Kennametal (NYSE:KMT) Issues Earnings Results

Kennametal (NYSE:KMT) announced its earnings results on Wednesday. The industrial products company reported $0.47 earnings per share for the quarter, beating analysts’ consensus estimates of $0.35 by $0.12, FiscalAI reports. The business had revenue of $529.53 million during the quarter, compared to analyst estimates of $514.70 million. Kennametal had a net margin of 5.43% and a return on equity of 9.46%. The company’s quarterly revenue was up 9.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.25 EPS. 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 NYSE KMT traded up $2.47 during mid-day trading on Friday, hitting $40.75. 768,737 shares of the company’s stock traded hands, compared to its average volume of 1,282,175. The company has a debt-to-equity ratio of 0.44, a current ratio of 2.55 and a quick ratio of 1.18. Kennametal has a 1 year low of $17.30 and a 1 year high of $40.90. The company’s 50-day moving average is $31.00 and its two-hundred day moving average is $25.68. The company has a market capitalization of $3.10 billion, a P/E ratio of 28.54, a PEG ratio of 3.23 and a beta of 1.50.

Kennametal Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, February 24th. Stockholders 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 2.0%. The ex-dividend date is Tuesday, February 10th. Kennametal’s dividend payout ratio is currently 65.57%.

Institutional Investors Weigh In On Kennametal

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

Analyst Upgrades and Downgrades

KMT has been the subject of a number of recent research reports. JPMorgan Chase & Co. boosted their price objective on Kennametal from $25.00 to $37.00 and gave the company an “underweight” rating in a research note on Wednesday, January 14th. Weiss Ratings reiterated a “hold (c)” rating on shares of Kennametal in a research report on Thursday, January 22nd. Barclays raised their price objective on shares of Kennametal from $25.00 to $28.00 and gave the company an “equal weight” rating in a research report on Wednesday, January 7th. Zacks Research upgraded Kennametal from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, November 12th. Finally, Wall Street Zen upgraded Kennametal from a “buy” rating to a “strong-buy” rating in a research report on Saturday, November 29th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $31.50.

Kennametal Company Profile

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.