Kadant (KAI) Stock Forecast & Price Target

Kadant Inc. has demonstrated strong financial performance, particularly within its Material Handling segment, which achieved record revenue led by an 18% increase in capital shipments and an 11% overall revenue growth to $70.3 million. The company has also reported a 5% increase in new order activity, amounting to $94 million in Q3/25, highlighting robust demand in both aftermarket and capital sectors. Furthermore, the gross margin improved by 50 basis points to 45.2%, driven by a significant rise in parts and consumable revenue, which now comprises 69% of total revenue, reflecting solid operational efficiency and a favorable shift in revenue composition.

Kadant Inc. reported a notable decline in key financial metrics, with adjusted EBITDA dropping 8% to $58 million and operating cash flow decreasing 10% to $47.3 million. Revenue remained flat year-over-year at $272 million, accompanied by a 4% organic revenue decrease, indicating challenges in maintaining growth within its core markets. Additionally, the company's bookings declined by 4% due to reduced demand for aftermarket parts, further contributing to a negative outlook regarding its financial stability and market performance.