Kennametal (NYSE:KMT) Issues Quarterly Earnings Results

Kennametal (NYSE:KMT) announced its quarterly earnings data on Wednesday. The industrial products company reported $2.96 EPS for the quarter, topping analysts’ consensus estimates of $2.31 by $0.65, FiscalAI reports. Kennametal had a return on equity of 11.02% and a net margin of 6.41%.The company had revenue of $736.61 million during the quarter, compared to the consensus estimate of $725.74 million. During the same quarter last year, the company earned $0.34 EPS. The company’s quarterly revenue was up 42.6% on a year-over-year basis. 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 NYSE KMT traded down $2.13 during mid-day trading on Wednesday, reaching $33.93. The company had a trading volume of 3,356,283 shares, compared to its average volume of 1,007,336. The firm has a market cap of $2.59 billion, a price-to-earnings ratio of 19.17, a PEG ratio of 0.62 and a beta of 1.36. The business’s 50-day simple moving average is $34.37 and its 200 day simple moving average is $36.40. Kennametal has a one year low of $17.62 and a one year high of $43.81. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.99 and a current ratio of 2.38.

Kennametal Dividend Announcement

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

Key Headlines Impacting Kennametal

Here are the key news stories impacting Kennametal this week:

• Positive Sentiment: Fiscal fourth-quarter results exceeded expectations. Kennametal reported revenue of approximately $737 million, up 43% year over year on a reported basis and 42% organically. Adjusted EPS was a record $2.96, well above the $2.31 analyst consensus, compared with $0.34 a year earlier. Kennametal Reports Fiscal 2026 and Fourth Quarter Results
• Positive Sentiment: Fiscal-year performance also reached records. Fiscal 2026 EPS was $4.42, while adjusted EPS reached a record $4.57. Management attributed the performance to improving market conditions, increased volume and strategic growth initiatives. Kennametal Q4 2026 Earnings Call Transcript
• Positive Sentiment: Fiscal 2027 guidance was substantially above consensus. The company forecast first-quarter revenue of $745 million to $775 million and EPS of $2.50 to $2.80, versus estimates of $675 million and $1.09, respectively. Full-year revenue guidance of $3.3 billion to $3.5 billion and EPS guidance of $4.15 to $5.15 also exceeded consensus estimates of $2.7 billion and $3.78. Key Metrics for Kennametal Q4 Earnings
• Neutral Sentiment: The earnings release showed strong growth, but Kennametal’s reported net margin was 6.41% and return on equity was 11.02%. Investors may be assessing how sustainable the sharp year-over-year improvement will be as market conditions evolve. Kennametal Earnings Report

Wall Street Analyst Weigh In

A number of analysts recently commented on KMT shares. Jefferies Financial Group lowered Kennametal from a “buy” rating to a “hold” rating and set a $47.50 price objective for the company. in a research report on Thursday, May 7th. Zacks Research downgraded shares of Kennametal from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, July 14th. DA Davidson began coverage on shares of Kennametal in a research note on Tuesday, June 16th. They issued a “neutral” rating and a $34.00 target price on the stock. Weiss Ratings downgraded shares of Kennametal from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, May 20th. Finally, Morgan Stanley dropped their price target on shares of Kennametal from $36.00 to $31.00 and set an “equal weight” rating for the company in a research note on Friday, July 17th. Six research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Reduce” and a consensus target price of $35.79.

Insider Buying and Selling

In related news, VP Judith L. Bacchus sold 5,488 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $35.94, for a total transaction of $197,238.72. Following the completion of the transaction, the vice president directly owned 4,554 shares of the company’s stock, valued at $163,670.76. This trade represents a 54.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 stock was 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. Insiders have sold 47,000 shares of company stock worth $1,583,326 in the last 90 days. Insiders own 1.43% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of KMT. Headlands Technologies LLC raised its stake in Kennametal by 80.7% in the 2nd quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company’s stock valued at $35,000 after acquiring an additional 682 shares during the period. Smartleaf Asset Management LLC increased its stake in shares of Kennametal by 142.3% in the second quarter. Smartleaf Asset Management LLC now owns 2,091 shares of the industrial products company’s stock worth $48,000 after purchasing an additional 1,228 shares in the last quarter. ARK Investment Management LLC increased its stake in shares of Kennametal by 16.6% in the fourth quarter. ARK Investment Management LLC now owns 3,210 shares of the industrial products company’s stock worth $91,000 after purchasing an additional 457 shares in the last quarter. Tower Research Capital LLC TRC raised its position in shares of Kennametal by 318.1% in the second quarter. Tower Research Capital LLC TRC now owns 7,033 shares of the industrial products company’s stock valued at $161,000 after purchasing an additional 5,351 shares during the period. Finally, CIBC Asset Management Inc bought a new stake in shares of Kennametal in the fourth quarter valued at approximately $206,000.

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.