Kadant | 8-K: FY2027 EPS Misses Estimate at USD 8.65

EPS: As of FY2027, the actual value is USD 8.65, missing the estimate of USD 12.07.Non-GAAP Financial Measures Methodology ChangeKadant Inc. (凯登纸业) announced a new methodology on February 19, 2026, for calculating adjusted operating income, adjusted net income, and adjusted earnings per share (adjusted EPS) to exclude the full impact of amortization expense related to acquired intangible assets, moving beyond the previous exclusion of only amortization expense related to acquired backlog. This change aims to provide a more meaningful and consistent comparison of operating results over time and with peer companies, considering the unpredictable nature and varying size of acquisition activities . Kadant Inc. utilizes these non-GAAP measures, which exclude items such as amortization expense related to acquired intangible assets, profit in inventory and backlog (purchase accounting expenses), acquisition costs, restructuring and impairment costs, and other income or expense, to offer additional insights into its performance . The company believes these exclusions provide a more meaningful and consistent comparison of operating results and an understanding of its underlying operating performance and future prospects .Fiscal Year 2026 Guidance (Twelve Months Ended January 2, 2027)Kadant Inc. (凯登纸业) projects EPS Attributable to Kadant, as Reported, to be between $10.27 and $10.62 for the fiscal year ending January 2, 2027 . Adjusted EPS, as Previously Reported, is expected to range from $10.40 to $10.75, while Adjusted EPS, as Currently Reported, is forecasted to be between $12.53 and $12.88, including $2.13 in amortization of acquired intangible assets, net of tax .First Quarter 2026 Guidance (Three Months Ended March 28, 2026)For the first quarter ending March 28, 2026, Kadant Inc. (凯登纸业) anticipates EPS Attributable to Kadant, as Reported, to be between $1.69 and $1.79 . Adjusted EPS, as Previously Reported, is projected to be in the range of $1.78 to $1.88, and Adjusted EPS, as Currently Reported, is expected to be between $2.31 and $2.41, after including $0.53 in amortization of acquired intangible assets, net of tax .Operating Income, as Reported (GAAP)For the three months ended:March 29, 2025: $35,586 thousand June 28, 2025: $39,377 thousand September 27, 2025: $42,616 thousand January 3, 2026: $39,709 thousand March 30, 2024: $36,927 thousand June 29, 2024: $48,401 thousand September 28, 2024: $48,987 thousand December 28, 2024: $36,937 thousand For the six months ended:June 28, 2025: $74,963 thousand June 29, 2024: $85,328 thousand For the nine months ended:September 27, 2025: $117,579 thousand September 28, 2024: $134,315 thousand For the twelve months ended:January 3, 2026: $157,288 thousand December 28, 2024: $171,252 thousand December 30, 2023: $165,757 thousand December 31, 2022: $171,282 thousand January 1, 2022: $116,710 thousand Adjusted Operating Income, as Currently Reported (Non-GAAP)For the three months ended:March 29, 2025: $42,604 thousand June 28, 2025: $46,844 thousand September 27, 2025: $52,307 thousand January 3, 2026: $51,629 thousand March 30, 2024: $47,343 thousand June 29, 2024: $56,788 thousand September 28, 2024: $57,884 thousand December 28, 2024: $47,154 thousand For the six months ended:June 28, 2025: $89,448 thousand June 29, 2024: $104,131 thousand For the nine months ended:September 27, 2025: $141,755 thousand September 28, 2024: $162,015 thousand For the twelve months ended:January 3, 2026: $193,384 thousand December 28, 2024: $209,169 thousand December 30, 2023: $186,472 thousand December 31, 2022: $174,699 thousand January 1, 2022: $145,983 thousand Net Income Attributable to Kadant, as Reported (GAAP)For the three months ended:March 29, 2025: $24,063 thousand June 28, 2025: $26,159 thousand September 27, 2025: $27,722 thousand January 3, 2026: $24,025 thousand March 30, 2024: $24,689 thousand June 29, 2024: $31,291 thousand September 28, 2024: $31,586 thousand December 28, 2024: $24,032 thousand For the six months ended:June 28, 2025: $50,222 thousand June 29, 2024: $55,980 thousand For the nine months ended:September 27, 2025: $77,944 thousand September 28, 2024: $87,566 thousand For the twelve months ended:January 3, 2026: $101,969 thousand December 28, 2024: $111,598 thousand December 30, 2023: $116,069 thousand December 31, 2022: $120,928 thousand January 1, 2022: $84,043 thousand Adjusted Net Income, as Currently Reported (Non-GAAP)For the three months ended:March 29, 2025: $29,427 thousand June 28, 2025: $31,999 thousand September 27, 2025: $35,469 thousand January 3, 2026: $33,015 thousand March 30, 2024: $32,554 thousand June 29, 2024: $37,747 thousand September 28, 2024: $38,463 thousand December 28, 2024: $31,597 thousand For the six months ended:June 28, 2025: $61,426 thousand June 29, 2024: $70,301 thousand For the nine months ended:September 27, 2025: $96,895 thousand September 28, 2024: $108,764 thousand For the twelve months ended:January 3, 2026: $129,910 thousand December 28, 2024: $140,361 thousand December 30, 2023: $131,561 thousand December 31, 2022: $122,777 thousand January 1, 2022: $105,951 thousand Amortization of Acquired Intangible AssetsFor Operating Income (pre-tax):For the three months ended:March 29, 2025: $6,320 thousand June 28, 2025: $6,333 thousand September 27, 2025: $6,521 thousand January 3, 2026: $8,266 thousand March 30, 2024: $6,072 thousand June 29, 2024: $6,289 thousand September 28, 2024: $6,711 thousand December 28, 2024: $6,716 thousand For the six months ended:June 28, 2025: $12,653 thousand June 29, 2024: $12,361 thousand For the nine months ended:September 27, 2025: $19,174 thousand September 28, 2024: $19,072 thousand For the twelve months ended:January 3, 2026: $27,440 thousand December 28, 2024: $25,788 thousand December 30, 2023: $18,448 thousand December 31, 2022: $19,804 thousand January 1, 2022: $19,543 thousand For Net Income (net of tax):For the three months ended:March 29, 2025: $4,753 thousand June 28, 2025: $4,767 thousand September 27, 2025: $4,900 thousand January 3, 2026: $6,225 thousand March 30, 2024: $4,566 thousand June 29, 2024: $4,729 thousand September 28, 2024: $5,047 thousand December 28, 2024: $5,049 thousand For the six months ended:June 28, 2025: $9,520 thousand June 29, 2024: $9,295 thousand For the nine months ended:September 27, 2025: $14,420 thousand September 28, 2024: $14,342 thousand For the twelve months ended:January 3, 2026: $20,645 thousand December 28, 2024: $19,391 thousand December 30, 2023: $13,809 thousand December 31, 2022: $14,824 thousand January 1, 2022: $14,682 thousand Weighted Average Diluted SharesFor the three months ended:March 29, 2025: 11,776 thousand June 28, 2025: 11,793 thousand September 27, 2025: 11,802 thousand January 3, 2026: 11,805 thousand March 30, 2024: 11,744 thousand June 29, 2024: 11,766 thousand September 28, 2024: 11,780 thousand December 28, 2024: 11,794 thousand For the six months ended:June 28, 2025: 11,784 thousand June 29, 2024: 11,755 thousand For the nine months ended:September 27, 2025: 11,790 thousand September 28, 2024: 11,763 thousand For the twelve months ended:January 3, 2026: 11,794 thousand December 28, 2024: 11,771 thousand December 30, 2023: 11,729 thousand December 31, 2022: 11,688 thousand January 1, 2022: 11,655 thousand Note: The provided reference explicitly states that it does not contain historical segment revenue, gross margin, operating margin, operating costs, operating cash flow, or free cash flow .