KADANT INC 8-K

What Happened
Kadant Inc. announced on Feb. 19, 2026 (reported on Form 8‑K filed Feb. 23, 2026) that it will prospectively change the way it calculates certain non‑GAAP financial measures—adjusted operating income, adjusted net income, and adjusted earnings per share—by excluding the full impact of amortization of acquired intangible assets. Previously the company excluded only amortization of acquired backlog. Kadant furnished a reconciliation (Exhibit 99) of these adjusted measures to GAAP for fiscal years 2021–2025 (and quarters) and provided FY2026 and Q1 2026 guidance using the new methodology.

Key Details

• Announcement date: Feb. 19, 2026; 8‑K filed Feb. 23, 2026; reconciliation included as Exhibit 99 (furnished, not filed).
• Guidance (new methodology) — Twelve months ending Jan. 2, 2027: reported EPS $10.27–$10.62; adjusted EPS (currently reported) $12.53–$12.88 (amortization of acquired intangibles, net of tax adds ~$2.13).
• Guidance — Q1 ending Mar. 28, 2026: reported EPS $1.69–$1.79; adjusted EPS (currently reported) $2.31–$2.41 (amortization of acquired intangibles, net of tax adds ~$0.53).
• Change is prospective and intended to provide more consistent comparisons over time and versus peers given Kadant’s periodic acquisition activity.

Why It Matters
For investors, this is an accounting-policy change for Kadant’s non‑GAAP metrics—not a change to GAAP results. Excluding amortization of acquired intangible assets will raise the company’s reported adjusted operating income and adjusted EPS versus prior non‑GAAP presentations, and the company’s public guidance for FY and Q1 2026 is presented on that new basis. Use the GAAP figures and the reconciliation in Exhibit 99 to compare results consistently across periods and to evaluate the impact of the methodology change.