Kadant raises 2026 revenue forecast after Q1 results beat

Overview

• Industrial processing supplier's Q1 revenue rose 18%, beating analyst expectations

• Adjusted EPS for Q1 rose 14% and beat analyst expectations

• Company raised 2026 revenue guidance but lowered adjusted EPS outlook due to acquisition impact

Outlook

• Kadant raises 2026 revenue guidance to $1.178-$1.203 bln from $1.160-$1.185 bln

• Company lowers 2026 GAAP EPS forecast to $9.80-$10.15 from $10.27-$10.62

• Kadant expects Q2 2026 revenue of $296-$306 mln and adjusted EPS of $2.88-$2.98

Result Drivers

• AFTERMARKET PARTS DEMAND - Co said strong demand for aftermarket parts contributed to record bookings and revenue growth

• ACQUISITIONS - Recent acquisitions contributed 14% to revenue growth and 11% to bookings growth

• GROSS MARGIN PRESSURE - Gross margin declined 110 basis points, partly due to acquisition-related costs

Company press release: ID:nGNX2PH637

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 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 $303.00, about 5.8% above its May 4 closing price of $286.33

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 31 three months ago

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