Kennametal (NYSE:KMT) Issues Earnings Results

Kennametal (NYSE:KMT) posted its quarterly earnings results on Wednesday. The industrial products company reported $0.47 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.12, FiscalAI reports. Kennametal had a return on equity of 8.35% and a net margin of 4.76%.The business had revenue of $529.53 million for the quarter, compared to the consensus estimate of $514.70 million. During the same quarter in the previous year, the business earned $0.25 EPS. The company’s quarterly revenue was up 9.9% compared to the same quarter last year. Kennametal updated its Q3 2026 guidance to 0.500-0.600 EPS and its FY 2026 guidance to 2.050-2.450 EPS.

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

• Second-quarter beat: Organic sales rose 10% year‑over‑year, adjusted EBITDA margin improved to 17.1%, and adjusted EPS was $0.47 versus $0.25 a year ago, driven by price realization, volume and restructuring savings.
• Management raised full‑year FY2026 guidance to $2.19–$2.25 billion in sales and $2.05–$2.45 in adjusted EPS, noting about a $0.95 year‑over‑year benefit from price/raw‑material timing.
• Unprecedented tungsten price increases materially raised inventory and primary working capital, reducing year‑to‑date free operating cash flow to $38 million and prompting a pause in share repurchases for the quarter.
• Volume trends are improving: this is Kennametal’s second consecutive quarter of organic growth, the company reported buy‑ahead of price increases of roughly $13M, and Q3 volumes adjusted for buy‑ahead imply modest sequential improvement.
• Cost actions continue to contribute, with $8M of restructuring savings realized in the quarter and management expecting $30M of savings in FY2026 as part of a multi‑year plan to lower structural costs.

Kennametal Price Performance

Shares of KMT traded down $0.42 during trading hours on Thursday, hitting $37.93. 768,468 shares of the stock were exchanged, compared to its average volume of 1,202,643. The stock’s 50-day moving average price is $30.79 and its two-hundred day moving average price is $25.60. Kennametal has a 12-month low of $17.30 and a 12-month high of $40.90. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.18 and a current ratio of 2.60. The company has a market cap of $2.89 billion, a price-to-earnings ratio of 31.12, a price-to-earnings-growth ratio of 4.24 and a beta of 1.50.

Kennametal Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, February 24th. Investors of record on Tuesday, February 10th will be given a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Tuesday, February 10th. Kennametal’s payout ratio is presently 65.57%.

Institutional Investors Weigh In On Kennametal

Hedge funds have recently modified their holdings of the business. Headlands Technologies LLC boosted its position in 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 acquiring an additional 682 shares during the last quarter. Smartleaf Asset Management LLC boosted its holdings in shares of Kennametal by 142.3% during the 2nd 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 during the last quarter. Tower Research Capital LLC TRC boosted its holdings in shares of 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 purchasing an additional 5,351 shares during the last quarter. Cerity Partners LLC purchased a new stake in shares of Kennametal in the second quarter valued at approximately $257,000. Finally, Osaic Holdings Inc. increased its holdings in shares of Kennametal by 322.3% in the second quarter. Osaic Holdings Inc. now owns 11,352 shares of the industrial products company’s stock valued at $261,000 after purchasing an additional 8,664 shares during the last quarter.

More Kennametal News

Here are the key news stories impacting Kennametal this week:

• Positive Sentiment: Q2 beat — Adjusted EPS of $0.47 vs. $0.35 consensus and revenue of ~$529.5M (up ~9.9% YoY); results exceeded street estimates and showed solid organic growth. Kennametal Announces Fiscal 2026 Second Quarter Results
• Positive Sentiment: Raised guidance — Management boosted FY2026 adjusted EPS to $2.05–$2.45 (vs. ~1.64 consensus) and set Q3 EPS at $0.50–$0.60; revenue guidance was lifted to $2.2–$2.3B. The upgrades suggest confidence in near-term demand and pricing. Kennametal Announces Fiscal 2026 Second Quarter Results
• Positive Sentiment: Margin and operating leverage improvement — Operating income of $53M and adjusted operating income of $56M (up ~66–68%), helping convert revenue gains into better profitability. Kennametal Announces Fiscal 2026 Second Quarter Results
• Neutral Sentiment: Market reaction and coverage — Multiple outlets and the earnings transcript highlight the beat and guidance; headlines drove the immediate share move while analysts digest the updated outlook. Kennametal (KMT) Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Capital allocation discussion — Commentary on steady dividends and allocation priorities is getting attention but didn’t drive the move as much as the quarter and guidance. Does Kennametal’s (KMT) Steady Dividend…
• Negative Sentiment: Pull-forward risk — Management said some volume was due to customers “buying ahead” because of tungsten pricing; that could mean part of the strength is temporary and may moderate in later quarters. Kennametal Inc. Q2 2026 Earnings Call Transcript

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on KMT shares. UBS Group increased their price target on shares of Kennametal from $32.00 to $39.00 and gave the stock a “neutral” rating in a report on Thursday. The Goldman Sachs Group reissued a “sell” rating and set a $28.00 target price on shares of Kennametal in a research note on Tuesday, January 27th. Zacks Research upgraded Kennametal from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, November 12th. JPMorgan Chase & Co. upped their price target on Kennametal from $25.00 to $37.00 and gave the stock an “underweight” rating in a report on Wednesday, January 14th. Finally, Barclays raised their price objective on Kennametal from $25.00 to $28.00 and gave the company an “equal weight” rating in a report on Wednesday, January 7th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $30.83.

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.