Kadant's 10.6% annualized revenue growth over the last five years was impressive and beat the average industrials company, showing its offerings resonate with customers. Kadant's EPS grew at a remarkable 13.1% compounded annual growth rate over the last five years, higher than its 10.6% annualized revenue growth. The company demonstrates strong operational leverage with improving profitability metrics despite flat operating margins.
Cyborg Score Rationale
This quarter, Kadant reported year-on-year revenue growth of 10.9%, and its $286.2 million of revenue exceeded Wall Street's estimates by 4.3%. Adjusted EPS guidance for the upcoming financial year 2026 is $10.58 at the midpoint, beating analyst estimates by 3.2%. Strong earnings beats, consistent revenue growth, and improving free cash flow margins support a solid competitive position.
Top Insights
Kadant reported Q4 2025 revenue of $286.2M (+10.9% YoY) with management guiding for 15% growth next quarter
Kadant has set its FY 2026 guidance at $10.50-$10.75 EPS, exceeding analyst consensus estimates
The company was recently named one of America's Greatest Companies 2025 by Newsweek magazine
Free Cash Flow Margin improved to 19.1% from 17.9% year-over-year, demonstrating stronger capital generation
Named Competitors
Industrial equipment and systems — Tools and equipment supplier
Industrial processing equipment — Process solutions and equipment
Environmental and processing equipment — Water and process solutions
Recent Developments
(February 2026) Q4 2025 earnings beat: $2.27 EPS vs $2.19 consensus, revenue of $286.2M vs $274.4M estimate