Key Highlights

  • Kadant's $0.36 quarterly dividend has an October 15, 2026 ex-dividend date and is payable November 12 to stockholders of record.
  • Second-quarter revenue was a record $312.9 million, up 23%, including 13% from acquisitions and 8% organic growth.
  • GAAP EPS was $2.75 versus $2.22, and adjusted EPS, a non-GAAP measure, was a record $3.42 versus $2.71.
  • Adjusted EBITDA was a record $68.1 million, or 21.8% of revenue, and bookings were $312.1 million.

Kadant's (NYSE:KAI) $0.36 quarterly dividend yields 0.55% and sits beside second-quarter GAAP EPS of $2.75 and adjusted EPS of $3.42. The board approved it on September 10, 2026, the same $0.36 set when the company raised the quarterly dividend in March 2026.

Dividend Program and Shareholder Returns

Kadant's board approved a quarterly cash dividend of $0.36 per share on September 10, 2026, to be paid November 12 to stockholders of record as of the close of business on October 15.

On March 11, 2026 the board increased the quarterly dividend to $0.36 from $0.34. In the second quarter ended July 4, 2026 the company generated operating cash flow of $53.5 million and free cash flow of $42.6 million.

About the Company

Kadant is a global supplier of technologies and engineered systems that drive Sustainable Industrial Processing, based in Westford, Massachusetts. It has approximately 4,000 employees in 22 countries.

Financial Performance Behind the Payout

For the second quarter ended July 4, 2026, revenue was a record $312.9 million versus $255.3 million, up 23%. Organic revenue increased 8%, excluding a 13% contribution from acquisitions and a 2% favorable currency effect. Gross margin was 43.8% versus 45.9%, which the company attributed in part to unfavorable product mix and a lower gross margin profile on recent acquisitions. Operating income was $50.9 million versus $39.4 million.

Net income was $32.5 million versus $26.2 million. Adjusted EPS excludes intangible asset amortization of $0.55 and acquisition-related costs of $0.13. Adjusted EBITDA was $68.1 million versus $52.4 million.

Parts and consumables were 68% of revenue versus 71%. Bookings were $312.1 million versus $269.4 million, with organic bookings down 1%, and backlog was $340 million. Cash, cash equivalents and restricted cash were $137.6 million, and debt obligations were $508.2 million versus $372.7 million at January 3, 2026.

CEO Succession Plan

On September 10, 2026 Kadant announced that Michael C. Colwell becomes president and chief operating officer on October 1, 2026, and president and chief executive officer on January 2, 2027. Jeffrey L. Powell remains CEO through January 2, 2027, when he becomes executive chairman.

Outlook

Kadant's 2026 guidance is revenue of $1.190 billion to $1.210 billion, revised from $1.178 billion to $1.203 billion, GAAP EPS of $9.78 to $10.03, revised from $9.80 to $10.15, and adjusted EPS of $12.43 to $12.68, revised from $12.33 to $12.68. Third-quarter guidance is revenue of $297 million to $307 million, GAAP EPS of $2.28 to $2.38 and adjusted EPS of $2.90 to $3.00, which excludes $0.62 per share of acquisition-related costs.