Kadant (KAI) Stock Forecast & Price Target

Kadant Inc. reported strong financial performance, particularly in its Material Handling segment, which achieved record revenue driven by an 18% increase in capital shipments compared to Q3/24. New order activity rose by 5% to $94 million in Q3/25, underscoring robust demand in both aftermarket and capital sectors, while gross margins improved by 50 basis points to 45.2%, reflecting a notable shift towards higher-margin parts and consumables revenue, which constituted 69% of total revenue. Overall, these metrics indicate a solid growth trajectory, with an 11% increase in Material Handling revenue to $70.3 million and a 27% rise in adjusted EBITDA to $16.8 million, reinforcing a favorable outlook for the company's financial health.

Kadant Inc. has reported a concerning decline in key financial metrics, including an 8% decrease in adjusted EBITDA to $58 million and a 10% decline in operating cash flow to $47.3 million. Revenue showed stagnation year-over-year at $272 million, primarily attributed to a 4% drop in organic revenue, compounded by a 4% reduction in bookings driven by weakened demand for aftermarket parts. Additionally, both GAAP EPS and adjusted EPS reflected negative trends, decreasing by 12% to $2.35 and 9% to $2.59, respectively, highlighting ongoing challenges within the company's operational performance.