Kadant Inc. (KAI), an industrial company providing equipment and services for various industries, saw its stock surge 8.41% in the after-hours trading session on Thursday. This unexpected rally appears to be driven by investor confusion over recent positive developments from PT Kereta Api Indonesia (KAI), the state-owned railway company in Indonesia.

According to reports, KAI is expanding its affordable public transportation services through the Public Service Obligation (PSO) scheme, operating 13 subsidized economy train services in 2025. This move aims to provide efficient and cost-effective mobility options for the public, supporting the economy.

Additionally, KAI has entered into a Memorandum of Understanding (MoU) with Grab Indonesia to enhance travel safety at railway level crossings. This collaboration will leverage digital technology, including automatic warnings for Grab driver-partners approaching level crossings and education on safe driving in those areas, with the goal of reducing the risk of accidents at level crossings.