kai-20260404

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 4, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to _________

Commission file number 001-11406

KADANT INC.

(Exact name of registrant as specified in its charter)


Delaware									52-1762325
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)

One Technology Park Drive

Westford, Massachusetts 01886

(Address of principal executive offices, including zip code)

(978) 776-2000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $.01 par value

KAI

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 1, 2026, the registrant had 11,808,462 shares of common stock outstanding.

Table of Contents

Kadant Inc.

Report on Form 10-Q

For the Quarterly Period Ended April 4, 2026

Table of Contents


		Page
PART I: Financial Information

Item 1.	Financial Statements (unaudited)

	Condensed Consolidated Balance Sheet as of April 4, 2026 and January 3, 2026	3

	Condensed Consolidated Statement of Income for the three-month periods ended April 4, 2026 and March 29, 2025	4

	Condensed Consolidated Statement of Comprehensive Income for the three-month periods ended April 4, 2026 and March 29, 2025	5

	Condensed Consolidated Statement of Cash Flows for the three-month periods ended April 4, 2026 and March 29, 2025	6

	Condensed Consolidated Statement of Stockholders' Equity for the three-month periods ended April 4, 2026 and March 29, 2025	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30

Item 4.	Controls and Procedures	30

PART II: Other Information

Item 1A.	Risk Factors	31

Item 5.	Other Information	32

Item 6.	Exhibits	33

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1 – Financial Statements

KADANT INC.

Condensed Consolidated Balance Sheet

(Unaudited)


	April 4, 2026		January 3, 2026
(In thousands, except share and per share amounts)
Assets
Current Assets:
Cash and cash equivalents	$	117,025	$	119,551
Restricted cash	2,792		3,130
Accounts receivable, net of allowances of $5,334 and $5,149	172,376		158,567
Inventories	214,831		206,854
Contract assets	5,921		6,599
Other current assets	49,698		47,232
Total Current Assets	562,643		541,933
Property, Plant, and Equipment, net of accumulated depreciation of $178,135 and $173,586	193,286		196,656
Other Assets	66,465		67,592
Intangible Assets, Net (Note 1)	341,170		350,376
Goodwill (Note 1)	551,088		555,621
Total Assets	$	1,714,652	$	1,712,178

Liabilities and Stockholders' Equity
Current Liabilities:
Current maturities of long-term obligations (Note 5)	$	3,161	$	3,129
Accounts payable	55,481		53,362
Accrued payroll and employee benefits	37,906		47,348
Accrued warranty costs	10,491		11,848
Customer deposits	64,466		56,867
Advanced billings	10,190		9,605
Other current liabilities	45,739		46,012
Total Current Liabilities	227,434		228,171
Long-Term Obligations (Note 5)	360,200		371,372
Long-Term Deferred Income Taxes	63,378		62,479
Other Long-Term Liabilities	57,491		59,089

Commitments and Contingencies (Note 10)

Stockholders' Equity:
Preferred stock, $.01 par value, 5,000,000 shares authorized; none issued	—		—
Common stock, $.01 par value, 150,000,000 shares authorized; 14,624,159 shares issued	146		146
Capital in excess of par value	136,360		138,844
Retained earnings	966,899		945,641
Treasury stock at cost, 2,815,702 and 2,835,165 shares	(68,996)		(69,473)
Accumulated other comprehensive items (Note 7)	(38,805)		(35,349)
Total Kadant Stockholders' Equity	995,604		979,809
Noncontrolling interests	10,545		11,258
Total Stockholders' Equity	1,006,149		991,067
Total Liabilities and Stockholders' Equity	$	1,714,652	$	1,712,178

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

KADANT INC.

Condensed Consolidated Statement of Income

(Unaudited)


	Three Months Ended
	April 4, 2026		March 29, 2025
(In thousands, except per share amounts)
Revenue (Notes 1 and 9)	$	281,505	$	239,210

Costs and Operating Expenses:
Cost of revenue	154,802		128,880
Selling, general, and administrative expenses	82,538		71,221
Research and development expenses	4,056		3,523

	241,396		203,624
Operating Income	40,109		35,586
Interest Income	351		517
Interest Expense	(4,484)		(3,822)
Other Expense, Net	(13)		(16)
Income Before Provision for Income Taxes	35,963		32,265
Provision for Income Taxes (Note 4)	10,142		7,828
Net Income	25,821		24,437
Net Income Attributable to Noncontrolling Interests	(312)		(374)
Net Income Attributable to Kadant	$	25,509	$	24,063

Earnings per Share Attributable to Kadant (Note 3)
Basic	$	2.16	$	2.05
Diluted	$	2.16	$	2.04

Weighted Average Shares (Note 3)
Basic	11,794		11,760
Diluted	11,802		11,776

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

KADANT INC.

Condensed Consolidated Statement of Comprehensive Income

(Unaudited)


	Three Months Ended
	April 4, 2026		March 29, 2025
(In thousands)
Net Income	$	25,821	$	24,437
Other Comprehensive Items:
Foreign currency translation adjustment	(3,486)		10,009
Pension and other post-retirement liability adjustments, net (net of tax (benefit) provision of $(2) and $1)	(5)		4

Other comprehensive items	(3,491)		10,013
Comprehensive Income	22,330		34,450
Comprehensive Income Attributable to Noncontrolling Interests	(277)		(443)
Comprehensive Income Attributable to Kadant	$	22,053	$	34,007

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

KADANT INC.

Condensed Consolidated Statement of Cash Flows

(Unaudited)


	Three Months Ended
	April 4, 2026		March 29, 2025
(In thousands)
Operating Activities
Net income attributable to Kadant	$	25,509	$	24,063
Net income attributable to noncontrolling interests	312		374

Net income	25,821		24,437
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	14,647		12,013
Stock-based compensation expense	2,916		2,757
Provision for (recovery of) losses on accounts receivable	272		(240)

Other items, net	3,509		2,337
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable	(14,323)		(1,068)
Contract assets	697		6,310
Inventories	(9,214)		(5,516)
Other assets	(1,635)		(1,368)
Accounts payable	2,522		(1,658)
Customer deposits	7,308		(827)
Other liabilities	(10,604)		(14,342)


Net cash provided by operating activities	21,916		22,835

Investing Activities
Acquisition holdback payment (Note 2 )	(1,157)		—
Purchases of property, plant, and equipment	(3,258)		(3,836)
Proceeds from sale of property, plant, and equipment	489		—


Net cash used in investing activities	(3,926)		(3,836)

Financing Activities
Proceeds from issuance of long-term obligations	9,000		8,000
Repayment of short- and long-term obligations	(19,129)		(22,563)
Tax withholding payments related to stock-based compensation	(4,923)		(6,036)
Dividends paid	(4,008)		(3,762)
Proceeds from issuance of Company common stock	—		2,101
Dividends paid to noncontrolling interests	(990)		(825)


Net cash used in financing activities	(20,050)		(23,085)

Exchange Rate Effect on Cash, Cash Equivalents, and Restricted Cash	(804)		1,945

Decrease in Cash, Cash Equivalents, and Restricted Cash	(2,864)		(2,141)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	122,681		95,946
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	119,817	$	93,805

See Note 1, Nature of Operations and Summary of Significant Accounting Policies,

under the heading Supplemental Cash Flow Information for further details.

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

KADANT INC.

Condensed Consolidated Statement of Stockholders' Equity

(Unaudited)


	Three Months Ended April 4, 2026
(In thousands, except share and per share amounts)	Common Stock			Capital in Excess of Par Value		Retained Earnings		Treasury Stock			Accumulated Other Comprehensive Items		Noncontrolling Interests		Total Stockholders' Equity
	Shares	Amount						Shares	Amount
Balance at January 3, 2026	14,624,159	$	146	$	138,844	$	945,641	2,835,165	$	(69,473)	$	(35,349)	$	11,258	$	991,067
Net income	—	—		—		25,509		—	—		—		312		25,821
Dividend declared – Common Stock, $0.36 per share	—	—		—		(4,251)		—	—		—		—		(4,251)
Activity under stock plans	—	—		(2,484)		—		(19,463)	477		—		—		(2,007)


Dividends paid to noncontrolling interest	—	—		—		—		—	—		—		(990)		(990)
Other comprehensive items	—	—		—		—		—	—		(3,456)		(35)		(3,491)
Balance at April 4, 2026

SEC Form 10-Q filed by Kadant Inc