Analysts at William Blair have lowered their earnings per share estimates for Kadant Inc. (NYSE: KAI) for the fourth quarter of 2025, reflecting a more cautious outlook for the industrial products company. In a research note issued on October 29, 2023, analyst R. Sparenblek revised the estimate to $2.10 per share, down from the previous forecast of $2.59. This change aligns with a broader consensus that anticipates Kadant’s full-year earnings to reach $9.97 per share.
Kadant recently released its quarterly earnings data, revealing earnings of $2.59 per share for the latest quarter, surpassing analysts’ expectations of $2.18 by $0.41. The company reported a revenue of $271.57 million, exceeding analyst predictions of $260.17 million. The year-on-year comparison shows a modest increase in revenue, with earnings per share from the same quarter last year recorded at $2.84.
Future Earnings Projections
In addition to the downward adjustment for Q4 2025, William Blair provided estimates for subsequent quarters in 2026. The anticipated earnings per share for Q2 2026 is $2.84, followed by $3.19 for Q3 2026, and $2.63 for Q4 2026. Kadant has set its earnings guidance for Q4 2025 between $2.050 and $2.250 per share, while the full-year guidance for 2025 ranges from $9.050 to $9.250.
Other equity research analysts have also weighed in on Kadant’s stock. Weiss Ratings reiterated a “hold (c+)” rating on October 8. Earlier in August, DA Davidson increased its target price for Kadant from $275.00 to $300.00, maintaining a “neutral” rating. Meanwhile, Barrington Research reaffirmed an “outperform” rating and set a target price of $380.00 on October 27. Currently, the stock has a consensus rating of “Hold” with an average price target of $340.00 according to MarketBeat.com.
Market Response and Shareholder Activity
Following the news, Kadant’s stock opened at $275.58 on Monday, reflecting a decrease of 3.5%. The company has a market capitalization of $3.25 billion, a price-to-earnings (P/E) ratio of 31.86, and a beta of 1.22. Over the past year, the stock has fluctuated between a low of $270.73 and a high of $429.95. Kadant’s debt-to-equity ratio stands at 0.27, with a current ratio of 9.39 and a quick ratio of 1.53.
Institutional investors have been active in the stock, with recent purchases including Kestra Investment Management LLC and Maseco LLP, each acquiring new stakes in Kadant during the second quarter. Hedge funds and institutional investors collectively hold 96.13% of the company’s stock.
In a separate development, Kadant Director Thomas C. Leonard sold 415 shares at an average price of $338.41 on August 27, representing an 8.90% decrease in his position. Following the sale, he retained 4,250 shares valued at approximately $1,438,242.50, a transaction disclosed to the SEC.
Kadant also announced a quarterly dividend of $0.34, set to be paid on November 6 to shareholders on record as of October 9. This dividend reflects an annualized rate of $1.36 and a yield of 0.5%, with a payout ratio of 15.72%.
Kadant Inc., headquartered in the United States, supplies technologies and engineered systems globally across three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment specializes in fluid-handling systems and equipment, providing essential components for various industries.
