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Kadant Updates Non-GAAP Metrics and 2026 Guidance

Story Highlights
  • Kadant will now exclude full amortization of acquired intangibles from its key non-GAAP earnings metrics.
  • The new methodology lifts 2026 adjusted EPS guidance and aims to enhance comparability amid irregular acquisitions.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Kadant Updates Non-GAAP Metrics and 2026 Guidance

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Kadant ( (KAI) ) has issued an update.

On February 19, 2026, Kadant Inc. announced during its fourth-quarter and full-year 2025 earnings webcast that it will change its methodology for calculating adjusted operating income, adjusted net income, and adjusted diluted EPS to exclude the full amortization expense related to acquired intangible assets, rather than only amortization of acquired backlog as in the past. The company stated that this shift, accompanied by updated 2026 guidance showing materially higher adjusted EPS under the new approach and reconciliations for 2021–2025, is intended to improve consistency and comparability of its non-GAAP metrics given its irregular acquisition activity, which may affect how investors assess its underlying performance versus historical results and peers.

The most recent analyst rating on (KAI) stock is a Hold with a $303.00 price target. To see the full list of analyst forecasts on Kadant stock, see the KAI Stock Forecast page.

Spark’s Take on KAI Stock

According to Spark, TipRanks’ AI Analyst, KAI is a Neutral.

KAI scores solidly on profitability and balance-sheet strength, supported by a constructive technical uptrend. The main constraints are a high valuation versus modest yield and mixed growth signals (slight revenue decline and weak FCF growth), while the earnings update was balanced—strong aftermarket/cash flow but continued softness in capital projects and higher SG&A.

To see Spark’s full report on KAI stock, click here.

More about Kadant

Kadant Inc. is an industrial company that grows in part through acquisitions and reports financial performance using both GAAP and non-GAAP measures, including adjusted operating income, adjusted net income, and adjusted diluted earnings per share, with a focus on comparability of results over time and against peer companies.

Average Trading Volume: 146,503

Technical Sentiment Signal: Strong Buy

Current Market Cap: $3.77B

For an in-depth examination of KAI stock, go to TipRanks’ Overview page.

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