Kadant Inc · NYSE:KAI
Kadant — Q4 2025 Earnings Presentation
30 slides from Kadant's earnings presentation, Feb 18, 2026
Slide 1: Fourth Quarter 2025 and FY 2025 Business Review
Fourth Quarter 2025 and FY 2025 Business Review FEBRUARY 19, 2026 Exhibit 99.2
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: Operational Highlights
Operational Highlights 5 KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. • Delivered solid performance in the fourth quarter • Excellent execution and strong cash flow • Named by Newsweek as one of America's Most Responsible Companies for the sixth consecutive year
Slide 6: Q4 2025 Performance
Q4 2025 Performance 6 ($ in millions, except per share amounts) Q4 25 Q4 24 Change Bookings $270.0 $240.6 +12.2% Revenue $286.2 $258.0 +10.9% Net Income $24.0 $24.0 —% Adjusted EBITDA* $58.0 $52.4 +10.6% Adjusted EBITDA Margin* 20.3 % 20.3 % — bps EPS $2.04 $2.04 —% Adjusted EPS* $2.27 $2.25 +0.9% O
Slide 7: FY 2025 Performance
FY 2025 Performance 7 ($ in millions, except per share amounts) FY 25 FY 24 Change Bookings $1,033.9 $981.1 +5.4% Revenue $1,052.2 $1,053.4 -0.1% Net Income $102.0 $111.6 -8.6% Adjusted EBITDA* $216.3 $229.7 -5.8% Adjusted EBITDA Margin* 20.6 % 21.8 % -120 bps EPS $8.65 $9.48 -8.8% Adjusted EPS* $9.
Slide 8: Flow Control
$87.4 $100.0 $93.1 $93.8 $93.6 4Q24 1Q25 2Q25 3Q25 4Q25 8 ($ in millions) Q4 25 Q4 24 Change Revenue $99.6 $94.7 +5.2 % Bookings $93.6 $87.4 +7.1 % Adjusted EBITDA* $26.8 $27.2 -1.4 % Adjusted EBITDA Margin* 26.9 % 28.7 % -180 bps HIGHLIGHTS • Strong aftermarket parts demand in all regions; total bo
Slide 9: Industrial Processing
9 ($ in millions) Q4 25 Q4 24 Change Revenue $117.6 $101.4 +16.0% Bookings $121.0 $103.6 +16.8% Adjusted EBITDA* $27.3 $22.6 +20.9% Adjusted EBITDA Margin* 23.2 % 22.3 % +90 bps HIGHLIGHTS • Recent acquisitions drove increases in revenue and bookings • Softness in capital project orders moderated re
Slide 10: Material Handling
10 ($ in millions) Q4 25 Q4 24 Change Revenue $68.9 $61.9 +11.3% Bookings $55.4 $49.6 +11.6% Adjusted EBITDA* $15.2 $12.9 +18.1% Adjusted EBITDA Margin* 22.1 % 20.8 % +130 bps HIGHLIGHTS • Strong revenue performance led by capital shipments • Excellent commercial and operational execution • Adjusted
Slide 11: Business Outlook
Business Outlook • Project activity expected to improve • Aftermarket parts demand expected to remain healthy • Tariff volatility and other cost pressures continue to pose challenges • Our solid balance sheet and strong cash flow generation provide a firm foundation for 2026 11 KAI 4Q25 BUSINESS REV
Slide 12: Financial Review
Financial Review Michael J. McKenney, EVP & CFO 12
Slide 13: Q4 2025 Financial Performance
Q4 2025 Financial Performance ($ in millions, except per share amounts) Q4 25 Q4 24 Revenue $286.2 $258.0 Gross Margin 43.9% 43.4% SG&A % of Revenue 28.3% 27.3% Operating Income $39.7 $36.9 Net Income $24.0 $24.0 Adjusted EBITDA* $58.0 $52.4 EPS $2.04 $2.04 Adjusted EPS* $2.27 $2.25 Operating Cash F
Slide 14: FY 2025 Financial Performance
FY 2025 Financial Performance ($ in millions, except per share amounts) FY 25 FY 24 Revenue $1,052.2 $1,053.4 Gross Margin 45.2% 44.3% SG&A % of Revenue 28.7% 26.6% Operating Income $157.3 $171.3 Net Income $102.0 $111.6 Adjusted EBITDA* $216.3 $229.7 EPS $8.65 $9.48 Adjusted EPS* $9.26 $10.28 Opera
Slide 15: Key Financial Metrics
$159.4 $189.1 $201.3 $229.7 $216.3 $84.0 $120.9 $116.1 $111.6 $102.0 20.3% 20.9% 21.0% 21.8% 20.6% NET INCOME ADJUSTED EBITDA* ADJ. EBITDA MARGIN* 2021 2022 2023 2024 2025 Key Financial Metrics KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 15 FY ADJUSTED EBITDA* (
Slide 16: Q4 to Q4 Adjusted EPS
2Q21 ADJ EPS* 2Q22 ADJ EPS* KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. Q4 24 to Q4 25 Adjusted EPS* $2.25 $0.17 $0.15 $0.09 $(0.22) $(0.10) $(0.04) $(0.03) $2.27 Q4 24 ADJ EPS* REVENUE ACQUISITIONS GROSS MARGIN OPERATING EXPENSES TAX PROVISION INTEREST EXPENSE
Slide 17: 2024 to 2025 Adjusted EPS
2Q21 ADJ EPS* 2Q22 ADJ EPS* KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 2024 to 2025 Adjusted EPS* $10.28 $0.46 $0.27 $0.25 $(1.06) $(0.72) $(0.13) $(0.07) $(0.02) $9.26 2024 ADJ EPS* GROSS MARGIN INTEREST EXPENSE ACQUISITIONS REVENUE OPERATING EXPENSES TAX PROV
Slide 18: Key Liquidity Metrics
Key Liquidity Metrics KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. ($ in millions) Q4 25 Q3 25 Q4 24 Cash, cash equivalents, and restricted cash $122.7 $126.9 $95.9 Debt $372.7 $256.0 $286.5 Lease obligations $1.8 $2.0 $2.0 Net Debt $251.8 $131.1 $192.6 Leverage
Slide 19: Guidance
Guidance KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 19 • FY 2026 revenue of $1.160 to $1.185 billion • FY 2026 GAAP EPS of $10.27 to $10.62 • FY 2026 adjusted EPS*, as previously reported, of $10.40 to $10.75 • Q1 2026 revenue of $270 to $280 million • Q1 2026
Slide 20: Guidance
Guidance FY 26 Low High FY 25 EPS, as Reported $10.27 $10.62 $8.65 Adjustments, Net of Tax 0.13 0.13 0.61 Adjusted EPS*, as Previously Reported $10.40 $10.75 $9.26 Amortization of Acquired Intangible Assets 2.13 2.13 1.75 Adjusted EPS*, as Currently Reported $12.53 $12.88 $11.01 KAI 4Q25 BUSINESS RE
Slide 21: Questions & Answers
Questions & Answers To participate in the live Q&A session, please go to investor.kadant.com and click on the Q&A session link to receive a dial-in number and unique PIN. Please mute the audio on your computer. 21
Slide 22: 2026 Key Priorities
2026 Key Priorities 22 ENABLE SUSTAINABLE INDUSTRIAL PROCESSING® DELIVER EXCEPTIONAL STAKEHOLDER VALUE PROVIDE STRONG CASH FLOW CAPITALIZE ON NEW OPPORTUNITIES KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED.
Slide 23: Investor Relations Contact
Investor Relations Contact Michael McKenney, 978-776-2000 IR@kadant.com Media Relations Contact Wes Martz, 978-776-2000 media@kadant.com 23
Slide 24: Appendix
Fourth Quarter 2025 and FY 2025 Business Review 24 Appendix February 19, 2026
Slide 25: Revenue by Customer Location
Revenue by Customer Location ($ in thousands) Q4 25 Q4 24 Change Change Excluding Acquisitions and FX* North America $172,388 $159,796 $12,592 $1,528 Europe 63,256 53,852 9,404 2,446 Asia 24,939 27,466 (2,527) (5,107) Rest of World 25,621 16,916 8,705 925 Total $286,204 $258,030 $28,174 $(208) KAI 4
Slide 26: Percentage of Parts and Consumables Revenue
Percentage of Parts and Consumables Revenue Q4 25 Q4 24 FY 25 FY 24 Flow Control 73 % 71 % 75 % 72 % Industrial Processing 76 % 67 % 77 % 65 % Material Handling 53 % 61 % 57 % 58 % Consolidated 70 % 67 % 71 % 66 % KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 26
Slide 27: Gross Margin and SG&A
Gross Margin and SG&A KAI 4Q25 BUSINESS REVIEW– FEBRUARY 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 27 27.3% 29.8% 29.0% 27.9% 28.3% 4Q24 1Q25 2Q25 3Q25 4Q25 43.4% 46.1% 45.9% 45.2% 43.9% 4Q24 1Q25 2Q25 3Q25 4Q25 SG&A (as a % of revenue) GROSS MARGIN 42.9% 43.1% 43.5% 44.3% 45.2% 2021 2022 2023
Slide 28: Adjusted EPS Reconciliation
Adjusted EPS* Reconciliation Q4 25 Q4 24 FY 25 FY 24 EPS, as Reported $2.04 $2.04 $8.65 $9.48 Adjustments, Net of Tax Acquisition Costs 0.10 0.02 0.38 0.20 Amortization of Profit in Inventory and Backlog 0.07 0.14 0.15 0.54 Other Costs 0.07 0.06 0.08 0.06 Adjusted EPS*, as Previously Reported $2.27
Slide 29: Adjusted EBITDA Reconciliation
Adjusted EBITDA* Reconciliation ($ in thousands) Q4 25 Q4 24 FY 25 FY 24 Net Income Attributable to Kadant $24,025 $24,032 $101,969 $111,598 Net Income Attributable to Noncontrolling Interests 465 65 1,712 956 Provision for Income Taxes 10,488 8,706 39,904 40,516 Interest Expense, Net 4,722 4,113 13
Slide 30: Notes
Notes PRESENTATION NOTES • All references to EPS (earnings per share) are to our EPS as calculated on a diluted basis. • Percent change in slides 6-10 is calculated using actual numbers reported in our press release dated February 18, 2026. FOOTNOTES 1) Leverage ratio is calculated by dividing total