Kadant Q2 revenue beats analyst estimates; 2026 outlook lifted - KAI News | RalliesKadant Q2 revenue beats analyst estimates; 2026 outlook lifted
K
KAI• Drivers and analyst coverage
- Aftermarket demand - The company said robust demand for aftermarket parts and services contributed to record revenue and earnings growth.
- Acquisitions - Acquisitions contributed 13% to revenue growth and 15% to bookings growth in Q2.
- Product mix & acquisitions - Gross margin declined due to unfavorable product mix and a lower margin profile from recent acquisitions.
- The current average analyst rating on the shares is "buy," with 2 "strong buy" or "buy," 2 "hold," and no "sell" or "strong sell."
- The average consensus recommendation for the industrial machinery & equipment peer group is "buy."
- Wall Street's median 12-month price target for Kadant Inc is $343.00, about 5.7% above its August 3 closing price of $324.56.
- The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 24 three months ago.
Q2 revenue and earnings beat estimates
- Kadant's Q2 revenue rose 23%, beating analyst expectations.
- Adjusted EPS for Q2 also beat consensus, rising 26% year-over-year.
- Gross margin declined 210 bps due to product mix and recent acquisitions.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|
| Q2 Revenue | Beat |
| Q2 Adjusted EPS | Beat | $3.42 | $2.94 (4 Analysts) |
| Q2 Adjusted EBITDA | Beat | $68 mln | $60.26 mln (4 Analysts) |
2026 outlook lifted, Q3 guidance set
- Kadant raises 2026 revenue guidance to $1.190-$1.210 bln from $1.178-$1.203 bln.
- Company lowers 2026 GAAP EPS guidance to $9.78-$10.03 from $9.80-$10.15.
- Kadant expects Q3 revenue of $297-$307 mln and GAAP EPS of $2.28-$2.38.
•
