What changed in this filing

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Item 1. Business

2026-03-03 compared with 2025-02-25 · 42 added, 38 removed, 244 unchanged (25% of the section changed)

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trades on the New York Stock Exchange under the ticker symbol "KAI."

Unless otherwise noted, references to 2024, 2023, and 2022 in this Annual Report on Form 10-K are to our fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022, respectively.

Unless otherwise noted, references to 2025, 2024, and 2023 in this Annual Report on Form 10-K are to our fiscal years ended January 3, 2026, December 28, 2024, and December 30, 2023, respectively.

Description of Our Business

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Our products and services play an integral role in enhancing efficiency, optimizing energy utilization, and maximizing productivity in process industries while helping our customers advance their sustainability initiatives with products that reduce waste or generate more yield with fewer inputs, particularly fiber, energy, and water.

Producing more while consuming less is a core aspect of Sustainable Industrial Processing and a major element of the strategic focus of our three reportable operating segments:

Producing more while consuming less is a core aspect of Sustainable Industrial Processing and a major element of the strategic focus of our three reportable segments:

Flow Control, Industrial Processing, and Material Handling.

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We expect that a significant driver of our long-term growth will be the acquisition of businesses and technologies that complement or augment our existing products and services or may involve entry into a new process industry.

We completed acquisitions in each of our three reportable segments in 2024 and continue to pursue acquisition opportunities.

See Note 2 , Acquisitions, in the accompanying consolidated financial statements for further details regarding our 2024 acquisitions.

On January 1, 2024, we acquired Key Knife, Inc.

and certain of its affiliates (collectively, Key Knife) for $153.4 million, net of cash acquired and subject to a post-closing adjustment.

Key Knife is a global supplier of engineered knife systems for custom chipping, planing, and flaking solutions for wood products industries and is part of our Industrial Processing segment.

On January 24, 2024, we acquired KWS Manufacturing Company, Ltd.

(KWS) for $79.4 million.

KWS is a leading manufacturer of conveying equipment for the bulk material handling industry and is part of our Material Handling segment.

On May 31, 2024, we acquired Dynamic Sealing Technologies LLC and affiliates (collectively, DSTI) for $53.6 million, net of cash acquired.

DSTI is a leading manufacturer of engineered fluid sealing and transfer solutions for rotating applications and is part of our Flow Control segment.

We have completed acquisitions in each of our three reportable segments in recent years and continue to pursue acquisition opportunities.

On July 9, 2025, we acquired all the outstanding equity securities of Babbini S.p.A and G.P.S.

Engineering S.r.l (collectively, Babbini), two Italy-based companies specializing in industrial dewatering and engineered power transmission solutions, for approximately $16.5 million, net of cash acquired.

On October 7, 2025, we acquired all the outstanding equity securities of Clyde Industries Holdings, Inc.

and its subsidiaries (collectively, Clyde Industries), a manufacturer of highly engineered boiler efficiency and cleaning system technologies for $173.7 million, net of cash acquired.

Babbini and Clyde Industries are both part of our Industrial Processing segment.

On January 29, 2026, we entered into a definitive agreement to acquire the shares of voestalpine BÖHLER Profil GmbH & Co KG and voestalpine BÖHLER Profil VerwaltungsGmbH (collectively, voestalpine BÖHLER Profil), a global supplier of tailor-made special profiles with complex geometries and high-performance industrial knives for approximately 157.0 million euros in cash, subject to certain customary adjustments.

The closing of this acquisition is subject to receipt of certain Austrian regulatory approvals and the satisfaction of customary closing conditions.

Upon closing, voestalpine BÖHLER Profil will become part of our Industrial Processing segment and its name will change to Kadant Profil GmbH & Co KG.

Business Segments and Products

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Flow Control Segment

Through our Flow Control segment, we provide custom-engineered products, systems, and technologies that control the flow of fluids used in industrial and commercial applications to keep critical processes running efficiently in the packaging, tissue, food, metals, energy, and other industrial sectors.

Through our Flow Control segment, we provide custom-engineered products, systems, and technologies that control the flow of fluids used in industrial and commercial applications to keep critical processes running efficiently in the packaging, paper and tissue, food, energy, defense and numerous other industrial sectors.

The Flow Control segment consists of our fluid-handling and doctoring, cleaning, & filtration product lines.

Fluid-Handling

We develop, manufacture and market fluid-handling systems and equipment used in industrial piping systems to compensate for movement and to efficiently transfer fluid, power, and data.

Our products are used primarily in the production of fiber-based packaging, metals, food, energy, chemicals, textiles, plastics and rubber.

We develop, manufacture and market fluid-handling systems, equipment and integrated technologies used in industrial piping systems to compensate for movement and to efficiently transfer fluid, power, and data.

Our products are used primarily in the production of fiber-based packaging, energy, food, metals, chemicals, and in factory automation.

Our principal fluid-handling systems and equipment include:

– Rotary joints:

Our mechanical sealing devices, used with rotating shafts, allow the transfer of pressurized fluid from a stationary source into and out of rotating machinery for heating, cooling, or the transfer of fluid power and data.

Our rotary sealing devices, used with rotating shafts, allow the transfer of pressurized fluid from a stationary source into and out of rotating or oscillating machinery for heating, cooling, or the transfer of fluid, power and data.

Our devices, installed inside rotating cylinders, are used to remove fluids from the rotating cylinders through rotary joints or unions located on either end of the cylinder.

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We develop, manufacture, and market a wide range of doctoring, cleaning, and filtration systems and related parts and consumables that continuously clean rolls to keep paper machines and other industrial processes running efficiently.

Doctoring and cleaning systems are also used in other process industries such as carbon fiber, building materials, textiles, food, and metals.

Doctoring and cleaning systems are also used in other process industries such as building materials, carbon fiber, textiles, food, and metals.

Our principal doctoring, cleaning, and filtration products include:

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Industrial Processing Segment

Through our Industrial Processing segment, we provide equipment, machinery, and technologies used to recycle paper and paperboard and process timber for use in the packaging, tissue, wood products and alternative fuel industries, among others.

Through our Industrial Processing segment, we provide equipment, machinery, and technologies used to recycle paper and paperboard, process timber and optimize industrial steam boiler efficiency for use in the packaging, paper, tissue, wood products, and food processing industries, among others.

In addition, we provide industrial automation and digitization solutions to process industries.

The Industrial Processing segment consists of our wood processing and fiber processing (formerly referred to as stock-preparation) product lines.

The Industrial Processing segment consists of our wood processing and fiber processing product lines.

Wood Processing

We develop, manufacture, and market debarkers, stranders, chippers, and related equipment used in the production of lumber, oriented strand board (OSB) and other wood products.

In addition, we provide industrial automation and digitization solutions to process industries.

Our principal wood processing products and services include:

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Fiber Processing

We develop, manufacture, and market custom-engineered systems and equipment, as well as standard individual components, for pulping, de-inking, screening, cleaning, and refining primarily recycled fiber for preparation for entry into the paper machine, and recausticizing and evaporation equipment and systems used in the production of virgin pulp.

We develop, manufacture, and market custom-engineered systems, equipment, and monitoring and simulation solutions for pulping, de-inking, screening, cleaning, and refining primarily recycled fiber for preparation for entry into the paper machine, and recausticizing and evaporation equipment and systems used in the production of virgin pulp.

Our principal fiber processing products include:

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Our equipment includes pulp washers, evaporators, and recausticizing and condensate treatment systems used to remove lignin, concentrate and recycle process chemicals, and remove condensate gases.

– Boiler cleaning technologies:

Our highly-engineered boiler cleaning systems and technologies are used in recovery and power boilers in cellulose pulp-making processes to maximize boiler equipment reliability and minimize operational costs.

– Single- and double-screw presses:

Our continuous mechanical screw presses are used to remove water and other liquids from sugar beet pulp, cellulose pulp, and a variety of other agro-industrial products used in food, paper, rendering, and other industrial applications.

Material Handling Segment

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Conveying and Vibratory Equipment

We develop, manufacture, and market conveying and vibratory equipment and systems to various process industries, including mining, aggregates, food processing, packaging, and paper.

We develop, manufacture, and market conveying and vibratory equipment, systems, and integrated technologies to various process industries, including mining, aggregates, food processing, packaging, and paper.

Our principal conveying and vibratory products include:

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– Conveying equipment:

transport idlers, power terminal units, and electric controls, used to transport bulk materials in harsh above- and below-ground mining environments;

transport idlers, power terminal units, electric controls, and predictive wireless monitoring solutions used to transport bulk materials in harsh above- and below-ground mining environments;

and screw conveyors and feeders, slide gates, and bucket elevators used for material handling operations in the agricultural, food, chemical, and paper industries, among others.

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In addition, within our Flow Control, Industrial Processing, and Material Handling segments, no single customer accounted for more than 10% of each of the respective segment's revenue.

Approximately 50% in 2024, 53% in 2023, and 55% in 2022, of our consolidated revenue were to customers outside the United States, principally in Europe, Asia and Canada.

Our backlog of firm orders by reportable segment are as follows:

(In millions) December 28, 2024 December 30, 2023

Approximately 50% in 2025 and 2024 and 53% in 2023 of our consolidated revenue was to customers outside the United States, principally in Europe, Asia and Canada.

Our backlog of firm orders by reportable segment is as follows:

(In millions) January 3, 2026 December 28, 2024

Flow Control $ 80.5 $ 82.3

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$ 288.2 $ 257.4

We anticipate that the majority of the backlog at year-end 2024 will be shipped within 12 months.

We anticipate that the majority of the backlog at our fiscal year-end 2025 will be shipped within 12 months.

Some of our capital orders can be canceled by the customer upon payment of a cancellation fee.

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These raw materials are generally purchased and available through a number of suppliers.

The raw material used in the manufacture of our fiber-based granules is a by-product from the production of paper that we obtain from two paper mills.

The raw material used in the manufacture of our fiber-based granules is a by-product of paper production that we obtain from select paper mills.

If these mills were unable or unwilling to supply us with sufficient fiber, we would be forced to find one or more alternative suppliers for this raw material.

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patents, expiring on various dates ranging from 2026 to 2041, related to various aspects of conveyor belt systems and conveying apparatus, and baling equipment.

We license one of our two significant product brand names, Link-Belt ® , from a third party pursuant to a trademark license agreement.

We license one of our two significant product brand names, Link-Belt ® , from a third party pursuant to a trademark

license agreement.

Approximately 17% of our Material Handling segment revenue in 2025 was generated by sales of conveying equipment under the Link-Belt ® name.

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We also currently hold several U.S.

patents, expiring on various dates ranging from 2026 to 2034, related to various aspects of the processing of fiber-based granules and the use of these materials in agricultural, home lawn and garden, professional lawn, turf and ornamental applications, and for oil and grease absorption.

patents, expiring on various dates ranging from 2026 to 2034, related to various aspects of the processing of fiber-based granules and the use of these materials in home lawn, professional turf and ornamental applications, and for oil and grease absorption.

Government Regulations

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We believe that our employees are the core of our business, and we devote significant time and resources to their training and development.

For more information, please reference our Corporate Sustainability Report, which is available at kadant.com.

For more information, please reference our Corporate Sustainability Report (CSR), which is available at kadant.com.

We are not including the information contained in the CSR as part of this report, nor are we incorporating the information in the CSR into this Annual Report on Form 10-K by reference.

We maintain a safety-first culture grounded on the premise of eliminating workplace incidents, risks and hazards.

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We strive to cultivate a culture that supports and enhances our ability to recruit, develop and retain talent at every level.

As of December 28, 2024, we had approximately 3,500 full-time employees worldwide.

Of our full-time employees, approximately 51% were in North America, 28% were in Europe and 18% were in Asia.

Other than certain of our Canadian employees and typical works co uncils outside of the U.S., none of our employees are represented by labor unions or covered by a collective bargaining agreement.

As of January 3, 2026, we had approximately 3,900 full-time employees worldwide.

Of our full-time employees, approximatel y 50% were in North America, 30% were in Europe and 15% were in Asia.

Other t han certain of our Canadian employees and typical works co uncils outside of the U.S., none of our employees are represented by labor unions or covered by a collective bargaining agreement.

Our management team places significant focus and attention on matters concerning our human capital, particularly capability development and succession planning.

Accordingly, we regularly review talent development and succession plans for each of our functions and operating segments, to identify and develop a pipeline of talent to maintain business operations.

We have numerous programs to attract and retain our talent, including leadership and executive development programs as well as technical and other training.

have numerous programs to attract and retain our talent, including leadership and executive development programs, as well as technical and other training.

We partner with vocational schools, community colleges, universities and associations to promote future careers in manufacturing through training and apprenticeship programs.

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Krause has been our senior vice president, general counsel, and secretary since November 2021 and served as our vice president, general counsel and secretary from July 2018 to November 2021.

She served as our deputy general counsel from December 2017 to June 2018.

She served as our deputy general counsel from

December 2017 to June 2018.

Prior to joining us, Ms.

Krause was head of commerce cloud commercial legal at salesforce.com, inc., a global SAAS software company, from July 2016 to December 2017.

She previously served as assistant general counsel of Demandware, Inc., a global SAAS software company, from January 2014 to July 2016, prior to its acquisition by salesforce.com, and was assistant general counsel of Entegris, Inc., a provider of advanced materials and materials handling

solutions, from 2011 to 2014.

Prior to 2011, Ms.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business