Kadant Inc · NYSE:KAI
Kadant — Q3 2026 Earnings Presentation
24 slides from Kadant's earnings presentation, Nov 3, 2026
Slide 1: Third Quarter 2026 Business Review
Third Quarter 2026 Business Review November 4, 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, CEO 4
Slide 5: Third Quarter Highlights
Third Quarter Highlights 5 KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. • Excellent performance across broad range of key financial metrics • Strong demand for aftermarket parts; capital equipment demand strengthened • Profitability supported by operational disci
Slide 6: Q3 2026 Performance
Q3 2026 Performance 6 ($ in millions, except per share amounts) Q3 26 Q3 25 Change Bookings $291.1 $238.4 +22.1% Revenue $313.2 $271.6 +15.3% Net Income $35.1 $27.7 +26.5% Adjusted EBITDA* $71.7 $58.0 +23.6% Adjusted EBITDA Margin* 22.9 % 21.4 % +150 bps EPS $2.96 $2.35 +26.0% Adjusted EPS* $3.64 $3
Slide 7: Flow Control
$93.8 $93.6 $111.5 $102.8 $100.9 3Q25 4Q25 1Q26 2Q26 3Q26 7 ($ in millions) Q3 26 Q3 25 Change Bookings $100.9 $93.8 +7.5 % Revenue $102.4 $94.8 +8.0 % Adjusted EBITDA* $31.4 $25.7 +22.4 % Adjusted EBITDA Margin* 30.7 % 27.1 % +360 bps HIGHLIGHTS • Solid bookings growth across diverse industrial mar
Slide 8: Industrial Processing
8 ($ in millions) Q3 26 Q3 25 Change Bookings $123.0 $85.2 +44.5% Revenue $143.4 $106.4 +34.8 % Adjusted EBITDA* $37.5 $27.0 +38.7 % Adjusted EBITDA Margin* 26.1 % 25.4 % +70 bps HIGHLIGHTS • Recent acquisitions and organic growth contributed to excellent Q3 results • Organic bookings up 12% • Excel
Slide 9: Material Handling
9 ($ in millions) Q3 26 Q3 25 Change Bookings $67.2 $59.3 +13.2% Revenue $67.4 $70.3 -4.2% Adjusted EBITDA* $14.9 $16.4 -9.2% Adjusted EBITDA Margin* 22.1 % 23.3 % -120 bps HIGHLIGHTS • Strong commercial execution in Q3 • Healthy aftermarket parts demand • Lower capital equipment shipments negativel
Slide 10: Business Outlook
Business Outlook • Demand expected to remain stable, potential upside with capital business • Improving capital equipment environment although timing remains uncertain • Geopolitical tensions and economic headwinds are persistent • 2026 expected to be a record year for Kadant 10KAI 3Q26 BUSINESS REV
Slide 11: Financial Review
FINANCIAL REVIEW Michael J. McKenney, EVP & CFO 11
Slide 12: Q3 2026 Financial Performance
Q3 2026 Financial Performance ($ in millions, except per share amounts) Q3 26 Q3 25 Revenue $313.2 $271.6 Gross Margin 44.7% 45.2% SG&A % of Revenue 26.4% 27.9% Operating Income $53.6 $42.6 Net Income $35.1 $27.7 Adjusted EBITDA* $71.7 $58.0 EPS $2.96 $2.35 Adjusted EPS* $3.64 $3.01 Operating Cash F
Slide 13: Key Financial Metrics
Key Financial Metrics KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 13 $47.3 $60.8 $21.9 $53.5 $62.9 $44.1 $54.7 $18.7 $42.6 $58.1 FREE CASH FLOW* OPERATING CASH FLOW 3Q25 4Q25 1Q26 2Q26 3Q26 $58.0 $58.0 $56.8 $68.1 $71.7 $27.7 $24.0 $25.5 $32.5 $35.1 21.4% 20.3%
Slide 14: Adjusted EPS Bridge Q3 2025 to Q3 2026
2Q21 ADJ EPS* 2Q22 ADJ EPS* KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. Q3 25 to Q3 26 Adjusted EPS* $3.01 $0.50 $0.29 $0.04 $(0.15) $(0.02) $(0.02) $(0.01) $3.64 Q3 25 ADJ EPS* ACQUISITIONS REVENUE TAX PROVISION INTEREST EXPENSE GROSS MARGIN NONCONTROLLING INTE
Slide 15: Key Liquidity Metrics
Key Liquidity Metrics KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. ($ in millions) Q3 26 Q2 26 Q3 25 Cash, cash equivalents, and restricted cash $138.6 $137.6 $126.9 Debt $453.1 $508.2 $256.0 Lease obligations $2.1 $2.4 $2.0 Net Debt $316.6 $373.0 $131.1 Leverage
Slide 16: Guidance
Guidance KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. 16 • FY 2026 revenue of $1.195 to $1.210 billion, revised from $1.190 to $1.210 billion • FY 2026 GAAP EPS of $9.88 to $10.03, revised from $9.78 to $10.03 • FY 2026 adjusted EPS* of $12.58 to $12.73, revised
Slide 17: Questions & Answers
Questions & Answers To participate in the live Q&A session, please go to investor.kadant.com and click on the Q&A session link to receive a dial-in number and unique PIN. Please mute the audio on your computer. 17
Slide 18: Delivering Exceptional Stakeholder Value
Delivering Exceptional Stakeholder Value 18KAI 3Q26 BUSINESS REVIEW– NOVEMBER 2026 | © 2026 KADANT INC. ALL RIGHTS RESERVED. Reinforce an entrepreneurial mindset in our decentralized business model to stimulate growth and drive efficiencies. Build leadership capabilities to achieve growth-focused cr
Slide 19: Investor Relations Contacts
Investor Relations Michael McKenney, 978-776-2000 [email protected] Media Relations Wes Martz, 978-776-2000 [email protected] 19 CONTACTS
Slide 20: Third Quarter 2026 Business Review Appendix
Third Quarter 2026 Business Review 20 APPENDIX November 4, 2026
Slide 21: Revenue by Customer Location
Revenue by Customer Location ($ in thousands) Q3 26 Q3 25 Change Change Excluding Acquisitions and FX* North America $185,845 $165,708 $20,137 $8,247 Europe 65,319 65,869 (550) (6,950) Asia 38,046 23,893 14,153 7,995 Rest of World 23,950 16,097 7,853 757 Total $313,160 $271,567 $41,593 $10,049 KAI 3
Slide 22: Adjusted EPS and Free Cash Flow Reconciliation
Adjusted EPS* Reconciliation Q3 26 Q3 25 EPS, as Reported $2.96 $2.35 Adjustments, Net of Tax Intangible Asset Amortization Expense 0.56 0.42 Profit in Inventory and Backlog Amortization Expense 0.08 0.04 Acquisition Costs 0.03 0.18 Other Costs — 0.02 Adjusted EPS* $3.64 $3.01 KAI 3Q26 BUSINESS REVI
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA* Reconciliation ($ in thousands) Q3 26 Q3 25 Net Income Attributable to Kadant $35,072 $27,722 Net Income Attributable to Noncontrolling Interests 613 393 Provision for Income Taxes 12,799 11,766 Interest Expense, Net 5,046 2,716 Other Expense, Net 23 19 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