Kadant Reports Record Second-Quarter 2026 Revenue as Bookings Rise 16%

Kadant Inc. (NYSE: KAI) reported record revenue for the second quarter ended July 4, 2026, driven by strong demand for aftermarket parts and services, while highlighting continued customer caution around capital project approvals.

The company reported second-quarter revenue of $312.9 million, up 23% from the same period in 2025, while bookings increased 16% to $312.1 million. Net income attributable to Kadant rose 24% to $32.5 million, with diluted GAAP earnings per share increasing to $2.75 from $2.22 a year earlier. Adjusted EPS increased 26% to a record $3.42, while adjusted EBITDA rose 30% to a record $68.1 million, representing 21.8% of revenue. Operating cash flow increased 32% to $53.5 million, and backlog stood at $340 million.

"Our second-quarter results reflect solid execution across our businesses and robust demand for our aftermarket parts and services, resulting in record revenue and strong earnings growth," said Jeffrey L. Powell, president and chief executive officer. He added that while customer caution and extended approval cycles continue to delay capital projects, the company remains encouraged by healthy interest in its products and technologies.

Kadant said organic revenue increased 8%, excluding contributions from acquisitions and favorable foreign currency effects. Gross margin declined to 43.8% from 45.9% in the prior-year quarter, reflecting an unfavorable product mix and the lower gross margin profile of recent acquisitions.

Looking ahead, the company revised its full-year 2026 revenue guidance to $1.190 billion to $1.210 billion, up from its previous outlook of $1.178 billion to $1.203 billion. It expects full-year GAAP EPS of $9.78 to $10.03 and adjusted EPS of $12.43 to $12.68. For the third quarter, Kadant forecasts revenue of $297 million to $307 million, GAAP EPS of $2.28 to $2.38, and adjusted EPS of $2.90 to $3.00.

Kadant, headquartered in Westford, Massachusetts, supplies technologies and engineered systems for industrial processing and operates with approximately 4,000 employees across 22 countries.