Slide 1: Second Quarter 2026 Business Review
Second Quarter 2026 Business Review August 5, 2026
Slide 2: Forward-Looking Statements
Forward-Looking Statements The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about our future fin
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including increases or decreases in revenue excluding the effect of acquisitions and foreign currency
Slide 4: Business Review
BUSINESS REVIEW Jeffrey L. Powell, President & CEO 4
Slide 5: Second Quarter Highlights
Second Quarter Highlights • Demand remains healthy; timing remains uncertain • Resilient business model continues to perform • Profitability supported by operational discipline • Strong contributions from our recent acquisitions • Exceeded expectations across most financial metrics KAI 2Q26 BUSINESS
Slide 6: Q2 2026 Performance
Q2 2026 Performance HIGHLIGHTS ($ in millions, except per share amounts) Q2 26 Q2 25 Change Bookings $312.1 $269.4 +15.9% • Healthy demand for aftermarket parts Revenue $312.9 $255.3 +22.6% continued to drive bookings Net Income $32.5 $26.2 +24.1% • Strong organic revenue growth, up 8% Adjusted EBIT
Slide 7: Flow Control
Flow Control HIGHLIGHTS ($ in millions) Q2 26 Q2 25 Change Bookings $102.8 $93.1 +10.5% • Strong bookings across diverse markets, Revenue $100.3 $95.9 +4.5% particularly in the Americas Adjusted EBITDA* $27.8 $27.8 +0.2% Adjusted EBITDA Margin* 27.7% 28.9% -120 bps • Record aftermarket parts revenue
Slide 8: Industrial Processing
Industrial Processing HIGHLIGHTS ($ in millions) Q2 26 Q2 25 Change Bookings $135.9 $105.4 +29.0% • Revenue and bookings benefited from Revenue $143.8 $95.9 +49.9% recent acquisitions Adjusted EBITDA* $37.5 $21.3 +76.5% • Strong organic revenue growth of 13% Adjusted EBITDA Margin* 26.1% 22.2% +390
Slide 9: Material Handling
Material Handling HIGHLIGHTS ($ in millions) Q2 26 Q2 25 Change Bookings $73.3 $70.9 +3.3% • Steady year-over-year growth Revenue $68.8 $63.4 +8.5% Adjusted EBITDA* $14.8 $13.8 +6.7% • Healthy aftermarket parts demand Adjusted EBITDA Margin* 21.5% 21.8% -30 bps • Strong revenue volume contributed to
Slide 10: Business Outlook
Business Outlook • Customer engagement and quote activity remain high • Demand expected to strengthen relative to the first half of the year as commercial activity remains healthy • Improving capital equipment environment although timing remains uncertain • Geopolitical tensions continue to pose cha
Slide 11: Financial Review
FINANCIAL REVIEW Michael J. McKenney, EVP & CFO 11
Slide 12: Q2 2026 Financial Performance
Q2 2026 Financial Performance HIGHLIGHTS ($ in millions, except per share amounts) Q2 26 Q2 25 Revenue $312.9 $255.3 • Record parts and consumables revenue Gross Margin 43.8% 45.9% SG&A % of Revenue 26.1% 29.0% • Adjusted EBITDA margin* of 21.8% Operating Income $50.9 $39.4 • Adjusted EPS* exceeded
Slide 13: Key Financial Metrics
Key Financial Metrics ADJUSTED EBITDA* CASH FLOW ($ in millions) ($ in millions) 21.4% 21.8% 20.5% 20.3% 20.2% $60.8 $68.1 $53.5 $58.0 $58.0 $56.8 $47.3 $52.4 $54.7 $40.5 $44.1 $42.6 $36.5 $21.9 $26.2 $27.7 $25.5 $32.5 $18.7 $24.0 2Q25 3Q25 4Q25 1Q26 2Q26 2Q25 3Q25 4Q25 1Q26 2Q26 NET INCOME ADJUSTED
Slide 14: Q2 25 to Q2 26 Adjusted EPS*
Q2 25 to Q2 26 Adjusted EPS* $0.52 $0.01 $0.67 $(0.23) $3.42 $(0.12) $(0.08) $(0.06) 2Q22 $2.712Q21 ADJ ADJ EPS* EPS* Q2 25 ADJ EPS* REVENUE ACQUISITIONS NONCONTROLLING GROSS MARGIN INTEREST EXPENSE TAX PROVISION OPERATING Q2 26 ADJ EPS* INTERESTS EXPENSES KAI 2Q26 BUSINESS REVIEW– AUGUST 2026 | © 2
Slide 15: Key Liquidity Metrics
Key Liquidity Metrics ($ in millions) Q2 26 Q1 26 Q2 25 Cash, cash equivalents, and restricted cash $137.6 $119.8 $97.2 Debt $508.2 $361.3 $247.2 Lease obligations $2.4 $2.1 $1.7 Net Debt $373.0 $243.5 $151.7 Leverage ratio1 1.72 1.27 0.86 Working capital % LTM revenue2 19.3% 20.0% 17.7% Cash conver
Slide 16: Guidance
Guidance • FY 2026 revenue of $1.190 to $1.210 billion, revised from $1.178 to $1.203 billion • FY 2026 GAAP EPS of $9.78 to $10.03, revised from $9.80 to $10.15 • FY 2026 adjusted EPS* of $12.43 to $12.68 revised from $12.33 to $12.68 • Q3 2026 revenue of $297 to $307 million • Q3 2026 GAAP EPS of
Slide 17: Questions & Answers
Questions & Answers To participate in the live Q&A session, please go to investor.kadant.com and click on the Q&A session link to receive a dial-in number and unique PIN. Please mute the audio on your computer. 17
Slide 18: Delivering Exceptional Stakeholder Value
Delivering Exceptional Stakeholder Value OUR KEY PRIORITIES Reinforce an entrepreneurial mindset in our decentralized business model to stimulate growth and drive efficiencies. Build leadership capabilities to achieve growth-focused critical outcomes. Cultivate innovation, agility, and discipline fo
Slide 19: Contacts
CONTACTS Investor Relations Michael McKenney, 978-776-2000 IR@kadant.com Media Relations Wes Martz, 978-776-2000 media@kadant.com 19
Slide 20: Appendix
APPENDIX Second Quarter 2026 Business Review August 5, 2026 20
Slide 21: Revenue by Customer Location
Revenue by Customer Location Change Excluding ($ in thousands) Q2 26 Q2 25 Change Acquisitions and FX* North America $186,796 $157,968 $28,828 $15,646 Europe 72,842 63,230 9,612 (2,978) Asia 33,544 20,941 12,603 6,289 Rest of World 19,693 13,128 6,565 650 Total $312,875 $255,267 $57,608 $19,607 Perc
Slide 22: Adjusted EPS* Reconciliation
Adjusted EPS* Reconciliation Q2 26 Q2 25 EPS, as Reported $2.75 $2.22 Adjustments, Net of Tax Intangible Asset Amortization Expense 0.55 0.40 Profit in Inventory and Backlog Amortization Expense 0.08 0.01 Acquisition Costs 0.05 0.08 Adjusted EPS* $3.42 $2.71 Free Cash Flow* Reconciliation ($ in thou
Slide 23: Adjusted EBITDA* Reconciliation
Adjusted EBITDA* Reconciliation ($ in thousands) Q2 26 Q2 25 Net Income Attributable to Kadant $32,468 $26,159 Net Income Attributable to Noncontrolling Interests 379 480 Provision for Income Taxes 13,182 9,822 Interest Expense, Net 4,819 2,899 Other Expense, Net 32 17 Intangible Asset Amortization
Slide 24: Notes
Notes PRESENTATION NOTES • All references to EPS (earnings per share) are to our EPS as calculated on a diluted basis. • Adjusted EPS* has been calculated using our new methodology announced on February 19, 2026 to exclude intangible asset amortization expense. • Percent change in slides 6-9 is calc