Kadant Inc · NYSE:KAI
Kadant — Q1 2026 Earnings Presentation
24 slides from Kadant's earnings presentation, May 6, 2026
Slide 1: First Quarter 2026 Business Review
First Quarter 2026 Business Review May 6, 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: Operational Highlights
Operational Highlights • Strong start to the year with record demand and solid earnings growth • Solid execution drove healthy gross margin performance • Strong contributions from our recent acquisitions • Exceeded expectations across most financial metrics KAI 1Q26 BUSINESS REVIEW– MAY 2026 | © 202
Slide 6: Q1 2026 Performance
Q1 2026 Performance HIGHLIGHTS ($ in millions, except per share amounts) Q1 26 Q1 25 Change Bookings $320.8 $256.2 +25.2% • Record bookings achieved in Q1 2026 Revenue $281.5 $239.2 +17.7% Net Income $25.5 $24.1 +6.0% • Strong organic bookings growth, up 10% Adjusted EBITDA* $56.8 $47.9 +18.6% • Rec
Slide 7: Flow Control
Flow Control HIGHLIGHTS ($ in millions) Q1 26 Q1 25 Change Bookings $111.5 $100.0 +11.6% • Record aftermarket parts demand; total Revenue $98.6 $92.4 +6.7% bookings up 12% Adjusted EBITDA* $27.4 $26.2 +4.7% Adjusted EBITDA Margin* 27.8% 28.3% -50 bps • Aftermarket parts made up 77% of total revenue
Slide 8: Industrial Processing
Industrial Processing HIGHLIGHTS ($ in millions) Q1 26 Q1 25 Change Bookings $144.5 $92.4 +56.4% • Recent acquisitions boosted increases in Revenue $123.0 $89.5 +37.4% revenue and bookings Adjusted EBITDA* $29.5 $21.7 +36.2% • Organic bookings were up 23% Adjusted EBITDA Margin* 24.0% 24.2% -20 bps
Slide 9: Material Handling
Material Handling HIGHLIGHTS ($ in millions) Q1 26 Q1 25 Change Bookings $64.7 $63.9 +1.4% • Steady year-over-year growth Revenue $59.9 $57.2 +4.6% Adjusted EBITDA* $11.4 $11.6 -1.9% • Strong aftermarket parts bookings Adjusted EBITDA Margin* 19.0% 20.2% -120 bps • Adjusted EBITDA* decreased 2% BOOK
Slide 10: Business Outlook
Business Outlook • Good start to 2026 with record bookings and healthy backlog • Aftermarket parts demand expected to remain healthy • Improving capital equipment environment, timing remains uncertain • Geopolitical tensions continue to pose challenges • Our solid balance sheet and strong cash flow
Slide 11: Financial Review
FINANCIAL REVIEW Michael J. McKenney, EVP & CFO 11
Slide 12: Q1 2026 Financial Performance
Q1 2026 Financial Performance HIGHLIGHTS ($ in millions, except per share amounts) Q1 26 Q1 25 Revenue $281.5 $239.2 • Record parts and consumables revenue Gross Margin 45.0% 46.1% SG&A % of Revenue 29.3% 29.8% • Adjusted EBITDA margin* of 20.2% Operating Income $40.1 $35.6 • Adjusted EPS* exceeded
Slide 13: Key Financial Metrics
Key Financial Metrics ADJUSTED EBITDA* CASH FLOW ($ in millions) ($ in millions) 20.5% 21.4% 20.0% 20.3% 20.2% $60.8 $58.0 $58.0 $56.8 $47.3 $52.4 $54.7 $47.9 $40.5 $44.1 $22.8 $36.5 $21.9 $24.1 $26.2 $27.7 $24.0 $25.5 $19.0 $18.7 1Q25 2Q25 3Q25 4Q25 1Q26 1Q25 2Q25 3Q25 4Q25 1Q26 NET INCOME ADJUSTED
Slide 14: Q1 25 to Q1 26 Adjusted EPS*
Q1 25 to Q1 26 Adjusted EPS* $0.25 $0.58 $2.84 $2.50 $(0.24) $(0.12) $(0.07) $(0.05) $(0.01) 2Q22 2Q21 ADJ ADJ EPS* EPS* Q1 25 ADJ EPS* ACQUISITIONS REVENUE OPERATING TAX PROVISION GROSS MARGIN INTEREST EXPENSE NONCONTROLLING Q1 26 ADJ EPS* EXPENSES INTERESTS KAI 1Q26 BUSINESS REVIEW– MAY 2026 | © 2
Slide 15: Key Liquidity Metrics
Key Liquidity Metrics ($ in millions) Q1 26 Q4 25 Q1 25 Cash, cash equivalents, and restricted cash $119.8 $122.7 $93.8 Debt $361.3 $372.7 $274.9 Lease obligations $2.1 $1.8 $1.9 Net Debt $243.5 $251.8 $183.1 Leverage ratio1 1.27 1.33 0.95 Working capital % LTM revenue2 20.0% 18.5% 16.8% Cash conver
Slide 16: Guidance
Guidance • FY 2026 revenue of $1.178 to $1.203 billion, revised from $1.160 to $1.185 billion • FY 2026 GAAP EPS of $9.80 to $10.15, revised from $10.27 to $10.62 • FY 2026 adjusted EPS* of $12.33 to $12.68, revised from $12.53 to $12.88 • Q2 2026 revenue of $296 to $306 million • Q2 2026 GAAP EPS o
Slide 17: Questions & Answers
Questions & Answers To participate in the live Q&A session, please go to investor.kadant.com and click on the Q&A session link to receive a dial-in number and unique PIN. Please mute the audio on your computer. 17
Slide 18: Delivering Exceptional Stakeholder Value
Delivering Exceptional Stakeholder Value OUR KEY PRIORITIES Reinforce an entrepreneurial mindset in our decentralized business model to stimulate growth and drive efficiencies. Build leadership capabilities to achieve growth-focused critical outcomes. Cultivate innovation, agility, and discipline fo
Slide 19: Contacts
CONTACTS Investor Relations Michael McKenney, 978-776-2000 IR@kadant.com Media Relations Wes Martz, 978-776-2000 media@kadant.com 19
Slide 20: Appendix
APPENDIX First Quarter 2026 Business Review May 6, 2026 20
Slide 21: Revenue by Customer Location
Revenue by Customer Location Change Excluding ($ in thousands) Q1 26 Q1 25 Change Acquisitions and FX* North America $166,563 $159,870 $6,693 $(9,287) Europe 62,202 49,341 12,861 941 Asia 30,756 18,702 12,054 5,859 Rest of World 21,984 11,297 10,687 960 Total $281,505 $239,210 $42,295 $(1,527) Perce
Slide 22: Adjusted EPS* Reconciliation
Adjusted EPS* Reconciliation Q1 26 Q1 25 EPS, as Reported $2.16 $2.04 Adjustments, Net of Tax Intangible Asset Amortization Expense 0.53 0.40 Profit in Inventory and Backlog Amortization Expense 0.09 0.03 Acquisition Costs 0.06 0.03 Adjusted EPS* $2.84 $2.50 Free Cash Flow* Reconciliation ($ in thou
Slide 23: Adjusted EBITDA* Reconciliation
Adjusted EBITDA* Reconciliation ($ in thousands) Q1 26 Q1 25 Net Income Attributable to Kadant $25,509 $24,063 Net Income Attributable to Noncontrolling Interests 312 374 Provision for Income Taxes 10,142 7,828 Interest Expense, Net 4,133 3,305 Other Expense, Net 13 16 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