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Kadant Inc

Kadant Inc. supplies technologies and engineered systems worldwide through three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems and equipment, including rotary joints, syphons, Turbulator bars, expansion joints, engineered steam and condensate systems, doctor systems and holders, doctor blades, cleaning showers, fabric-conditioning systems, forming systems, wear surfaces, and water-filtration systems. The Industrial Processing segment provides ring and rotary debarkers, stranders, chippers, engineered knife systems, industrial automation and control products, recycling and approach flow systems, virgin pulping process equipment, boiler cleaning technologies, and single and double-screw presses. The Material Handling segment provides vibratory and conveying equipment, components and equipment for baling recyclable and waste materials, and fiber-based products. Products and services are sold through direct sales, independent sales agents, and distributors. The company was formerly known as Thermo Fibertek, Inc. and changed its name to Kadant Inc. in July 2001. Kadant Inc. was incorporated in 1991 and is headquartered in Westford, Massachusetts.

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Kadant Names 13-Year Insider Michael Colwell as Next CEO

Kadant Inc. announced a structured leadership succession plan on September 10 under which 13-year company veteran Michael C. Colwell will become President and Chief Operating Officer on October 1, then succeed long-time chief executive Jeffrey L. Powell as Chief Executive Officer on January 2, 2027. Powell, who has led Kadant for over 18 years, will continue as President through September 30 and as CEO through January 2, 2027, after which he will serve as Executive Chairman through January 1, 2028, while Chairman Jonathan W. Painter steps down from the board effective January 2, 2027. Colwell has served as Senior Vice President of the Industrial Processing segment since December 2024, overseeing global operations in wood processing and fiber processing equipment, and joined the company when Kadant acquired Kadant Carmanah Design in November 2013, an entity he had led as President since 2010. The transition comes as Kadant's Q2 2026 results showed total revenue rising 23% year-over-year to a record $313 million, with organic revenue up 8%, total bookings up 16% to $312 million, organic bookings down 1%, and gross margin contracting 210 basis points to 43.8%. Short interest stands at 13.33% of total float, and the stock traded at a forward price-to-earnings ratio of 20.16x as of September 24.
KAI · · Neutral Kadant announced a CEO succession plan (Colwell succeeding Powell in 2027); leadership transition is neutral/uncertain for the company.
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Kadant Shares Fall 4.4% After CEO Succession Plan Announced

Kadant shares fell 4.4% in the afternoon session after the industrial equipment manufacturer announced an executive succession plan outlining the transition and retirement of President and Chief Executive Officer Jeffrey L. Powell. Under the plan, Powell will remain President through September 30, 2026, and continue as Chief Executive Officer until January 2, 2027, after which he will serve as executive chairman of the board until his planned retirement on January 1, 2028. Alongside the succession announcement, Kadant declared a quarterly dividend while noting risk factors tied to executive leadership transitions and broader economic conditions. After the initial drop, the shares recovered some losses to trade at $276.51, down 3.4% from the previous close. The stock is down 3.4% year to date and trades 20.4% below its 52-week high of $347.31 from March 2026.
KAI · Capital · Negative Kadant announced a CEO succession plan with Powell's transition and retirement, prompting a 4.4% share drop.
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Kadant names Michael Colwell CEO under board succession plan

Kadant announced a board-adopted succession plan that will make Michael C. Colwell president and chief operating officer effective October 1, 2026, and president, chief executive officer and a director effective January 2, 2027. Jeffrey L. Powell will continue as president through September 30, 2026, and as chief executive officer through January 2, 2027, when he becomes executive chairman of the board. Jonathan W. Painter, the current chairman, will cease to serve as a director and chairman on January 2, 2027. Colwell has been a senior vice president since December 2024, was a vice president from August 2022 to December 2024, and is responsible for the company's Industrial Processing segment; he previously served as president of Kadant Carmanah Design, a division of subsidiary Kadant Canada, from 2013 to 2019, and as president and chief executive officer of Carmanah Design and Manufacturing from April 2010 until its acquisition by the company in November 2013. Kadant said the plan is designed to retain Powell's services for one year following the appointment of his successor as CEO.
KAI · · Neutral Board-adopted CEO succession plan names Michael Colwell as next CEO; a leadership transition with no stated financial or operational impact.
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General Industrial Machinery Stocks Post Strong Q2 Results

General industrial machinery stocks reported strong second-quarter results, with the 12 companies tracked beating revenue consensus estimates by 2.6% while next quarter's revenue guidance came in 3.3% below expectations. Dover reported revenues of $2.19 billion, up 6.9% year on year, but fell short of analysts' expectations by 0.8%, and its stock is down 5.7% since reporting. Columbus McKinnon delivered the fastest revenue growth in the group, with revenues of $531.5 million, up 125% year on year, beating expectations by 5.9%, and its stock is up 21.6% since reporting. Albany had the weakest performance against analyst estimates, with revenues of $329.5 million, up 5.8% year on year, missing expectations by 3.1%. Illinois Tool Works reported revenues of $4.30 billion, up 6.1% year on year, surpassing expectations by 2.7%, while Kadant reported revenues of $312.9 million, up 22.6% year on year, topping expectations by 4.6%.
CMCO · Capital · Positive Columbus McKinnon beat revenue expectations by 5.9% with 125% growth, stock up 21.6%.
DOV · Capital · Negative Dover fell short of revenue expectations by 0.8%, stock down 5.7%.
AIN · Capital · Negative Albany missed revenue expectations by 3.1%, the weakest performance in the group.
ITW · Capital · Positive Illinois Tool Works surpassed revenue expectations by 2.7%.
KAI · Capital · Positive Kadant topped revenue expectations by 4.6%.
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Kadant Q2 Earnings Beat Estimates, Raises Full-Year Guidance

Kadant reported second-quarter revenue of $312.9 million, beating analyst estimates of $299.2 million and growing 22.6% year over year, while adjusted EPS of $3.42 also topped expectations of $2.77. The company slightly raised its full-year revenue guidance to $1.2 billion at the midpoint from $1.19 billion and lifted adjusted EPS guidance to $12.56 at the midpoint. Management credited strong aftermarket demand and recent acquisitions for the results, despite softness in global capital equipment markets. Analysts on the earnings call focused on project pipeline strength, M&A performance, and capital equipment bookings, with CEO Jeffrey Powell noting improving bookings and a stronger pipeline in packaging, aerospace, and OSB.
KAI · Capital · Positive Q2 earnings and revenue beat estimates, and full-year guidance raised.
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Kadant reports record revenue and adjusted EPS in second quarter 2026

Kadant Inc. reported second-quarter 2026 financial results with revenue increasing 23 percent to a record $312.9 million and adjusted earnings per share rising 26 percent to a record $3.42. Net income grew 24 percent to $32.5 million, while GAAP EPS reached $2.75, also up 24 percent. Bookings climbed 16 percent to $312.1 million, and adjusted EBITDA jumped 30 percent to a record $68.1 million, representing 21.8 percent of revenue. The company raised its full-year revenue guidance to a range of $1.190 to $1.210 billion and adjusted EPS guidance to $12.43 to $12.68.
KAI · Capital · Positive Record revenue and adjusted EPS, raised guidance
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3 Unpopular Stocks with Warning Signs

Analysts have turned bearish on three stocks, citing warning signs that warrant caution. Floor & Decor faces disappointing same-store sales and a 12.9% annual decline in earnings per share over three years, with a consensus price target of $53.91 implying an 8.6% downside. Kadant shows muted 5.9% annual revenue growth and flat earnings per share despite revenue increases, with a $343 target suggesting 9.4% upside but waning returns on capital. Morgan Stanley's 6.1% annual revenue growth and 7.3% annual EPS growth over five years lag the financial sector, and its 5.8% annual tangible book value per share increase reflects limited capital growth potential, with a $203.67 target implying a 3.7% decline.
FND · Capital · Negative Analysts cite disappointing same-store sales and declining EPS, with a consensus price target implying downside.
KAI · Capital · Negative Analysts highlight muted revenue growth, flat EPS, and waning returns on capital, with limited upside.
MS · Capital · Negative Analysts note lagging revenue and EPS growth vs. sector, limited tangible book value growth, and a price target implying decline.
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