# EDGAR Filing Document

**Accession Number:** 0000886346
**File Stem:** 0000886346-26-000015
**Filing Date:** 2026-2
**Character Count:** 23719
**Document Hash:** 710df51c6b92048460fc2b18848bb5e5
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000886346-26-000015.hdr.sgml**: 20260223

**ACCESSION NUMBER**: 0000886346-26-000015

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20260223

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260223

**DATE AS OF CHANGE**: 20260223

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** KADANT INC
- **CENTRAL INDEX KEY:** 0000886346
- **STANDARD INDUSTRIAL CLASSIFICATION:** SPECIAL INDUSTRY MACHINERY (NO METALWORKING MACHINERY) [3550]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 521762325
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0103

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-11406
- **FILM NUMBER:** 26665555

**BUSINESS ADDRESS:**
- **STREET 1:** ONE TECHNOLOGY PARK DRIVE
- **CITY:** WESTFORD
- **STATE:** MA
- **ZIP:** 01886
- **BUSINESS PHONE:** (978) 776-2000

**MAIL ADDRESS:**
- **STREET 1:** ONE TECHNOLOGY PARK DRIVE
- **CITY:** WESTFORD
- **STATE:** MA
- **ZIP:** 01886

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** THERMO FIBERTEK INC
- **DATE OF NAME CHANGE:** 19930328

?xml version='1.0' encoding='ASCII'? kai-20260223

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**______________________________________________________________**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

Date of report (Date of earliest event reported): February 23, 2026

**KADANT INC.** 

(Exact name of registrant as specified in its charter)

Commission file number 001-11406

---

| | |
|:---|:---|
| **Delaware** | **52-1762325** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

---

**One Technology Park Drive** 

**Westford, Massachusetts 01886** 

(Address of principal executive offices, including zip code)

**(978) 776-2000** 

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

---

| | | |
|:---|:---|:---|
| <u>Title of each class</u> | <u>Trading Symbol(s)</u> | <u>Name of each exchange on which registered</u> |
| Common Stock, $.01 par value | KAI | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**KADANT INC.**

**Item 2.02. Results of Operations and Financial Condition.**

The reconciliation schedule prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), which reconciles the non-GAAP financial measures to the most directly comparable GAAP financial measures and is included in Exhibit 99 to this Current Report on Form 8-K, is incorporated herein by reference into this Item 2.02.

**Item 7.01. Regulation FD Disclosure.**

On February 19, 2026, Kadant Inc. (the "Company," "we," or "our") announced during its fourth quarter and full-year fiscal 2025 earnings webcast that it will prospectively use a new methodology for calculating adjusted operating income, adjusted net income, and adjusted earnings per share ("adjusted EPS") (collectively, the "non-GAAP financial measures") to exclude the full impact of amortization expense related to acquired intangible assets. Previously, the Company excluded only amortization expense related to acquired backlog, which is amortized relatively quickly in the post-acquisition period.

The Company has elected to exclude amortization expense related to acquired intangible assets from these non-GAAP financial measures to provide a more meaningful and consistent comparison of its operating results over time and with peer companies. While the Company has a history of acquisition activity, such transactions do not occur on a predictable cycle, and the size and nature of these transactions will vary. A full description of the Company's non-GAAP financial measures is detailed under the heading "Use of Non-GAAP Financial Measures" in Exhibit 99 in this Current Report on Form 8-K.

The Company's guidance for its fiscal year and first quarter 2026 for adjusted net income and adjusted EPS, calculated in accordance with the new methodology, is set forth below. This guidance reflects only the guidance issued on February 19, 2026, which is subject to change.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Twelve Months Ended<br>January 2, 2027 | Twelve Months Ended<br>January 2, 2027 | Three Months Ended<br>March 28, 2026 | Three Months Ended<br>March 28, 2026 |
| | Low | High | Low | High |
| EPS Attributable to Kadant, as Reported | $10.27 | $10.62 | $1.69 | $1.79 |
| &nbsp;&nbsp;Adjustments, Net of Tax | 0.13 | 0.13 | 0.09 | 0.09 |
| Adjusted EPS\*, as Previously Reported | $10.40 | $10.75 | $1.78 | $1.88 |
| &nbsp;&nbsp;Amortization of Acquired Intangible Assets, Net of Tax | 2.13 | 2.13 | 0.53 | 0.53 |
| Adjusted EPS\*, as Currently Reported | $12.53 | $12.88 | $2.31 | $2.41 |

---

---

| |
|:---|
| **<u>Notes:</u>** |
| &nbsp;&nbsp;\* Represents a non-GAAP financial measure. |
| &nbsp;&nbsp;&nbsp;&nbsp;All references to EPS are to EPS as calculated on a diluted basis. |

---

In addition, the Company has prepared a financial schedule of adjusted operating income, adjusted net income, and adjusted EPS reconciled to the most directly comparable GAAP financial measure, for fiscal years 2025 and 2024 and each of the four quarters therein, and for fiscal years 2023, 2022, and 2021, as furnished in this Current Report on Form 8-K as Exhibit 99.

The information in Items 2.02 and 7.01 of this Form 8-K (including Exhibit 99) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

------

**KADANT INC.**

**Item 9.01. Financial Statements and Exhibits.** 

---

| | |
|:---|:---|
| (d) Exhibits |  |
| The following exhibits relating to Items 2.02 and 7.01 shall be deemed to be furnished and not filed. | The following exhibits relating to Items 2.02 and 7.01 shall be deemed to be furnished and not filed. |
| Exhibit |  |
| No. | Description of Exhibits |
| 99 | <u>[Reconciliation of Non](kaiform8kex9902232026.htm)[-](kaiform8kex9902232026.htm)[GAAP Adjusted Operating Income, Adjusted Net Income, and Adjusted](kaiform8kex9902232026.htm)[Earning](kaiform8kex9902232026.htm)[s](kaiform8kex9902232026.htm)[per Share](kaiform8kex9902232026.htm)[to GAAP Financial Measures](kaiform8kex9902232026.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**KADANT INC.**

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | | KADANT INC. |
| Date: February 23, 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By: | /s/ Michael J. McKenney |
|  |  | Michael J. McKenney<br>Executive Vice President and Chief Financial Officer |

---

## Ex-99

---

| | |
|:---|:---|
| | **Exhibit 99** |
| ![kadantlogo_jpg.jpg](kadantlogo_jpg.jpg) | |

---

**Reconciliation of Non-GAAP Adjusted Operating Income, Adjusted Net Income and Adjusted EPS to GAAP Financial Measures**

(In thousands, except per share amounts)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** |
|  | March 29, 2025 | June 28, 2025 | June 28, 2025 | September 27, 2025 | September 27, 2025 | January 3, 2026 | January 3, 2026 |
|  | Three Months Ended | Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | Three Months Ended | Twelve Months Ended |
| Operating Income, as Reported | $35586 | $39377 | $74963 | $42616 | $117579 | $39709 | $157288 |
| &nbsp;&nbsp;&nbsp;Adjustments | 698 | 1134 | 1832 | 3170 | 5002 | 3654 | 8656 |
| Adjusted Operating Income\*, as Previously Reported | $36284 | $40511 | $76795 | $45786 | $122581 | $43363 | $165944 |
| &nbsp;&nbsp;&nbsp;Amortization of Acquired Intangible Assets | 6320 | 6333 | 12653 | 6521 | 19174 | 8266 | 27440 |
| Adjusted Operating Income\*, as Currently Reported | $42604 | $46844 | $89448 | $52307 | $141755 | $51629 | $193384 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** |
|  | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended |
|  | March 29, 2025 | March 29, 2025 | June 28, 2025 | June 28, 2025 | September 27, 2025 | September 27, 2025 | January 3, 2026 | January 3, 2026 |
| Net Income and EPS Attributable to Kadant, as Reported | $24063 | $2.04 | $26159 | $2.22 | $27722 | $2.35 | $24025 | $2.04 |
| &nbsp;&nbsp;&nbsp;Adjustments, Net of Tax | 611 | 0.06 | 1073 | 0.09 | 2847 | 0.24 | 2765 | 0.24 |
| Adjusted Net Income\* and Adjusted EPS\*, as Previously Reported | $24674 | $2.10 | $27232 | $2.31 | $30569 | $2.59 | $26790 | $2.27 |
| &nbsp;&nbsp;&nbsp;Amortization of Acquired Intangible Assets, Net of Tax | 4753 | 0.40 | 4767 | 0.40 | 4900 | 0.42 | 6225 | 0.53 |
| Adjusted Net Income\* and Adjusted EPS\*, as Currently Reported | $29427 | $2.50 | $31999 | $2.71 | $35469 | $3.01 | $33015 | $2.80 |
| Weighted Average Diluted Shares | 11776 |  | 11793 |  | 11802 |  | 11805 |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Six Months Ended | Six Months Ended | Nine Months Ended | Nine Months Ended | Twelve Months Ended | Twelve Months Ended |
| | June 28, 2025 | June 28, 2025 | September 27, 2025 | September 27, 2025 | January 3, 2026 | January 3, 2026 |
| Net Income and EPS Attributable to Kadant, as Reported | $50222 | $4.26 | $77944 | $6.61 | $101969 | $8.65 |
| &nbsp;&nbsp;&nbsp;Adjustments, Net of Tax | 1684 | 0.14 | 4531 | 0.39 | 7296 | 0.61 |
| Adjusted Net Income\* and Adjusted EPS\*, as Previously Reported | $51906 | $4.40 | $82475 | $7.00 | $109265 | $9.26 |
| &nbsp;&nbsp;&nbsp;Amortization of Acquired Intangible Assets, Net of Tax | 9520 | 0.81 | 14420 | 1.22 | 20645 | 1.75 |
| Adjusted Net Income\* and Adjusted EPS\*, as Currently Reported | $61426 | $5.21 | $96895 | $8.22 | $129910 | $11.01 |
| Weighted Average Diluted Shares | 11784 |  | 11790 |  | 11794 |  |

---

------

![kadantlogo_jpg.jpg](kadantlogo_jpg.jpg)<br>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** |
|  | March 30, 2024 | June 29, 2024 | June 29, 2024 | September 28, 2024 | September 28, 2024 | December 28, 2024 | December 28, 2024 |
|  | Three Months Ended | Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | Three Months Ended | Twelve Months Ended |
| Operating Income, as Reported | $36927 | $48401 | $85328 | $48987 | $134315 | $36937 | $171252 |
| &nbsp;&nbsp;&nbsp;Adjustments | 4344 | 2098 | 6442 | 2186 | 8628 | 3501 | 12129 |
| Adjusted Operating Income\*, as Previously Reported | $41271 | $50499 | $91770 | $51173 | $142943 | $40438 | $183381 |
| &nbsp;&nbsp;&nbsp;Amortization of Acquired Intangible Assets | 6072 | 6289 | 12361 | 6711 | 19072 | 6716 | 25788 |
| Adjusted Operating Income\*, as Currently Reported | $47343 | $56788 | $104131 | $57884 | $162015 | $47154 | $209169 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** |
|  | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended |
|  | March 30, 2024 | March 30, 2024 | June 29, 2024 | June 29, 2024 | September 28, 2024 | September 28, 2024 | December 28, 2024 | December 28, 2024 |
| Net Income and EPS Attributable to Kadant, as Reported | $24689 | $2.10 | $31291 | $2.66 | $31586 | $2.68 | $24032 | $2.04 |
| &nbsp;&nbsp;&nbsp;Adjustments, Net of Tax | 3299 | 0.28 | 1727 | 0.15 | 1830 | 0.15 | 2516 | 0.22 |
| Adjusted Net Income\* and Adjusted EPS\*, as Previously Reported | $27988 | $2.38 | $33018 | $2.81 | $33416 | $2.84 | $26548 | $2.25 |
| &nbsp;&nbsp;&nbsp;Amortization of Acquired Intangible Assets, Net of Tax | 4566 | 0.39 | 4729 | 0.40 | 5047 | 0.43 | 5049 | 0.43 |
| Adjusted Net Income\* and Adjusted EPS\*, as Currently Reported | $32554 | $2.77 | $37747 | $3.21 | $38463 | $3.27 | $31597 | $2.68 |
| Weighted Average Diluted Shares | 11744 |  | 11766 |  | 11780 |  | 11794 |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Six Months Ended | Six Months Ended | Nine Months Ended | Nine Months Ended | Twelve Months Ended | Twelve Months Ended |
| | June 29, 2024 | June 29, 2024 | September 28, 2024 | September 28, 2024 | December 28, 2024 | December 28, 2024 |
| Net Income and EPS Attributable to Kadant, as Reported | $55980 | $4.76 | $87566 | $7.44 | $111598 | $9.48 |
| &nbsp;&nbsp;&nbsp;Adjustments, Net of Tax | 5026 | 0.43 | 6856 | 0.58 | 9372 | 0.80 |
| Adjusted Net Income\* and Adjusted EPS\*, as Previously Reported | $61006 | $5.19 | $94422 | $8.03 | $120970 | $10.28 |
| &nbsp;&nbsp;&nbsp;Amortization of Acquired Intangible Assets, Net of Tax | 9295 | 0.79 | 14342 | 1.22 | 19391 | 1.65 |
| Adjusted Net Income\* and Adjusted EPS\*, as Currently Reported | $70301 | $5.98 | $108764 | $9.25 | $140361 | $11.92 |
| Weighted Average Diluted Shares | 11755 |  | 11763 |  | 11771 |  |

---

------

![kadantlogo_jpg.jpg](kadantlogo_jpg.jpg)<br>

---

| | | | |
|:---|:---|:---|:---|
| **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** | **Reconciliation of Operating Income (GAAP) to Adjusted Operating Income (Non-GAAP)** |
|  | Twelve Months Ended | Twelve Months Ended | Twelve Months Ended |
|  | December 30,<br>2023 | December 31,<br>2022 | January 1,<br>2022 |
| Operating Income, as Reported | $165757 | $171282 | $116710 |
| &nbsp;&nbsp;&nbsp;Adjustments | 2267 | (16387) | 9730 |
| Adjusted Operating Income\*, as Previously Reported | $168024 | $154895 | $126440 |
| &nbsp;&nbsp;&nbsp;Amortization of Acquired Intangible Assets | 18448 | 19804 | 19543 |
| Adjusted Operating Income\*, as Currently Reported | $186472 | $174699 | $145983 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** | **Reconciliation of Net Income and EPS (GAAP) to Adjusted Net Income and Adjusted EPS (Non-GAAP)** |
|  | Twelve Months Ended | Twelve Months Ended | Twelve Months Ended | Twelve Months Ended | Twelve Months Ended | Twelve Months Ended |
|  | December 30, 2023 | December 30, 2023 | December 31, 2022 | December 31, 2022 | January 1, 2022 | January 1, 2022 |
| Net Income and EPS Attributable to Kadant, as Reported | $116069 | $9.90 | $120928 | $10.35 | $84043 | $7.21 |
| &nbsp;&nbsp;&nbsp;Adjustments, Net of Tax | 1683 | 0.14 | (12975) | (1.12) | 7226 | 0.61 |
| Adjusted Net Income\* and Adjusted EPS\*, as Previously Reported | $117752 | $10.04 | $107953 | $9.24 | $91269 | $7.83 |
| &nbsp;&nbsp;&nbsp;Amortization of Acquired Intangible Assets, Net of Tax | 13809 | 1.18 | 14824 | 1.27 | 14682 | 1.26 |
| Adjusted Net Income\* and Adjusted EPS\*, as Currently Reported | $131561 | $11.22 | $122777 | $10.50 | $105951 | $9.09 |
| Weighted Average Diluted Shares | 11729 |  | 11688 |  | 11655 |  |

---

---

| |
|:---|
| **Use of Non-GAAP Financial Measures** |
| In addition to the financial measures prepared in accordance with GAAP, we use certain non-GAAP financial measures, including adjusted operating income, adjusted net income, and adjusted EPS. These non-GAAP financial measures exclude amortization expense related to acquired intangible assets, profit in inventory and backlog (collectively, "purchase accounting expenses"); acquisition costs; restructuring and impairment costs; and other income or expense, as indicated. We exclude acquisition-related purchase accounting expenses to provide a more meaningful and consistent comparison of our operating results over time and with peer companies. While we have a history of acquisition activity, such transactions do not occur on a predictable cycle, and the size and nature of these transactions will vary. We believe it is important for investors to understand that these intangible assets were recorded as part of purchase accounting and that they contribute to revenue generation. We also exclude other items as they are not indicative of our core operating results and are not comparable to other periods, which have differing levels of incremental costs, expenditures or income, or none at all. |
| We believe these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business, operating results, or future outlook. We believe that the inclusion of such measures helps investors gain an understanding of our underlying operating performance and future prospects, consistent with how management measures and forecasts our performance, especially when comparing such results to previous periods or forecasts and to the performance of our competitors. Such measures are also used by us in our financial and operating decision-making and for compensation purposes. We also believe this information is responsive to investors' requests and gives them additional measures of our performance.  |

---

------

![kadantlogo_jpg.jpg](kadantlogo_jpg.jpg)<br>

The non-GAAP financial measures included in this Current Report on Form 8-K are not meant to be considered superior to or a substitute for the results of operations prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this Current Report on Form 8-K have limitations associated with their use as compared to the most directly comparable GAAP measures, in that they may be different from, and therefore not comparable to, similar measures used by other companies.<br>

---

| |
|:---|
| **<u>Notes:</u>** |
| &nbsp;&nbsp;\* Represents a non-GAAP financial measure. |
| &nbsp;&nbsp;&nbsp;&nbsp;All references to EPS (earnings per share) are to EPS as calculated on a diluted basis. |
| &nbsp;&nbsp;&nbsp;&nbsp;Certain per share data in the tables above may not foot or recalculate due to rounding. |

---

<br>