Revenue reaccelerated to $312.9M in Q2 2026, up 22.6% year-over-year, with operating margin expanding to 16.3% from 15.4% and EPS growing 23.9% to $2.75.
Kadant Inc. (KAI) annual income statement — 30-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 1.15B | 1.05B | 1.05B | 957.67M | 904.74M | 786.58M | 635.03M | 704.64M | 633.79M | 515.03M | 414.13M | 390.11M | 402.13M | 344.5M | 331.75M | 335.46M | 270.03M | 225.56M | 329.16M | 366.5M | 341.61M | 243.71M | 194.97M | 203.54M | 185.67M | 221.17M | 234.91M | 228M | 247.4M | 239.6M | 192.2M |
| Revenue Growth % | 12.5% | -0.11% | 9.99% | 5.85% | 15.02% | 23.87% | -9.88% | 11.18% | 23.06% | 24.37% | 6.16% | -2.99% | 16.73% | 3.84% | -1.11% | 24.23% | 19.71% | -31.47% | -10.19% | 7.28% | 40.17% | 25% | -4.21% | 9.62% | -16.05% | -5.85% | 3.03% | -7.84% | 3.26% | 24.66% | -7.02% |
| Cost of Goods Sold | 640.09M | 576.52M | 587.24M | 541.37M | 515.18M | 449.21M | 357.72M | 410.88M | 355.5M | 284M | 225.74M | 209.98M | 223.75M | 186.79M | 185.95M | 190.25M | 151.6M | 134.76M | 193.35M | 227.72M | 214.92M | 149.74M | 119.2M | 126.91M | 115.23M | 138.43M | 135.57M | 126M | 138.2M | 137.6M | 104.5M |
| COGS % of Revenue | - | 54.79% | 55.75% | 56.53% | 56.94% | 57.11% | 56.33% | 58.31% | 56.09% | 55.14% | 54.51% | 53.83% | 55.64% | 54.22% | 56.05% | 56.71% | 56.14% | 59.74% | 58.74% | 62.13% | 62.91% | 61.44% | 61.14% | 62.35% | 62.06% | 62.59% | 57.71% | 55.26% | 55.86% | 57.43% | 54.37% |
| Gross Profit | 512.06M | 475.73M | 466.15M | 416.31M | 389.56M | 337.37M | 277.31M | 293.76M | 278.28M | 231.03M | 188.39M | 180.13M | 178.37M | 157.7M | 145.8M | 145.21M | 118.42M | 90.81M | 135.8M | 138.78M | 126.69M | 93.97M | 75.77M | 76.63M | 70.44M | 82.74M | 99.34M | 102M | 109.2M | 102M | 87.7M |
| Gross Margin % | 44.44% | 45.21% | 44.25% | 43.47% | 43.06% | 42.89% | 43.67% | 41.69% | 43.91% | 44.86% | 45.49% | 46.17% | 44.36% | 45.78% | 43.95% | 43.29% | 43.86% | 40.26% | 41.26% | 37.87% | 37.09% | 38.56% | 38.86% | 37.65% | 37.94% | 37.41% | 42.29% | 44.74% | 44.14% | 42.57% | 45.63% |
| Gross Profit Growth % | - | 2.06% | 11.97% | 6.87% | 15.47% | 21.66% | -5.6% | 5.56% | 20.45% | 22.64% | 4.59% | 0.98% | 13.11% | 8.16% | 0.41% | 22.62% | 30.42% | -33.13% | -2.15% | 9.54% | 34.83% | 24.03% | -1.13% | 8.79% | -14.87% | -16.71% | -2.61% | -6.59% | 7.06% | 16.31% | -0.79% |
| Operating Expenses | 338.75M | 317.13M | 294.24M | 250.55M | 218.27M | 220.66M | 196.18M | 205.94M | 187.97M | 170.08M | 143.13M | 129.49M | 135.48M | 124.3M | 109.05M | 108.38M | 94.48M | 86.85M | 146.8M | 101.57M | 96.44M | 79.5M | 59.41M | 58.44M | 55.14M | 65.57M | 78.13M | 77.5M | 79.5M | 75M | 57.6M |
| OpEx % of Revenue | - | 30.14% | 27.93% | 26.16% | 24.13% | 28.05% | 30.89% | 29.23% | 29.66% | 33.02% | 34.56% | 33.19% | 33.69% | 36.08% | 32.87% | 32.31% | 34.99% | 38.5% | 44.6% | 27.71% | 28.23% | 32.62% | 30.47% | 28.71% | 29.7% | 29.65% | 33.26% | 33.99% | 32.13% | 31.3% | 29.97% |
| Selling, General & Admin | 320.88M | 301.86M | 279.92M | 236.26M | 224.41M | 208.79M | 181.91M | 192.53M | 177.41M | 160.51M | 135.75M | 122.81M | 129.32M | 117.58M | 103.1M | 102.66M | 89.21M | 81.23M | 100.28M | 95.62M | 90.24M | 74.62M | 56.33M | 53.78M | 50.32M | 58.96M | 60.9M | 61.3M | 63.4M | 60.7M | 47.1M |
| SG&A % of Revenue | - | 28.69% | 26.57% | 24.67% | 24.8% | 26.54% | 28.65% | 27.32% | 27.99% | 31.17% | 32.78% | 31.48% | 32.16% | 34.13% | 31.08% | 30.6% | 33.04% | 36.01% | 30.47% | 26.09% | 26.41% | 30.62% | 28.89% | 26.42% | 27.1% | 26.66% | 25.92% | 26.89% | 25.63% | 25.33% | 24.51% |
| Research & Development | 16.56M | 15.26M | 14.32M | 13.56M | 12.72M | 11.4M | 11.3M | 10.88M | 10.55M | 9.56M | 7.38M | 6.68M | 6.16M | 6.72M | 5.95M | 5.72M | 5.27M | 5.62M | 6.19M | 5.96M | 6.2M | 4.89M | 3.08M | 4.65M | 4.82M | 6.61M | 7.69M | 7.3M | 7M | 6.8M | 5.5M |
| R&D % of Revenue | - | 1.45% | 1.36% | 1.42% | 1.41% | 1.45% | 1.78% | 1.54% | 1.66% | 1.86% | 1.78% | 1.71% | 1.53% | 1.95% | 1.79% | 1.7% | 1.95% | 2.49% | 1.88% | 1.63% | 1.82% | 2.01% | 1.58% | 2.29% | 2.6% | 2.99% | 3.27% | 3.2% | 2.83% | 2.84% | 2.86% |
| Other Operating Expenses | 1.29M | 0 | 0 | 723K | -18.45M | 465K | 3.34M | 2.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 40.33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9.54M | 8.9M | 9.1M | 7.5M | 5M |
| Operating Income | 173.31M | 157.29M | 171.25M | 165.76M | 171.28M | 116.71M | 81.12M | 87.82M | 88.6M | 60.75M | 45.57M | 50.12M | 42.09M | 33.3M | 36.44M | 37.34M | 24.16M | 4.34M | 31.35M | 37.38M | 31.07M | 14.35M | 25.87M | 18.17M | 18.89M | 17.84M | 19.88M | 19.5M | 21.2M | 20.8M | 26.5M |
| Operating Margin % | 15.04% | 14.95% | 16.26% | 17.31% | 18.93% | 14.84% | 12.77% | 12.46% | 13.98% | 11.8% | 11% | 12.85% | 10.47% | 9.67% | 10.99% | 11.13% | 8.95% | 1.92% | 9.52% | 10.2% | 9.1% | 5.89% | 13.27% | 8.93% | 10.17% | 8.07% | 8.46% | 8.55% | 8.57% | 8.68% | 13.79% |
| Operating Income Growth % | - | -8.15% | 3.32% | -3.23% | 46.76% | 43.87% | -7.63% | -0.87% | 45.83% | 33.31% | -9.07% | 19.09% | 26.37% | -8.62% | -2.39% | 54.55% | 456.38% | -86.15% | -16.13% | 20.29% | 116.57% | -44.54% | 42.39% | -3.81% | 5.86% | -10.24% | 1.94% | -8.02% | 1.92% | -21.51% | -2.57% |
| EBITDA | 248.56M | 208.51M | 220.84M | 199.05M | 206.22M | 151.01M | 112.46M | 120.21M | 112.17M | 80.13M | 59.9M | 60.94M | 53.27M | 43.08M | 44.83M | 45.27M | 31.39M | 11.79M | 38.88M | 44.74M | 38.83M | 21.28M | 29.47M | 23.31M | 24.07M | 27.14M | 29.42M | 28.4M | 30.3M | 28.3M | 31.5M |
| EBITDA Margin % | 21.57% | 19.82% | 20.96% | 20.79% | 22.79% | 19.2% | 17.71% | 17.06% | 17.7% | 15.56% | 14.46% | 15.62% | 13.25% | 12.5% | 13.51% | 13.5% | 11.62% | 5.23% | 11.81% | 12.21% | 11.37% | 8.73% | 15.12% | 11.45% | 12.96% | 12.27% | 12.52% | 12.46% | 12.25% | 11.81% | 16.39% |
| EBITDA Growth % | 17.9% | -5.58% | 10.94% | -3.47% | 36.56% | 34.28% | -6.45% | 7.17% | 39.98% | 33.77% | -1.71% | 14.39% | 23.67% | -3.9% | -0.98% | 44.24% | 166.21% | -69.67% | -13.1% | 15.22% | 82.49% | -27.81% | 26.42% | -3.12% | -11.32% | -7.75% | 3.58% | -6.27% | 7.07% | -10.16% | -1.56% |
| D&A (Non-Cash Add-back) | 75.25M | 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 |
| EBIT | 174.63M | 159.16M | 173.1M | 167.41M | 172.11M | 116.87M | 81.11M | 81.68M | 86.56M | 61.2M | 45.84M | 50.32M | 42.48M | 33.93M | 36.76M | 39.21M | 25.16M | -87K | -11.07M | 37.21M | 30.26M | 14.46M | 16.36M | 20.3M | 17.81M | 17.17M | 21.21M | 24.54M | 29.79M | 27M | 30.1M |
| Net Interest Income | -16.39M | -13.64M | -18.11M | -6.64M | -5.57M | -4.55M | -7.24M | -12.54M | -6.65M | -3.1M | -1.02M | -748K | -568K | -277K | -514K | -567K | -1.1M | -1.78M | -803K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 1.82M | 1.93M | 1.92M | 1.76M | 904K | 267K | 181K | 213K | 379K | 447K | 269K | 200K | 398K | 623K | 319K | 499K | 214K | 387K | 1.94M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 18.21M | 15.57M | 20.03M | 8.4M | 6.48M | 4.82M | 7.42M | 12.76M | 7.03M | 3.55M | 1.29M | 948K | 966K | 900K | 833K | 1.07M | 1.31M | 2.17M | 45.44M | 4.92M | 5.29M | 3.54M | 22.69M | 0 | 42.07M | 1.22M | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -16.46M | -13.7M | -18.18M | -6.74M | -5.65M | -4.66M | -7.44M | -18.9M | -9.07M | -3.97M | -1.02M | -748K | -568K | -277K | -514K | 808K | -310K | -6.21M | -43.15M | -1.69M | -3.02M | -491K | -8.07M | 939K | -4.47M | -1.17M | 6.21M | 10.2M | 8.7M | 6.6M | 6.1M |
| Pretax Income | 156.85M | 143.59M | 153.07M | 159.02M | 165.64M | 112.05M | 73.69M | 68.92M | 79.53M | 57.65M | 44.55M | 49.37M | 41.52M | 33.03M | 35.93M | 38.14M | 23.85M | -2.26M | -13.81M | 35.52M | 27.23M | 13.97M | 8.29M | 19.13M | 9.55M | 16M | 26.09M | 29.7M | 29.9M | 27.4M | 32.6M |
| Pretax Margin % | 13.61% | 13.65% | 14.53% | 16.6% | 18.31% | 14.25% | 11.6% | 9.78% | 12.55% | 11.19% | 10.76% | 12.66% | 10.32% | 9.59% | 10.83% | 11.37% | 8.83% | -1% | -4.2% | 9.69% | 7.97% | 5.73% | 4.25% | 9.4% | 5.14% | 7.24% | 11.11% | 13.03% | 12.09% | 11.44% | 16.96% |
| Income Tax | 45.58M | 39.9M | 40.52M | 42.21M | 43.91M | 27.17M | 17.95M | 16.36M | 18.48M | 26.07M | 12.08M | 14.76M | 12.45M | 9.32M | 4.85M | 4.29M | 5.2M | 3.69M | 8.47M | 9.78M | 8.69M | 3.92M | 2.52M | 7.27M | 3.62M | 6.64M | 10.95M | 11.9M | 11.9M | 11M | 12.7M |
| Effective Tax Rate % | 29.06% | 27.79% | 26.47% | 26.54% | 26.51% | 24.25% | 24.36% | 23.73% | 23.24% | 45.22% | 27.12% | 29.9% | 29.98% | 28.21% | 13.5% | 11.23% | 21.8% | -163.51% | -61.3% | 27.54% | 31.9% | 28.09% | 30.46% | 38% | 37.91% | 41.5% | 41.96% | 40.07% | 39.8% | 40.15% | 38.96% |
| Net Income | 109.72M | 101.97M | 111.6M | 116.07M | 120.93M | 84.04M | 55.2M | 52.07M | 60.41M | 31.09M | 32.08M | 34.39M | 28.66M | 23.42M | 31.62M | 33.58M | 18.51M | -5.92M | -22.56M | 22.67M | 17.1M | 6.88M | 654K | 11.82M | -26.8M | 9.98M | 15.14M | 17.8M | 18M | 16.4M | 19.9M |
| Net Margin % | 9.52% | 9.69% | 10.59% | 12.12% | 13.37% | 10.68% | 8.69% | 7.39% | 9.53% | 6.04% | 7.75% | 8.82% | 7.13% | 6.8% | 9.53% | 10.01% | 6.85% | -2.63% | -6.85% | 6.19% | 5% | 2.82% | 0.34% | 5.81% | -14.44% | 4.51% | 6.45% | 7.81% | 7.28% | 6.84% | 10.35% |
| Net Income Growth % | 3.67% | -8.63% | -3.85% | -4.02% | 43.89% | 52.26% | 6.01% | -13.81% | 94.3% | -3.07% | -6.72% | 19.99% | 22.38% | -25.94% | -5.81% | 81.42% | 412.41% | 73.74% | -199.51% | 32.58% | 148.61% | 951.53% | -94.47% | 144.09% | -368.5% | -34.08% | -14.93% | -1.11% | 9.76% | -17.59% | -1.49% |
| Net Income (Continuing) | 111.27M | 103.68M | 112.55M | 116.81M | 121.73M | 84.88M | 55.74M | 52.56M | 61.05M | 31.58M | 32.47M | 34.61M | 29.07M | 23.71M | 31.08M | 33.86M | 18.65M | -5.95M | -22.28M | 25.74M | 18.55M | 10.05M | 5.76M | 13.12M | 8.28M | 9.36M | 15.14M | 17.8M | 18M | 16.4M | 19.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3K | 74K | 0 | 0 | 743K | 0 | 98K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 10.79M | 11.26M | 11M | 2.54M | 1.72M | 1.68M | 1.55M | 1.38M | 1.6M | 1.51M | 1.65M | 1.34M | 1.17M | 925K | 1.38M | 1.15M | 1.46M | 1.32M | 1.68M | 1.46M | 1.02M | 1.04M | 0 | 351K | 301K | 297K | 2.21M | 3.3M | 300K | 300K | 300K |
| EPS (Diluted) | 9.28 | 8.65 | 9.48 | 9.90 | 10.35 | 7.21 | 4.77 | 4.54 | 5.30 | 2.75 | 2.88 | 3.10 | 2.56 | 2.07 | 2.73 | 2.74 | 1.48 | -0.48 | -1.67 | 1.59 | 1.21 | 0.49 | 0.05 | 0.85 | -2.04 | 0.81 | 1.23 | 1.45 | 1.45 | 1.30 | 1.55 |
| EPS Growth % | 3.56% | -8.76% | -4.24% | -4.35% | 43.55% | 51.15% | 5.07% | -14.34% | 92.73% | -4.51% | -7.1% | 21.09% | 23.67% | -24.18% | -0.36% | 85.14% | 408.33% | 71.26% | -205.03% | 31.41% | 146.94% | 880% | -94.12% | 141.67% | -351.85% | -34.15% | -15.17% | 0% | 11.54% | -16.13% | -3.13% |
| EPS (Basic) | - | 8.66 | 9.51 | 9.92 | 10.38 | 7.26 | 4.81 | 4.63 | 5.45 | 2.83 | 2.95 | 3.16 | 2.61 | 2.10 | 2.76 | 2.77 | 1.50 | -0.48 | -1.67 | 1.61 | 1.24 | 0.50 | 0.05 | 0.87 | -2.07 | 0.81 | 1.24 | 1.45 | 1.45 | 1.35 | 1.65 |
| Diluted Shares Outstanding | 11.82M | 11.79M | 11.77M | 11.73M | 11.69M | 11.65M | 11.56M | 11.46M | 11.4M | 11.31M | 11.15M | 11.09M | 11.21M | 11.34M | 11.59M | 12.26M | 12.47M | 12.33M | 13.53M | 14.29M | 14.1M | 14.1M | 14.4M | 13.9M | 13.14M | 12.31M | 12.3M | 12.31M | 12.47M | 12.62M | 12.84M |
| Basic Shares Outstanding | 11.81M | 11.77M | 11.74M | 11.7M | 11.65M | 11.58M | 11.48M | 11.23M | 11.09M | 10.99M | 10.87M | 10.87M | 10.99M | 11.15M | 11.46M | 12.12M | 12.34M | 12.33M | 13.53M | 14.12M | 13.82M | 13.83M | 14.07M | 13.58M | 12.95M | 12.27M | 12.26M | 12.24M | 12.32M | 12.15M | 12.06M |
| Dividend Payout Ratio | - | 15.47% | 13.15% | 11.39% | 9.92% | 13.64% | 19.75% | 19.58% | 15.96% | 28.98% | 25.06% | 20.88% | 22.12% | 17.89% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying KAI stock.
For fiscal year 2025, Kadant Inc. (KAI) reported total revenue of $1.05B. This represents a 447.5% increase compared to $192.2M in 1996.
Kadant Inc. (KAI) is profitable, generating $102.0M in net income for the fiscal year ending 2025 with a net profit margin of 9.7%.
Kadant Inc. (KAI) reported an operating income of $157.3M, resulting in an operating profit margin of 14.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Kadant Inc. (KAI) generated $475.7M in gross profit for the year, representing a gross profit margin of 45.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Wood processing cyclicality exposure
Metrics are mathematically derived from official filings.
Revenue Momentum Reaccelerates
Kadant's Q2 2026 revenue surged 22.6% year-over-year to $312.9M, marking the strongest growth in the reported period, according to the latest quarterly data.
After a period of contraction in fiscal 2025, revenue growth has turned sharply positive, with Q2 2026 accelerating from 17.7% in Q1 to 22.6%. This suggests a cyclical recovery in end markets, particularly in packaging and wood processing, and may indicate that the prior slowdown was temporary. The sequential increase from $281.5M to $312.9M also implies robust demand, though sustainability depends on continued strength in aftermarket parts and capital equipment orders.
Gross Margin Resilience Amid Growth
Gross margin dipped to 43.8% in Q2 2026 from 45.9% a year earlier, yet remains above the 43.4% trough seen in Q4 2024, as per financial statements.
The slight margin compression likely reflects a richer mix of lower-margin capital equipment sales in the Industrial Processing segment, which often accompanies strong revenue growth. However, the absolute level remains high, indicating that the Flow Control segment's consumable-heavy revenue continues to provide a structural buffer. Investors should monitor whether margin can recover as mix normalizes, but the current level still supports strong profitability.
Operating Leverage Drives EPS Beat
Operating income grew 29.2% year-over-year in Q2 2026, outpacing revenue growth of 22.6%, with operating margin expanding to 16.3% from 15.4% in Q2 2025.
The operating leverage is evident as SG&A increased only 10.4% year-over-year while revenue grew 22.6%, indicating that overhead costs are not scaling proportionally. This suggests that the company is efficiently absorbing fixed costs, and the incremental revenue is flowing through to operating income. The 16.3% operating margin is the highest in the reported quarters, reflecting strong cost discipline and a favorable product mix.
Earnings Quality Solid, SBC Minimal
Net income of $32.5M in Q2 2026 translated to diluted EPS of $2.75, a 23.9% year-over-year increase, with stock-based compensation of only $2.9M, per the income statement.
The EPS growth is well-supported by operational performance, and the low SBC expense (less than 1% of revenue) indicates that reported earnings are not significantly diluted by non-cash charges. The effective tax rate appears stable, and there are no notable non-operating items distorting net income. This suggests that the earnings beat is of high quality and likely repeatable if revenue growth persists.
Cost Discipline in SG&A
SG&A as a percentage of revenue fell to 26.1% in Q2 2026 from 29.0% in Q2 2025, while R&D remained stable at 1.4% of revenue, based on reported figures.
The decline in SG&A intensity is a key driver of margin expansion, indicating that management is controlling overhead costs while scaling the business. R&D spending has been consistent, suggesting a commitment to innovation without over-investing. However, the increase in COGS (up 27.3% year-over-year) slightly outpaced revenue growth, which may reflect higher input costs or a shift in product mix, warranting monitoring for potential margin pressure.
Q2 2026 Marks a Turning Point
Q2 2026 delivered record revenue of $312.9M and EPS of $2.75, a significant beat versus estimates, reversing the prior year's revenue declines, as per the latest earnings report.
This quarter represents a clear inflection from the negative growth experienced in fiscal 2025, with revenue growth accelerating to 22.6% and operating margin reaching a multi-quarter high. The strong performance appears driven by robust aftermarket demand and successful execution, and management's raised guidance suggests confidence in sustained momentum. The lasting impact is a reassessment of Kadant's growth potential, as the company demonstrates its ability to capitalize on cyclical upswings while maintaining profitability.
What Could Invalidate the Base Case
Despite the strong Q2 2026 beat, revenue growth may be unsustainable if wood processing capital spending slows, given the segment's high concentration, as per the latest quarterly data.
The sharp acceleration in revenue and EPS could be partly driven by pull-forward demand or temporary strength in the Industrial Processing segment, which is sensitive to housing markets and interest rates. If elevated rates persist, backlog conversion may weaken, and the sequential guidance for Q3 2026 (revenue of $297M-$307M) implies a moderation from Q2's $312.9M, suggesting some cooling. Additionally, gross margin compression to 43.8% from 45.9% a year ago may indicate rising input costs or a mix shift toward lower-margin capital equipment, which could pressure profitability if revenue growth decelerates. Investors should monitor whether the aftermarket parts strength can offset potential weakness in large project orders.