signaling structural repair. Medium-term bias is bullish, but price is extended above rising EMAs and neutral in OB/OS context, so short-term timing is unfavorable. Execution will be deferred, stalking a pullback into the repaired EMA/cluster support zone for acceptance before participating in the advance.

  • ↑Aftermarket parts revenue rose to $190M in Q1’25, accounting for 74% of total bookings.
  • ↑Backlog climbed to $299M with ~60% tied to capital projects, securing future revenue visibility.
  • ↓P/E ratio at 37x exceeds 29.6x industry median, suggesting stretched valuation.
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

Kadant Inc. (NYSE: KAI) is a leading player in the industrial manufacturing sector, specializing in flow control, industrial processing, and aftermarket services for various industries, including pulp and paper, energy, and environmental applications. Kadant operates at the convergence of increasing automation demands and the need for sustainable practices within industrial processes, making it well-positioned to capitalize on the global trend towards efficiency and modernization.

Bull says

  • ↑Aftermarket parts revenue rose to $190M in Q1’25, accounting for 74% of total bookings.
  • ↑Backlog climbed to $299M with ~60% tied to capital projects, securing future revenue visibility.
  • ↑Q1 operating cash flow surged 44% YOY to $40.5M, highlighting cash generation strength.
  • ↑Low leverage ratio (<2x net debt/EBITDA) and healthy balance sheet support growth investments.
  • ↑Positive analyst earnings revisions and confident management guidance signal potential upside.
  • ↑Management considering share buybacks to enhance shareholder returns amid rising cash flows.

Bear says

  • ↓P/E ratio at 37x exceeds 29.6x industry median, suggesting stretched valuation.
  • ↓Q1 revenue declined 4% YOY to $239M, pointing to weak capital equipment demand.
  • ↓Adjusted EPS dropped 12% to $2.10, undercutting prior-year record and momentum.
  • ↓Tariff-related cost pressures may push leverage near 2x, risking margin compression.
  • ↓Negative momentum and profitability factors dampen sentiment and future earnings potential.
  • ↓Heavy reliance on aftermarket segment risks downturn if capital project rebound stalls.

Investment themes with KAI

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Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-09-2026neutral

Transcript signals

Bull points

  • Revenue increased 18 percent to $281.5 million in the first quarter of 26, driven by record parts and consumables revenue, representing 74 percent of total revenue.
  • Our GAAP EPS increased 6% to $2.16 in the first quarter, and our adjusted EPS increased 14% to $2.84, which exceeded the high end of our guidance range by 43 cents.
  • Adjusted EBITDA increased 19 percent to $56.8 million compared to $47.9 million in the first quarter of 25, principally due to strong contributions from our 2025 acquisitions.

Bear points

  • Gross margin was 45 percent in the first quarter of 26, down 110 basis points, compared to 46.1 percent in the first quarter of 25.
  • SG&amp;A expenses increased 11.3 million, or 16 percent, to 82.5 million in the first quarter of 26 compared to 71.2 million in the first quarter of 25.
  • we anticipate that our leverage ratio will increase to just below two next quarter.
Read full transcript analysis ›