Kennametal (NYSE:KMT) Releases Earnings Results, Beats Expectations By $0.65 EPS

Kennametal (NYSE:KMT) released its earnings results on Wednesday. The industrial products company reported $2.96 earnings per share for the quarter, beating the consensus estimate of $2.31 by $0.65, FiscalAI reports. The company had revenue of $736.61 million for 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 business’s revenue for the quarter was up 42.6% on a year-over-year basis. During the same quarter in the previous year, the business 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 Stock Performance

Shares of KMT traded down $2.13 on Wednesday, reaching $33.93. 2,592,390 shares of the stock traded hands, compared to its average volume of 1,364,762. The firm has a market cap of $2.59 billion, a price-to-earnings ratio of 19.17, a P/E/G ratio of 0.48 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. The stock’s 50-day moving average price is $34.39 and its 200-day moving average price is $36.40. Kennametal has a 12 month low of $17.62 and a 12 month high of $43.81.

Kennametal Announces Dividend

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

Analyst Ratings Changes

A number of research firms recently issued reports on KMT. Barclays cut Kennametal from an “equal weight” rating to an “underweight” rating and reduced their price objective for the company from $40.00 to $33.00 in a research report on Wednesday, May 27th. Weiss Ratings lowered Kennametal from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, May 20th. Morgan Stanley cut their price objective on shares of Kennametal from $36.00 to $31.00 and set an “equal weight” rating on the stock in a research report on Friday, July 17th. DA Davidson began coverage on shares of Kennametal in a research note on Tuesday, June 16th. They set a “neutral” rating and a $34.00 price target on the stock. Finally, JPMorgan Chase & Co. cut their target price on Kennametal from $40.00 to $34.00 and set an “underweight” rating on the stock in a report on Monday, July 13th. Six investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Reduce” and an average target price of $35.79.

Insider Buying and Selling

In related news, Director Sagar A. Patel sold 29,499 shares of Kennametal stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $33.50, for a total value of $988,216.50. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, 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 transaction of $397,870.56. Following the completion of the transaction, the vice president directly owned 25,143 shares in the company, valued at approximately $832,736.16. The trade was a 32.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 47,000 shares of company stock worth $1,583,326 in the last 90 days. 1.43% of the stock is owned by company insiders.

Hedge Funds Weigh In On Kennametal

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

More Kennametal News

Here are the key news stories impacting Kennametal this week:

• Positive Sentiment: Q4 earnings and revenue exceeded estimates. Kennametal reported adjusted EPS of $2.96, versus the $2.31 consensus estimate, while sales reached $736.6 million, ahead of the $725.7 million forecast. Revenue increased 42.6% year over year, and adjusted EPS rose sharply from $0.34 in the prior-year quarter. Kennametal Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Fiscal 2026 included record adjusted earnings. Fourth-quarter sales rose 43% on a reported basis and 42% organically. Fiscal-year EPS was $4.42, with record adjusted EPS of $4.57, reflecting stronger volumes and contributions from the company’s strategic growth initiatives. Kennametal Reports Fiscal 2026 and Fourth Quarter Results
• Positive Sentiment: FY2027 guidance was substantially above consensus. Kennametal forecast first-quarter EPS of $2.50-$2.80 and revenue of $745 million-$775 million, compared with consensus estimates of $1.09 and $675 million. Full-year FY2027 EPS guidance of $4.15-$5.15 and revenue guidance of $3.3 billion-$3.5 billion also exceeded consensus estimates of $3.78 and $2.7 billion, respectively. Kennametal Q4 2026 Earnings Call Transcript
• Neutral Sentiment: The market response is weaker than the fundamentals. The results and outlook are clearly bullish, but the stock’s decrease indicates that investors may have already priced in significant improvement, are locking in gains after the strong run toward the 52-week high, or are awaiting further detail from management on the sustainability of growth and margins.

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.