Kadant Financials
This page shows Kadant (KAI) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 14 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Strong cash conversion and light capital spending let Kadant fund a more acquisition-heavy balance sheet without straining liquidity.
From FY2024 to FY2026, revenue was essentially flat while free cash flow climbed from$134.3M to$154.3M . At the same time, operating margin fell from16.3% to15.0% , so cash generation improved even as reported profitability softened. That usually points to low capital intensity and working-capital help rather than margin expansion.
Liquidity remains comfortable, with a current ratio of 2.4x and cash of
Gross margin kept edging up to
Financial Health Signals
Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Kadant's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Kadant has an operating margin of 14.9%, meaning the company retains $15 of operating profit per $100 of revenue. This results in a moderate score of 57/100, indicating healthy but not exceptional operating efficiency. This is down from 16.3% the prior year.
Kadant's revenue declined 0.1% year-over-year, from $1.1B to $1.1B. This contraction results in a growth score of 41/100.
Kadant carries a low D/E ratio of 0.38, meaning only $0.38 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 94/100, indicating a strong balance sheet with room for future borrowing.
Kadant's current ratio of 2.38 indicates adequate short-term liquidity, earning a score of 44/100. The company can meet its near-term obligations, though with limited headroom.
Kadant has a free cash flow margin of 14.7%, earning a moderate score of 60/100. The company generates positive cash flow after capital investments, but with room for improvement.
Kadant's ROE of 10.4% shows moderate profitability relative to equity, earning a score of 38/100. This is down from 13.2% the prior year.
Kadant scores 5.19, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($4.0B) relative to total liabilities ($732.4M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Kadant passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Kadant generates $1.68 in operating cash flow ($171.3M OCF vs $102.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Kadant earns $10.1 in operating income for every $1 of interest expense ($157.3M vs $15.6M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Kadant generated $1.1B in revenue in fiscal year 2026. This represents a decrease of 0.1% from the prior year.
Kadant's EBITDA was $208.5M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 5.6% from the prior year.
Kadant reported $102.0M in net income in fiscal year 2026. This represents a decrease of 8.6% from the prior year.
Kadant earned $8.65 per diluted share (EPS) in fiscal year 2026. This represents a decrease of 8.8% from the prior year.
Cash & Balance Sheet
Kadant generated $154.3M in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 14.9% from the prior year.
Kadant held $119.6M in cash against $372.7M in long-term debt as of fiscal year 2026.
Kadant paid $1.36 per share in dividends in fiscal year 2026. This represents an increase of 6.3% from the prior year.
Kadant had 12M shares outstanding in fiscal year 2026. This represents an increase of 0.3% from the prior year.
Margins & Returns
Kadant's gross margin was 45.2% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is up 1.0 percentage points from the prior year.
Kadant's operating margin was 14.9% in fiscal year 2026, reflecting core business profitability. This is down 1.3 percentage points from the prior year.
Kadant's net profit margin was 9.7% in fiscal year 2026, showing the share of revenue converted to profit. This is down 0.9 percentage points from the prior year.
Kadant's ROE was 10.4% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is down 2.8 percentage points from the prior year.
Capital Allocation
Kadant invested $15.3M in research and development in fiscal year 2026. This represents an increase of 6.6% from the prior year.
Kadant invested $17.0M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents a decrease of 18.8% from the prior year.
KAI Income Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $286.2M+5.4% | $271.6M+6.4% | $255.3M+6.7% | $239.2M-7.3% | $258.0M-5.0% | $271.6M-1.1% | $274.8M+10.4% | $249.0M |
| Cost of Revenue | $160.5M+7.8% | $148.9M+7.7% | $138.2M+7.3% | $128.9M-11.8% | $146.2M-2.7% | $150.2M-1.8% | $152.9M+10.8% | $138.0M |
| Gross Profit | $125.7M+2.5% | $122.7M+4.8% | $117.0M+6.1% | $110.3M-1.4% | $111.9M-7.9% | $121.4M-0.4% | $121.9M+9.8% | $111.0M |
| R&D Expenses | $4.1M+4.6% | $3.9M+5.2% | $3.7M+5.7% | $3.5M-4.7% | $3.7M+8.4% | $3.4M-2.1% | $3.5M-6.6% | $3.7M |
| SG&A Expenses | $80.9M+6.6% | $75.8M+2.6% | $73.9M+3.8% | $71.2M+0.9% | $70.6M+2.2% | $69.0M-1.4% | $70.0M-0.4% | $70.3M |
| Operating Income | $39.7M-6.8% | $42.6M+8.2% | $39.4M+10.7% | $35.6M-3.7% | $36.9M-24.6% | $49.0M+1.2% | $48.4M+31.1% | $36.9M |
| Interest Expense | $5.3M+72.3% | $3.1M-7.5% | $3.3M-12.7% | $3.8M-17.7% | $4.6M-15.8% | $5.5M+6.1% | $5.2M+11.4% | $4.7M |
| Income Tax | $10.5M-10.9% | $11.8M+19.8% | $9.8M+25.5% | $7.8M-10.1% | $8.7M-27.2% | $12.0M-0.2% | $12.0M+52.7% | $7.9M |
| Net Income | $24.0M-13.3% | $27.7M+6.0% | $26.2M+8.7% | $24.1M+0.1% | $24.0M-23.9% | $31.6M+0.9% | $31.3M+26.7% | $24.7M |
| EPS (Diluted) | N/A | $2.35+5.9% | $2.22+8.8% | $2.04 | N/A | $2.68+0.8% | $2.66+26.7% | $2.10 |
KAI Balance Sheet
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $1.7B+11.7% | $1.5B+3.2% | $1.5B+3.4% | $1.4B+0.4% | $1.4B-4.0% | $1.5B+2.3% | $1.5B+3.3% | $1.4B |
| Current Assets | $541.9M+4.2% | $520.0M+9.5% | $474.7M+6.3% | $446.7M+1.0% | $442.3M-5.8% | $469.6M+3.1% | $455.3M+0.1% | $454.7M |
| Cash & Equivalents | $119.6M-4.0% | $124.5M+30.6% | $95.3M+4.0% | $91.7M-3.2% | $94.7M+7.1% | $88.4M+19.8% | $73.8M-9.4% | $81.4M |
| Inventory | $206.9M+15.1% | $179.7M+6.6% | $168.6M+9.8% | $153.5M+5.1% | $146.1M-13.7% | $169.3M-2.5% | $173.5M+0.9% | $172.0M |
| Accounts Receivable | $158.6M-0.1% | $158.8M+4.1% | $152.6M+4.6% | $145.9M+2.4% | $142.5M-8.1% | $155.0M+3.5% | $149.7M+0.1% | $149.6M |
| Goodwill | $555.6M+11.8% | $497.1M-0.1% | $497.8M+2.7% | $484.5M+1.1% | $479.2M-2.8% | $493.1M+3.2% | $478.0M+3.9% | $459.9M |
| Total Liabilities | $732.4M+25.8% | $582.4M+4.3% | $558.5M-0.2% | $559.5M-4.1% | $583.2M-8.5% | $637.6M-1.7% | $648.3M+3.4% | $626.7M |
| Current Liabilities | $228.2M+7.4% | $212.5M+6.4% | $199.8M+10.6% | $180.6M-5.7% | $191.6M-6.7% | $205.2M+1.6% | $202.0M-9.0% | $222.1M |
| Long-Term Debt | $372.7M+46.4% | $254.6M+3.6% | $245.7M-10.2% | $273.5M-4.5% | $286.5M-11.3% | $323.2M-5.5% | $342.0M+11.5% | $306.8M |
| Total Equity | $979.8M+3.2% | $949.8M+2.6% | $926.0M+5.7% | $876.0M+3.4% | $847.1M-0.5% | $851.7M+5.5% | $807.7M+3.2% | $782.7M |
| Retained Earnings | $945.6M+2.2% | $925.6M+2.6% | $901.9M+2.5% | $879.8M+2.3% | $859.7M+2.4% | $839.4M+3.4% | $811.6M+3.5% | $784.1M |
KAI Cash Flow Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $60.8M+28.6% | $47.3M+16.7% | $40.5M+77.3% | $22.8M-56.0% | $51.9M-1.1% | $52.5M+87.0% | $28.1M+22.9% | $22.8M |
| Capital Expenditures | $6.0M+89.4% | $3.2M-19.5% | $4.0M+3.4% | $3.8M-31.2% | $5.6M+33.2% | $4.2M-15.9% | $5.0M-20.7% | $6.3M |
| Free Cash Flow | $54.7M+24.2% | $44.1M+20.7% | $36.5M+92.2% | $19.0M-59.0% | $46.3M-4.1% | $48.3M+109.1% | $23.1M+39.4% | $16.6M |
| Investing Cash Flow | -$179.2M-829.1% | -$19.3M-521.4% | -$3.1M+19.1% | -$3.8M-17.5% | -$3.3M+77.2% | -$14.4M+77.7% | -$64.3M+72.9% | -$237.3M |
| Financing Cash Flow | $113.3M+5112.2% | $2.2M+105.7% | -$38.4M-66.3% | -$23.1M+37.4% | -$36.9M-41.4% | -$26.1M-187.1% | $29.9M-84.5% | $192.9M |
| Dividends Paid | $4.0M0.0% | $4.0M0.0% | $4.0M+6.4% | $3.8M+0.1% | $3.8M0.0% | $3.8M0.0% | $3.8M+10.7% | $3.4M |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
KAI Financial Ratios
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 43.9%-1.3pp | 45.2%-0.7pp | 45.9%-0.3pp | 46.1%+2.8pp | 43.4%-1.4pp | 44.7%+0.4pp | 44.4%-0.2pp | 44.6% |
| Operating Margin | 13.9%-1.8pp | 15.7%+0.3pp | 15.4%+0.6pp | 14.9%+0.6pp | 14.3%-3.7pp | 18.0%+0.4pp | 17.6%+2.8pp | 14.8% |
| Net Margin | 8.4%-1.8pp | 10.2%-0.0pp | 10.3%+0.2pp | 10.1%+0.7pp | 9.3%-2.3pp | 11.6%+0.2pp | 11.4%+1.5pp | 9.9% |
| Return on Equity | 2.5%-0.5pp | 2.9%+0.1pp | 2.8%+0.1pp | 2.8%-0.1pp | 2.8%-0.9pp | 3.7%-0.2pp | 3.9%+0.7pp | 3.1% |
| Return on Assets | 1.4%-0.4pp | 1.8%+0.1pp | 1.8%+0.1pp | 1.7%0.0pp | 1.7%-0.4pp | 2.1%-0.0pp | 2.1%+0.4pp | 1.8% |
| Current Ratio | 2.38-0.1 | 2.45+0.1 | 2.38-0.1 | 2.47+0.2 | 2.31+0.0 | 2.29+0.0 | 2.25+0.2 | 2.05 |
| Debt-to-Equity | 0.38+0.1 | 0.270.0 | 0.27-0.0 | 0.31-0.0 | 0.34-0.0 | 0.38-0.0 | 0.42+0.0 | 0.39 |
| FCF Margin | 19.1%+2.9pp | 16.2%+1.9pp | 14.3%+6.4pp | 7.9%-10.0pp | 17.9%+0.2pp | 17.8%+9.4pp | 8.4%+1.8pp | 6.7% |
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Frequently Asked Questions
What is Kadant's annual revenue?
Kadant (KAI) reported $1.1B in total revenue for fiscal year 2026. This represents a -0.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Kadant's revenue growing?
Kadant (KAI) revenue declined by 0.1% year-over-year, from $1.1B to $1.1B in fiscal year 2026.
Is Kadant profitable?
Yes, Kadant (KAI) reported a net income of $102.0M in fiscal year 2026, with a net profit margin of 9.7%.
What is Kadant's EBITDA?
Kadant (KAI) had EBITDA of $208.5M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Kadant have?
As of fiscal year 2026, Kadant (KAI) had $119.6M in cash and equivalents against $372.7M in long-term debt.
What is Kadant's gross margin?
Kadant (KAI) had a gross margin of 45.2% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Kadant's operating margin?
Kadant (KAI) had an operating margin of 14.9% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Kadant's net profit margin?
Kadant (KAI) had a net profit margin of 9.7% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
Does Kadant pay dividends?
Yes, Kadant (KAI) paid $1.36 per share in dividends during fiscal year 2026.
What is Kadant's return on equity (ROE)?
Kadant (KAI) has a return on equity of 10.4% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Kadant's free cash flow?
Kadant (KAI) generated $154.3M in free cash flow during fiscal year 2026. This represents a 14.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Kadant's operating cash flow?
Kadant (KAI) generated $171.3M in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Kadant's total assets?
Kadant (KAI) had $1.7B in total assets as of fiscal year 2026, including both current and long-term assets.
What are Kadant's capital expenditures?
Kadant (KAI) invested $17.0M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
How much does Kadant spend on research and development?
Kadant (KAI) invested $15.3M in research and development during fiscal year 2026.
What is Kadant's current ratio?
Kadant (KAI) had a current ratio of 2.38 as of fiscal year 2026, which is generally considered healthy.
What is Kadant's debt-to-equity ratio?
Kadant (KAI) had a debt-to-equity ratio of 0.38 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Kadant's return on assets (ROA)?
Kadant (KAI) had a return on assets of 6.0% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Kadant's Altman Z-Score?
Kadant (KAI) has an Altman Z-Score of 5.19, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Kadant's Piotroski F-Score?
Kadant (KAI) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Kadant's earnings high quality?
Kadant (KAI) has an earnings quality ratio of 1.68x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Kadant cover its interest payments?
Kadant (KAI) has an interest coverage ratio of 10.1x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Kadant?
Kadant (KAI) scores 56 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.