4 unchanged sentences
Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
−Removed: Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
+Added: Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and
+Added: management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
Based upon the evaluation of our disclosure controls and procedures at year-end 2025, our Chief Executive Officer and Chief Financial Officer concluded that at year-end 2025, our disclosure controls and procedures were effective at the reasonable assurance level.
4 unchanged sentences
Based on our assessment, management believes that at year-end 2025 our internal control over financial reporting was effective based on the criteria issued by COSO.
−Removed: Our audited consolidated financial statements include the results of the acquisitions of Key Knife, KWS, and DSTI since their dates of acquisition, including total assets of $315,451,000 and total revenue of $112,858,000 as of and for the fiscal year ended December 28, 2024, but management has excluded these acquisitions from its assessment of the effectiveness of internal control over financial reporting as of December 28, 2024.
+Added: Our audited consolidated financial statements include the results of the acquisitions of Clyde Industries and Babbini since their dates of acquisition, including total assets of $251,413,000 and total revenue of $27,836,000 as of and for the fiscal year ended January 3, 2026, but management has excluded these acquisitions from its assessment of the effectiveness of internal control over financial reporting as of January 3, 2026.
Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
2 unchanged sentences
Changes in Internal Control over Financial Reporting
−Removed: There have not been any changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) during the fiscal quarter ended December 28, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
+Added: There have not been any changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) during the fiscal quarter ended January 3, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Other Information
Insider Trading Arrangements
−Removed: None of our directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or adopted or terminated a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K) during the fiscal quarter ended December 28, 2024.
+Added: None of our directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or adopted or terminated a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K) during the fiscal quarter ended January 3, 2026.
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
26 unchanged sentences
(a) Consists of shares of our common stock issuable upon the vesting of restricted stock units and performance-based restricted stock units under the Amended and Restated 2006 Equity Incentive Plan.
−Removed: (b) Shares of restricted stock units and performance-based restricted stock units outstanding on December 28, 2024 had a weighted average grant date fair value of $258.49.
+Added: (b) Shares of restricted stock units and performance-based restricted stock units outstanding on January 3, 2026 had a weighted average grant date fair value of $314.88.
(c) Includes an aggregate of 52,883 shares of common stock issuable under our employees' stock purchase plan in connection with current and future offering periods under the plan.
18 unchanged sentences
Number Description of Exhibit
−Removed: 2.1 Securities Purchase Agreement dated as of December 22, 2023, by and among Key Knife, Inc., Key Knife Canadian Investments Corporation, Key Knife, Inc., Employee Stock Ownership Trust, Kadant Inc.
−Removed: and Kadant Canada Corp.
−Removed: ( filed as E xh i bit 2.1 to the Registrant's Annual Report on Form 10-K for the year ended December 30, 2023 [File No.
−Removed: 001-1140 6] and inco rporated in this document by referenc e ) .
+Added: 2.1 Securities Purchase Agreement dated as of October 7, 2025 , by and among C l yde Industries Holdings, Inc., Clyde Industries Holdings, L.P., and Kadant Inc.
+Added: (filed as Exhibit 2.1 to the Registrant's Quarterly Report on Form 10- Q for the quarter ended September 27 , 202 5 [File No.
+Added: 001-11406] and incorporated in this document by reference) .
+Added: 2.2 S hare Purchase and Transfer Agreement as of January 29, 2026 , by and between voesta lpine High Performance Metals GmbH and Kadant Holdings GmbH .
3.1 Restated Certificate of Incorporation of the Registrant (filed as Exhibit 3.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2001 [File No.
2 unchanged sentences
001-11406] filed with the Commission on November 25, 2014 and incorporated in this document by reference).
−Removed: 4.1 Description of Securities Registered under Section 12 of the Securities Exchange Act of 1934 .
+Added: 4.1 Description of Securities Registered under Section 12 of the Securities Exchange Act of 1934 (filed as Exhibit 4.1 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 28, 2024 [File No.
+Added: 001-11406] and incorporated in this document by reference).
10.1* Form of Indemnification Agreement between the Registrant and its directors and officers (filed as Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2001 [File No.
11 unchanged sentences
001-11406] filed with the Commission on March 15, 2022 and incorporated in this document by reference).
−Removed: Summary of non-employee director compensation of the Registrant (filed as Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended April 2, 2022 [File No.
+Added: Summary of Non-employee Director Compensation of the Registrant (filed as Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 29, 2025 [File No.
001-11406] and incorporated in this document by reference).
5 unchanged sentences
011-11406] and incorporated in this document by reference).
+Added: Number Description of Exhibit
Amended and Restated Credit Agreement dated as of March 1, 2017, among the Registrant, the Foreign Subsidiary Borrowers from time to time parties thereto, the several banks and other financial institutions or entities from time to time parties thereto, Citizens Bank, N.A., as Administrative Agent and Multicurrency Administrative Agent (filed as Exhibit 99.1 to the Registrant's Current Report on Form 8-K [File No.
001-11406] filed with the Commission on March 7, 2017 and incorporated in this document by reference).
−Removed: Number Description of Exhibit
First Amendment and Limited Consent, dated as of May 24, 2017, to the Amended and Restated Credit Agreement dated as of March 1, 2017 by and among the Registrant, the Foreign Subsidiary Borrowers from time to time parties thereto, the several banks and other financial institutions or entities from time to time parties thereto, Citizens Bank, N.A., as Administrative Agent and Multicurrency Administrative Agent (filed as Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended July 1, 2017 [File No.
8 unchanged sentences
001-11406] and incorporated in this document by reference).
−Removed: 10.17 Joinder Agreement, dated as of May 4, 2021, to the Amended and Restated Credit Agreement, dated as of March 1, 2017, by and among the Registrant, the Foreign Subsidiary Borrowers from time to time parties thereto, the several banks and other financial institutions or entities from time to time parties thereto, and Citizens Bank, N.A., as Administrative Agent and Multicurrency Administrative Agent (filed as Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended July 3, 2021 [File No.
−Removed: 001-11406] and incorporated in this document by reference).
Fifth Amendment, dated as of December 9, 2021, to the Amended and Restated Credit Agreement, dated as of March 1, 2017, by and among the Registrant, the Foreign Subsidiary Borrowers from time to time parties thereto, the several banks and other financial institutions or entities from time to time parties thereto, and Citizens Bank, N.A., as Administrative Agent and Multicurrency Administrative Agent (filed as Exhibit 10.21 to the Registrant's Annual Report on Form 10-K for the year ended January 1, 2022 [File No.
2 unchanged sentences
001-11406] and incorporated in this document by reference).
−Removed: 10.20 Seventh Amendment, dated as of June 24, 2024 , to the Amended and Restated Credit Agreement, dated as of March 1, 2017, by and among the Registrant, the Foreign Subsidiary Borrowers from time to time parties thereto, the several banks and other financial institutions or entities from time to time parties thereto, and Citizens Bank, N.A., as Administrative Agent and Multicurrency Administrative Agent (filed as Exhibit 10.2 to the Registrant's Quarterly Report on Form 10- Q for the q uarter ended June 29, 2024 [File No.
+Added: 10.19 Seventh Amendment, dated as of June 24, 2024, to the Amended and Restated Credit Agreement, dated as of March 1, 2017, by and among the Registrant, the Foreign Subsidiary Borrowers from time to time parties thereto, the several banks and other financial institutions or entities from time to time parties thereto, and Citizens Bank, N.A., as Administrative Agent and Multicurrency Administrative Agent (filed as Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 29, 2024 [File No.
001-11406] and incorporated in this document by reference).
+Added: 10.20 Eighth Amendment and Joinder to Amended and Restated Credit Agreement , dated as of September 26, 2025, among the Registrant, as Borrower, the Subsidiary Guarantors party thereto, the Foreign Subsidiary Borrowers from time to time parties thereto, the several lenders from time to time parties thereto, and Citizens Bank, N.A., as Administrative Agent and Multicurrency Administrative Agent (filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K [File No.
+Added: 001-11406] filed with the Commission on October 2, 2025 and incorporated in this document by reference).
Number Description of Exhibit
−Removed: 10.21 Amended and Restated Guarantee Agreement dated as of March 1, 2017, among the Registrant, as Borrower, and each of the Subsidiary Guarantors, in favor of Citizens Bank, N.A., as Administrative Agent and as Multicurrency Administrative Agent for the bank and other financial institutions or entities from time to time parties to the Amended and Restated Credit Facility (filed as Exhibit 99.2 to the Registrant's Current Report on Form 8-K [File No.
−Removed: 001-11406] filed with the Commission on March 7, 2017 and incorporated in this document by reference).
−Removed: 10.22 Guarantee Agreement dated as of March 1, 2017, by Kadant Cayman Ltd.
−Removed: in favor of Citizens Bank, N.A., as Administrative Agent and as Multicurrency Administrative Agent for the banks and other financial institutions or entities from time to time parties to the Amended and Restated Credit Facility (filed as Exhibit 99.3 to the Registrant's Current Report on Form 8-K [File No.
−Removed: 001-11406] filed with the Commission on March 7, 2017 and incorporated in this document by reference).
10.21 Multi-Currency Note Purchase and Private Shelf Agreement, dated as of December 14, 2018 among the Registrant, PGIM, Inc.
1 unchanged sentence
001-11406] and incorporated in this document by reference).
−Removed: 19 Insider Trading Policies and Procedures.
+Added: 19 Insider Trading Policies and Procedures (filed as Exhibit 19 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 28, 20 2 4 [File No.
+Added: 001-11406] and incorporated in this document by reference).
21 Subsidiaries of the Registrant.
16 unchanged sentences
* Management contract or compensatory plan or arrangement.
−Removed: The schedules to this document have been omitted from this filing pursuant to Item 601(b)(2) of Regulation S-K.
−Removed: The Company will furnish copies of any of the schedules to the U.S.
+Added: Certain portions of this exhibit are considered confidential and have been omitted from the filing pursuant to Item 601(b)(2) of Regulation S-K.
+Added: The Company agrees to furnish supplementally a copy of any omitted portions to the U.S.
Securities and Exchange Commission upon request.
2 unchanged sentences
Pursuant to the requirements of Section 13 or 15(d) 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, thereunto duly authorized.
−Removed: February 25, 2025
+Added: March 3, 2026
/s/ Jeffrey L.
5 unchanged sentences
Selwood, jointly and severally, his or her attorney-in-fact, with the power of substitution, for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his substitute or substitutes, may do or cause to be done by virtue hereof.
−Removed: Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated, on February 25, 2025.
+Added: Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated, on March 3, 2026.
Signature Title
20 unchanged sentences
Report of Independent Registered Public Accounting Firm
−Removed: Consolidated Balance Sheet as of December 28, 2024 and December 30, 2023
−Removed: Consolidated Statement of Income for the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022
−Removed: Consolidated Statement of Comprehensive Income for the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022
−Removed: Consolidated Statement of Cash Flows for the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022
−Removed: Consolidated Statement of Stockholders' Equity for the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022
+Added: Consolidated Balance Sheet as of January 3, 2026 and December 28, 2024
+Added: Consolidated Statement of Income for the fiscal years ended January 3, 2026, December 28, 2024, and December 30, 2023
+Added: Consolidated Statement of Comprehensive Income for the fiscal years ended January 3, 2026, December 28, 2024, and December 30, 2023
+Added: Consolidated Statement of Cash Flows for the fiscal years ended January 3, 2026, December 28, 2024, and December 30, 2023
+Added: Consolidated Statement of Stockholders' Equity for the fiscal years ended January 3, 2026, December 28, 2024, and December 30, 2023
Notes to Consolidated Financial Statements
3 unchanged sentences
We have audited the accompanying consolidated balance sheets of Kadant Inc.
−Removed: and subsidiaries (the Company) as of December 28, 2024 and December 30, 2023, the related consolidated statements of income, comprehensive income, cash flows and stockholders’ equity for each of the fiscal years in the three-year period ended December 28, 2024, and the related notes (collectively, the consolidated financial statements).
−Removed: We also have audited the Company’s internal control over financial reporting as of December 28, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
−Removed: In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 28, 2024 and December 30, 2023, and the results of its operations and its cash flows for each of the fiscal years in the three-year period ended December 28, 2024, in conformity with U.S.
+Added: and subsidiaries (the Company) as of January 3, 2026 and December 28, 2024, the related consolidated statements of income, comprehensive income, cash flows and stockholders’ equity for each of the fiscal years in the three-year period ended January 3, 2026, and the related notes (collectively, the consolidated financial statements).
+Added: We also have audited the Company’s internal control over financial reporting as of January 3, 2026, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
+Added: In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of January 3, 2026 and December 28, 2024, and the results of its operations and its cash flows for each of the fiscal years in the three-year period ended January 3, 2026, in conformity with U.S.
generally accepted accounting principles.
−Removed: Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 28, 2024 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
−Removed: The Company acquired Key Knife, Inc.
−Removed: (Key Knife), KWS Manufacturing Company, Ltd.
−Removed: (KWS), and Dynamic Sealing Technologies LLC (DSTI) during 2024, and management excluded from its assessment of the effectiveness of the Company’s internal control over financial reporting as of December 28, 2024, Key Knife's, KWS's, and DSTI's internal control over financial reporting associated with total assets of $315,451,000 and total revenues of $112,858,000 included in the consolidated financial statements of the Company as of and for the fiscal year ended December 28, 2024.
−Removed: Our audit of internal control over financial reporting of the Company also excluded an evaluation of the internal control over financial reporting of Key Knife, KWS, and DSTI.
+Added: Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of January 3, 2026 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
+Added: The Company acquired Clyde Industries Holdings, Inc.
+Added: (Clyde Industries) and Babbini S.p.A and G.P.S.
+Added: Engineering S.r.l (collectively, Babbini) during 2025, and management excluded from its assessment of the effectiveness of the Company’s internal control over financial reporting as of January 3, 2026, Clyde Industries' and Babbini's internal control over financial reporting associated with total assets of $251,413,000 and total revenues of $27,836,000 included in the consolidated financial statements of the Company as of and for the fiscal year ended January 3, 2026.
+Added: Our audit of internal control over financial reporting of the Company also excluded an evaluation of the internal control over financial reporting of Clyde Industries and Babbini.
Basis for Opinions
15 unchanged sentences
A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
−Removed: (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the
+Added: (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
5 unchanged sentences
The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
−Removed: Valuation of customer relationships intangible assets acquired in the Key Knife and KWS business combinations
−Removed: As discussed in Note 2 to the consolidated financial statements, the Company acquired Key Knife for $153,386,000 on January 1, 2024, and also acquired KWS for $79,429,000 on January 24, 2024.
−Removed: As of the date of each of the transactions, the Company recognized intangible assets acquired with estimated fair values of $91,620,000 for Key Knife and $29,100,000 for KWS, a portion of which related to customer relationships.
+Added: Valuation of customer relationships intangible asset acquired in the Clyde Industries business combination
+Added: As discussed in Note 2 to the consolidated financial statements, the Company acquired Clyde Industries for $173,730,000 on October 7, 2025.
+Added: As part of the transaction, the Company recognized intangible assets acquired with estimated fair values of $87,400,000, a portion of which related to customer relationships.
The Company determined the fair value of the customer relationships using the multi-period excess earnings methodology.
−Removed: We identified the assessment of the valuation of certain customer relationships intangible assets acquired in the Key Knife and KWS business combinations as a critical audit matter.
−Removed: A high degree of subjective auditor judgment was required to evaluate certain assumptions in the valuation of the customer relationships intangible assets, specifically the future revenue growth rates, gross margins, and discount rates.
−Removed: Additionally, evaluating the discount rates required the involvement of valuation professionals with specialized skills and knowledge.
−Removed: Minor changes in these assumptions could have had a significant impact on the Company’s estimate of fair value of the customer relationships intangible assets.
+Added: We identified the assessment of the valuation of the customer relationships intangible asset acquired in the Clyde Industries business combination as a critical audit matter.
+Added: A high degree of subjective auditor judgment was required to evaluate certain assumptions in the valuation of the customer relationships intangible asset, specifically the future revenue growth rates, gross margins, and discount rate.
+Added: Additionally, evaluating the discount rate required the involvement of valuation professionals with specialized skills and knowledge.
+Added: Minor changes in these assumptions could have had a significant impact on the Company’s estimate of fair value of the customer relationships intangible asset.
The following are the primary procedures we performed to address this critical audit matter.
We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s acquisition date valuation process, including controls related to the development of the future revenue growth rates, gross margins, and discount rate assumptions.
−Removed: We evaluated the future revenue growth rates and gross margins by comparing them to the historical financial results of the acquired businesses.
−Removed: We involved valuation professionals with specialized skills and knowledge, who assisted in evaluating the discount rates by comparing them to discount rates that were independently developed using publicly available market data for comparable peer companies.
+Added: We evaluated the future revenue growth rates and gross margins by comparing them to the historical financial results of the acquired business.
+Added: We involved valuation professionals with specialized skills and knowledge, who assisted in evaluating the discount rate by comparing it to the discount rate that was independently developed using publicly available market data for comparable peer companies.
We have served as the Company’s auditor since 2012.
Boston, Massachusetts
−Removed: February 25, 2025
+Added: March 3, 2026
2025 Financial Statements
Consolidated Balance Sheet
−Removed: (In thousands, except share and per share amounts) December 28, 2024 December 30, 2023
+Added: (In thousands, except share and per share amounts) January 3, 2026 December 28, 2024
Current Assets:
21 unchanged sentences
Accrued warranty and installation costs
+Added: 11,848 10,664
Customer deposits 56,867 35,887
4 unchanged sentences
371,372 285,151
−Removed: Long-Term Deferred Income Taxes ( Note 5 )
+Added: Deferred Income Taxes (Note 5)
62,479 41,850
12 unchanged sentences
Total Kadant Stockholders' Equity 979,809 847,127
−Removed: Noncontrolling interests ( Note 2 )
+Added: Noncontrolling interests
+Added: 11,258 11,001
Total Stockholders' Equity 991,067 858,128
3 unchanged sentences
Consolidated Statement of Income
−Removed: (In thousands, except per share amounts) December 28, 2024 December 30, 2023 December 31, 2022
+Added: (In thousands, except per share amounts) January 3, 2026 December 28, 2024 December 30, 2023
Revenue (Notes 1 and 11)
4 unchanged sentences
Research and development expenses 15,264 14,318 13,562
−Removed: Gain on sale and other costs, net ( Note 8 )
+Added: Other costs, net (Note 8)
1,313 658 723
8 unchanged sentences
Net Income 103,681 112,554 116,806
−Removed: Net Income Attributable to Noncontrolling Interest ( 956 ) ( 737 ) ( 802 )
+Added: Net Income Attributable to Noncontrolling Interests
+Added: ( 1,712 ) ( 956 ) ( 737 )
Net Income Attributable to Kadant $ 101,969 $ 111,598 $ 116,069
8 unchanged sentences
Consolidated Statement of Comprehensive Income
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022
+Added: (In thousands) January 3, 2026 December 28, 2024 December 30, 2023
Net Income $ 103,681 $ 112,554 $ 116,806
Other Comprehensive Items:
−Removed: Foreign currency translation adjustment
+Added: Foreign currency translation adjustments:
Foreign currency translation adjustment 37,290 ( 30,198 ) 11,554
Reclassification adjustment for loss included in net income
−Removed: Pension and other post-retirement liability adjustments, net (net of tax of $ 17 , $ 45 , and $ 225 )
−Removed: Deferred gain (loss) on cash flow hedges (net of tax of $ 13 , $( 32 ), and $ 147 )
+Added: Pension and other post-retirement liability adjustments, net (net of tax (benefit) provision of $( 7 ), $ 17 , and $ 45 )
( 28 ) 59 137
+Added: Deferred gain (loss) on cash flow hedges (net of tax of $ 0 , $ 13 , and $( 32 ))
Other Comprehensive Items 37,262 ( 29,443 ) 11,595
6 unchanged sentences
Consolidated Statement of Cash Flows
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022
+Added: (In thousands) January 3, 2026 December 28, 2024 December 30, 2023
Operating Activities
Net income attributable to Kadant $ 101,969 $ 111,598 $ 116,069
−Removed: Net income attributable to noncontrolling interest 956 737 802
+Added: Net income attributable to noncontrolling interests 1,712 956 737
Net income 103,681 112,554 116,806
3 unchanged sentences
Provision for losses on accounts receivable 737 721 531
−Removed: Gain on sale of assets and other income ( Note 8 )
−Removed: — ( 841 ) ( 20,190 )
−Removed: Loss on liquidation of subsidiary ( Note 8 )
−Removed: Non-cash impairment costs (Note 8 )
+Added: Other income (Note 8)
+Added: Other non-cash costs (Note 8)
Deferred income tax provision (benefit) 2,448 1,232 ( 1,949 )
17 unchanged sentences
Financing Activities
−Removed: Proceeds from issuance of short- and long-term obligations ( Note 6 )
+Added: Proceeds from issuance of long-term obligations (Note 6)
199,033 305,211 —
3 unchanged sentences
Tax withholding payments related to stock-based compensation ( 6,099 ) ( 5,881 ) ( 3,915 )
−Removed: Dividend paid to noncontrolling interest ( 1,346 ) — ( 630 )
+Added: Dividends paid to noncontrolling interests
+Added: ( 1,698 ) ( 1,346 ) —
Acquisition of subsidiary shares from noncontrolling interest (Note 2)
−Removed: Other financing activities — ( 8 ) ( 1,254 )
+Added: Payment of debt issuance costs
+Added: ( 2,641 ) — ( 8 )
Net cash provided by (used in) financing activities 54,012 159,914 ( 111,111 )
Exchange Rate Effect on Cash, Cash Equivalents, and Restricted Cash 6,813 ( 6,549 ) 3,084
−Removed: (Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash
+Added: Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash
26,735 ( 10,507 ) 26,728
10 unchanged sentences
Shares Amount Shares Amount
−Removed: Balance at January 1, 2022 14,624,159 $ 146 $ 115,888 $ 551,848 3,003,419 $ ( 73,596 ) $ ( 30,350 ) $ 1,680 $ 565,616
+Added: Balance at December 31, 2022
+Added: 14,624,159 $ 146 $ 119,924 $ 660,644 2,949,997 $ ( 72,287 ) $ ( 54,578 ) $ 1,722 $ 655,571
Net income — — — 116,069 — — — 737 116,806
1 unchanged sentence
— — — ( 13,582 ) — — — — ( 13,582 )
−Removed: Dividend paid to noncontrolling interest — — — — — — — ( 630 ) ( 630 )
Activity under stock plans — — 5,016 — ( 34,019 ) 834 — — 5,850
4 unchanged sentences
— — — ( 15,036 ) — — — — ( 15,036 )
+Added: Dividend paid to noncontrolling interest — — — — — — — ( 1,346 ) ( 1,346 )
Activity under stock plans — — 5,434 — ( 37,898 ) 929 — — 6,363
+Added: Noncontrolling interests acquired (Note 2)
+Added: — — — — — — — 9,319 9,319
+Added: Acquisition of subsidiary shares (Note 2)
+Added: — — ( 194 ) — — — — ( 329 ) ( 523 )
Other comprehensive items — — — — — — ( 29,306 ) ( 137 ) ( 29,443 )
3 unchanged sentences
— — — ( 16,021 ) — — — — ( 16,021 )
−Removed: Activity under stock plans — — 5,434 — ( 37,898 ) 929 — — 6,363
−Removed: Noncontrolling interests acquired ( Note 2 )
−Removed: — — — — — — — 9,319 9,319
−Removed: Acquisition of subsidiary shares ( N ote 2 )
−Removed: — — ( 194 ) — — — — ( 329 ) ( 523 )
−Removed: Dividend paid to noncontrolling interest
+Added: Dividends paid to noncontrolling interests
— — — — — — — ( 1,698 ) ( 1,698 )
+Added: Activity under stock plans — — 8,664 — ( 42,915 ) 1,051 — — 9,715
Other comprehensive items — — — — — — 37,019 243 37,262
−Removed: Balance at December 28, 2024 14,624,159 $ 146 $ 130,180 $ 859,693 2,878,080 $ ( 70,524 ) $ ( 72,368 ) $ 11,001 $ 858,128
+Added: Balance at January 3, 2026 14,624,159 $ 146 $ 138,844 $ 945,641 2,835,165 $ ( 69,473 ) $ ( 35,349 ) $ 11,258 $ 991,067
The accompanying notes are an integral part of these consolidated financial statements.
2025 Financial Statements
−Removed: Notes to Consolidated Financial Statements
+Added: N otes to Consolidated Financial Statements
Nature of Operations and Summary of Significant Accounting Policies
15 unchanged sentences
The agreement provides the Company's subsidiary with the option to purchase the remaining 50 % interest in the joint venture.
−Removed: The Company has adopted a fiscal year ending on the Saturday nearest to December 31.
−Removed: References to 2024, 2023, and 2022 are for the Company's fiscal years ended December 28, 2024 (fiscal 2024), December 30, 2023 (fiscal 2023) and December 31, 2022 (fiscal 2022).
−Removed: Financial Statement Presentation
−Removed: The Company reclassified the prior year accrued warranty and installation costs amount in the accompanying consolidated balance sheet to present it separately to conform with the current year presentation.
+Added: The Company's fiscal quarters and fiscal year typically consist of 13 and 52 weeks, respectively, with its fiscal year ending on the Saturday closest to December 31.
+Added: As a result of the difference between the fiscal and calendar periods, a 53rd week is added to the Company's fiscal year every five or six years, resulting in a 14-week fourth quarter.
+Added: The Company's fiscal year ended January 3, 2026 (fiscal 2025) contained 53 weeks, while its fiscal years ended December 28, 2024 (fiscal 2024) and December 30, 2023 (fiscal 2023) each included 52 weeks.
+Added: Each quarter of fiscal 2025, 2024 and 2023 consisted of 13 weeks, except for the fourth quarter of fiscal 2025, which consisted of 14 weeks.
Use of Estimates and Critical Accounting Policies
6 unchanged sentences
2025 Financial Statements
−Removed: Notes to Consolidated Financial Statements
+Added: N otes to Consolidated Financial Statements
Revenue Recognition
8 unchanged sentences
The following table presents revenue by revenue recognition method:
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022
+Added: (In thousands) January 3, 2026 December 28, 2024 December 30, 2023
Point in Time $ 973,699 $ 935,520 $ 849,507
7 unchanged sentences
The following table presents the disaggregation of revenue by product type and geography:
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022
+Added: (In thousands) January 3, 2026 December 28, 2024 December 30, 2023
Revenue by Product Type:
10 unchanged sentences
The following table presents contract balances from contracts with customers:
−Removed: (In thousands) December 28, 2024 December 30, 2023
+Added: (In thousands) January 3, 2026 December 28, 2024
Contract Assets $ 6,599 $ 18,408
4 unchanged sentences
2025 Financial Statements
−Removed: Notes to Consolidated Financial Statements
+Added: N otes to Consolidated Financial Statements
long-term liabilities in the accompanying consolidated balance sheet.
22 unchanged sentences
The changes in the allowance for credit losses are as follows:
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022
+Added: (In thousands) January 3, 2026 December 28, 2024 December 30, 2023
Balance at Beginning of Year $ 4,403 $ 4,090 $ 3,595
9 unchanged sentences
2025 Financial Statements
−Removed: Notes to Consolidated Financial Statements
+Added: N otes to Consolidated Financial Statements
+Added: Note Receivable
+Added: The Company entered into several agreements with the local government in China, which became effective in 2022, to sell its then existing manufacturing building and land use rights at one of its subsidiaries in China and relocate to a new facility.
+Added: The Company received a 31 % down payment, with the remaining balance due on the earlier of the sale of the property by the local government or two years from the effective date of the agreements.
+Added: To date, the local government in China has made various interim payments and the outstanding receivable was $ 13,577,000 at year-end 2025, which is included in other current assets in the accompanying consolidated balance sheet.
+Added: The Company expects this receivable will be repaid in full, although the timing is uncertain.
Warranty Obligations
5 unchanged sentences
The changes in the carrying amount of product warranty obligations are as follows:
−Removed: (In thousands) December 28, 2024 December 30, 2023
+Added: (In thousands) January 3, 2026 December 28, 2024
Balance at Beginning of Year $ 10,664 $ 8,154
19 unchanged sentences
In accordance with ASC 740, Income Taxes (ASC 740), the Company recognizes deferred income taxes based on the expected future tax consequences of differences between the financial statement basis and the tax basis of assets and liabilities, calculated using enacted tax rates in effect for the year in which these differences are expected to reverse.
−Removed: A tax valuation allowance is established, as needed, to reduce deferred tax assets to the amount expected to be realized.
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
+Added: valuation allowance is established, as needed, to reduce deferred tax assets to the amount expected to be realized.
In the period in which it becomes more likely than not that some or all of the deferred tax assets will be realized, the valuation allowance will be adjusted.
1 unchanged sentence
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes.
−Removed: At December 28, 2024, the Company believes that it has appropriately accounted for any liability for unrecognized tax benefits.
+Added: At January 3, 2026, the Company believes that it has appropriately accounted for any liability for unrecognized tax benefits.
To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established, the statute of limitations expires for a tax jurisdiction year, or the Company is required to pay amounts in excess of the liability, its effective tax rate in a given financial statement period may be affected.
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
In December 2021, the Organisation for Economic Co-operation and Development (OECD) released model rules introducing a new 15% global minimum tax for large multinational enterprises with an annual global revenue exceeding 750,000,000 euros (Pillar Two Rules).
−Removed: Since the release of the Pillar Two Rules, the OECD has issued four tranches of administrative guidance, as well as guidance on transitional safe harbor relief.
−Removed: Various countries, including the member states of the European Union, have adopted the Pillar Two Rules into their domestic laws, with certain rules coming into effect for fiscal years beginning in 2024.
+Added: Since the release of the Pillar Two Rules, the OECD has issued multiple tranches of administrative guidance, as well as guidance on transitional safe harbor relief.
+Added: Various countries, including the member states of the European Union, have adopted the Pillar Two Rules into their domestic laws, with certain rules coming into effect for fiscal years beginning in fiscal 2024.
While the Pillar Two Rules serve as a framework for implementing the minimum tax, countries may enact domestic laws that vary slightly from the Pillar Two Rules and may also adjust domestic tax incentives to align with the Pillar Two Rules on different timelines.
−Removed: For fiscal 2024, the Company qualifies for the transitional safe harbor, which provides temporary relief from the application of the global minimum tax.
−Removed: As a result of meeting the transitional safe harbor criteria, the Company does not anticipate a material impact on its effective tax rate or incremental tax liabilities in the near term.
−Removed: The Company continues to evaluate its eligibility under the safe harbor provisions and monitor evolving regulatory guidance that may affect its long-term tax position.
+Added: In 2025, the Company incurred Pillar Two top-up tax that was assessed under the Undertaxed Profits Rule (UTPR).
+Added: The related UTPR top-up tax was recorded within the Company’s provision for income taxes in 2025 and did not have a material impact on the Company’s effective tax rate or consolidated financial statements.
+Added: In January 2026, the OECD released additional administrative guidance (Side-by-Side package) introducing new safe harbors.
+Added: The package includes an elective Side-by-Side safe harbor that, subject to adoption into local law, may exempt eligible U.S.
+Added: parented multinational groups from the application of certain aspects of the global minimum tax regime for fiscal years beginning on or after January 1, 2026.
+Added: The Company continues to evaluate the applicability of available safe harbors, monitor developments in OECD guidance and related local-country implementation, and assess the potential impact on the Company’s future Pillar Two compliance obligations and effective tax rate.
+Added: On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted in the United States.
+Added: The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions, including 100% bonus depreciation, domestic research cost expensing pursuant to Internal Revenue Code Section 174, and changes to the calculation of the interest expense limitation.
+Added: The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.
+Added: There is no material impact of the OBBBA provisions to the Company's effective tax rate or consolidated financial statements in 2025.
+Added: The Company is still evaluating any potential impact to cash tax payments related to the provisions of the OBBBA.
+Added: The Company will continue to monitor the future impact of the OBBBA on its effective tax rate and consolidated financial statements and continue to monitor any additional clarifications or interpretive guidance related to the OBBBA as it is released.
Earnings per Share
7 unchanged sentences
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the accompanying consolidated balance sheet that are shown in aggregate in the consolidated statement of cash flows:
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
+Added: (In thousands) January 3, 2026 December 28, 2024 December 30, 2023
Cash and cash equivalents $ 119,551 $ 94,660 $ 103,832
2 unchanged sentences
Supplemental Cash Flow Information
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022
+Added: (In thousands) January 3, 2026 December 28, 2024 December 30, 2023
Cash Paid for Interest $ 14,925 $ 19,699 $ 8,071
−Removed: Cash Paid for Income Taxes, Net of Refunds $ 42,291 $ 47,519 $ 36,971
Non-Cash Investing Activities:
Fair value of assets acquired $ 255,375 $ 360,694 $ 1,338
−Removed: Fair value of liabilities assumed (adjusted)
+Added: Fair value of liabilities assumed
$ 54,858 $ 36,340 $ 264
−Removed: Fair value of noncontrolling interest acquired $ 9,319 $ — $ —
+Added: Fair value of noncontrolling interests acquired $ — $ 9,319 $ —
Fair value of contingent consideration acquired $ — $ 1,785 $ —
−Removed: Purchase of property with outstanding loan receivable $ — $ — $ 1,397
Purchases of property, plant and equipment in accounts payable $ 1,541 $ 1,181 $ 4,453
2 unchanged sentences
Dividends declared but unpaid $ 4,008 $ 3,762 $ 3,395
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
+Added: See Note 5 , Income Taxes, for information on cash paid for income taxes, net of refunds and see Note 9 , Leases, for information on cash paid for amounts included in the measurement of lease liabilities.
Inventories are stated at the lower of cost (on a first-in, first-out;
3 unchanged sentences
The components of inventories are as follows:
−Removed: (In thousands) December 28, 2024 December 30, 2023
+Added: (In thousands) January 3, 2026 December 28, 2024
Raw Materials $ 92,674 $ 60,750
13 unchanged sentences
Property, plant and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets or asset group may not be recoverable.
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
Property, plant, and equipment consist of the following:
−Removed: (In thousands) December 28, 2024 December 30, 2023
+Added: (In thousands) January 3, 2026 December 28, 2024
Land $ 19,395 $ 15,884
12 unchanged sentences
Translation Net
−Removed: December 28, 2024
+Added: January 3, 2026
Definite-Lived
7 unchanged sentences
Acquired Intangible Assets $ 589,579 $ ( 231,617 ) $ ( 7,586 ) $ 350,376
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
−Removed: (In thousands) Gross Accumulated
−Removed: Amortization Currency
−Removed: Translation Net
December 28, 2024
12 unchanged sentences
The Company amortizes definite-lived intangible assets over lives that have been determined based on the anticipated cash flow benefits of the intangible asset.
−Removed: Intangible assets acquired related to the Company's acquisitions in 2024 totaled $ 154,023,000 .
+Added: Intangible assets related to the Company's acquisitions totaled $ 92,678,000 in 2025 and $ 154,023,000 in 2024.
See Note 2 , Acquisitions, for further details.
+Added: In addition, the Company recognized incremental intangible assets of $ 200,000 in 2025 related to a prior period acquisition.
+Added: As a result of new technology obtained in connection with a 2025 acquisition, the Company determined that certain previously acquired technology was impaired and recognized a non-cash impairment charge of $ 287,000 in 2025.
+Added: See Note 8 , Other Costs, Net, for further details.
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
Definite-lived intangible assets at year-end 2025 have a weighted average amortization period of 14 years.
15 unchanged sentences
2024 Activity
−Removed: Acquisition ( Note 2 )
+Added: Acquisitions (Note 2)
+Added: 15,384 36,096 48,160 99,640
+Added: Measurement period adjustment for 2023 acquisition — ( 22 ) — ( 22 )
Currency translation ( 3,961 ) ( 5,740 ) ( 2,832 ) ( 12,533 )
8 unchanged sentences
— 57,297 — 57,297
−Removed: Measurement period adjustment for 2023 acquisition
+Added: Measurement period adjustment for 2024 acquisitions
( 173 ) — 321 148
2 unchanged sentences
$ 7,554 $ 63,253 $ 5,645 $ 76,452
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
−Removed: (In thousands) Flow Control Industrial Processing Material Handling Total
−Removed: Balance at December 28, 2024
+Added: Balance at January 3, 2026
Gross balance $ 139,759 $ 306,319 $ 195,081 $ 641,159
9 unchanged sentences
To analyze recoverability, the Company projects undiscounted net future cash flows over the remaining lives of such assets or asset groups.
−Removed: If these projected cash flows were to be less than the carrying amounts, an impairment loss would be recognized, resulting in a write-down of the assets with a corresponding charge to earnings.
+Added: If these projected cash flows were to be less than the carrying amounts, an impairment loss would be recognized, resulting in a write-down of the assets
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
+Added: with a corresponding charge to earnings.
The impairment loss would be measured based upon the difference between the carrying amounts of the assets and their fair values calculated using projected discounted cash flows.
−Removed: At September 29, 2024 (the first day of the fourth quarter of 2024), the Company performed a qualitative goodwill impairment assessment (Step 0) for each of its reporting units, which indicated that the fair value of each reporting unit exceeded its carrying value, and determined that the asset was not impaired.
+Added: At September 28, 2025 (the first day of the fourth quarter of fiscal 2025) and September 29, 2024 (the first day of the fourth quarter of fiscal 2024), the Company performed a qualitative goodwill impairment assessment (Step 0) for each of its reporting units, which indicated that the fair value of each reporting unit exceeded its carrying value, and determined that the asset was not impaired.
The impairment analysis included an assessment of certain qualitative factors including, but not limited to, the results of prior fair value calculations, the movement of the Company's share price and market capitalization, the reporting units' and the Company's overall financial performance, and macroeconomic and industry conditions.
1 unchanged sentence
Although the Company believes the factors considered in the impairment analysis are reasonable, significant changes in any one of the assumptions used could have produced a different result.
−Removed: At year-end 2024, no factors were identified that would alter the conclusions of the September 29, 2024 goodwill impairment analysis
−Removed: At October 1, 2023 (the first day of the fourth quarter of 2023), the Company performed a quantitative goodwill impairment analysis (Step 1) for all of its reporting units, which indicated that the fair value of each reporting unit exceeded its carrying value, and determined that the asset was no t impaired.
−Removed: At year-end 2023, no factors were identified that would alter the conclusions of the October 1, 2023 goodwill impairment analysis.
+Added: At year-end 2025 and 2024, no factors were identified that would alter the conclusions of the September 28, 2025 and September 29, 2024 goodwill impairment analyses.
Goodwill by reporting unit is as follows:
−Removed: (In thousands) December 28, 2024 December 30, 2023
+Added: (In thousands) January 3, 2026 December 28, 2024
Fluid-Handling $ 79,379 $ 76,733
4 unchanged sentences
$ 555,621 $ 479,169
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
Intangible Assets
−Removed: At September 29, 2024, the Company performed a qualitative impairment analysis (Step 0) on its indefinite-lived intangible assets and determined that the assets were not impaired.
−Removed: At year-end 2024, no factors were identified that would alter the conclusions of the September 29, 2024 indefinite-lived intangible asset impairment analysis.
−Removed: At October 1, 2023, the Company performed a quantitative impairment analysis (Step 1) on its indefinite-lived intangible assets and determined that the assets were not impaired.
−Removed: At year-end 2023, no factors were identified that would alter the conclusions of the September 29, 2024 indefinite-lived intangible asset impairment analysis.
+Added: At September 28, 2025 and September 29, 2024, the Company performed a qualitative impairment analysis (Step 0) on its indefinite-lived intangible assets and determined that the assets were not impaired.
+Added: At year-end 2025 and 2024, no factors were identified that would alter the conclusions of the September 28, 2025 and September 29, 2024 indefinite-lived intangible asset impairment analyses.
No triggering events or indicators of impairment were identified in 2025 or 2024 related to the Company's definite-lived intangible assets.
2 unchanged sentences
The Company accounts for all transactions and events in which it obtains control over a business under ASC 805 by establishing the acquisition date and recognizing the fair value of all assets acquired and liabilities assumed.
−Removed: The Company’s acquisitions have historically been made at prices above the fair value of identifiable net assets, resulting in goodwill, due to synergies expected to be realized by combining the businesses.
+Added: The Company’s acquisitions have historically been made at prices above the fair value of identifiable net assets, resulting in goodwill, which is primarily attributable to the expected synergies from expansion of product sales into new markets by leveraging the Company's global sales network and relationships, as well as broadening its product portfolio, strengthening its position in the various markets served, and realizing the value of the acquired workforce.
While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the business acquisition date, the estimates and assumptions are inherently uncertain and subject to refinement.
2 unchanged sentences
The Company estimates the fair value of intangible assets primarily using the multi-period excess earnings and relief-from-royalty valuation methods, which are based on projections of discounted cash flows or royalty payments avoided that are expected from the identifiable intangible assets of the acquired businesses.
−Removed: The Company's valuation models incorporate significant assumptions, including future revenue growth rates, customer attrition rates, gross and operating margins, discount rates and royalty rates.
+Added: The Company's valuation models incorporate significant assumptions, including future revenue growth rates, customer attrition rates, gross and operating margins, discount rates
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
+Added: and royalty rates.
Subsequent to the measurement period, any adjustment to assets acquired or liabilities assumed is included in operating results in the period in which the adjustment is determ ined.
10 unchanged sentences
Compensation expense related to any modified stock-based awards is based on the fair value for those awards as of the modification date with any remaining incremental compensation expense recognized ratably over the remaining requisite service period.
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
Recent Accounting Pronouncements
−Removed: Segment Reporting - Improving Reportable Segment Disclosures (Topic 280).
−Removed: In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.
−Removed: 2023-07, to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses.
−Removed: Under this ASU, a company is required to enhance its segment disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (CODM), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources.
−Removed: This ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods.
−Removed: This ASU is effective for fiscal year-end 2024 and interim periods beginning in fiscal 2025, and requires retrospective application to all prior periods presented in the financial statements.
−Removed: The Company adopted this ASU during the fourth quarter of 2024, which resulted in additional disclosures.
−Removed: See Note 11 , Business Segment and Geographical Information, for the Company's enhanced segment disclosures.
Income Taxes – Improvements to Income Tax Disclosures (Topic 740) .
−Removed: In December 2023, the FASB issued ASU No.
+Added: In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.
2023-09, to improve income tax disclosure requirements, primarily through enhanced disclosures related to the income tax rate reconciliation and income taxes paid.
−Removed: This ASU is effective for fiscal year-end 2025, with early adoption permitted and may be applied retrospectively.
−Removed: The Company is currently evaluating the effects that the adoption of this ASU will have on its consolidated financial statements.
+Added: This ASU is effective for fiscal year-end 2025, and the Company has elected to adopt this ASU on a prospective basis.
+Added: See Note 5 , Income Taxes, for the Company's enhanced income tax disclosures.
Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosure (Topic 220).
2 unchanged sentences
This ASU is effective for fiscal year-end 2027 and interim periods beginning in fiscal 2028, with early adoption permitted and may be applied retrospectively.
−Removed: The Company is currently evaluating the effects that the adoption of this ASU will have on its consolidated financial statements.
+Added: The Company is currently evaluating the effect that the adoption of this ASU will have on its consolidated financial statements.
+Added: Financial Instruments - Credit Losses (Topic 326):
+Added: Measurement of Credit Losses for Accounts Receivable and Contract Assets.
+Added: In July 2025, the FASB issued ASU No.
+Added: 2025-05, to provide for a practical expedient permitting an entity to assume that conditions at the balance sheet date remained unchanged over the life of the asset when estimating expected credit losses for current accounts receivable and current contract assets accounted for under ASC 606, Revenue from Contracts with Customers.
+Added: This ASU is effective for fiscal year 2026, with early adoption permitted.
+Added: The amendments in this ASU should be applied prospectively.
+Added: The Company is currently evaluating the effect that the adoption of this ASU will have on its consolidated financial statements.
+Added: Intangibles - Goodwill and Other-Internal-Use Software (Subtopic 350-40):
+Added: Targeted Improvements to the Accounting for Internal-Use Software.
+Added: In September 2025, the FASB issued ASU No.
+Added: 2025-06, which improves the practicality of the guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods.
+Added: Under this ASU, eligible software development costs will begin capitalization when management has authorized and committed to funding the software project, it is probable that the project will be completed, and the software will be used to perform the function intended.
+Added: This ASU is effective for fiscal year 2028, with early adoption permitted and may be applied retrospectively.
+Added: The Company is currently evaluating the effect that the adoption of this ASU will have on its consolidated financial statements.
+Added: Interim Reporting (Topic 270):
+Added: Narrow-Scope Improvements.
+Added: In December 2025, the FASB issued ASU No.
+Added: 2025-11, which clarifies the guidance to improve the consistency of interim reporting.
+Added: This ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have had a material impact on the entity.
+Added: This ASU is effective for fiscal year 2028,
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
+Added: with early adoption permitted.
+Added: The Company is currently evaluating the effect that the adoption of this ASU will have on its consolidated financial statements.
+Added: Babbini S.p.A.
+Added: and G.P.S Engineering S.r.l
+Added: On July 9, 2025, the Company acquired all the outstanding equity securities of Babbini S.p.A and G.P.S.
+Added: Engineering S.r.l (collectively, Babbini), two Italy-based companies specializing in industrial dewatering and engineered power transmission solutions, for $ 16,483,000 , net of cash acquired.
+Added: Babbini is part of the Company's Industrial Processing segment.
+Added: Goodwill from the Babbini acquisition was $ 1,508,000 and separately identifiable intangible assets were $ 5,278,000 , neither of which is expected to be deductible for tax purposes.
+Added: Clyde Industries Holdings, Inc.
+Added: On October 7, 2025, the Company acquired all the outstanding equity securities of Clyde Industries Holdings, Inc.
+Added: and its subsidiaries (collectively, Clyde Industries) for $ 173,730,000 , net of cash acquired.
+Added: Clyde Industries is a manufacturer of highly engineered boiler efficiency and cleaning system technologies.
+Added: Clyde Industries is part of the Company's Industrial Processing segment.
+Added: Goodwill from the Clyde Industries acquisition was $ 55,789,000 and separately identifiable intangible assets acquired were $ 87,400,000 , neither of which is expected to be deductible for tax purposes.
+Added: Purchase Price Allocation
+Added: The following table summarizes the aggregate purchase price and estimated fair values of the net assets acquired related to the 2025 acquisitions.
+Added: (In thousands)
+Added: Cash and Cash Equivalents
+Added: Accounts Receivable
+Added: Other Current Assets
+Added: Property, Plant and Equipment
+Added: Definite-Lived Intangible Assets
+Added: Customer relationships
+Added: Product technology
+Added: Total assets acquired
+Added: Accounts Payable
+Added: Customer Deposits
+Added: Other Current Liabilities
+Added: Long-Term Obligations
+Added: Deferred Income Taxes
+Added: Other Long-Term Liabilities
+Added: Total liabilities assumed
+Added: Net assets acquired
+Added: Purchase Price:
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
+Added: The final purchase accounting and purchase price allocations remain subject to change as the Company continues to refine its preliminary valuation of certain acquired assets and liabilities assumed, which may result in adjustments to the assets and liabilities, including goodwill.
+Added: The Company expects the remaining purchase price adjustments will primarily relate to the valuation of acquired intangibles and deferred income taxes.
+Added: The weighted-average amortization period for the definite-lived intangible assets related to the 2025 acquisitions is 14 years, including weighted-average amortization periods of 14 years for customer relationships, 13 years for product technology, and 17 years for tradenames.
+Added: Revenue and operating income for the year ended January 3, 2026 associated with the 2025 acquisitions from their respective acquisition dates are as follows:
+Added: (In thousands)
+Added: Operating Income (a)
+Added: (a) Includes amortization expense associated with acquired profit in inventory of $ 1,469,000 in 2025.
+Added: Unaudited Supplemental Pro Forma Information
+Added: The following unaudited pro forma information presents the combined results of the Company, Babbini and Clyde Industries as if the acquisitions had occurred as of the beginning of 2024:
+Added: (In thousands, except per share amounts) January 3, 2026 December 28, 2024
+Added: Revenue $ 1,129,921 $ 1,169,569
+Added: Net Income Attributable to Kadant $ 113,637 $ 113,295
+Added: Earnings per Share Attributable to Kadant
+Added: Basic $ 9.65 $ 9.65
+Added: Diluted $ 9.64 $ 9.62
+Added: The historical consolidated pro forma financial information above has been adjusted to give effect to pro forma events that are (i) directly attributable to the acquisitions, (ii) expected to have a continuing impact on the Company, and (iii) factually supportable.
+Added: Pro forma results include adjustments to reflect, among other things, incremental intangible asset amortization to be incurred based on preliminary identifiable asset values and interest expense associated with debt incurred to finance the acquisitions, as well as related income tax effects.
+Added: Pro forma results include the following non-recurring pro forma adjustments:
+Added: • Pre-tax charge to cost of revenue of $ 3,216,000 in 2024 and reversal of $ 1,470,000 in 2025 for the sale of inventory revalued at the date of acquisition.
+Added: • Pre-tax charge to SG&A expenses of $ 3,362,000 in 2024 and reversal of $ 3,362,000 in 2025 for acquisition costs.
+Added: • Estimated tax effects related to the pro forma adjustments.
+Added: These pro forma results of operations have been prepared for comparative purposes only, and they do not purport to be indicative of the results of operations that would have resulted had the acquisitions for Babbini and Clyde Industries been completed as of the beginning of 2024, or that may result in the future.
Key Knife, Inc.
−Removed: On January 1, 2024, the Company acquired Key Knife pursuant to a securities purchase agreement dated December 22, 2023, for $ 153,386,000 , net of cash acquired and subject to a post-closing adjustment.
+Added: On January 1, 2024, the Company acquired Key Knife pursuant to a securities purchase agreement dated December 22, 2023, for $ 153,386,000 , net of cash acquired.
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 the Company's Industrial Processing segment.
3 unchanged sentences
Under a put and purchase option as outlined in the securities purchase agreement, the seller can demand the Company purchase, or the Company can demand that the seller sell to the Company, the remaining interest in these subsidiaries at any time after December 31, 2027.
−Removed: The purchase price would be based on a total enterprise value as defined in the original purchase agreement.
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
+Added: purchase price would be based on a total enterprise value as defined in the original purchase agreement.
See "Other Acquisitions" below for additional information.
8 unchanged sentences
DSTI is a leading manufacturer of engineered fluid sealing and transfer solutions for rotating applications and is part of the Company's Flow Control segment.
−Removed: Goodwill from the DSTI acquisition was $ 14,946,000 , of which $ 14,161,000 is expected to be deductible
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
−Removed: for tax purposes over 15 years.
+Added: Goodwill from the DSTI acquisition was $ 14,946,000 , of which $ 14,161,000 is expected to be deductible for tax purposes over 15 years.
In addition, separately identifiable intangible assets acquired were $ 24,380,000 , all of which are expected to be fully deductible for tax purposes over 15 years.
2 unchanged sentences
On May 6, 2024, the Company acquired the remaining outstanding shares of a Key Knife subsidiary in which the Company previously held a noncontrolling interest for $ 523,000 in cash.
−Removed: On August 21, 2024, the Company acquired a technology company as part of its Material Handling segment.
−Removed: The total purchase price was approximately $ 11,785,000 , which included cash paid of $ 8,843,000 net of cash acquired, an estimated post-closing adjustment of $ 1,157,000 to be paid within 18 months of closing, and contingent consideration with a fair value of $ 1,785,000 .
+Added: On August 21, 2024, the Company acquired a technology company, which is included in its Material Handling segment.
+Added: The total purchase price was approximately $ 11,785,000 , which included cash paid of $ 8,843,000 , net of cash acquired, an estimated post-closing adjustment of $ 1,157,000 to be paid within 18 months of closing, and contingent consideration with a fair value of $ 1,785,000 , measured at the date of the acquisition.
The contingent consideration is payable upon the achievement of certain revenue performance targets earned between June 30, 2025 and June 30, 2027.
−Removed: The maximum future value of the contingent consideration subject to payment is approximately $ 10,876,000 , calculated using the foreign currency spot rate at December 28, 2024.
+Added: The maximum future value of the contingent consideration subject to payment is approximately $ 11,711,000 , calculated using the foreign currency spot rate at January 3, 2026.
The valuation of the contingent consideration is dependent on the following assumptions:
the probability of successful achievement of certain revenue targets, forecasted revenue, revenue volatility, and discount rate.
−Removed: These assumptions were estimated based on a review of historical and projected results.
See Note 10 , Fair Value Measurements and Fair Value of Financial Instruments, for additional information related to the fair value of the contingent consideration assumed in the acquisition.
2 unchanged sentences
The following table summarizes the aggregate purchase price and estimated fair values of the net assets and noncontrolling interests acquired related to the 2024 acquisitions.
+Added: Measurement period adjustments in 2025 were not material to the Company's results of operations.
(In thousands) Total
11 unchanged sentences
Total assets acquired $ 360,694
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
+Added: (In thousands) Total
Accounts Payable $ 3,301
1 unchanged sentence
Other Current Liabilities
−Removed: Long-Term Deferred Income Taxes 5,786
+Added: Deferred Income Taxes
Other Long-Term Liabilities
2 unchanged sentences
Net assets and noncontrolling interests acquired
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
−Removed: (In thousands) Total
Purchase Price:
1 unchanged sentence
Fair Value of Contingent Consideration (Note 10)
−Removed: Estimated Remaining Post-Closing Adjustments, Net
−Removed: The final purchase accounting and purchase price allocations remain subject to change as the Company continues to refine its preliminary valuation of certain acquired assets and liabilities assumed, which may result in adjustments to the assets and liabilities, including goodwill.
−Removed: The Company expects the remaining purchase price adjustments will relate to the valuation of acquired intangibles and deferred income taxes associated with its acquisitions made in the second and third quarters of 2024.
−Removed: Measurement period adjustments made in 2024 were not material to the Company's financial position or results of operations.
+Added: Post-Closing Adjustments
The weighted-average amortization period for the definite-lived intangible assets related to the 2024 acquisitions is 17 years, including weighted-average amortization periods of 18 years for customer relationships, 12 years for product technology, and 20 years for tradenames.
4 unchanged sentences
(a) Includes amortization expense associated with acquired profit in inventory and backlog of $ 8,441,000 in 2024.
−Removed: Unaudited Supplemental Pro Forma Information
−Removed: The following unaudited pro forma information provides the effect of the Key Knife, KWS and DSTI acquisitions as if had they been completed as of the beginning of 2023:
−Removed: (In thousands, except per share amounts) December 28, 2024 December 30, 2023
−Removed: Revenue $ 1,064,976 $ 1,093,750
−Removed: Net Income Attributable to Kadant $ 117,560 $ 106,069
−Removed: Earnings per Share Attributable to Kadant
−Removed: Basic $ 10.01 $ 9.07
−Removed: Diluted $ 9.99 $ 9.04
−Removed: The historical consolidated pro forma financial information of the Company, Key Knife, KWS, and DSTI above has been adjusted to give effect to pro forma events that are (i) directly attributable to the acquisitions and related financing arrangements, (ii) expected to have a continuing impact on the Company, and (iii) factually supportable.
−Removed: Pro forma results include the following non-recurring pro forma adjustments:
−Removed: • Pre-tax charge to cost of revenue of $ 5,297,000 in 2023 and reversal of $ 5,141,000 in 2024 for the sale of inventory revalued at the date of acquisition.
−Removed: • Pre-tax charge to SG&A expenses of $ 3,496,000 in 2023 and reversal of $ 2,898,000 in 2024 for intangible asset amortization related to acquired backlog.
−Removed: • Pre-tax charge to SG&A expenses of $ 2,872,000 in 2023 and reversal of $ 2,872,000 in 2024 for acquisition costs.
−Removed: • Estimated tax effects related to the pro forma adjustments.
−Removed: These pro forma results of operations have been prepared for comparative purposes only, and they do not purport to be indicative of the results of operations that would have resulted had the acquisitions occurred as of the beginning of 2023, or that may result in the future.
−Removed: The Company's pro forma results of operations exclude its other acquisitions in 2024 as the inclusion of those results would not have been materially different from the pro forma results presented above.
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
On December 19, 2023, the Company acquired a business in Sweden, which is included in the Company's Industrial Processing segment, for approximately $ 895,000 , net of cash acquired.
−Removed: On November 14, 2022, the Company acquired a business in Canada, which is included in the Company's Material Handling segment, for approximately $ 3,622,000 , net of cash acquired.
Employee Benefit Plans
1 unchanged sentence
The Company maintains stock-based compensation plans primarily for its key employees and directors, although the plans permit awards to others expected to make significant contributions to the future of the Company.
−Removed: The plans authorize the compensation committee of the Company's board of directors (the board committee) to award a variety of stock and stock-based incentives, such as restricted stock, RSUs, nonqualified and incentive stock options, stock bonus shares, or performance-based shares.
+Added: The plans authorize the compensation committee of the Company's board of directors (board committee) to award a variety of stock and stock-based incentives, such as restricted stock, RSUs, nonqualified and incentive stock options, stock bonus shares, or performance-based shares.
The award recipients and the terms of awards granted under these plans are determined by the board committee.
4 unchanged sentences
The fair value of RSUs is based on the grant date price of the Company's common stock, reduced by the present value of estimated dividends foregone during the requisite service period.
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
The components of pre-tax stock-based compensation expense included in SG&A expenses in the accompanying consolidated statement of income are as follows:
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022
+Added: (In thousands) January 3, 2026 December 28, 2024 December 30, 2023
RSU Awards $ 10,544 $ 10,119 $ 9,376
6 unchanged sentences
Half of the RSUs vested on June 1 of each year and the remaining RSUs vested ratably on the last day of the third and fourth fiscal quarters of each year.
−Removed: In addition, the Company granted RSU awards consisting of 470 RSUs in May 2022, which vested ratably on the last day of the third and fourth fiscal quarters of 2022, to its then new non-employee director.
Each RSU issued to the directors represents the right to receive one share of the Company's common stock upon vesting.
−Removed: There were no unvested non-employee director RSUs at December 28, 2024.
+Added: There were no unvested non-employee director RSUs at January 3, 2026.
Performance-Based Restricted Stock Units
3 unchanged sentences
Following the adjustment, the RSUs are subject to additional time-based vesting, and vest in three equal annual installments, provided that the officer is employed by the Company on the applicable vesting dates.
−Removed: The Company recognizes compensation expense associated with performance-based RSUs ratably over the requisite service period for each separately vesting portion of the award based on the grant date fair value, net of actual forfeitures recorded when they occur, and remeasured each reporting period until the total number of RSUs to be issued is
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
+Added: The Company recognizes compensation expense associated with performance-based RSUs ratably over the requisite service period for each separately vesting portion of the award based on the grant date fair value, net of actual forfeitures recorded when they occur, and remeasured each reporting period until the total number of RSUs to be issued is known.
Unrecognized compensation expense related to the unvested performance-based RSUs totaled $ 3,673,000 at year-end 2025, and will be recognized over a weighted average period of 1.4 years.
8 unchanged sentences
Unrecognized compensation expense related to the time-based RSUs totaled $ 4,798,000 at year-end 2025, and will be recognized over a weighted average period of 1.8 years.
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
Vesting of Restricted Stock Units
7 unchanged sentences
Forfeited ( 1 ) $ 302.53
−Removed: Unvested RSUs at December 28, 2024 74 $ 258.49
+Added: Unvested RSUs at January 3, 2026 61 $ 314.88
The weighted average grant date fair value of RSUs granted was $ 365.15 in 2025, $ 314.33 in 2024, and $ 212.92 in 2023.
5 unchanged sentences
Shares purchased under the plan are subject to a one-year resale restriction and are purchased through payroll deductions of up to 10 % of each participating employee's gross wages.
−Removed: The Company issued 8,818 shares for 2024 (issued in fiscal 2025), 10,627 shares in 2023 (issued in fiscal 2024), and 9,111 shares in 2022 of its common stock under this plan.
+Added: The Company issued 10,204 shares in 2025, 8,818 shares in 2024 (issued in fiscal 2025), and 10,627 shares in 2023 (issued in fiscal 2024) of its common stock under this plan.
The Company had 52,883 shares available for grant under the employee stock purchase plan at year-end 2025.
5 unchanged sentences
Company contributions are based upon the level of employee contributions.
−Removed: Certain of the Company's subsidiaries offer other retirement plans, the majority of which are defined contribution plans.
+Added: Certain of the Company's subsidiaries sponsor other retirement plans, the majority of which are defined contribution plans.
Company contributions to these plans are based on formulas determined by the Company.
−Removed: For these plans, the Company contributed and charged to expense $ 6,810,000 in 2024, $ 5,607,000 in 2023, and $ 5,151,000 in 2022.
+Added: For all these plans, the Company contributed and recognized expense of $ 7,437,000 in 2025, $ 6,810,000 in 2024, and $ 5,607,000 in 2023.
Pension and Other Post-Retirement Defined Benefits Plans
1 unchanged sentence
and foreign subsidiaries.
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
In accordance with ASC 715, Compensation-Retirement Benefits , the Company recognizes the funded status of its plans as an asset or liability and changes in the funded status through AOCI, net of tax, in the accompanying consolidated balance sheet.
7 unchanged sentences
At year-end 2025, the Company had reserved 366,281 unissued shares of its common stock for possible issuance under its stock-based compensation plans.
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
The components of income before provision for income taxes are as follows:
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022
+Added: (In thousands) January 3, 2026 December 28, 2024 December 30, 2023
Domestic $ 55,000 $ 51,417 $ 57,810
2 unchanged sentences
The components of the provision for income taxes are as follows:
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022
+Added: (In thousands) January 3, 2026 December 28, 2024 December 30, 2023
Current Provision
9 unchanged sentences
$ 39,904 $ 40,516 $ 42,210
−Removed: The Company receives a tax deduction upon the vesting of RSUs.
−Removed: The Company recognizes excess income tax benefits and tax deficiencies related to stock-based compensation arrangements as discrete items within the provision for income taxes in the reporting period in which they occur.
−Removed: The Company recognized an income tax benefit of $ 523,000 in 2024, $ 354,000 in 2023 and $ 501,000 in 2022 in the accompanying consolidated statement of income.
+Added: The provision for income taxes in the accompanying consolidated statement of income differs from the provision calculated by applying the U.S.
+Added: federal statutory income tax rate of 21% to income before provision for income taxes in 2025 due to the following:
+Added: January 3, 2026
+Added: (In thousands)
+Added: Federal Statutory Tax Rate $ 30,153 21.0 %
+Added: State and Local Income Tax, Net of Federal Benefit (a)
+Added: Foreign Tax Effects
+Added: Statutory tax rate difference between Canada and United States
+Added: ( 2,317 ) ( 1.6 %)
+Added: State and local income tax
+Added: Withholding tax
+Added: Other Foreign Jurisdictions
+Added: Effect of Cross-Border Tax Laws
+Added: Foreign Tax Credit
+Added: ( 2,352 ) ( 1.6 %)
+Added: ( 445 ) ( 0.3 %)
+Added: Changes in Valuation Allowances
+Added: Nontaxable or Nondeductible Items
+Added: Nondeductible Compensation
+Added: Changes in Unrecognized Tax Benefits ( 293 ) ( 0.2 %)
+Added: Other Adjustments
+Added: ( 426 ) ( 0.3 %)
+Added: $ 39,904 27.8 %
2025 Financial Statements
−Removed: Notes to Consolidated Financial Statements
−Removed: The provision for income taxes in the accompanying consolidated statement of income differs from the provision calculated by applying the statutory federal income tax rate of 21% to income before provision for income taxes due to the following:
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022
+Added: N otes to Consolidated Financial Statements
+Added: (a) State taxes in Mississippi, Oregon, Wisconsin, Alabama, and California made up the majority (greater than 50 percent) of the tax effect in this category.
+Added: The provision for income taxes in the accompanying consolidated statement of income differs from the provision calculated by applying the U.S.
+Added: federal statutory income tax rate of 21% to income before provision for income taxes in 2024 and 2023 due to the following:
+Added: (In thousands) December 28, 2024 December 30, 2023
Provision for Income Taxes at Statutory Rate $ 32,145 $ 33,393
10 unchanged sentences
$ 40,516 $ 42,210
+Added: Cash paid for income taxes, net of refunds, by jurisdiction in 2025 is as follows:
+Added: (In thousands)
+Added: January 3, 2026
+Added: Cash paid for income taxes, net of refunds, was $ 42,291,000 in 2024 and $ 47,519,000 in 2023.
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
The Company's net deferred tax liability consists of the following:
−Removed: (In thousands) December 28, 2024 December 30, 2023
+Added: (In thousands) January 3, 2026 December 28, 2024
Deferred Tax Asset
3 unchanged sentences
Employee compensation 5,737 5,196
+Added: Interest expense disallowance 4,257 —
Capitalized research expenses 3,847 4,682
2 unchanged sentences
Foreign, state, and alternative minimum tax credit carryforwards 756 344
−Removed: Other 153 214
Deferred tax asset, gross 46,928 38,628
9 unchanged sentences
Net deferred tax liability $ ( 59,468 ) $ ( 39,149 )
−Removed: Deferred tax assets and liabilities are presented in the accompanying consolidated balance sheet within other assets and long-term deferred income taxes on a net basis by tax jurisdiction.
+Added: Deferred tax assets and liabilities are presented in the accompanying consolidated balance sheet within other assets and deferred income taxes on a net basis by tax jurisdiction.
The Company has established valuation allowances related to certain domestic and foreign deferred tax assets on deductible temporary differences, tax losses, and tax credit carryforwards.
The valuation allowance at year-end 2025 was $ 8,739,000 , consisting of $ 81,000 in the United States and $ 8,658,000 in foreign jurisdictions.
−Removed: The decrease in the valuation allowance in 2024 of $ 259,000 is related primarily to utilization of net operating losses and fluctuations in foreign currency exchange rates, partially offset by the valuation allowance recorded in purchase accounting.
+Added: The increase in the valuation allowance in 2025 of $ 1,169,000 is related primarily to fluctuations in foreign currency exchange rates and an increase in the valuation allowance against certain deferred tax assets in a jurisdiction where it is not more likely than not that a related tax benefit will be realized in future periods.
+Added: This increase in the valuation allowance is partially offset by a decrease related to a tax rate change.
Compliance with ASC 740 requires the Company to periodically evaluate the necessity of establishing or adjusting a valuation allowance for deferred tax assets depending on whether it is more likely than not that a related tax benefit will be realized in future periods.
−Removed: When assessing the need for a valuation
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
−Removed: allowance in a tax jurisdiction, the Company evaluates the weight of all available evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.
+Added: When assessing the need for a valuation allowance in a tax jurisdiction, the Company evaluates the weight of all available evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.
As part of this evaluation, the Company considers its cumulative three-year history of earnings before income taxes, taxable income in prior carryback years, future reversals of existing taxable temporary differences, prudent and feasible tax planning strategies, and expected future results of operations.
−Removed: As of year-end 2024, the Company maintained a valuation allowance in the United States against a portion of its state net operating loss carryforwards in the United States and a valuation allowance in certain foreign jurisdictions due to the uncertainty of future profitability in the state and those foreign jurisdictions.
−Removed: At year-end 2024, the Company had state net operating loss carryforwards of $ 9,146,000 and foreign net operating loss carryforwards of $ 40,136,000 .
−Removed: state net operating loss carryforwards begin to expire in 2025 and a portion does not expire.
+Added: As of year-end 2025, the Company maintained a valuation allowance predominantly in certain foreign jurisdictions due to the uncertainty of future profitability in those foreign jurisdictions.
+Added: At year-end 2025, the Company had U.S.
+Added: federal and state net operating loss carryforwards of $ 6,753,000 and $ 7,523,000 , respectively, and foreign net operating loss carryforwards of $ 42,447,000 .
+Added: federal net operating loss carryforwards, $ 442,000 expires in 2037 and the remainder do not expire.
+Added: The state net operating loss carryforwards begin to expire in 2026 and a portion does not expire.
Of the foreign net operating loss carryforwards, $ 3,040,000 will expire in the years 2029 through 2045, and the remainder do not expire.
−Removed: As of year-end 2024, the Company had foreign tax credits carryforwards of $ 240,000 .
−Removed: The foreign tax credit carryforward begins to expire in 2028.
−Removed: The utilization of this tax attribute is limited to the Company's future taxable income.
−Removed: At year-end 2024, the Company had approximately $ 296,095,000 of unremitted foreign earnings.
−Removed: During 2024, the Company repatriated $ 27,658,000 of previously taxed foreign earnings to the United States and recognized a foreign exchange loss of $ 1,746,000 associated with these earnings.
+Added: The Company also had a carryforward of disallowed business interest expense of $ 18,428,000 from its acquisition of Clyde Industries in 2025, which does not expire, and a foreign tax credit carryforward of $ 668,000 , which begins to expire in 2034.
+Added: The utilization of these tax attributes is limited to the Company's future taxable income, and certain of these tax attributes are subject to an annual limitation as a result of the acquisition of Clyde Industries, which constitutes a change of ownership as defined under Internal Revenue Service Code Section 382.
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
+Added: At year-end 2025, the Company had $ 150,894,000 of unremitted foreign earnings.
The Company intends to repatriate the distributable reserves of select foreign subsidiaries back to the United States and has recognized $ 583,000 of tax expense on the estimated repatriation amount during 2025.
Except for these select foreign subsidiaries, the Company intends to indefinitely reinvest $ 93,084,000 of earnings of its foreign subsidiaries in order to support the current and future capital needs of their operations, including the repayment of the Company’s foreign debt.
−Removed: The related foreign withholding taxes, which would be required if the Company were to remit these foreign earnings to the United States, would be approximately $ 5,311,000 .
+Added: The related foreign withholding taxes, which would be required if the Company were to remit these foreign earnings to the United States, would be $ 2,899,000 .
The Company operates within multiple tax jurisdictions and could be subject to audit in those jurisdictions.
3 unchanged sentences
A reconciliation of unrecognized tax benefits is as follows:
−Removed: (In thousands) December 28, 2024 December 30, 2023
+Added: (In thousands) January 3, 2026 December 28, 2024
Unrecognized Tax Benefits, Beginning of Year $ 14,510 $ 11,212
7 unchanged sentences
Unrecognized Tax Benefits, End of Year $ 14,147 $ 14,510
−Removed: (a) Indemnification assets of $ 4,372,000 were also recorded.
+Added: (a) No indemnification assets were recorded in 2025 and $ 4,372,000 were recorded in 2024.
A portion of the unrecognized tax benefits generated in 2025 is offset by deferred tax assets in the accompanying consolidated balance sheet.
1 unchanged sentence
The Company has accrued $ 3,130,000 at year-end 2025 and $ 3,488,000 at year-end 2024 for the potential payment of interest and penalties.
−Removed: The interest and penalties included in the accompanying consolidated statement of income was an expense of $ 131,000 in 2024 and $ 120,000 in 2023.
+Added: The interest and penalties included in the accompanying consolidated statement of income was a benefit of $ 412,000 in 2025 and an expense of $ 131,000 in 2024.
The Company is currently under audit in certain of its foreign tax jurisdictions.
−Removed: It is reasonably possible that over the next fiscal year the amount of liability for unrecognized tax benefits may be reduced by up to $ 1,135,000 primarily from the expiration of tax statutes of limitations.
The Company remains subject to U.S.
2 unchanged sentences
In addition, the Company remains subject to state and local income tax examinations in the United States for the tax years 2006 through 2025.
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
Long-Term Obligations
Long-term obligations are as follows:
−Removed: (In thousands) December 28, 2024 December 30, 2023
+Added: (In thousands) January 3, 2026 December 28, 2024
Revolving Credit Facility, due 2030 $ 366,707 $ 278,384
6 unchanged sentences
See Note 10 , Fair Value Measurements and Fair Value of Financial Instruments, for the fair value information related to the Company's long-term obligations.
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
Revolving Credit Facility
−Removed: On November 30, 2022, the Company entered into a sixth amendment to its unsecured multi-currency revolving credit facility, originally entered into on March 1, 2017 (as amended and restated to date, the Credit Agreement).
−Removed: Among other things, this amendment extended the maturity date to November 30, 2027, and increased the uncommitted, unsecured incremental borrowing facility from $ 150,000,000 to $ 200,000,000 .
−Removed: Pursuant to the Credit Agreement, the Company has a borrowing capacity of $ 400,000,000 and interest on borrowings outstanding accrues and is payable in arrears calculated at one of the following rates selected by the Company:
−Removed: (i) the Base Rate, as defined, plus a margin of 0 % to 1.25 %, or (ii) Eurocurrency Rate, Term SOFR (plus a 10 basis point credit spread adjustment), Term CORRA, and RFR, as applicable and defined, plus a margin of 1.0 % to 2.25 %.
+Added: On September 26, 2025, the Company entered into an eighth amendment and joinder (Eighth Amendment) to its unsecured multi-currency revolving credit facility, originally dated as of March 1, 2017 (as amended and restated to date, the Credit Agreement).
+Added: The Eighth Amendment, among other things, increased the Company's aggregate borrowing capacity from $ 400,000,000 to $ 750,000,000 and extended the maturity date from November 30, 2027 to September 26, 2030.
+Added: In addition to the increased committed borrowing capacity, an uncommitted, unsecured incremental borrowing facility of $ 200,000,000 continues to be available under the Credit Agreement.
+Added: Interest on borrowings outstanding under the Credit Agreement accrues and is payable in arrears calculated at one of the following rates selected by the Company:
+Added: (i) the Base Rate, as defined, plus an applicable margin of 0.25 % to 1.25 %, or (ii) Eurocurrency Rate, Term SOFR, Term CORRA, AUD Rate, and RFR, as applicable and defined, plus an applicable margin of 1.25 % to 2.25 %.
The margin is determined based upon the ratio of the Company's total debt, net of unrestricted cash up to $ 50,000,000 , to earnings before interest, taxes, depreciation, and amortization as defined in the Credit Agreement.
−Removed: Additionally, the Credit Agreement requires the payment of a commitment fee payable in arrears on the available borrowing capacity under the Credit Agreement, which ranges from 0.125 % to 0.350 %.
−Removed: Obligations under the Credit Agreement may be accelerated upon the occurrence of an event of default, which includes customary events of default under such financing arrangements.
+Added: Additionally, the Credit Agreement requires the payment of a commitment fee payable in arrears on the available committed borrowing capacity under the Credit Agreement, which ranges from 0.150 % to 0.350 %.
+Added: Obligations under the Credit Agreement, which includes customary events of default under such financing arrangements, may be accelerated upon the occurrence of an event of default.
In addition, the Credit Agreement contains negative covenants applicable to the Company and its subsidiaries, including financial covenants requiring the Company to maintain a maximum consolidated leverage ratio of 3.75 to 1, or, if the Company elects, for the quarter during which a material acquisition occurs and for the three fiscal quarters thereafter, 4.25 to 1, and limitations on making certain restricted payments (including dividends and stock repurchases).
2 unchanged sentences
Th e Company had $ 383,175,000 of borrowing capacity available at year-end 2025, which was calculated by translating its foreign-denominated borrowings using the administrative agent's borrowing date foreign exchange rates, in addition to the $ 200,000,000 uncommitted, unsecured incremental borrowing facility.
−Removed: The weighted average interest rate for the outstanding balance under the Credit Agreement was 5.27 % as of year-end 2024 and 5.24 % as of year-end 2023.
+Added: The weighted average interest rate for the outstanding balance under the Credit Agreement was 4.49 % as of January 3, 2026 and 5.27 % as of December 28, 2024.
+Added: During 2025, the Company incurred $ 2,645,000 of debt issuance costs related to the Eighth Amendment.
+Added: Unamortized debt issuance costs related to the Credit Agreement, included in other assets in the accompanying consolidated balance sheet, were $ 3,129,000 at January 3, 2026 and $ 993,000 at December 28, 2024 and are being amortized to interest expense using the straight-line method.
Senior Promissory Notes
3 unchanged sentences
The obligations of the Initial Notes may be accelerated upon an event of default as defined in the Note Purchase Agreement, which includes customary events of default under such financing arrangements.
−Removed: The Initial Notes are pari passu with the Company’s indebtedness under the Credit Agreement, and any other senior debt, subject to certain specified exceptions, and participate in a sharing agreement with respect to the obligations of
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
−Removed: the Company and its subsidiaries under the Credit Agreement.
+Added: The Initial Notes are pari passu with the Company’s indebtedness under the Credit Agreement, and any other senior debt, subject to certain specified exceptions, and participate in a sharing agreement with respect to the obligations of the Company and its subsidiaries under the Credit Agreement.
The Initial Notes are guaranteed by certain of the Company's domestic subsidiaries.
4 unchanged sentences
See Note 9 , Leases, for further information relating to the Company's finance leases.
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
Other Borrowings
−Removed: At year-end 2024, other borrowings included $ 1,460,000 of debt obligations, which have maturity dates ranging from 2026 to 2028 and interest rates of up to 1.70 %.
+Added: At year-end 2025, other borrowings consisted of $ 1,023,000 of debt obligations, which have maturity dates ranging from 2026 to 2031 and interest rates of up to 1.70 %.
Annual Repayment Requirements
3 unchanged sentences
Letters of Credit and Bank Guarantees
−Removed: Outstanding letters of credit and bank guarantees issued on behalf of the Company, principally relating to performance obligations and customer deposit guarantees, totaled $ 13,872,000 at year-end 2024.
+Added: Outstanding letters of credit and bank guarantees issued on behalf of the Company, principally relating to customer deposit guarantees and performance obligations, totaled $ 16,353,000 at year-end 2025.
Certain of the Company's contracts require the Company to provide a standby letter of credit or bank guarantee to a customer as beneficiary, limited in amount to a negotiated percentage of the total contract value, in order to guarantee warranty and performance obligations of the Company under the contract.
11 unchanged sentences
The Company believes that it has adequate reserves for any potential liability in connection with such guarantees.
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
From time to time, the Company is subject to various claims and legal proceedings covering a range of matters that arise in the ordinary course of business.
2 unchanged sentences
If the Company were found to be liable for any of the claims or counterclaims against it, the Company would incur a charge against earnings for amounts in excess of legal accruals.
−Removed: Gain on Sale and Other Costs, Net
−Removed: The components of gain on sale and other costs, net are as follows:
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022
−Removed: Gain on Sale of Assets $ — $ — $ ( 20,190 )
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
+Added: Other Costs, Net
+Added: The components of other costs, net are as follows:
+Added: (In thousands) January 3, 2026 December 28, 2024 December 30, 2023
Restructuring and Impairment Costs
+Added: $ 442 $ — $ 766
Other Costs (Income)
871 658 ( 43 )
−Removed: Gain on Sale of Assets
−Removed: The Company entered into several agreements with the local government in China to sell its then existing manufacturing building and land use rights at one of its subsidiaries in China for $ 25,159,000 and relocate to a new facility (China Transaction).
−Removed: The agreements became effective in the first quarter of 2022 after a 31 % down payment was received, including 25 % in 2021 and 6 % in the first quarter of 2022, and a land use right in a new location was secured.
−Removed: As a result, the Company recognized a gain on the China Transaction of $ 20,190,000 , or $ 15,143,000 , net of deferred taxes of $ 5,047,000 , in the first quarter of 2022.
−Removed: A receivable of $ 16,082,000 was recognized for the present value of the remaining amount of the sale proceeds, which was due the earlier of when the government sells the property or within two years from the effective date of the agreements.
−Removed: The government settled $ 685,000 of the receivable in 2024.
−Removed: The outstanding receivable was $ 14,377,000 at year-end 2024, which the Company expects will be repaid in full, although the timing is uncertain.
−Removed: The subsidiary, which is part of the Industrial Processing segment, relocated to its new facility during the third quarter of 2023.
−Removed: A summary of the change in the outstanding receivable on the China Transaction, which is included in other current assets in the consolidated balance sheet, is as follows:
−Removed: (In thousands) Total
−Removed: Balance at December 30, 2023
−Removed: Accretion of interest income 135
−Removed: Proceeds received
−Removed: Currency translation ( 483 )
−Removed: Balance at December 28, 2024
−Removed: Other Costs, Net
+Added: $ 1,313 $ 658 $ 723
Restructuring and Impairment Costs
−Removed: The Company's restructuring plans within its Flow Control Segment are as follows:
−Removed: 2023 Restructuring Plans
−Removed: • The Company incurred restructuring and impairment costs of $ 400,000 in 2023 related to the consolidation of a small manufacturing operation into a larger facility in Germany.
+Added: Restructuring Costs
+Added: In 2025, the Company incurred restructuring costs of $ 155,000 within its Industrial Processing segment primarily consisting of severance costs associated with the termination of two employees in connection with the closure of a small business in Europe.
+Added: In 2023, the Company incurred restructuring and impairment costs of $ 400,000 within its Flow Control segment related to the consolidation of a small manufacturing operation into a larger facility in Germany.
These charges consisted of severance costs of $ 335,000 for the termination of 10 employees, facility and other closure costs of $ 29,000 , and asset-write downs of $ 36,000 .
−Removed: • The Company incurred restructuring costs of $ 366,000 in 2023 related to the termination of a contract at one of its operations in Germany.
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
−Removed: 2021 Restructuring Plan
−Removed: • The Company incurred restructuring costs of $ 568,000 in 2022 related to its plan to eliminate a redundant ceramic blade manufacturing operation in France.
−Removed: These charges consisted of severance costs for the termination of five employees and facility and other closure costs.
−Removed: • The Company incurred restructuring costs of $ 35,000 and impairment costs of $ 731,000 within its Industrial Processing segment during 2022.
−Removed: The impairment costs included $ 549,000 primarily related to the write-down of inventory from the Company's operations in Russia and $ 182,000 related to the write-down of certain fixed assets that were not moved to the new manufacturing facility in China as part of the China Transaction.
−Removed: A summary of the changes in accrued restructuring costs included in other current liabilities in the accompanying consolidated balance sheet are as follows:
−Removed: (In thousands) Severance Costs Contract Termination Costs
−Removed: Facility and Other Closure Costs Total
−Removed: 2023 Restructuring Plans
+Added: The Company also incurred restructuring costs of $ 366,000 in 2023 within its Flow Control segment related to the termination of a contract at one of its operations in Germany.
+Added: A summary of the changes in accrued restructuring costs related to the 2023 restructuring plans are as follows:
+Added: (In thousands) Severance Costs Contract Termination Costs Facility and Other Closure Costs Total
Provision $ 335 $ 366 $ 29 $ 730
7 unchanged sentences
Balance at December 28, 2024
−Removed: 2021 Restructuring Plan
−Removed: Balance at January 1, 2022
−Removed: $ 156 $ — $ — $ 156
−Removed: 205 — 398 603
−Removed: ( 159 ) — ( 231 ) ( 390 )
−Removed: Currency translation
−Removed: ( 13 ) — 33 20
−Removed: Balance at December 31, 2022
−Removed: $ 189 $ — $ 200 $ 389
−Removed: ( 187 ) — ( 199 ) ( 386 )
−Removed: Currency translation
−Removed: ( 2 ) — ( 1 ) ( 3 )
−Removed: Balance at December 30, 2023
−Removed: $ — $ — $ — $ —
+Added: Impairment Costs
+Added: In 2025, the Company recognized a non-cash impairment charge of $ 287,000 within its Industrial Processing segment related to certain previously acquired technology that will no longer be utilized as a result of new technology obtained in connection with a 2025 acquisition.
Other Costs (Income)
−Removed: In 2024, the Company recognized a loss of $ 658,000 from the recognition of a currency translation adjustment associated with the liquidation of a small foreign subsidiary in the Flow Control segment.
−Removed: In 2023, in connection with the China Transaction, the Company recognized income of $ 841,000 related to the outsourcing of demolition and cleanup of the then existing manufacturing building in China and sale of the remaining fixed assets.
−Removed: In addition, the Company incurred relocation costs of $ 798,000 in 2023 related to the relocation of machinery and equipment and administrative offices to the new manufacturing facility.
−Removed: The Company enters into operating and finance lease commitments primarily for its manufacturing and office space, vehicles, and equipment that expire on various dates over the next 17 years, some of which include assumed options to extend the lease term for up to 10 years.
+Added: In 2025, the Company recognized land remediation costs of $ 871,000 within its Industrial Processing segment related to the prior-period sale of a manufacturing facility and associated land use rights by one of its subsidiaries in China.
+Added: In 2024, the Company recognized a loss of $ 658,000 within its Flow Control segment from the recognition of a currency translation adjustment associated with the liquidation of a small foreign subsidiary.
+Added: In 2023, within its Industrial Processing segment, the Company recognized income of $ 841,000 related to the outsourcing of demolition and cleanup of the then existing manufacturing facility in China and the sale of the remaining fixed assets.
+Added: In addition, the Company incurred relocation costs of $ 798,000 in 2023 related to the transfer of machinery and equipment and administrative offices to the new manufacturing facility.
+Added: The Company enters into operating and finance lease commitments primarily for its manufacturing and office space, vehicles, and equipment that expire on various dates through 2041, some of which include assumed options to extend the lease term for up to 10 years.
In addition, the Company leases land associated with certain of its buildings in Canada and China under long-term leases expiring in 2032 to 2071.
The lease in Canada also includes an assumed option to extend the term for up to 10 years.
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
The components of lease expense are as follows:
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022
+Added: (In thousands) January 3, 2026 December 28, 2024 December 30, 2023
Operating Lease Cost (a)
1 unchanged sentence
Short-Term Lease Cost 833 810 698
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022
Finance Lease Cost:
5 unchanged sentences
Supplemental cash flow information related to leases is as follows:
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022
+Added: (In thousands) January 3, 2026 December 28, 2024 December 30, 2023
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
6 unchanged sentences
Finance leases $ 1,156 $ 1,598 $ 989
−Removed: (a) Includes ROU assets of $ 10,847,000 in 2024 obtained in connection with the Company's acquisitions.
+Added: (a) Includes ROU assets of $ 4,425,000 in 2025 and $ 10,847,000 in 2024 obtained in connection with the Company's acquisitions.
Supplemental balance sheet information related to leases is as follows:
−Removed: (In thousands) Balance Sheet Line Item December 28, 2024 December 30, 2023
+Added: (In thousands) Balance Sheet Line Item January 3, 2026 December 28, 2024
Operating Leases:
12 unchanged sentences
Total finance lease liabilities $ 1,781 $ 2,023
−Removed: December 28, 2024 December 30, 2023
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
+Added: January 3, 2026 December 28, 2024
Weighted Average Remaining Lease Term (in years):
4 unchanged sentences
Finance leases 5.07 % 5.11 %
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
−Removed: As of December 28, 2024, future lease payments for lease liabilities are as follows:
+Added: As of January 3, 2026, future lease payments for lease liabilities are as follows:
Operating Finance
3 unchanged sentences
2028 6,006 227
−Removed: 2028 3,842 24
2031 and Thereafter
2 unchanged sentences
Present Value of Lease Payments $ 41,274 $ 1,781
−Removed: As of December 28, 2024, the Company had no significant operating and finance leases that had not yet commenced.
+Added: As of January 3, 2026, the Company had no significant operating and finance leases that had not yet commenced.
Fair Value Measurements and Fair Value of Financial Instruments
5 unchanged sentences
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis:
−Removed: Fair Value as of December 28, 2024
+Added: Fair Value as of January 3, 2026
(In thousands) Level 1 Level 2 Level 3 Total
−Removed: Money market funds and time deposits $ 21,248 $ — $ — $ 21,248
−Removed: Banker's acceptance drafts (a) $ — $ 5,299 $ — $ 5,299
−Removed: Forward currency-exchange contracts $ — $ 39 $ — $ 39
−Removed: Contingent consideration ( Note 2) (b)
+Added: Money market funds and time deposits (a) $ 14,139 $ — $ — $ 14,139
+Added: Banker's acceptance drafts (b) $ — $ 9,115 $ — $ 9,115
+Added: Contingent consideration (c)
$ — $ — $ 1,941 $ 1,941
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
Fair Value as of December 28, 2024
(In thousands) Level 1 Level 2 Level 3 Total
−Removed: Money market funds and time deposits $ 14,795 $ — $ — $ 14,795
−Removed: Banker's acceptance drafts (a) $ — $ 10,826 $ — $ 10,826
−Removed: Forward currency-exchange contracts $ — $ 8 $ — $ 8
−Removed: Forward currency-exchange contract $ — $ 51 $ — $ 51
−Removed: (a) Included in accounts receivable in the accompanying consolidated balance sheet.
−Removed: (b) Included in other long-term liabilities in the accompanying consolidated balance sheet.
+Added: Money market funds and time deposits (a) $ 21,248 $ — $ — $ 21,248
+Added: Banker's acceptance drafts (b) $ — $ 5,299 $ — $ 5,299
+Added: Forward currency-exchange contracts (d) $ — $ 39 $ — $ 39
+Added: Contingent consideration (c)
+Added: $ — $ — $ 1,678 $ 1,678
+Added: (a) Included in cash and cash equivalents in the accompanying consolidated balance sheet.
+Added: (b) Included in accounts receivable in the accompanying consolidated balance sheet.
+Added: (c) Included in other-long term liabilities in the accompanying consolidated balance sheet.
+Added: (d) Included in other current liabilities in the accompanying consolidated balance sheet.
The Company uses the market approach technique to value its Level 1 and Level 2 financial assets and liabilities, and there were no changes in valuation techniques during 2025.
−Removed: Banker's acceptance drafts are carried at face value which
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
−Removed: approximates their fair value due to the short-term nature of the negotiable instrument.
+Added: Banker's acceptance drafts are carried at face value which approximates their fair value due to the short-term nature of the negotiable instrument.
The fair values of the forward currency-exchange contracts are based on quoted forward foreign exchange rates at the reporting date.
5 unchanged sentences
Changes to the fair value of contingent consideration can result from changes to one or multiple inputs, including the discount rate, projected revenue, revenue volatility, and the assumed probabilities of successful achievement of certain revenue targets.
+Added: There were no changes in the valuation techniques or significant unobservable inputs used in measuring the contingent consideration.
The following table provides a rollforward of the change in the fair value of the contingent consideration as determined by Level 3 inputs:
3 unchanged sentences
Balance at December 28, 2024
+Added: Interest accretion
+Added: Currency translation
+Added: Balance at January 3, 2026
The carrying value and fair value of the Company's debt obligations, excluding lease obligations, are as follows:
−Removed: December 28, 2024 December 30, 2023
+Added: January 3, 2026 December 28, 2024
(In thousands) Carrying
5 unchanged sentences
$ 372,720 $ 372,711 $ 286,504 $ 286,355
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
The carrying value of the revolving credit facility approximates the fair value as the obligation bears variable rates of interest, which adjust frequently, based on prevailing market rates.
+Added: The fair value of the revolving credit facility is based on observable market interest rates and credit spreads available for similar instruments, which represent Level 2 measurements.
The fair values of the senior promissory notes are primarily calculated based on quoted market rates plus an applicable margin available to the Company at the respective period ends, which represent Level 2 measurements.
7 unchanged sentences
The CODM primarily reviews these profit measures in comparison to forecasts, trends, key performance targets, and results of industry peers to assess profitability, identify areas for improvement, and make strategic decisions regarding investments and resource allocation within each segment.
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
The following is a brief description of the Company's reportable segments:
−Removed: • Flow Control – 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.
+Added: • Flow Control – 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 Company's primary products include rotary sealing devices, steam systems, expansion joints, doctor systems, roll and fabric cleaning devices, and filtration and fiber recovery systems.
−Removed: • Industrial Processing – 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.
−Removed: The Company's primary products include fiber processing (formerly referred to as stock-preparation) systems and recycling equipment, chemical pulping equipment, debarkers, stranders, and chippers.
−Removed: In addition, the Company provides industrial automation and digitization solutions to process industries.
+Added: • Industrial Processing – Equipment, machinery, and technologies used to recycle paper and paperboard and process timber, and optimize industrial steam boiler efficiency for use in the packaging, paper, tissue, wood products and food processing industries, among others.
+Added: The Company's primary products include fiber processing systems and recycling equipment, chemical pulping equipment, debarkers, stranders, chippers, custom-engineered knife systems, industrial boiler cleaning technologies, and continuous dewatering equipment.
• Material Handling – Products and engineered systems used to handle bulk and discrete materials for secondary processing or transport in the aggregates, mining, food, and waste management industries, among others.
The Company's primary products include conveying and vibratory equipment and balers.
−Removed: In addition, the Company manufactures and sells biodegradable, absorbent granules used as carriers in agricultural applications and for oil and grease absorption.
+Added: In addition, the Company manufactures and sells biodegradable, absorbent granules used as carriers in agricultural, home lawn and garden, professional lawn, turf and ornamental applications, and for oil and grease absorption.
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
The following tables present financial information for the Company's reportable segments:
−Removed: December 28, 2024
+Added: January 3, 2026
(In thousands) Flow Control Industrial Processing Material Handling Total
26 unchanged sentences
Capital expenditures 6,051 5,543 5,309 145 17,048
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
December 28, 2024
22 unchanged sentences
Income Before Provision for Income Taxes
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
+Added: December 28, 2024 (continued)
(In thousands)
5 unchanged sentences
431,536 569,817 411,178 17,814 1,430,345
−Removed: Capital expenditures (f)
+Added: Capital expenditures
7,225 8,121 5,638 21 21,005
14 unchanged sentences
Intangible asset amortization expense 2,953 6,355 9,140 18,448
−Removed: Gain on sale of asset
−Removed: — ( 20,190 ) — ( 20,190 )
Other segment items (a) 300 579 54 933
7 unchanged sentences
Income Before Provision for Income Taxes
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
−Removed: December 31, 2022 (continued)
(In thousands)
7 unchanged sentences
5,920 22,068 3,834 28 31,850
−Removed: (a) Includes restructuring and impairment costs, acquisition costs, net indemnification asset reversals associated with uncertain tax positions, and certain gains and losses.
+Added: (a) Includes acquisition costs, net indemnification asset reversals associated with uncertain tax positions, restructuring and impairment costs, and certain other income or expense.
(b) Primarily consists of general and administrative expenses.
3 unchanged sentences
Corporate assets primarily consist of cash and cash equivalents, tax assets, ROU assets, and property, plant, and equipment, net.
−Removed: (f) Included within Industrial Processing are capital expenditures of $ 7,424,000 and $ 10,379,000 in 2023 and 2022, respectively, related to the construction of a new manufacturing facility in China (see Note 8 , Gain on Sale and Other Costs, Net).
+Added: (f) Included within the Industrial Processing segment are capital expenditures of $ 7,424,000 in 2023 related to the construction of a new manufacturing facility in China.
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
The following tables present the Company’s revenue and long-lived assets by geographical area:
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022
+Added: (In thousands) January 3, 2026 December 28, 2024 December 30, 2023
Geographical Information
15 unchanged sentences
(b) Represents property, plant, and equipment, net.
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
Earnings per Share
Basic and diluted EPS were calculated as follows:
−Removed: (In thousands, except per share amounts) December 28, 2024 December 30, 2023 December 31, 2022
+Added: (In thousands, except per share amounts) January 3, 2026 December 28, 2024 December 30, 2023
Net Income Attributable to Kadant $ 101,969 $ 111,598 $ 116,069
7 unchanged sentences
Comprehensive income combines net income and other comprehensive items, which represent certain amounts that are reported as components of stockholders' equity in the accompanying consolidated balance sheet.
+Added: 2025 Financial Statements
+Added: N otes to Consolidated Financial Statements
Changes in each component of AOCI, net of tax, are as follows:
−Removed: (In thousands) Foreign Currency Translation Adjustment Pension and Other Post-Retirement Benefit Liability Adjustments Deferred Loss on Cash Flow Hedges Total
+Added: (In thousands) Foreign Currency Translation Adjustment Pension and Other Post-Retirement Benefit Liability Adjustments Total
Balance at December 28, 2024 $ ( 72,416 ) $ 48 $ ( 72,368 )
2 unchanged sentences
Net current period other comprehensive items 37,047 ( 28 ) 37,019
−Removed: Balance at December 28, 2024 $ ( 72,416 ) $ 48 $ — $ ( 72,368 )
+Added: Balance at January 3, 2026 $ ( 35,369 ) $ 20 $ ( 35,349 )
Amounts reclassified out of AOCI are as follows:
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022 Statement of Income Line Item
+Added: (In thousands) January 3, 2026 December 28, 2024 December 30, 2023 Statement of Income Line Item
Foreign Currency Translation
−Removed: Cumulative translation adjustment (a) $ ( 658 ) $ — $ — Gain on sale and other costs, net
+Added: Cumulative translation adjustment (a) $ — $ ( 658 ) $ — Other costs, net
Retirement Benefit Plans
−Removed: Recognized net actuarial loss ( 4 ) ( 9 ) ( 36 ) Other expense, net
−Removed: Amortization of prior service cost ( 8 ) ( 9 ) ( 10 ) Other expense, net
−Removed: Total expense before income taxes ( 12 ) ( 18 ) ( 46 )
−Removed: Income tax benefit 4 5 12 Provision for income taxes
+Added: Recognized actuarial gain (loss), net 3 ( 4 ) ( 9 ) Other expense, net
+Added: Amortization of prior service cost, net 11 ( 8 ) ( 9 ) Other expense, net
+Added: Total benefit (expense) before income taxes 14 ( 12 ) ( 18 )
+Added: Income tax (benefit) provision ( 3 ) 4 5 Provision for income taxes
$ 11 $ ( 8 ) $ ( 13 )
−Removed: 2024 Financial Statements
−Removed: Notes to Consolidated Financial Statements
−Removed: (In thousands) December 28, 2024 December 30, 2023 December 31, 2022 Statement of Income Line Item
Cash Flow Hedges
3 unchanged sentences
Income tax benefit (provision) — 12 ( 37 ) Provision for income taxes
−Removed: ( 38 ) 99 ( 158 )
Total Reclassifications $ 11 $ ( 704 ) $ 86
2 unchanged sentences
dollar-denominated debt, which matured on June 30, 2023.
+Added: Subsequent Event
+Added: On January 29, 2026, the Company 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 157,000,000 euros in cash, subject to certain customary adjustments.
+Added: The closing of this acquisition is subject to receipt of certain Austrian regulatory approvals and the satisfaction of customary closing conditions, and will be financed primarily through borrowings under the Company's revolving credit facility.
+Added: Upon closing, voestalpine BÖHLER Profil will become part of the Company's Industrial Processing segment and its name will change to Kadant Profil GmbH & Co KG.
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.