Kadant Q2 revenue beats analyst estimates; 2026 outlook lifted

Kadant

04/08/2026 21:56

Overview
U.S. industrial processing supplier's Q2 revenue rose 23%, beating analyst expectations
Adjusted EPS for Q2 beat consensus, rising 26% year-over-year
Gross margin declined 210 bps due to product mix and recent acquisitions

Outlook
Kadant raises 2026 revenue guidance to $1.190-$1.210 bln from $1.178-$1.203 bln
Company lowers 2026 GAAP EPS guidance to $9.78-$10.03 from $9.80-$10.15
Kadant expects Q3 revenue of $297-$307 mln, GAAP EPS of $2.28-$2.38

Result Drivers
AFTERMARKET DEMAND - Co said robust demand for aftermarket parts and services contributed to record revenue and earnings growth
ACQUISITIONS - Acquisitions contributed 13% to revenue growth and 15% to bookings growth in Q2
PRODUCT MIX & ACQUISITIONS - Gross margin declined due to unfavorable product mix and lower margin profile from recent acquisitions

Company press release: ID:nGNX86R1dt

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$312.88 mln
$299.17 mln (4 Analysts)
Q2 Adjusted EPS
Beat
$3.42
$2.94 (4 Analysts)
Q2 EPS
 
$2.75
 
Q2 Adjusted EBITDA
Beat
$68 mln
$60.26 mln (4 Analysts)
Q2 Gross Margin
 
43.80%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Kadant Inc is $343.00, about 5.7% above its August 3 closing price of $324.56
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 24 three months ago

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Aug 4 - Albany International Q2 revenue misses on Machine Clothing weakness
Aug 4 - WW Grainger raises profit forecast as maintenance demand remains strong
Aug 4 - AMETEK beats Q2 sales and adjusted EPS estimates, raises 2026 outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)