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Kadant (KDA) AI Stock Analysis

DE:KDA

Kadant

(Frankfurt:KDA)

Rating:―N/A
Action:N/A
Date:―

No summary available

Positive Factors
Recurring Aftermarket RevenueThe record aftermarket business gives Kadant a recurring revenue stream supported by its installed base, reducing reliance on new capital-equipment projects. Replacement parts and consumables tied to uptime and efficiency can support margins and cash generation through industrial spending cycles.
Negative Factors
Margin CompressionThe gross-margin decline shows that revenue growth is currently accompanied by less favorable economics. Capital mix shifts, product mix, and acquisition-related accounting effects can weigh on earnings quality, while sustained pressure would constrain reinvestment and reduce operating leverage.

Kadant (KDA) vs. iShares MSCI Germany ETF (EWG)

-15%-10%-5%0%5%10%15%20%25%DE:KDA-1.20%EWG+4.43%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
EUR 3.13B
Dividend Yield
0.54%
Average Volume (3M)
9
Price to Earnings (P/E)
28.5
Beta (1Y)
0.61
Revenue Growth
4.92%
EPS Growth
-3.51%
Country
Germany
Employees
3,900
Sector
General
Sector Strength
55
Industry
Industrial - Machinery

Kadant Business Overview & Revenue Model

Company Description

Kadant Inc. supplies technologies and engineered systems worldwide. The company operates through three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling s...

Kadant Earnings Call Summary

Earnings Call Date:Aug 03, 2026(Q2-2026)|% Change Since:-19.20%|Next Earnings Date:Nov 02, 2026
Earnings Call SentimentPositive

The call presented strong, record-setting operational and financial results including revenue, adjusted EBITDA, adjusted EPS and cash flow, supported by robust aftermarket demand, solid organic growth and positive contributions from recent acquisitions. These positives were tempered by margin pressure caused by mix shifts and acquisition-related amortization/deferrals, increased leverage from acquisition financing, and continued softness and timing uncertainty in capital equipment markets and certain regions. Management raised full-year revenue guidance but remained cautious on near-term capital spending timing.

Positive Updates

Record Company Revenue
Revenue of $312.9 million in Q2 2026, up 23% year-over-year and a company record; bookings increased 16% to $312 million.

Negative Updates

Gross Margin Pressure
Consolidated gross margin declined 210 basis points to 43.8% year-over-year, driven by a higher capital mix, product mix shifts, amortization of acquired profit and inventory deferrals tied to the Profil acquisition.

Company Guidance

Kadant raised its full‑year 2026 revenue guidance to $1.190–$1.210 billion (up from $1.178–$1.203B) and now expects adjusted EPS of $12.43–$12.68 (prior $12.33–$12.68), with adjusted EPS excluding approximately $2.17 of intangible amortization and $0.48 of acquisition‑related costs; Q3 revenue is guided to $297–$307 million with adjusted EPS of $2.90–$3.00 (excluding $0.55 of amortization and $0.07 of acquisition costs). Management noted the Q2 outperformance (adjusted EPS of $3.42 beat the prior high end by $0.44) but remains cautiously positioned for the back half of the year, and its 2026 guidance is based on assumptions of gross margin of 44.0–44.5%, SG&A of 27.2–27.7% of revenue, net interest expense of $19.5–$20.0 million, a tax rate of 27.8–28.3%, depreciation of $28.0–$28.5 million, and approximately $34 million of intangible amortization.

Kadant Risk Analysis

Kadant disclosed 34 risk factors in its most recent earnings report. Kadant reported the most risks in the "Finance & Corporate" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

1 New Risk
1.Text to select risk factors from:Q2, 2026

Kadant Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

DE:KDA against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
IEXIEX79Outperform$17.18B32.3913.31%1.24%6.93%14.08%
GGGGGG74Outperform$10.82B21.4119.92%1.75%5.39%5.94%
CRCR69Neutral$11.45B33.7915.90%0.50%21.54%5.62%
FLSFLS63Neutral$10.02B39.5111.35%1.10%0.21%-42.26%
XYLXYL60Neutral$21.19B20.449.96%1.83%1.82%16.29%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-40%-20%0%20%40%DE:KDAFLSGGGIEXXYLCRDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
DE:KDA and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
DE:KDAKadant234.00-4.84-2.02%
FLSFlowserve79.018.0011.27%
GGGGraco Inc67.44-12.86-16.02%
IEXIdex Corporation233.8467.8740.89%
XYLXylem Inc92.40-54.63-37.15%
CRCrane Company198.026.373.32%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.