Kadant (KAI) Stock Forecast & Price Target

Kadant Inc. has demonstrated strong financial performance in its Material Handling segment, with record revenue driven by an 18% increase in capital shipments in Q3/25, resulting in revenue of $70.3 million and a 27% increase in adjusted EBITDA to $16.8 million. Total bookings also showed positive momentum, rising 5.5% to $93.8 million, reflecting robust new order activity and increasing demand for both aftermarket and capital products. Furthermore, the gross margin improved by 50 basis points to 45.2%, largely due to a shift in revenue composition, where parts and consumables accounted for 69% of total revenue, up from 65% in the prior year.

Kadant Inc. has reported a decline in adjusted EBITDA, which fell 8% to $58 million, along with stagnation in overall revenue at $272 million, reflecting a 4% organic revenue decrease. Furthermore, the company experienced a significant drop in operating cash flow by 10% to $47.3 million and a 9% decrease in free cash flow to $44.1 million in Q3/25, indicating worsening financial health. Additionally, both GAAP and adjusted EPS saw declines of 12% and 9%, respectively, further underscoring the challenges Kadant faces in maintaining profitability amidst softer demand conditions.