Kennametal (NYSE:KMT) Posts Earnings Results

Posted by Brenda Bartman on Nov 4th, 2026

Kennametal (NYSE:KMT – Get Free Report) issued its quarterly earnings data on Wednesday. The industrial products company reported $3.48 EPS for the quarter, topping analysts’ consensus estimates of $2.65 by $0.83, FiscalAI reports. Kennametal had a net margin of 14.53% and a return on equity of 24.83%. The business had revenue of $768.19 million during the quarter, compared to analysts’ expectations of $770.36 million. During the same period last year, the company posted $0.34 EPS. The business’s revenue was up 54.3% on a year-over-year basis.

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

Kennametal reported first-quarter sales up 54% organically and EPS of $3.48, exceeding the midpoint of its outlook; results were substantially boosted by favorable tungsten price-cost timing. Metal Cutting posted its fourth consecutive quarter of volume growth, with mid-single-digit gains and share capture in key markets.
Management cited growth initiatives, pricing, lean transformation and portfolio actions as supports for its long-term target of 16%–19% EBITDA margins, assuming tungsten prices remain elevated.
Infrastructure volumes fell at a low-double-digit rate amid price sensitivity, slower Chinese mining activity and limited product substitution. Management expects only modest recovery in Q2, with most of the anticipated rebound weighted to the second half.
FY2027 adjusted EPS guidance is $5–$6, including an estimated $0.97 favorable price-cost timing benefit; falling tungsten prices are expected to create headwinds in Q3 and Q4, with Q4 EBITDA margin projected in the low double digits.
Year-to-date free operating cash flow was negative $212 million, largely due to higher-cost tungsten inventory and supplier advances; inventory value has tripled in 18 months. Share repurchases remain paused until free operating cash flow turns positive.

Kennametal Trading Down 14.6%

Shares of Kennametal stock traded down $4.46 during trading on Wednesday, hitting $26.07. The stock had a trading volume of 2,417,089 shares, compared to its average volume of 1,403,847. The firm’s fifty day simple moving average is $30.44 and its 200-day simple moving average is $34.56. The stock has a market cap of $1.99 billion, a PE ratio of 5.95, a PEG ratio of 0.30 and a beta of 1.30. The company has a debt-to-equity ratio of 0.42, a current ratio of 2.62 and a quick ratio of 0.98. Kennametal has a 12 month low of $24.00 and a 12 month high of $43.81.

Kennametal Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 23rd. Stockholders of record on Monday, November 9th will be paid a $0.20 dividend. The ex-dividend date of this dividend is Monday, November 9th. This represents a $0.80 annualized dividend and a dividend yield of 3.1%. Kennametal’s dividend payout ratio is currently 18.18%.

Kennametal News Summary

Here are the key news stories impacting Kennametal this week:

Positive Sentiment: Fiscal Q1 adjusted earnings were $3.48 per share, above analysts’ roughly $2.65 estimate and up from $0.34 a year earlier. Kennametal also raised its FY27 adjusted-EPS outlook. Kennametal Boosts FY27 Adj. EPS Outlook
Positive Sentiment: Sales rose 54% to about $768 million, with the company citing stronger Metal Cutting volumes; it also reaffirmed a target for 16%–19% adjusted EBITDA margins beyond FY27, assuming tungsten prices remain at current levels. Kennametal Announces Fiscal 2027 First Quarter Results
Negative Sentiment: Quarterly sales came in slightly below analyst expectations ($768.19 million versus about $770 million). The company said results were helped primarily by favorable timing of raw-material-related pricing compared with costs, which may make investors question how durable the earnings strength is. Kennametal Reports Sales Below Analyst Estimates

Insider Transactions at Kennametal

In other news, CEO Sanjay Chowbey acquired 7,000 shares of Kennametal stock in a transaction that occurred on Thursday, September 10th. The shares were bought at an average cost of $29.10 per share, with a total value of $203,700.00. Following the transaction, the chief executive officer directly owned 246,839 shares of the company’s stock, valued at $7,183,014.90. This trade represents a 2.92% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. Also, VP Judith L. Bacchus sold 9,676 shares of the firm’s stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $30.29, for a total transaction of $293,086.04. Following the completion of the sale, the vice president directly owned 15,721 shares of the company’s stock, valued at approximately $476,189.09. The trade was a 38.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.65% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on KMT shares. DA Davidson decreased their target price on shares of Kennametal from $34.00 to $30.00 and set a “neutral” rating on the stock in a research report on Tuesday, August 11th. UBS Group dropped their price target on Kennametal from $39.00 to $35.00 and set a “neutral” rating for the company in a research report on Monday, August 10th. Weiss Ratings cut Kennametal from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, October 23rd. JPMorgan Chase & Co. decreased their price objective on Kennametal from $34.00 to $30.00 and set an “underweight” rating on the stock in a research report on Thursday, October 8th. Finally, Zacks Research downgraded Kennametal from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, October 14th. Five equities research analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Reduce” and an average price target of $33.50.

Get Our Latest Stock Analysis on Kennametal

About Kennametal

(Get Free Report)

Kennametal Inc (NYSE: KMT) is a global industrial technology company that develops and manufactures tooling, engineered components and wear-resistant solutions. Its products are designed to help customers improve productivity, durability and performance in demanding manufacturing and industrial applications.

The company’s offerings include metal-cutting tools and systems, tooling components, advanced materials, and products made with hard metals and other wear-resistant technologies. Kennametal also provides engineered solutions for applications such as machining, earthworks, energy production, transportation, aerospace, defense and general engineering.

Founded in 1938 by Philip M.