Kadant stock unchanged as DA Davidson reiterates Neutral rating

Investing.com - DA Davidson has reiterated its Neutral rating and $300.00 price target on Kadant Inc. (NYSE:KAI), currently trading at $298.03, following the company’s announcement of its acquisition of Clyde Industries. According to InvestingPro data, the company maintains strong financial health with a current ratio of 2.38.

Kadant recently closed on the acquisition of Clyde Industries for $175 million, which represents approximately the largest acquisition in the company’s history, according to DA Davidson analyst Kurt Yinger. InvestingPro analysis shows Kadant operates with moderate debt levels and maintains liquid assets exceeding short-term obligations.

Based on disclosed figures, the acquisition is expected to add approximately 9% to Kadant’s go-forward annual sales, potentially boosting the company’s current annual revenue of $1.02 billion.

DA Davidson’s $300 price target represents 16x-17x the firm’s 2025-2026 EBITDA forecasts for Kadant, maintaining a cautious outlook despite the significant acquisition.

Kadant has scheduled a conference call for Thursday, October 9, where more details about the acquisition and its potential impact are expected to be discussed.

In other recent news, Kadant Inc . reported impressive second-quarter 2025 results, exceeding both earnings and revenue expectations. The company achieved an adjusted earnings per share (EPS) of $2.31, surpassing the anticipated $1.94, and generated $255.3 million in revenue, which was 3.73% above projections. Additionally, Kadant completed the acquisition of Clyde Industries Holdings, Inc. for $175 million in cash, further expanding its portfolio in the industrial sector. The acquisition was primarily funded through borrowings under Kadant’s revolving credit facility.

In related developments, Kadant announced an increase in its revolving credit facility to $750 million, extending its maturity date to September 26, 2030, and added Australian Dollars as a foreign currency option. This amendment also included the addition of Kadant’s Australian subsidiary, Vayeron Pty Ltd, as an authorized borrower. Furthermore, Kadant declared a quarterly cash dividend of $0.34 per share, payable on November 6, 2025, to shareholders on record as of October 9, 2025. These recent developments highlight Kadant’s strategic financial maneuvers and operational growth.

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