Kennametal (NYSE:KMT) Posts Quarterly Earnings Results, Beats Estimates By $0.65 EPS

Kennametal (NYSE:KMT) released its quarterly earnings results on Wednesday. The industrial products company reported $2.96 earnings per share for the quarter, topping the consensus estimate of $2.31 by $0.65, FiscalAI reports. The business had revenue of $736.61 million during the quarter, compared to analysts’ expectations of $725.74 million. Kennametal had a return on equity of 11.02% and a net margin of 6.41%.The firm’s revenue for the quarter was up 42.6% compared to the same quarter last year. During the same period last year, the firm posted $0.34 EPS. Kennametal updated its Q1 2027 guidance to 2.500-2.800 EPS and its FY 2027 guidance to 4.150-5.150 EPS.

Here are the key takeaways from Kennametal’s conference call:

• Record fourth-quarter performance: Organic sales rose 42%, adjusted EBITDA margin reached 46.8%, and adjusted EPS increased to a record $2.96, supported by pricing, higher metal-cutting volumes, restructuring savings, and favorable tungsten price-cost timing.
• Management expects broad-based demand growth in fiscal 2027, with aerospace and defense, energy, and general engineering leading improvements; the company is targeting 1%–4% volume growth, including an estimated 1%–2% contribution from share gains.
• Fiscal 2027 sales are projected at $3.33 billion–$3.45 billion and adjusted EPS at $4.15–$5.15, with the midpoint of $4.65 roughly flat with fiscal 2026 as operational gains offset higher interest expense, Bolivia-related foreign-exchange pressure, taxes, and other headwinds.
• Elevated tungsten prices continue to weigh heavily on cash generation and working capital; fiscal 2026 free operating cash flow was negative $79 million, the share repurchase program remains paused, and management expects roughly a $200 million cash draw in fiscal 2027’s first quarter.
• The company strengthened liquidity and extended debt maturities, reporting approximately $926 million of cash and revolver availability and planning to draw a new $500 million term loan, while expecting free cash flow to turn positive in the second half of fiscal 2027 if tungsten prices remain stable.

Kennametal Price Performance

Shares of KMT stock traded down $0.23 on Thursday, hitting $33.94. 1,095,393 shares of the company’s stock were exchanged, compared to its average volume of 1,369,383. The company has a 50 day moving average of $34.37 and a 200 day moving average of $36.40. The stock has a market cap of $2.59 billion, a P/E ratio of 19.21, a price-to-earnings-growth ratio of 0.62 and a beta of 1.36. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.38 and a quick ratio of 0.99. Kennametal has a 12 month low of $19.78 and a 12 month high of $43.81.

Kennametal Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, August 25th. Stockholders of record on Tuesday, August 11th will be issued a dividend of $0.20 per share. The ex-dividend date of this dividend is Tuesday, August 11th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.4%. Kennametal’s payout ratio is 45.20%.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the stock. JPMorgan Chase & Co. dropped their price objective on shares of Kennametal from $40.00 to $34.00 and set an “underweight” rating for the company in a research note on Monday, July 13th. Jefferies Financial Group cut Kennametal from a “buy” rating to a “hold” rating and set a $47.50 price target for the company. in a research note on Thursday, May 7th. Morgan Stanley lowered their price objective on Kennametal from $36.00 to $31.00 and set an “equal weight” rating on the stock in a research note on Friday, July 17th. Weiss Ratings lowered Kennametal from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, May 20th. Finally, Barclays downgraded Kennametal from an “equal weight” rating to an “underweight” rating and dropped their price target for the company from $40.00 to $33.00 in a research note on Wednesday, May 27th. Six analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, Kennametal has an average rating of “Reduce” and an average target price of $35.79.

Insider Transactions at Kennametal

In other news, VP Carlonda R. Reilly sold 12,013 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $33.12, for a total value of $397,870.56. Following the sale, the vice president directly owned 25,143 shares in the company, valued at approximately $832,736.16. This trade represents a 32.33% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Sagar A. Patel sold 29,499 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $33.50, for a total transaction of $988,216.50. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 47,000 shares of company stock valued at $1,583,326. 1.43% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Royal Bank of Canada increased its position in Kennametal by 17.7% in the 1st quarter. Royal Bank of Canada now owns 30,474 shares of the industrial products company’s stock valued at $649,000 after acquiring an additional 4,578 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Kennametal by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 46,307 shares of the industrial products company’s stock valued at $986,000 after purchasing an additional 2,013 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Kennametal by 13.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 240,556 shares of the industrial products company’s stock valued at $5,124,000 after purchasing an additional 28,020 shares during the period. Jane Street Group LLC raised its position in Kennametal by 39.3% during the 1st quarter. Jane Street Group LLC now owns 229,903 shares of the industrial products company’s stock worth $4,897,000 after purchasing an additional 64,907 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of Kennametal in the 2nd quarter valued at about $585,000.

Trending Headlines about Kennametal

Here are the key news stories impacting Kennametal this week:

• Positive Sentiment: Fiscal Q4 sales rose 43% year over year to approximately $737 million, exceeding the $725.7 million consensus estimate. Organic sales increased 42%, supported by pricing, favorable timing and broad-based improvement across end markets. Kennametal Reports Fiscal 2026 and Fourth Quarter Results
• Positive Sentiment: Adjusted Q4 EPS was a record $2.96, beating the $2.31 analyst consensus by $0.65 and rising from $0.34 a year earlier. Kennametal also reported fiscal 2026 adjusted EPS of $4.57, another record. Kennametal Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Management issued fiscal 2027 revenue guidance of $3.3 billion-$3.5 billion versus the $2.7 billion consensus and EPS guidance of $4.15-$5.15 versus expectations of $3.78. First-quarter guidance was also substantially above estimates, indicating continued momentum.
• Positive Sentiment: Management attributed the performance to improving market conditions and strategic growth initiatives, while pricing and volume helped lift margins. The earnings call and related coverage reinforce the view that demand is recovering across Kennametal’s industrial markets. Kennametal Q4 Earnings and Sales Beat Estimates
• Neutral Sentiment: The shares reportedly surged 14.2% after sales topped estimates. The subsequent decrease likely reflects profit-taking or digestion of the strong earnings reaction rather than deterioration in the reported operating outlook. Kennametal Sales Top Estimates

About Kennametal

Kennametal Inc is a global industrial technology company that designs and manufactures advanced materials, tooling systems, and engineered components for a range of demanding applications. Its solutions support precision metalworking, earthmoving, and wear-resistant environments, catering to customers seeking enhanced productivity, longer tool life, and reduced operating costs.

The company’s product portfolio spans indexable cutting tools, solid round tools, tool holders, metalworking fluid systems, wear parts, ceramics and composites, and custom-engineered components.