At a glance
Kadant Inc is worth $3.14B, about 31 times its fiscal 2025 earnings. Revenue fell 0.1% to $1.05B in fiscal 2025, with 9.7% kept as profit; over 5 years it has grown 10.6% a year. It pays a 0.53% dividend yield, raised every year for at least 9 years, and returned $67.1M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −10.5% over the past year with dividends reinvested and +4.4% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 45.6% in the 2020 crash (S&P 500: 33.7%) and 30.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 12 months after the lows.
The business in plain English
Kadant makes equipment, parts and supplies that keep industrial processes running in paper and packaging mills, sawmills, mines, food plants and recycling operations. Its products range from doctor blades that scrape paper-machine rolls clean (a typical blade lasts eight hours to two months) to log debarkers, boiler-cleaning systems, conveyor parts for mines and balers for recyclables. Its customers are industrial manufacturers and distributors worldwide. Kadant says it has one of the largest bases of installed equipment in its markets.
Most revenue is repeat business. In fiscal 2025 (ended January 3, 2026), parts and consumables made up about 71% of $1.05 billion in revenue, and new machinery and systems made up 29%. Industrial Processing (wood and fiber processing equipment) was the largest segment, at 39%. Flow Control (fluid-handling and roll-cleaning products) followed at 36%, and Material Handling (conveying, vibratory and baling equipment) at 25%. The United States supplied about 51% of revenue, Europe 23%, Canada 10%, China 6% and Germany 4%.
Acquisitions are central to growth. Kadant acquired Italy-based Babbini in July 2025 and boiler-cleaning specialist Clyde Industries for $173.7 million in October 2025. In January 2026 it agreed to acquire voestalpine BÖHLER Profil, a maker of custom-shaped profiles and industrial knives, for about 157 million euros. As of the March 2026 annual report, the deal still needed Austrian regulatory approval.
Price history
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KAI -10.5% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Parts and Consumables | $748.4M | 71.1% |
| Capital | $303.8M | 28.9% |
By business segment
| Industrial Processing | $409.5M | 38.9% |
| Flow Control | $382.9M | 36.4% |
| Material Handling | $259.9M | 24.7% |
By geography
| United States | $534.0M | 50.8% |
| Europe | $241.7M | 23% |
| Canada | $104.2M | 9.9% |
| Rest of World | $66.1M | 6.3% |
| China | $62.6M | 5.9% |
| Germany | $44.2M | 4.2% |
Latest results
- In Q2 FY2026 (ended Jul 4, 2026), revenue was $312.9M, up 22.6% from a year earlier, and net income was $32.5M (+24.1%).
- For fiscal 2025, revenue was $1.05B (-0.1% year over year; +10.6% a year from FY2020 to FY2025) with a 9.7% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +10.6% good |
|---|---|
| Operating margin | 14.9% watch |
| Free cash flow margin | 14.7% good |
| Return on equity (FY2025) | 10.4% watch |
| Return on assets (FY2025) | 6% watch |
| Net cash (cash minus debt) | $-376.1M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $635.0M | $55.2M | $85.3M |
| FY2021 | $786.6M | $84.0M | $149.6M |
| FY2022 | $904.7M | $120.9M | $74.4M |
| FY2023 | $957.7M | $116.1M | $133.7M |
| FY2024 | $1.05B | $111.6M | $134.3M |
| FY2025 | $1.05B | $102.0M | $154.3M |
Valuation snapshot
| Market value | $3.14B |
|---|---|
| P/E ratio | 30.7 |
| Dividend yield | 0.53% |
Rank among 1514 US companies
Market value at each year end
Kadant’s market value went from $668.0M at the end of 2016 to $3.14B on Oct 28, 2026, about 4.7 times as much; since the end of 2025 it is down 6%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $3.14B | -6.5% |
| 2025 | $3.36B | -17.2% |
| 2024 | $4.05B | +23.5% |
| 2023 | $3.28B | +58.4% |
| 2022 | $2.07B | -22.5% |
| 2021 | $2.67B | +64.8% |
| 2020 | $1.62B | +36.6% |
| 2019 | $1.19B | +31.2% |
| 2018 | $904.8M | -18.1% |
| 2017 | $1.11B | +65.4% |
| 2016 | $668.0M |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| KAI price data to Oct 28, 2026 | -6.3% | -10.5% | +7.3% | +4.4% | +18.6% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -6.3% |
| 2025 | -17.0% |
| 2024 | +23.6% |
| 2023 | +58.7% |
| 2022 | -22.5% |
| 2021 | +64.4% |
| 2020 | +35.1% |
| 2019 | +30.7% |
| 2018 | -18.1% |
| 2017 | +65.9% |
| 2016 | +53.1% |
| 2015 | -3.5% |
| 2014 | +7.0% |
| 2013 | +54.9% |
| 2012 | +17.3% |
| 2011 | -4.1% |
| 2010 | +47.7% |
| 2009 | +18.4% |
| 2008 | -54.6% |
| 2007 | +21.7% |
| 2006 | +31.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 77.2% over that stretch · deepest drop along the way 80.1%, back to its old high 28.3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 35.4% over that stretch · deepest drop along the way 45.6%, back to its old high 2.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 29.5% over that stretch · deepest drop along the way 30.8%, back to its old high 12 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 2 sales ($861K).
| Date | Insider | Type | Value |
|---|---|---|---|
| May 18, 2026 | Thomas Andrew Blanchard Vice President | sell | $451K |
| May 27, 2026 | Stacy D. Krause SVP, GC and Secretary | sell | $410K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 15.1% | Feb 28, 2025 |
| Kayne Anderson Rudnick Investment Management, LLC | 10.1% | Dec 31, 2025 |
| WASATCH ADVISORS LP | 9% | Dec 31, 2024 |
| Wasatch Advisors LP | 7.4% | Jun 30, 2026 |
| Vanguard Portfolio Management | 6.04% | Mar 31, 2026 |
| Vanguard Capital Management | 5.25% | Mar 31, 2026 |
| Capital International Investors | 4.7% | Mar 31, 2025 |
| Neuberger Berman Group LLC | 4.7% | Mar 31, 2025 |
ETFs with the most weight in KAI
| BOTT Themes Robotics & Automation ETF | 3.52% |
| JSML Janus Henderson Small Cap Growth Alpha ETF | 2.08% |
| OSCV Opus Small Cap Value ETF | 2.07% |
| PSCI Invesco S&P SmallCap Industrials ETF | 1.77% |
| CAFG Pacer US Small Cap Cash Cows Growth Leaders ETF | 1.35% |
| DWAS Invesco Dorsey Wright SmallCap Momentum ETF | 1.22% |
| CGMM Capital Group U.S. Small and Mid Cap ETF | 1.21% |
| SMDV ProShares Russell 2000 Dividend Growers ETF | 0.91% |
What could go wrong
- Less home building hurts wood equipment sales. Kadant supplies log-processing machines to makers of lumber and oriented strand board (OSB, a panel made of wood strands). Weaker home building, a concentrated OSB customer base and changes in timber supply can cut orders.
- Digital media weighs on paper-related sales. Kadant says the growing use of digital media has hurt, and will keep hurting, its two largest segments, Flow Control and Industrial Processing. Both serve paper and packaging mills.
- Big equipment orders are hard to predict. About 29% of fiscal 2025 revenue came from capital equipment. Customers delay or cancel large projects when the economy weakens or financing is hard to get, which makes these sales uneven.
- Growth by acquisition adds integration and debt risk. Kadant counts on acquisitions as a major source of growth, and deals can disappoint or prove hard to integrate. As of July 4, 2026, debt totaled $511 million versus $135 million in cash and investments.
- Mining cycles and coal demand. Material Handling (25% of fiscal 2025 revenue) includes conveying equipment for mines. Mining spending rises and falls with the economy, part of the segment depends on coal, and safety and environmental rules could reduce demand.
- Tariffs, currency swings and China policy. Nearly half of fiscal 2025 revenue came from outside the United States, which exposes Kadant to tariffs, trade barriers and currency swings. China, about 6% of revenue, adds government policy risk and more volatile equipment sales.
Recent events
- Executive or board change; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Shareholder vote results
- Quarterly results released; Investor presentation or announcement
- Investor presentation or announcement; Other company announcement
- Quarterly results released; Investor presentation or announcement
- Investor presentation or announcement
- Major agreement signed; Investor presentation or announcement
For income and retirement investors
Kadant pays a small but growing dividend. The dividend has gone up at least nine years in a row. Dividends per share went from $0.96 in fiscal 2020 to $1.36 in fiscal 2025, about 7.2% a year. That used only 15.5% of fiscal 2025 earnings and 10.2% of free cash flow (cash generated after capital spending). But the yield was just 0.53% as of October 28, 2026, so returns depend mainly on share price gains, not income. Kadant repurchased no shares from fiscal 2021 to fiscal 2025, and its share count rose 1.8% between October 2021 and July 2026.
The shares have fallen hard in downturns. They dropped 80.1% in the 2008 financial crisis and took about 28 months from the low to recover. They fell 45.6% in the 2020 COVID crash but recovered within about two months. They lost 30.8% in the 2022 bear market and took 12 months to recover. Single stocks like Kadant carry more risk than diversified funds.
Questions investors ask
How does Kadant make money?
Kadant makes most of its money from replacement parts and consumables for industrial equipment. In fiscal 2025, which ended January 3, 2026, parts and consumables made up about 71% of its $1.05 billion in revenue, and new capital equipment made up about 29%. Its products include doctor blades that clean paper-machine rolls, log debarkers and conveyor parts. They serve paper, packaging, wood products, mining, food and recycling companies. Industrial Processing was the largest of its three segments, at 39% of revenue.
Does Kadant raise its dividend every year?
Yes, for at least nine straight years through fiscal 2025. That is based on SEC data going back to fiscal 2016, so the true streak may be longer. Dividends per share grew from $0.96 in fiscal 2020 to $1.36 in fiscal 2025, about 7.2% a year. The payout took just 15.5% of fiscal 2025 earnings. The yield was low, though: 0.53% as of October 28, 2026.
What is Kadant's P/E ratio?
Kadant's P/E ratio was about 30.7 as of October 28, 2026, based on fiscal 2025 earnings. Its market value was then about $3.1 billion. The price-to-earnings (P/E) ratio divides the share price by a year of profit per share. Kadant earned $8.65 a share in fiscal 2025, down from $10.35 in fiscal 2022. Net income fell 8.6% in fiscal 2025 while revenue was flat. Results improved in the quarter ended July 4, 2026: revenue rose 22.6% and net income 24.1% from a year earlier.
How much debt does Kadant have?
Kadant had about $511 million of total debt as of July 4, 2026, against $135 million of cash and investments. That left net debt (debt minus cash) of about $376 million, compared with shareholders' equity of about $1.02 billion. For scale, Kadant produced $154.3 million of free cash flow (cash left after capital spending) in fiscal 2025. Its January 2026 agreement to acquire voestalpine BÖHLER Profil called for about 157 million euros in cash. Its 10-K warns that debt and loan terms may restrict its activities.
How has Kadant stock performed over the long run?
Kadant's shares did strongly over 10 years and less well over shorter periods. As of October 28, 2026, the share price had gained about 18.6% a year over 10 years (451% in total), 7.3% a year over three years and 4.4% a year over five years. It had fallen 10.5% over one year. It dropped 17.0% in calendar 2025 and 6.3% in 2026 through October 28. The stock has been volatile: it fell 80.1% in the 2008 financial crisis.