KAI 8-K
Kadant Inc (KAI)
8-K
2026-02-18
For: 2026-02-18
View Original
Added on
April 10, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
______________________________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): February 18, 2026
(Exact name of registrant as specified in its charter)
Commission file number 001-11406
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices, including zip code)
(978 ) 776-2000
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
KADANT INC.
Item 2.02. Results of Operations and Financial Condition.
On February 18, 2026, Kadant Inc. (the “Company”) announced its financial results for the fiscal quarter and year ended January 3, 2026. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 7.01. Regulation FD Disclosure.
On February 19, 2026, the Company will hold a webcast and conference call to discuss its financial results for the fiscal quarter and year ended January 3, 2026. A copy of the slides that will be presented on the webcast and discussed in the conference call is furnished as Exhibit 99.2 to this Current Report on Form 8-K.
The information in Item 2.02 and Item 7.01 of this Form 8-K (including Exhibits 99.1 and 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
| (d) Exhibits | ||||||||
| The following exhibits relating to Item 2.02 and Item 7.01 shall be deemed to be furnished and not filed. | ||||||||
| Exhibit | ||||||||
No. | Description of Exhibits | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
2
KADANT INC.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KADANT INC. | ||||||||
| Date: February 18, 2026 | By | /s/ Michael J. McKenney | ||||||
| Michael J. McKenney Executive Vice President and Chief Financial Officer | ||||||||
3
Exhibit 99.1
 | PRESS RELEASE | |||||||
KADANT INC. | ||||||||
One Technology Park Drive | ||||||||
Westford, MA 01886 USA | ||||||||
Tel: +1 978-776-2000 | ||||||||
www.kadant.com | ||||||||
Kadant Reports Fourth Quarter and Fiscal Year 2025 Results
WESTFORD, Mass., February 18, 2026 - Kadant Inc. (NYSE: KAI) reported its financial results for the fourth quarter and fiscal year ended January 3, 2026.
Fourth Quarter Financial Highlights
•Revenue increased 11% to a record $286 million
•Gross margin increased 50 basis points to 43.9%
•Net income was $24 million in both periods
•GAAP EPS was $2.04 in both periods
•Adjusted EPS increased 1% to $2.27
•Adjusted EBITDA increased 11% to $58 million and represented 20.3% of revenue
•Operating cash flow increased 17% to $61 million
•Bookings increased 12% to $270 million
Fiscal Year Financial Highlights
•Revenue was $1.05 billion in both periods
•Gross margin increased 90 basis points to 45.2%
•Net income decreased 9% to $102 million
•GAAP EPS decreased 9% to $8.65
•Adjusted EPS decreased 10% to $9.26
•Adjusted EBITDA decreased 6% to $216 million and represented 20.6% of revenue
•Operating cash flow increased 10% to a record $171 million
•Bookings increased 5% to a record $1.03 billion
Note: Percent changes above are based on comparison to the prior year period. All references to earnings per share (EPS) are to our EPS as calculated on a diluted basis. Adjusted EPS, adjusted EBITDA, adjusted EBITDA margin, free cash flow, and changes in organic revenue are non-GAAP financial measures that exclude certain items as detailed later in this press release under the heading “Use of Non-GAAP Financial Measures.”
Management Commentary
“The fourth quarter was a solid finish to the year,” said Jeffrey L. Powell, president and chief executive officer of Kadant Inc. “Good execution by our businesses combined with our recent acquisitions drove record revenue performance and strong cash flows despite a challenging economic environment.”
Fourth Quarter 2025 Compared to 2024
Revenue increased 11 percent to a record $286.2 million compared to $258.0 million in 2024, including increases of eight percent from acquisitions and three percent from the favorable effect of foreign currency translation. Gross margin was 43.9 percent compared to 43.4 percent in 2024.
Net income was $24.0 million in both 2025 and 2024. GAAP EPS was $2.04 in both periods, and adjusted EPS increased one percent to $2.27 in 2025 compared to $2.25 in 2024. Adjusted EPS excludes acquisition-related costs of $0.17 and other costs of $0.07 in 2025, and excludes acquisition-related costs of $0.16 and other costs of $0.06 in 2024.
Kadant Reports Fourth Quarter and Fiscal 2025 Results | | ||||
| February 18, 2026 | |||||
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Adjusted EBITDA increased 11 percent to $58.0 million compared to $52.4 million in 2024 and represented 20.3 percent of revenue in both periods. Operating cash flow increased 17 percent to $60.8 million compared to $51.9 million in 2024. Free cash flow increased 18 percent to $54.7 million compared to $46.3 million in 2024.
Bookings increased 12 percent to $270.0 million compared to $240.6 million in 2024. Organic bookings increased one percent, which excludes increases of eight percent from acquisitions and three percent from the favorable effect of foreign currency translation.
Fiscal Year 2025 Compared to 2024
Revenue was $1,052.2 million in 2025 compared to a record $1,053.4 million in 2024. Organic revenue decreased four percent, which excludes increases of three percent from acquisitions and one percent from the favorable effect of foreign currency translation. Gross margin was 45.2 percent compared to 44.3 percent in 2024.
Net income was $102.0 million, decreasing nine percent compared to $111.6 million in 2024. GAAP EPS decreased nine percent to $8.65 compared to $9.48 in 2024, and adjusted EPS decreased 10 percent to $9.26 compared to $10.28 in 2024. Adjusted EPS excludes acquisition-related costs of $0.53 and other costs of $0.08 in 2025, and excludes acquisition-related costs of $0.74 and other costs of $0.06 in 2024.
Adjusted EBITDA decreased six percent to $216.3 million and represented 20.6 percent of revenue compared to a record $229.7 million and 21.8 percent in 2024. Operating cash flow increased 10 percent to a record $171.3 million compared to $155.3 million in 2024. Free cash flow increased 15 percent to a record $154.3 million compared to $134.3 million in 2024.
Bookings increased five percent to a record $1,033.9 million compared to $981.1 million in 2024. Organic bookings increased one percent, which excludes a four percent increase from acquisitions.
Summary and Outlook
“Looking ahead to 2026, we are encouraged by improving business activity as we begin the year,” continued Mr. Powell. "Our capital project bookings are expected to strengthen supported by steady aftermarket demand, a strong balance sheet, and robust cash flow generation. For 2026, we expect revenue of $1.160 to $1.185 billion, GAAP EPS of $10.27 to $10.62 and, after excluding $0.13 of acquisition-related costs, adjusted EPS of $10.40 to $10.75. For the first quarter of 2026, we expect revenue of $270 to $280 million, GAAP EPS of $1.69 to $1.79 and, after excluding $0.09 of acquisition-related costs, adjusted EPS of $1.78 to $1.88.
Conference Call
Kadant will hold a webcast with a slide presentation for investors on Thursday, February 19, 2026, at 11:00 a.m. Eastern Time to discuss its fourth quarter and full year financial performance, as well as future expectations. To listen to the call live and view the webcast, go to the “Investors” section of the Company’s website at kadant.com. Participants interested in joining the call’s live question and answer session are required to register by visiting https://register-conf.media-server.com/register/BIa674ebe68815486591fb93fb0ccd256f or selecting the Q&A link on our website to receive a dial-in number and unique PIN. It is recommended that you join the call 10 minutes prior to the start of the event. A replay of the webcast presentation will be available on our website through March 20, 2026.
Prior to the call, our earnings release and the slides used in the webcast presentation will be filed with the Securities and Exchange Commission and will be available at sec.gov. After the webcast, Kadant will post its updated general investor presentation incorporating the fourth quarter and full year results on its website at kadant.com under the “Investors” section.
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including increases or decreases in revenue excluding the effect of acquisitions and foreign currency translation (organic revenue), adjusted
Kadant Reports Fourth Quarter and Fiscal 2025 Results | | ||||
| February 18, 2026 | |||||
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operating income, adjusted net income, adjusted EPS, earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA, adjusted EBITDA margin, and free cash flow.
We use organic revenue to understand our trends and to forecast and evaluate our financial performance and compare revenue to prior periods. Organic revenue excludes revenue from acquisitions for the four quarterly reporting periods following the date of the acquisition and the effect of foreign currency translation. Revenue in the fourth quarter of 2025 included $21.9 million from acquisitions and a favorable foreign currency translation effect of $6.5 million compared to the fourth quarter of 2024. Revenue in 2025 included $36.7 million from acquisitions and a favorable foreign currency translation effect of $7.0 million compared to 2024. Our other non-GAAP financial measures exclude acquisition costs, amortization expense related to acquired profit in inventory and backlog, restructuring and impairment costs, and other income or expense, as indicated. Collectively, these items are excluded as they are not indicative of our core operating results and are not comparable to other periods, which have differing levels of incremental costs, expenditures or income, or none at all. Additionally, we use free cash flow in order to provide insight on our ability to generate cash for acquisitions and debt repayments, as well as for other investing and financing activities.
We believe these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business, operating results, or future outlook. We believe that the inclusion of such measures helps investors gain an understanding of our underlying operating performance and future prospects, consistent with how management measures and forecasts our performance, especially when comparing such results to previous periods or forecasts and to the performance of our competitors. Such measures are also used by us in our financial and operating decision-making and for compensation purposes. We also believe this information is responsive to investors' requests and gives them additional measures of our performance.
The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for the results of operations or cash flows prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this press release have limitations associated with their use as compared to the most directly comparable GAAP measures, in that they may be different from, and therefore not comparable to, similar measures used by other companies.
Fourth Quarter
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:
•Pre-tax acquisition costs of $0.9 million in 2025 and $0.3 million in 2024.
•Pre-tax amortization of acquired profit in inventory and backlog of $1.1 million in 2025 and $2.2 million in 2024.
•Pre-tax indemnification asset reversal of $0.6 million in 2025 and $0.3 million in 2024.
•Pre-tax other costs of $1.0 million in 2025 and $0.7 million in 2024.
Adjusted net income and adjusted EPS exclude:
•After-tax acquisition costs of $1.1 million ($0.9 million plus tax of $0.2 million) in 2025 and $0.2 million ($0.3 million net of tax of $0.1 million) in 2024.
•After-tax amortization of acquired profit in inventory and backlog of $0.9 million ($1.1 million net of tax of $0.2 million) in 2025 and $1.7 million ($2.2 million net of tax of $0.5 million) in 2024.
•After-tax other costs of $0.8 million ($1.0 million net of tax of $0.2 million) in 2025 and $0.7 million in 2024.
Free cash flow is calculated as operating cash flow less:
•Capital expenditures of $6.1 million in 2025 and $5.6 million in 2024.
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Kadant Reports Fourth Quarter and Fiscal 2025 Results | | ||||
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Fiscal Year
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:
•Pre-tax acquisition costs of $4.4 million in 2025 and $2.9 million in 2024.
•Pre-tax amortization of acquired profit in inventory and backlog of $2.4 million in 2025 and $8.4 million in 2024.
•Pre-tax indemnification asset reversal of $0.6 million in 2025 and $0.2 million in 2024.
•Pre-tax other costs of $1.3 million in 2025 and $0.7 million in 2024.
Adjusted net income and adjusted EPS exclude:
•After-tax acquisition costs of $4.5 million ($4.4 million plus tax of $0.1 million) in 2025 and $2.3 million ($2.9 million net of tax of $0.6 million) in 2024.
•After-tax amortization of acquired profit in inventory and backlog of $1.8 million ($2.4 million net of tax of $0.6 million) in 2025 and $6.4 million ($8.4 million net of tax of $2.0 million) in 2024.
•After-tax other costs of $1.0 million in ($1.3 million net of tax of $0.3 million) 2025 and $0.7 million in 2024.
Free cash flow is calculated as operating cash flow less:
•Capital expenditures of $17.0 million in 2025 and $21.0 million in 2024.
Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in this press release.
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Kadant Reports Fourth Quarter and Fiscal 2025 Results | | ||||
| February 18, 2026 | |||||
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| Financial Highlights (unaudited) | ||||||||||||||||||||||||||||||||
| (In thousands, except per share amounts and percentages) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| Consolidated Statement of Income | January 3, 2026 | December 28, 2024 | January 3, 2026 | December 28, 2024 | ||||||||||||||||||||||||||||
| Revenue | $ | 286,204 | $ | 258,030 | $ | 1,052,248 | $ | 1,053,384 | ||||||||||||||||||||||||
| Costs and Operating Expenses: | ||||||||||||||||||||||||||||||||
| Cost of revenue | 160,509 | 146,170 | 576,520 | 587,236 | ||||||||||||||||||||||||||||
| Selling, general, and administrative expenses | 80,862 | 70,568 | 301,863 | 279,920 | ||||||||||||||||||||||||||||
| Research and development expenses | 4,098 | 3,697 | 15,264 | 14,318 | ||||||||||||||||||||||||||||
Other costs (g) | 1,026 | 658 | 1,313 | 658 | ||||||||||||||||||||||||||||
| 246,495 | 221,093 | 894,960 | 882,132 | |||||||||||||||||||||||||||||
| Operating Income | 39,709 | 36,937 | 157,288 | 171,252 | ||||||||||||||||||||||||||||
| Interest Income | 600 | 529 | 1,929 | 1,915 | ||||||||||||||||||||||||||||
| Interest Expense | (5,322) | (4,642) | (15,571) | (20,028) | ||||||||||||||||||||||||||||
| Other Expense, Net | (9) | (21) | (61) | (69) | ||||||||||||||||||||||||||||
| Income Before Provision for Income Taxes | 34,978 | 32,803 | 143,585 | 153,070 | ||||||||||||||||||||||||||||
| Provision for Income Taxes | 10,488 | 8,706 | 39,904 | 40,516 | ||||||||||||||||||||||||||||
| Net Income | 24,490 | 24,097 | 103,681 | 112,554 | ||||||||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interests | (465) | (65) | (1,712) | (956) | ||||||||||||||||||||||||||||
| Net Income Attributable to Kadant | $ | 24,025 | $ | 24,032 | $ | 101,969 | $ | 111,598 | ||||||||||||||||||||||||
| Earnings per Share Attributable to Kadant: | ||||||||||||||||||||||||||||||||
| Basic | $ | 2.04 | $ | 2.05 | $ | 8.66 | $ | 9.51 | ||||||||||||||||||||||||
| Diluted | $ | 2.04 | $ | 2.04 | $ | 8.65 | $ | 9.48 | ||||||||||||||||||||||||
| Weighted Average Shares: | ||||||||||||||||||||||||||||||||
| Basic | 11,779 | 11,745 | 11,773 | 11,739 | ||||||||||||||||||||||||||||
| Diluted | 11,805 | 11,794 | 11,794 | 11,771 | ||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||
Adjusted Net Income and Adjusted Diluted EPS (a) | January 3, 2026 | January 3, 2026 | December 28, 2024 | December 28, 2024 | ||||||||||||||||||||||||||||
| Net Income and Diluted EPS Attributable to Kadant, as Reported | $ | 24,025 | $ | 2.04 | $ | 24,032 | $ | 2.04 | ||||||||||||||||||||||||
| Adjustments, Net of Tax: | ||||||||||||||||||||||||||||||||
Acquisition Costs | 1,146 | 0.10 | 194 | 0.02 | ||||||||||||||||||||||||||||
Amortization of Profit in Inventory and Backlog | 850 | 0.07 | 1,664 | 0.14 | ||||||||||||||||||||||||||||
Other Costs (g) | 769 | 0.07 | 658 | 0.06 | ||||||||||||||||||||||||||||
Adjusted Net Income and Adjusted Diluted EPS (a) | $ | 26,790 | $ | 2.27 | $ | 26,548 | $ | 2.25 | ||||||||||||||||||||||||
Twelve Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| January 3, 2026 | January 3, 2026 | December 28, 2024 | December 28, 2024 | |||||||||||||||||||||||||||||
| Net Income and Diluted EPS Attributable to Kadant, as Reported | $ | 101,969 | $ | 8.65 | $ | 111,598 | $ | 9.48 | ||||||||||||||||||||||||
| Adjustments, Net of Tax: | ||||||||||||||||||||||||||||||||
Acquisition Costs | 4,536 | 0.38 | 2,320 | 0.20 | ||||||||||||||||||||||||||||
Amortization of Profit in Inventory and Backlog | 1,775 | 0.15 | 6,394 | 0.54 | ||||||||||||||||||||||||||||
Other Costs (g) | 985 | 0.08 | 658 | 0.06 | ||||||||||||||||||||||||||||
Adjusted Net Income and Adjusted Diluted EPS (a) | $ | 109,265 | $ | 9.26 | $ | 120,970 | $ | 10.28 | ||||||||||||||||||||||||
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Kadant Reports Fourth Quarter and Fiscal 2025 Results | | ||||
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| Three Months Ended | Increase (Decrease) Excluding Acquisitions and FX (a,b) | |||||||||||||||||||||||||||||||
| Revenue by Segment | January 3, 2026 | December 28, 2024 | Increase | |||||||||||||||||||||||||||||
| Flow Control | $ | 99,639 | $ | 94,684 | $ | 4,955 | $ | 1,639 | ||||||||||||||||||||||||
| Industrial Processing | 117,635 | 101,428 | 16,207 | (7,333) | ||||||||||||||||||||||||||||
| Material Handling | 68,930 | 61,918 | 7,012 | 5,486 | ||||||||||||||||||||||||||||
| $ | 286,204 | $ | 258,030 | $ | 28,174 | $ | (208) | |||||||||||||||||||||||||
| Percentage of Parts and Consumables Revenue | 70% | 67% | ||||||||||||||||||||||||||||||
| Twelve Months Ended | Increase (Decrease) | Increase (Decrease) Excluding Acquisitions and FX (a,b) | ||||||||||||||||||||||||||||||
| January 3, 2026 | December 28, 2024 | |||||||||||||||||||||||||||||||
| Flow Control | $ | 382,866 | $ | 371,177 | $ | 11,689 | $ | (109) | ||||||||||||||||||||||||
| Industrial Processing | 409,489 | 432,738 | (23,249) | (51,310) | ||||||||||||||||||||||||||||
| Material Handling | 259,893 | 249,469 | 10,424 | 6,623 | ||||||||||||||||||||||||||||
| $ | 1,052,248 | $ | 1,053,384 | $ | (1,136) | $ | (44,796) | |||||||||||||||||||||||||
| Percentage of Parts and Consumables Revenue | 71% | 66% | ||||||||||||||||||||||||||||||
| Three Months Ended | Increase | Increase (Decrease) Excluding Acquisitions and FX (b) | ||||||||||||||||||||||||||||||
| Bookings by Segment | January 3, 2026 | December 28, 2024 | ||||||||||||||||||||||||||||||
| Flow Control | $ | 93,617 | $ | 87,436 | $ | 6,181 | $ | 3,108 | ||||||||||||||||||||||||
| Industrial Processing | 120,993 | 103,607 | 17,386 | (4,401) | ||||||||||||||||||||||||||||
| Material Handling | 55,372 | 49,601 | 5,771 | 4,452 | ||||||||||||||||||||||||||||
| $ | 269,982 | $ | 240,644 | $ | 29,338 | $ | 3,159 | |||||||||||||||||||||||||
| Percentage of Parts and Consumables Bookings | 73% | 70% | ||||||||||||||||||||||||||||||
Twelve Months Ended | Increase | Increase Excluding Acquisitions and FX (b) | ||||||||||||||||||||||||||||||
| January 3, 2026 | December 28, 2024 | |||||||||||||||||||||||||||||||
| Flow Control | $ | 380,503 | $ | 365,185 | $ | 15,318 | $ | 2,864 | ||||||||||||||||||||||||
| Industrial Processing | 403,895 | 379,517 | 24,378 | 1,796 | ||||||||||||||||||||||||||||
| Material Handling | 249,532 | 236,399 | 13,133 | 9,144 | ||||||||||||||||||||||||||||
| $ | 1,033,930 | $ | 981,101 | $ | 52,829 | $ | 13,804 | |||||||||||||||||||||||||
| Percentage of Parts and Consumables Bookings | 72% | 71% | ||||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
Additional Segment Information | January 3, 2026 | December 28, 2024 | January 3, 2026 | December 28, 2024 | ||||||||||||||||||||||||||||
Gross Margin: | ||||||||||||||||||||||||||||||||
| Flow Control | 50.5% | 51.4% | 52.3% | 52.5% | ||||||||||||||||||||||||||||
| Industrial Processing | 42.0% | 39.9% | 43.0% | 41.8% | ||||||||||||||||||||||||||||
| Material Handling | 37.6% | 36.7% | 38.1% | 36.3% | ||||||||||||||||||||||||||||
| Consolidated | 43.9% | 43.4% | 45.2% | 44.3% | ||||||||||||||||||||||||||||
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Kadant Reports Fourth Quarter and Fiscal 2025 Results | | ||||
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| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
Additional Segment Information (continued) | January 3, 2026 | December 28, 2024 | January 3, 2026 | December 28, 2024 | ||||||||||||||||||||||||||||
| Operating Income: | ||||||||||||||||||||||||||||||||
| Flow Control | $ | 23,271 | $ | 22,091 | $ | 92,808 | $ | 91,612 | ||||||||||||||||||||||||
Industrial Processing | 16,602 | 16,563 | 67,748 | 86,623 | ||||||||||||||||||||||||||||
| Material Handling | 11,234 | 8,551 | 41,241 | 34,073 | ||||||||||||||||||||||||||||
| Corporate | (11,398) | (10,268) | (44,509) | (41,056) | ||||||||||||||||||||||||||||
| $ | 39,709 | $ | 36,937 | $ | 157,288 | $ | 171,252 | |||||||||||||||||||||||||
Adjusted Operating Income (a,c): | ||||||||||||||||||||||||||||||||
| Flow Control | $ | 23,651 | $ | 24,330 | $ | 93,976 | $ | 96,476 | ||||||||||||||||||||||||
| Industrial Processing | 19,748 | 17,442 | 74,889 | 90,218 | ||||||||||||||||||||||||||||
| Material Handling | 11,362 | 8,934 | 41,588 | 37,743 | ||||||||||||||||||||||||||||
| Corporate | (11,398) | (10,268) | (44,509) | (41,056) | ||||||||||||||||||||||||||||
| $ | 43,363 | $ | 40,438 | $ | 165,944 | $ | 183,381 | |||||||||||||||||||||||||
| Capital Expenditures: | ||||||||||||||||||||||||||||||||
| Flow Control | $ | 1,949 | $ | 1,496 | $ | 6,051 | $ | 7,225 | ||||||||||||||||||||||||
Industrial Processing | 1,840 | 2,178 | 5,543 | 8,121 | ||||||||||||||||||||||||||||
| Material Handling | 2,119 | 1,901 | 5,309 | 5,638 | ||||||||||||||||||||||||||||
| Corporate | 142 | — | 145 | 21 | ||||||||||||||||||||||||||||
| $ | 6,050 | $ | 5,575 | $ | 17,048 | $ | 21,005 | |||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| Cash Flow and Other Data | January 3, 2026 | December 28, 2024 | January 3, 2026 | December 28, 2024 | ||||||||||||||||||||||||||||
| Operating Cash Flow | $ | 60,759 | $ | 51,890 | $ | 171,328 | $ | 155,265 | ||||||||||||||||||||||||
Capital Expenditures | (6,050) | (5,575) | (17,048) | (21,005) | ||||||||||||||||||||||||||||
| Free Cash Flow (a) | $ | 54,709 | $ | 46,315 | $ | 154,280 | $ | 134,260 | ||||||||||||||||||||||||
| Depreciation and Amortization Expense | $ | 14,740 | $ | 13,082 | $ | 51,219 | $ | 49,587 | ||||||||||||||||||||||||
| Balance Sheet Data | January 3, 2026 | December 28, 2024 | ||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Cash, Cash Equivalents, and Restricted Cash | $ | 122,681 | $ | 95,946 | ||||||||||||||||||||||||||||
Accounts Receivable, Net | 158,567 | 142,462 | ||||||||||||||||||||||||||||||
| Inventories | 206,854 | 146,092 | ||||||||||||||||||||||||||||||
| Contract Assets | 6,599 | 18,408 | ||||||||||||||||||||||||||||||
Property, Plant, and Equipment, Net | 196,656 | 170,331 | ||||||||||||||||||||||||||||||
| Intangible Assets | 350,376 | 279,494 | ||||||||||||||||||||||||||||||
| Goodwill | 555,621 | 479,169 | ||||||||||||||||||||||||||||||
| Other Assets | 114,824 | 98,443 | ||||||||||||||||||||||||||||||
| $ | 1,712,178 | $ | 1,430,345 | |||||||||||||||||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||||||||
| Accounts Payable | $ | 53,362 | $ | 51,062 | ||||||||||||||||||||||||||||
| Debt Obligations | 372,720 | 286,504 | ||||||||||||||||||||||||||||||
| Other Borrowings | 1,781 | 2,023 | ||||||||||||||||||||||||||||||
| Other Liabilities | 293,248 | 232,628 | ||||||||||||||||||||||||||||||
| Total Liabilities | 721,111 | 572,217 | ||||||||||||||||||||||||||||||
| Stockholders' Equity | 991,067 | 858,128 | ||||||||||||||||||||||||||||||
| $ | 1,712,178 | $ | 1,430,345 | |||||||||||||||||||||||||||||
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Kadant Reports Fourth Quarter and Fiscal 2025 Results | | ||||
| February 18, 2026 | |||||
Page 8 | |||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| Adjusted Operating Income and Adjusted EBITDA Reconciliation (a) | January 3, 2026 | December 28, 2024 | January 3, 2026 | December 28, 2024 | ||||||||||||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||||||||||
| Net Income Attributable to Kadant | $ | 24,025 | $ | 24,032 | $ | 101,969 | $ | 111,598 | ||||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interests | 465 | 65 | 1,712 | 956 | ||||||||||||||||||||||||||||
| Provision for Income Taxes | 10,488 | 8,706 | 39,904 | 40,516 | ||||||||||||||||||||||||||||
| Interest Expense, Net | 4,722 | 4,113 | 13,642 | 18,113 | ||||||||||||||||||||||||||||
| Other Expense, Net | 9 | 21 | 61 | 69 | ||||||||||||||||||||||||||||
| Operating Income | 39,709 | 36,937 | 157,288 | 171,252 | ||||||||||||||||||||||||||||
| Acquisition Costs | 927 | 339 | 4,425 | 2,872 | ||||||||||||||||||||||||||||
Acquired Profit in Inventory Amortization (d) | 1,004 | 1,124 | 1,504 | 5,189 | ||||||||||||||||||||||||||||
Acquired Backlog Amortization (e) | 109 | 1,071 | 855 | 3,252 | ||||||||||||||||||||||||||||
Indemnification Asset Reversal, Net (f) | 588 | 309 | 559 | 158 | ||||||||||||||||||||||||||||
Other Costs (g) | 1,026 | 658 | 1,313 | 658 | ||||||||||||||||||||||||||||
| Adjusted Operating Income (a) | 43,363 | 40,438 | 165,944 | 183,381 | ||||||||||||||||||||||||||||
| Depreciation and Amortization | 14,631 | 12,011 | 50,364 | 46,335 | ||||||||||||||||||||||||||||
| Adjusted EBITDA (a) | $ | 57,994 | $ | 52,449 | $ | 216,308 | $ | 229,716 | ||||||||||||||||||||||||
Adjusted EBITDA Margin (a,h) | 20.3% | 20.3% | 20.6% | 21.8% | ||||||||||||||||||||||||||||
| Flow Control | ||||||||||||||||||||||||||||||||
| Operating Income | $ | 23,271 | $ | 22,091 | $ | 92,808 | $ | 91,612 | ||||||||||||||||||||||||
| Acquisition Costs | 3 | 18 | 44 | 655 | ||||||||||||||||||||||||||||
Acquired Profit in Inventory Amortization (d) | — | 981 | 35 | 1,944 | ||||||||||||||||||||||||||||
Acquired Backlog Amortization (e) | 91 | 618 | 701 | 1,500 | ||||||||||||||||||||||||||||
Indemnification Asset Reversal (Provision) (f) | 286 | (36) | 388 | 107 | ||||||||||||||||||||||||||||
Other Costs (g) | — | 658 | — | 658 | ||||||||||||||||||||||||||||
| Adjusted Operating Income (a) | 23,651 | 24,330 | 93,976 | 96,476 | ||||||||||||||||||||||||||||
| Depreciation and Amortization | 3,184 | 2,874 | 12,451 | 10,435 | ||||||||||||||||||||||||||||
| Adjusted EBITDA (a) | $ | 26,835 | $ | 27,204 | $ | 106,427 | $ | 106,911 | ||||||||||||||||||||||||
Adjusted EBITDA Margin (a,h) | 26.9% | 28.7% | 27.8% | 28.8% | ||||||||||||||||||||||||||||
| Industrial Processing | ||||||||||||||||||||||||||||||||
| Operating Income | $ | 16,602 | $ | 16,563 | $ | 67,748 | $ | 86,623 | ||||||||||||||||||||||||
Acquisition Costs | 920 | 361 | 4,369 | 1,203 | ||||||||||||||||||||||||||||
Acquired Profit in Inventory Amortization (d) | 1,004 | 139 | 1,469 | 2,201 | ||||||||||||||||||||||||||||
Indemnification Asset Reversal (Provision) (f) | 196 | 379 | (10) | 191 | ||||||||||||||||||||||||||||
Other Costs (g) | 1,026 | — | 1,313 | — | ||||||||||||||||||||||||||||
| Adjusted Operating Income (a) | 19,748 | 17,442 | 74,889 | 90,218 | ||||||||||||||||||||||||||||
| Depreciation and Amortization | 7,554 | 5,149 | 22,404 | 20,607 | ||||||||||||||||||||||||||||
| Adjusted EBITDA (a) | $ | 27,302 | $ | 22,591 | $ | 97,293 | $ | 110,825 | ||||||||||||||||||||||||
Adjusted EBITDA Margin (a,h) | 23.2% | 22.3% | 23.8% | 25.6% | ||||||||||||||||||||||||||||
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Kadant Reports Fourth Quarter and Fiscal 2025 Results | | ||||
| February 18, 2026 | |||||
Page 9 | |||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
Adjusted Operating Income and Adjusted EBITDA Reconciliation (a) | January 3, 2026 | December 28, 2024 | January 3, 2026 | December 28, 2024 | ||||||||||||||||||||||||||||
| Material Handling | ||||||||||||||||||||||||||||||||
| Operating Income | $ | 11,234 | $ | 8,551 | $ | 41,241 | $ | 34,073 | ||||||||||||||||||||||||
Acquisition Costs | 4 | (40) | 12 | 1,014 | ||||||||||||||||||||||||||||
Acquired Profit in Inventory Amortization (d) | — | 4 | — | 1,044 | ||||||||||||||||||||||||||||
Acquired Backlog Amortization (e) | 18 | 453 | 154 | 1,752 | ||||||||||||||||||||||||||||
Indemnification Asset Reversal (Provision) (f) | 106 | (34) | 181 | (140) | ||||||||||||||||||||||||||||
| Adjusted Operating Income (a) | 11,362 | 8,934 | 41,588 | 37,743 | ||||||||||||||||||||||||||||
| Depreciation and Amortization | 3,878 | 3,975 | 15,458 | 15,244 | ||||||||||||||||||||||||||||
| Adjusted EBITDA (a) | $ | 15,240 | $ | 12,909 | $ | 57,046 | $ | 52,987 | ||||||||||||||||||||||||
Adjusted EBITDA Margin (a,h) | 22.1% | 20.8% | 21.9% | 21.2% | ||||||||||||||||||||||||||||
| Corporate | ||||||||||||||||||||||||||||||||
| Operating Loss | $ | (11,398) | $ | (10,268) | $ | (44,509) | $ | (41,056) | ||||||||||||||||||||||||
| Depreciation and Amortization | 15 | 13 | 51 | 49 | ||||||||||||||||||||||||||||
| EBITDA (a) | $ | (11,383) | $ | (10,255) | $ | (44,458) | $ | (41,007) | ||||||||||||||||||||||||
| (a) | Represents a non-GAAP financial measure. | |||||||||||||||||||||||||||||||
(b) | Represents the increase (decrease) resulting from the exclusion of acquisitions and from the conversion of current period amounts reported in local currencies into U.S. dollars at the exchange rate of the prior period compared to the U.S. dollar amount reported in the prior period. | |||||||||||||||||||||||||||||||
(c) | See reconciliation to the most directly comparable GAAP financial measure under “Adjusted Operating Income and Adjusted EBITDA Reconciliation.” | |||||||||||||||||||||||||||||||
(d) | Represents amortization expense within cost of revenue associated with acquired profit in inventory. | |||||||||||||||||||||||||||||||
(e) | Represents intangible amortization expense associated with acquired backlog. | |||||||||||||||||||||||||||||||
(f) | Represents the provision for or reversal of indemnification assets related to the establishment or release of tax reserves associated with uncertain tax positions. | |||||||||||||||||||||||||||||||
(g) | Other costs consist of land remediation costs of $871 ($653 net of tax) and restructuring costs of $155 ($116 net of tax) in the three and twelve months ended January 3, 2026, and impairment costs of $287 ($216 net of tax) in the twelve months ended January 3, 2026 all within the Industrial Processing segment, and a loss of $658 in the three and twelve months ended December 28, 2024 related to the recognition of a cumulative translation adjustment from the liquidation of a foreign subsidiary within the Flow Control segment. | |||||||||||||||||||||||||||||||
(h) | Calculated as adjusted EBITDA divided by revenue in each period. | |||||||||||||||||||||||||||||||
About Kadant
Kadant Inc. is a global supplier of technologies and engineered systems that drive Sustainable Industrial Processing®. The Company’s products and services play an integral role in enhancing efficiency, optimizing energy utilization, and maximizing productivity in process industries. Kadant is based in Westford, Massachusetts, with approximately 3,900 employees in 22 countries worldwide. For more information, visit kadant.com.
Safe Harbor Statement
The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about our future financial and operating performance, demand for our products, and economic and industry outlook. These forward-looking statements represent our expectations as of the date of this press release. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements as a result of various important factors, including those set forth under the heading “Risk Factors” in Kadant’s Annual Report on Form 10-K
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Kadant Reports Fourth Quarter and Fiscal 2025 Results | | ||||
| February 18, 2026 | |||||
Page 10 | |||||
for the fiscal year ended December 28, 2024 and subsequent filings with the Securities and Exchange Commission. These include risks and uncertainties relating to adverse changes in global and local economic conditions; the variability and difficulty in accurately predicting revenues from large capital equipment and systems projects; our acquisition strategy; levels of residential construction activity; reductions by our wood processing customers of their capital spending or production of oriented strand board; changes to the global timber supply; development and use of digital media; cyclical economic conditions affecting the global mining industry; demand for coal, including economic and environmental risks associated with coal; failure of our information systems or breaches of data security and cybersecurity incidents; implementation of our internal growth strategy; competition; our ability to successfully manage our manufacturing operations; supply chain constraints, inflationary pressure, price increases or shortages in raw materials; loss of key personnel and effective succession planning; future restructurings; protection of intellectual property; changes to tax laws and regulations; climate change; adequacy of our insurance coverage; global operations; policies of the Chinese government; the variability and uncertainties in sales of capital equipment in China; currency fluctuations; changes to government regulations and policies around the world; compliance with government regulations and policies and compliance with laws; environmental laws and regulations; environmental, health and safety laws and regulations impacting the mining industry; our debt obligations; restrictions in our credit agreement and note purchase agreement; soundness of financial institutions; fluctuations in our share price; and anti-takeover provisions.
Contacts
Investor Contact Information:
Michael McKenney, 978-776-2000
Media Contact Information:
Wes Martz, 978-776-2000
Fourth Quarter 2025 and FY 2025 Business Review FEBRUARY 19, 2026 Exhibit 99.2
Forward-Looking Statements The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about our future financial and operating performance, demand for our products, economic and industry outlook, and the proposed acquisition of voestalpine BÖHLER Profil GmbH & Co KG. These forward-looking statements represent our expectations as of February 18, 2026. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements as a result of various important factors, including those set forth under the heading “Risk Factors” in Kadant’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024 and subsequent filings with the Securities and Exchange Commission. These include risks and uncertainties relating to adverse changes in global and local economic conditions; the variability and difficulty in accurately predicting revenues from large capital equipment and systems projects; our acquisition strategy; levels of residential construction activity; reductions by our wood processing customers of their capital spending or production of oriented strand board; changes to the global timber supply; development and use of digital media; cyclical economic conditions affecting the global mining industry; demand for coal, including economic and environmental risks associated with coal; failure of our information systems or breaches of data security and cybersecurity incidents; implementation of our internal growth strategy; competition; our ability to successfully manage our manufacturing operations; supply chain constraints, inflationary pressure, price increases or shortages in raw materials; loss of key personnel and effective succession planning; future restructurings; protection of intellectual property; changes to tax laws and regulations; climate change; adequacy of our insurance coverage; global operations; policies of the Chinese government; the variability and uncertainties in sales of capital equipment in China; currency fluctuations; changes to government regulations and policies around the world; compliance with government regulations and policies and compliance with laws; environmental laws and regulations; environmental, health and safety laws and regulations impacting the mining industry; our debt obligations; restrictions in our credit agreement and note purchase agreement; soundness of financial institutions; fluctuations in our share price; and anti-takeover provisions. 2KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED.
Use of Non-GAAP Financial Measures In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including increases or decreases in revenue excluding the effect of acquisitions and foreign currency translation (organic revenue), adjusted EPS, adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA), adjusted EBITDA margin, adjusted operating income, and free cash flow. All references to EPS (earnings per share) are to our EPS as calculated on a diluted basis. Specific non-GAAP financial measures have been marked with an * (asterisk) within this presentation. A reconciliation of those numbers to the most directly comparable GAAP financial measures is shown within this presentation and in our fourth quarter and fiscal year 2025 earnings press release issued February 18, 2026, which is available in the Investors section of our website at investor.kadant.com under the heading News Releases. We use organic revenue to understand our trends and to forecast and evaluate our financial performance and compare revenue to prior periods. Organic revenue excludes revenue from acquisitions for the four quarterly reporting periods following the date of the acquisition and the effect of foreign currency translation. Our other non-GAAP financial measures exclude amortization expense related to acquired intangible assets, profit in inventory and backlog (collectively, purchase accounting expenses); acquisition costs; restructuring and impairment costs; and other income or expense, as indicated. We exclude acquisition-related purchase accounting expenses to provide a more meaningful and consistent comparison of our operating results over time and with peer companies. While we have a history of acquisition activity, such transactions do not occur on a predictable cycle, and the size and nature of these transactions will vary. We believe it is important for investors to understand that these intangible assets were recorded as part of purchase accounting and that they contribute to revenue generation. We also exclude other items as they are not indicative of our core operating results and are not comparable to other periods, which have differing levels of incremental costs, expenditures or income, or none at all. Additionally, we use free cash flow in order to provide insight on our ability to generate cash for acquisitions and debt repayments, as well as for other investing and financing activities. We believe these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business, operating results, or future outlook. We believe the inclusion of such measures helps investors gain an understanding of our underlying operating performance and future prospects, consistent with how management measures and forecasts our performance, especially when comparing such results to previous periods or forecasts and to the performance of our competitors. Such measures are also used by us in our financial and operating decision-making and for compensation purposes. We also believe this information is responsive to investors' requests and gives them additional measures of our performance. The non-GAAP financial measures included in this presentation are not meant to be considered superior to or a substitute for the results of operations or cash flows prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this presentation have limitations associated with their use as compared to the most directly comparable GAAP measures, in that they may be different from, and therefore not comparable to, similar measures used by other companies. 3 KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED.
Business Review Jeffrey L. Powell, President & CEO 4
Operational Highlights 5 KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. • Delivered solid performance in the fourth quarter • Excellent execution and strong cash flow • Named by Newsweek as one of America's Most Responsible Companies for the sixth consecutive year 5
Q4 2025 Performance 6 ($ in millions, except per share amounts) Q4 25 Q4 24 Change Bookings $270.0 $240.6 +12.2% Revenue $286.2 $258.0 +10.9% Net Income $24.0 $24.0 —% Adjusted EBITDA* $58.0 $52.4 +10.6% Adjusted EBITDA Margin* 20.3 % 20.3 % — bps EPS $2.04 $2.04 —% Adjusted EPS* $2.27 $2.25 +0.9% Operating Cash Flow $60.8 $51.9 +17.1% Free Cash Flow* $54.7 $46.3 +18.1% HIGHLIGHTS • Record revenue driven by strong contributions from recent acquisitions • Record demand for aftermarket parts • Adjusted EBITDA* up 11% • Operating cash flow rose 17% to $61 million KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED.
FY 2025 Performance 7 ($ in millions, except per share amounts) FY 25 FY 24 Change Bookings $1,033.9 $981.1 +5.4% Revenue $1,052.2 $1,053.4 -0.1% Net Income $102.0 $111.6 -8.6% Adjusted EBITDA* $216.3 $229.7 -5.8% Adjusted EBITDA Margin* 20.6 % 21.8 % -120 bps EPS $8.65 $9.48 -8.8% Adjusted EPS* $9.26 $10.28 -9.9% Operating Cash Flow $171.3 $155.3 +10.3% Free Cash Flow* $154.3 $134.3 +14.9% HIGHLIGHTS • Stable demand from aftermarket parts, a record 71% of total revenue • Strong operating performance led to record free cash flow* • Softness in capital project activity, higher tariffs, and other cost pressures tempered operating margin performance KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED.
$87.4 $100.0 $93.1 $93.8 $93.6 4Q24 1Q25 2Q25 3Q25 4Q25 8 ($ in millions) Q4 25 Q4 24 Change Revenue $99.6 $94.7 +5.2 % Bookings $93.6 $87.4 +7.1 % Adjusted EBITDA* $26.8 $27.2 -1.4 % Adjusted EBITDA Margin* 26.9 % 28.7 % -180 bps HIGHLIGHTS • Strong aftermarket parts demand in all regions; total bookings up 7% • Aftermarket parts revenue made up 73% of revenue in Q4 2025 • Adjusted EBITDA* declined due to weaker gross margins driven by tariffs and product mix • Capital project activity is gaining momentum ($ in millions) BOOKINGS Flow Control KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED.
9 ($ in millions) Q4 25 Q4 24 Change Revenue $117.6 $101.4 +16.0% Bookings $121.0 $103.6 +16.8% Adjusted EBITDA* $27.3 $22.6 +20.9% Adjusted EBITDA Margin* 23.2 % 22.3 % +90 bps HIGHLIGHTS • Recent acquisitions drove increases in revenue and bookings • Softness in capital project orders moderated results • Adjusted EBITDA* rose 21% due to recent acquisitions and a more favorable product mix • Capital project activity is expected to strengthen KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. Industrial Processing $103.6 $92.4 $105.4 $85.2 $121.0 4Q24 1Q25 2Q25 3Q25 4Q25 BOOKINGS ($ in millions)
10 ($ in millions) Q4 25 Q4 24 Change Revenue $68.9 $61.9 +11.3% Bookings $55.4 $49.6 +11.6% Adjusted EBITDA* $15.2 $12.9 +18.1% Adjusted EBITDA Margin* 22.1 % 20.8 % +130 bps HIGHLIGHTS • Strong revenue performance led by capital shipments • Excellent commercial and operational execution • Adjusted EBITDA* increased 18% due to strong operating leverage • Demand expected to be strong and relatively stable throughout 2026 KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. Material Handling $49.6 $63.9 $70.9 $59.3 $55.4 4Q24 1Q25 2Q25 3Q25 4Q25 BOOKINGS ($ in millions)
Business Outlook • Project activity expected to improve • Aftermarket parts demand expected to remain healthy • Tariff volatility and other cost pressures continue to pose challenges • Our solid balance sheet and strong cash flow generation provide a firm foundation for 2026 11 KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED.
Financial Review Michael J. McKenney, EVP & CFO 12
Q4 2025 Financial Performance ($ in millions, except per share amounts) Q4 25 Q4 24 Revenue $286.2 $258.0 Gross Margin 43.9% 43.4% SG&A % of Revenue 28.3% 27.3% Operating Income $39.7 $36.9 Net Income $24.0 $24.0 Adjusted EBITDA* $58.0 $52.4 EPS $2.04 $2.04 Adjusted EPS* $2.27 $2.25 Operating Cash Flow $60.8 $51.9 HIGHLIGHTS • Record parts and consumables revenue • Adjusted EBITDA margin* of 20.3% • Free Cash Flow* increased 18% KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 13
FY 2025 Financial Performance ($ in millions, except per share amounts) FY 25 FY 24 Revenue $1,052.2 $1,053.4 Gross Margin 45.2% 44.3% SG&A % of Revenue 28.7% 26.6% Operating Income $157.3 $171.3 Net Income $102.0 $111.6 Adjusted EBITDA* $216.3 $229.7 EPS $8.65 $9.48 Adjusted EPS* $9.26 $10.28 Operating Cash Flow $171.3 $155.3 HIGHLIGHTS • Record parts and consumables revenue • Adjusted EBITDA margin* of 20.6% • Record free cash flow* of $154.3 million KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 14
$159.4 $189.1 $201.3 $229.7 $216.3 $84.0 $120.9 $116.1 $111.6 $102.0 20.3% 20.9% 21.0% 21.8% 20.6% NET INCOME ADJUSTED EBITDA* ADJ. EBITDA MARGIN* 2021 2022 2023 2024 2025 Key Financial Metrics KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 15 FY ADJUSTED EBITDA* ($ in millions) $51.9 $22.8 $40.5 $47.3 $60.8 $46.3 $19.0 $36.5 $44.1 $54.7 FREE CASH FLOW* OPERATING CASH FLOW 4Q24 1Q25 2Q25 3Q25 4Q25 CASH FLOW ($ in millions) $162.4 $102.6 $165.5 $155.3 $171.3 $149.6 $74.4 $133.7 $134.3 $154.3 FREE CASH FLOW* OPERATING CASH FLOW 2021 2022 2023 2024 2025 FY CASH FLOW ($ in millions)($ in millions) $52.4 $47.9 $52.4 $58.0 $58.0 $24.0 $24.1 $26.2 $27.7 $24.0 20.3% 20.0% 20.5% 21.4% 20.3% NET INCOME ADJUSTED EBITDA* ADJ. EBITDA MARGIN* 4Q24 1Q25 2Q25 3Q25 4Q25 ADJUSTED EBITDA* ($ in millions)
2Q21 ADJ EPS* 2Q22 ADJ EPS* KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. Q4 24 to Q4 25 Adjusted EPS* $2.25 $0.17 $0.15 $0.09 $(0.22) $(0.10) $(0.04) $(0.03) $2.27 Q4 24 ADJ EPS* REVENUE ACQUISITIONS GROSS MARGIN OPERATING EXPENSES TAX PROVISION INTEREST EXPENSE NONCONTROLLING INTERESTS Q4 25 ADJ EPS* 16
2Q21 ADJ EPS* 2Q22 ADJ EPS* KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 2024 to 2025 Adjusted EPS* $10.28 $0.46 $0.27 $0.25 $(1.06) $(0.72) $(0.13) $(0.07) $(0.02) $9.26 2024 ADJ EPS* GROSS MARGIN INTEREST EXPENSE ACQUISITIONS REVENUE OPERATING EXPENSES TAX PROVISION NONCONTROLLING INTERESTS CHANGE IN SHARES 2025 ADJ EPS* 17
Key Liquidity Metrics KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. ($ in millions) Q4 25 Q3 25 Q4 24 Cash, cash equivalents, and restricted cash $122.7 $126.9 $95.9 Debt $372.7 $256.0 $286.5 Lease obligations $1.8 $2.0 $2.0 Net Debt $251.8 $131.1 $192.6 Leverage ratio1 1.33 0.94 0.99 Working capital % LTM revenue2 18.5 % 18.0 % 15.0 % Cash conversion days3 130 131 122 18
Guidance KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 19 • FY 2026 revenue of $1.160 to $1.185 billion • FY 2026 GAAP EPS of $10.27 to $10.62 • FY 2026 adjusted EPS*, as previously reported, of $10.40 to $10.75 • Q1 2026 revenue of $270 to $280 million • Q1 2026 GAAP EPS of $1.69 to $1.79 • Q1 2026 adjusted EPS*, as previously reported, of $1.78 to $1.88
Guidance FY 26 Low High FY 25 EPS, as Reported $10.27 $10.62 $8.65 Adjustments, Net of Tax 0.13 0.13 0.61 Adjusted EPS*, as Previously Reported $10.40 $10.75 $9.26 Amortization of Acquired Intangible Assets 2.13 2.13 1.75 Adjusted EPS*, as Currently Reported $12.53 $12.88 $11.01 KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 20 Q1 26 Low High Q1 25 EPS, as Reported $1.69 $1.79 $2.04 Adjustments, Net of Tax 0.09 0.09 0.06 Adjusted EPS*, as Previously Reported $1.78 $1.88 $2.10 Amortization of Acquired Intangible Assets 0.53 0.53 0.40 Adjusted EPS*, as Currently Reported $2.31 $2.41 $2.50
Questions & Answers To participate in the live Q&A session, please go to investor.kadant.com and click on the Q&A session link to receive a dial-in number and unique PIN. Please mute the audio on your computer. 21
2026 Key Priorities 22 ENABLE SUSTAINABLE INDUSTRIAL PROCESSING® DELIVER EXCEPTIONAL STAKEHOLDER VALUE PROVIDE STRONG CASH FLOW CAPITALIZE ON NEW OPPORTUNITIES KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED.
Investor Relations Contact Michael McKenney, 978-776-2000 [email protected] Media Relations Contact Wes Martz, 978-776-2000 [email protected] 23
Fourth Quarter 2025 and FY 2025 Business Review 24 Appendix February 19, 2026
Revenue by Customer Location ($ in thousands) Q4 25 Q4 24 Change Change Excluding Acquisitions and FX* North America $172,388 $159,796 $12,592 $1,528 Europe 63,256 53,852 9,404 2,446 Asia 24,939 27,466 (2,527) (5,107) Rest of World 25,621 16,916 8,705 925 Total $286,204 $258,030 $28,174 $(208) KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 25 ($ in thousands) FY 25 FY 24 Change Change Excluding Acquisitions and FX* North America $655,934 $661,016 $(5,082) $(20,344) Europe 241,696 230,141 11,555 (6,137) Asia 88,475 101,714 (13,239) (17,175) Rest of World 66,143 60,513 5,630 (1,140) Total $1,052,248 $1,053,384 $(1,136) $(44,796)
Percentage of Parts and Consumables Revenue Q4 25 Q4 24 FY 25 FY 24 Flow Control 73 % 71 % 75 % 72 % Industrial Processing 76 % 67 % 77 % 65 % Material Handling 53 % 61 % 57 % 58 % Consolidated 70 % 67 % 71 % 66 % KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 26
Gross Margin and SG&A KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 27 27.3% 29.8% 29.0% 27.9% 28.3% 4Q24 1Q25 2Q25 3Q25 4Q25 43.4% 46.1% 45.9% 45.2% 43.9% 4Q24 1Q25 2Q25 3Q25 4Q25 SG&A (as a % of revenue) GROSS MARGIN 42.9% 43.1% 43.5% 44.3% 45.2% 2021 2022 2023 2024 2025 26.5% 24.8% 24.7% 26.6% 28.7% 2021 2022 2023 2024 2025 FY GROSS MARGIN FY SG&A (as a % of revenue)
Adjusted EPS* Reconciliation Q4 25 Q4 24 FY 25 FY 24 EPS, as Reported $2.04 $2.04 $8.65 $9.48 Adjustments, Net of Tax Acquisition Costs 0.10 0.02 0.38 0.20 Amortization of Profit in Inventory and Backlog 0.07 0.14 0.15 0.54 Other Costs 0.07 0.06 0.08 0.06 Adjusted EPS*, as Previously Reported $2.27 $2.25 $9.26 $10.28 Amortization of Acquired Intangible Assets 0.53 0.43 1.75 1.65 Adjusted EPS*, as Currently Reported $2.80 $2.68 $11.01 $11.92 KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 28 ($ in thousands) Q4 25 Q4 24 FY 25 FY 24 Operating Cash Flow $60,759 $51,890 $171,328 $155,265 Capital Expenditures (6,050) (5,575) (17,048) (21,005) Free Cash Flow* $54,709 $46,315 $154,280 $134,260 Free Cash Flow* Reconciliation
Adjusted EBITDA* Reconciliation ($ in thousands) Q4 25 Q4 24 FY 25 FY 24 Net Income Attributable to Kadant $24,025 $24,032 $101,969 $111,598 Net Income Attributable to Noncontrolling Interests 465 65 1,712 956 Provision for Income Taxes 10,488 8,706 39,904 40,516 Interest Expense, Net 4,722 4,113 13,642 18,113 Other Expense, Net 9 21 61 69 Acquisition Costs 927 339 4,425 2,872 Acquired Profit in Inventory Amortization 1,004 1,124 1,504 5,189 Acquired Backlog Amortization 109 1,071 855 3,252 Indemnification Asset Reversal, Net 588 309 559 158 Other Costs 1,026 658 1,313 658 Depreciation and Amortization 14,631 12,011 50,364 46,335 Adjusted EBITDA* $57,994 $52,449 $216,308 $229,716 Adjusted EBITDA Margin* 20.3 % 20.3 % 20.6 % 21.8 % KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 29
Notes PRESENTATION NOTES • All references to EPS (earnings per share) are to our EPS as calculated on a diluted basis. • Percent change in slides 6-10 is calculated using actual numbers reported in our press release dated February 18, 2026. FOOTNOTES 1) Leverage ratio is calculated by dividing total debt by EBITDA. For purposes of this calculation, EBITDA is calculated by adding or subtracting certain items from Adjusted EBITDA, as required by our amended and restated credit facility (“Credit Facility”). Our Credit Facility defines total debt as debt less worldwide cash of up to $50 million. 2) Working capital is defined as current assets less current liabilities, excluding cash and debt. LTM is defined as last 12 months. 3) Cash conversion days is based on days in receivables plus days in inventory less days in accounts payable. KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 30