Free cash flow generation remains volatile, with margins swinging from a 20.7% peak in 2023Q4 to 6.6% in 2026Q1, reflecting the impact of significant working capital outflows and large-scale acquisition outlays like the $173.5 million spent in 2025Q4.
| Metric | TTM | Jan'26 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 170.41M | 171.33M | 155.26M | 165.54M | 102.63M | 162.42M | 92.88M | 97.41M | 62.98M | 65.16M | 51M | 37.87M | 48.87M | 40.08M | 29.11M | 34.31M | 28.43M | 43.13M | 20.16M | 31.64M | 8.16M | 17.55M | 12.93M | 23.04M | 26.99M | 12.8M | 18.44M | 17.2M | 31.9M | 20.9M | 27.1M |
| Operating CF Margin % | - | 16.28% | 14.74% | 17.29% | 11.34% | 20.65% | 14.63% | 13.82% | 9.94% | 12.65% | 12.32% | 9.71% | 12.15% | 11.63% | 8.77% | 10.23% | 10.53% | 19.12% | 6.13% | 8.63% | 2.39% | 7.2% | 6.63% | 11.32% | 14.54% | 5.79% | 7.85% | 7.54% | 12.89% | 8.72% | 14.1% |
| Operating CF Growth % | 47.35% | 10.35% | -6.21% | 61.31% | -36.81% | 74.86% | -4.65% | 54.66% | -3.34% | 27.77% | 34.67% | -22.51% | 21.95% | 37.68% | -15.17% | 20.72% | -34.09% | 113.91% | -36.29% | 287.73% | -53.49% | 35.68% | -43.87% | -14.64% | 110.81% | -30.55% | 7.2% | -46.08% | 52.63% | -22.88% | 47.28% |
| Net Income | 103.42M | 101.97M | 111.6M | 116.07M | 120.93M | 84.04M | 55.2M | 52.07M | 60.41M | 31.09M | 32.07M | 34.31M | 28.68M | 23.48M | 30.88M | 33.58M | 18.41M | -5.91M | -22.59M | 25.42M | 18.28M | 9.87M | 5.75M | 11.82M | -26.8M | 9.98M | 15.14M | 17.8M | 18M | 16.4M | 19.9M |
| Depreciation & Amortization | 53.85M | 51.22M | 49.59M | 33.3M | 34.94M | 34.3M | 31.33M | 32.39M | 23.57M | 19.38M | 14.33M | 10.82M | 11.19M | 9.78M | 8.38M | 7.94M | 7.23M | 7.45M | 7.53M | 7.36M | 7.76M | 6.93M | 3.6M | 5.14M | 5.18M | 9.3M | 9.54M | 8.9M | 9.1M | 7.5M | 5M |
| Stock-Based Compensation | 2.92M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 2.45M | 2.45M | 1.23M | -1.95M | 7.16M | -1.38M | 142K | -2.49M | -4.24M | 578K | -613K | -1.71M | 2.95M | -1.06M | -4.87M | -1.89M | 1.25M | 892K | 4.05M | 4.93M | 5.07M | 1.51M | 199K | 2.54M | -1.02M | 431K | 108K | 1.6M | 2.1M | 2M | 2M |
| Other Non-Cash Items | 9.63M | 22.01M | 20.14M | 14.84M | -2.26M | 16.13M | 8.85M | 13.47M | 10.86M | 7.11M | 5.85M | 4.13M | 5.8M | 4.35M | 3.54M | 2.31M | 3.27M | 4.45M | 43.1M | -1.23M | 514K | 146K | 878K | -108K | 891K | 158K | -961K | 100K | 400K | -500K | 200K |
| Working Capital Changes | -2.17M | -6.31M | -27.3M | 3.29M | -58.14M | 29.33M | -2.64M | 1.97M | -27.62M | 7.01M | -633K | -9.69M | 248K | 3.53M | -8.82M | -7.63M | -1.73M | 36.24M | -11.93M | -4.84M | -23.46M | -906K | 2.5M | 3.65M | 12.8M | -7.35M | -5.39M | -4.2M | 2.3M | -6.9M | 500K |
| Change in Receivables | 6.18M | 25.75M | -9.83M | 4.76M | -25.23M | -17.96M | 13.19M | 9.11M | -18.37M | -9.6M | 4.41M | -12.17M | 6.15M | -3.04M | 1.39M | -11.66M | -11.3M | 18.63M | 17.19M | -5.66M | -6.94M | -528K | 453K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -16.62M | -12.92M | 23.95M | 14.09M | -36.12M | -11.17M | -89K | -3.08M | -6.58M | 1.16M | 3.55M | -6.49M | 5.07M | -2M | 9.16M | -6.97M | -4M | 18.83M | -10.2M | -3.83M | -3.13M | 4.36M | 1.67M | -1.38M | 5.35M | -803K | -1.44M | -7.4M | 3.3M | -1.2M | 3.1M |
| Change in Payables | -3.06M | -7.24M | 10.58M | -19.9M | 1.36M | 26.35M | -15.62M | 7.36M | 5.42M | -522K | -5.24M | -1.75M | 652K | 2.55M | -5.87M | 4.47M | 6.25M | -6.66M | -11.9M | 2.81M | 11.28M | -4.46M | -2.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -205.51M | -205.42M | -319.66M | -30.79M | -29.52M | -154.47M | -14.54M | -187.36M | -16.36M | -221.88M | -62M | -5.45M | -18.5M | -68.16M | -3.37M | -21.89M | -6.35M | -4.04M | -5.3M | -5M | -14.92M | -106.42M | -3.21M | -3.23M | 12.27M | 71.36M | 42.45M | -84.8M | -21M | -142.9M | -19.4M |
| Capital Expenditures | -16.47M | -17.05M | -21M | -31.85M | -28.2M | -12.77M | -7.59M | -9.96M | -16.56M | -17.28M | -5.8M | -5.48M | -6.75M | -6.26M | -4.25M | -8.03M | -3.41M | -2.8M | -6.2M | -4.91M | -4.1M | -3.25M | -2.19M | -4.02M | -3.34M | -4.59M | -6.36M | -7M | -8.8M | -3.8M | -3.9M |
| CapEx % of Revenue | 1.5% | 1.62% | 1.99% | 3.33% | 3.12% | 1.62% | 1.2% | 1.41% | 2.61% | 3.36% | 1.4% | 1.4% | 1.68% | 1.82% | 1.28% | 2.39% | 1.26% | 1.24% | 1.88% | 1.34% | 1.2% | 1.33% | 1.12% | 1.98% | 1.8% | 2.07% | 2.71% | 3.07% | 3.56% | 1.59% | 2.03% |
| Acquisitions | -191M | -189.98M | -299.57M | 732K | -1.36M | -142.24M | -6.95M | -177.4M | 195K | -204.6M | -56.19M | 30K | -11.74M | -62.13M | 888K | -13.33M | -2.88M | -1.24M | 740K | -2.71M | -17.93M | -102.67M | 988K | 0 | 0 | 0 | -4.5M | 14M | 1.6M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 1.48M | 1.61M | 914K | 328K | 42K | 537K | 0 | 0 | 0 | 0 | -5K | 0 | 0 | 240K | -3K | -521K | -59K | 0 | 156K | 2.62M | 7.1M | -501K | -2M | 790K | -1.01M | 6.46M | 92.94M | -93.6M | -2.1M | -103.3M | -18.3M |
| Cash from Financing | 57.05M | 54.01M | 160.44M | -111.11M | -80.57M | 22.81M | -84.56M | 112.45M | -74.16M | 150.48M | 22.67M | -11.13M | -32.33M | 22.57M | -19.32M | -27.04M | -4.54M | -35.3M | -29.71M | -6.67M | 3.04M | 50.1M | -5.37M | 4.54M | -101.37M | -43.75M | -33.71M | -7.5M | -6.2M | 126.9M | 45.5M |
| Debt Issued (Net) | 77.44M | 73.01M | 180.73M | -93.97M | -63.45M | 36.37M | -73.55M | 120.83M | -60.52M | 163.07M | 32.62M | 5.39M | -12.44M | 31.61M | -6.02M | -11.02M | -500K | -32.15M | 14.32M | -13.63M | -1.52M | -5.52M | -598K | -567K | -537K | -47.64M | -313K | 0 | 0 | 149.8M | -10.4M |
| Equity Issued (Net) | -2.47M | 4.57M | 1.6M | -3.92M | 1.38M | 1.89M | 3.21M | 5.18M | 813K | 0 | 2.35M | -9.15M | -14.02M | -5.03M | -14.13M | -15.7M | -4.06M | -3.18M | -43.8M | 4.04M | 2.2M | -8.38M | -4.77M | 5.11M | 16.71M | 2.58M | -33.4M | -7.4M | -6.2M | -22.9M | 55.9M |
| Dividends Paid | -17.01M | -15.78M | -14.67M | -13.22M | -12M | -11.46M | -10.9M | -10.2M | -9.64M | -9.01M | -8.04M | -7.18M | -6.34M | -4.19M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -4.94M | 0 | 0 | -3.92M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -9.91M | -15.14M | -5.37M | -14.49M | -16.09M | -4.41M | -3.72M | -47.62M | -5.18M | -7.18M | -9.12M | -10.26M | 0 | -1.46M | 0 | -34.6M | -8M | -6.6M | -24M | 0 |
| Other Financing | -916K | -7.8M | -7.23M | -8K | -6.49M | -3.99M | -3.31M | -3.35M | -4.8M | -3.58M | -4.26M | -185K | 472K | 183K | 832K | -329K | 26K | 27K | -234K | 2.92M | 2.36M | 64M | 0 | 0 | -117.55M | 1.31M | 0 | -100K | 0 | 0 | 0 |
| Net Change in Cash | 26.01M | 26.73M | -10.51M | 26.73M | -14.44M | 27.52M | -1.63M | 22.16M | -30.73M | 3.94M | 5.96M | 20.15M | -4.65M | -4.52M | 7.6M | -14.86M | 16.13M | 5.54M | -21.41M | 21.92M | -1.19M | -41.27M | 7.68M | 30.02M | -58.38M | 40.35M | 23.21M | -76.2M | 3.7M | 1.8M | 52.8M |
| Free Cash Flow | 153.94M | 154.28M | 134.26M | 133.69M | 74.43M | 149.65M | 85.29M | 87.46M | 46.43M | 47.88M | 45.2M | 32.39M | 42.12M | 33.81M | 24.86M | 26.29M | 25.02M | 40.32M | 13.96M | 26.73M | 4.06M | 14.3M | 10.74M | 19.02M | 23.65M | 8.22M | 12.08M | 10.2M | 23.1M | 17.1M | 23.2M |
| FCF Margin % | 14.06% | 14.66% | 12.75% | 13.96% | 8.23% | 19.03% | 13.43% | 12.41% | 7.33% | 9.3% | 10.91% | 8.3% | 10.47% | 9.82% | 7.49% | 7.84% | 9.26% | 17.88% | 4.24% | 7.29% | 1.19% | 5.87% | 5.51% | 9.34% | 12.74% | 3.71% | 5.14% | 4.47% | 9.34% | 7.14% | 12.07% |
| FCF Growth % | 12.61% | 14.91% | 0.42% | 79.63% | -50.27% | 75.46% | -2.48% | 88.38% | -3.04% | 5.94% | 39.53% | -23.09% | 24.55% | 36.03% | -5.43% | 5.06% | -37.95% | 188.78% | -47.77% | 557.85% | -71.58% | 33.12% | -43.51% | -19.58% | 187.85% | -32% | 18.46% | -55.84% | 35.09% | -26.29% | 55.7% |
| FCF per Share | 13.04 | 13.08 | 11.41 | 11.40 | 6.37 | 12.84 | 7.38 | 7.63 | 4.07 | 4.23 | 4.05 | 2.92 | 3.76 | 2.98 | 2.14 | 2.14 | 2.01 | 3.27 | 1.03 | 1.87 | 0.29 | 1.01 | 0.75 | 1.37 | 1.80 | 0.67 | 0.98 | 0.83 | 1.85 | 1.36 | 1.81 |
| FCF Conversion (FCF/Net Income) | 1.49x | 1.68x | 1.39x | 1.43x | 0.85x | 1.93x | 1.68x | 1.87x | 1.04x | 2.10x | 1.59x | 1.10x | 1.71x | 1.71x | 0.92x | 1.02x | 1.54x | -7.28x | -0.89x | 1.40x | 0.48x | 2.55x | 19.78x | 1.95x | -1.01x | 1.28x | 1.22x | 0.97x | 1.77x | 1.27x | 1.36x |
| Interest Paid | 0 | 0 | 19.7M | 8.07M | 6.05M | 4.44M | 0 | 0 | 7.55M | 2.62M | 1.18M | 616K | 1.08M | 961K | 856K | 1.11M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 42.29M | 47.52M | 36.97M | 24.17M | 0 | 0 | 25.65M | 20.56M | 15.63M | 11.5M | 10.04M | 8.38M | 9.33M | 6.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital cycle volatility
Based on reported financial statements, Kadant's operating cash flow to net income ratio has fluctuated significantly, ranging from a low of 0.86 in 2026Q1 to a high of 2.53 in 2025Q4, highlighting the inherent volatility in converting accounting profits into actual cash inflows for this industrial machinery manufacturer.
The divergence between net income and operating cash flow appears largely driven by the timing of project-based revenue recognition versus cash collection cycles. Investors should monitor whether this variability indicates a structural reliance on milestone-based payments that may mask underlying operational cash generation trends.
As reported in recent filings, Kadant's free cash flow margins have demonstrated notable volatility, swinging from a peak of 20.7% in 2023Q4 to a low of 6.6% in 2026Q1, which suggests that the company's cash generation is highly sensitive to the timing of large-scale capital equipment project completions.
The contraction in FCF margins appears to correlate with the recent stalling of revenue growth, implying that fixed costs are exerting pressure on cash flow during periods of lower project throughput. This trend warrants further investigation into whether the current margin compression is a temporary cyclical trough or a more permanent shift in the cost structure.
According to quarterly data, Kadant experienced significant working capital outflows, such as the $18.5M reduction in 2025Q1, which frequently offsets gains from net income, suggesting that the company's cash flow profile is heavily influenced by the timing of inventory procurement and customer payment cycles for large industrial projects.
The recurring negative working capital adjustments appear to be a byproduct of the company's hybrid business model, which balances high-margin consumables with long-cycle capital equipment. This dynamic suggests that cash flow visibility may remain limited until the company can better align its project-based billing with its operational cash requirements.
Based on reported figures, Kadant has utilized its strong balance sheet to fund strategic acquisitions, including a $173.5M outlay in 2025Q4, while simultaneously maintaining consistent dividend payments, which indicates a management strategy focused on balancing inorganic growth with steady returns to shareholders despite fluctuating operational cash flows.
The company's ability to execute significant acquisitions while maintaining a fortress balance sheet suggests a disciplined approach to capital deployment. However, investors should monitor whether these acquisitions are successfully integrating into the core business to provide the necessary growth to offset the recent stagnation in organic revenue.
Quick answers to the most common questions about buying KAI stock.
Kadant Inc. (KAI) generated $171.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Kadant Inc. (KAI) generated $154.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Kadant Inc. (KAI) spent $17.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Kadant Inc. (KAI) returned $15.8M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.