Kennametal (NYSE:KMT) Releases Earnings Results, Beats Estimates By $0.12 EPS

Kennametal (NYSE:KMT) released its quarterly earnings results on Wednesday. The industrial products company reported $0.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.12, FiscalAI reports. The business had revenue of $529.53 million during the quarter, compared to the consensus estimate of $514.70 million. Kennametal had a return on equity of 8.35% and a net margin of 4.76%.The business’s revenue was up 9.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $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 Stock Up 6.2%

Shares of Kennametal stock traded up $2.22 on Wednesday, reaching $37.98. The company’s stock had a trading volume of 2,297,302 shares, compared to its average volume of 1,157,230. The company has a quick ratio of 1.18, a current ratio of 2.60 and a debt-to-equity ratio of 0.45. Kennametal has a 52 week low of $17.30 and a 52 week high of $40.90. The firm’s fifty day simple moving average is $30.57 and its two-hundred day simple moving average is $25.51. The company has a market capitalization of $2.89 billion, a price-to-earnings ratio of 31.11, a P/E/G ratio of 4.22 and a beta of 1.50.

Kennametal Announces Dividend

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 issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date is Tuesday, February 10th. Kennametal’s dividend payout ratio is currently 65.57%.

Institutional Trading of Kennametal

A number of institutional investors and hedge funds have recently modified their holdings of KMT. Arrowstreet Capital Limited Partnership increased its holdings in Kennametal by 36.6% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,887,048 shares of the industrial products company’s stock valued at $39,496,000 after buying an additional 505,669 shares during the last quarter. Cubist Systematic Strategies LLC lifted its stake in Kennametal by 195.3% in the second quarter. Cubist Systematic Strategies LLC now owns 472,940 shares of the industrial products company’s stock valued at $10,859,000 after buying an additional 312,769 shares in the last quarter. Wellington Management Group LLP raised its stake in shares of Kennametal by 20.7% during the 3rd quarter. Wellington Management Group LLP now owns 1,546,374 shares of the industrial products company’s stock worth $32,366,000 after purchasing an additional 265,664 shares in the last quarter. Balyasny Asset Management L.P. lifted its position in Kennametal by 240.2% during the second quarter. Balyasny Asset Management L.P. now owns 347,521 shares of the industrial products company’s stock worth $7,979,000 after acquiring an additional 245,374 shares during the last quarter. Finally, Bank of America Corp DE boosted its position in shares of Kennametal by 92.3% in the third quarter. Bank of America Corp DE now owns 493,283 shares of the industrial products company’s stock valued at $10,324,000 after acquiring an additional 236,736 shares during the period.

Analyst Ratings Changes

KMT has been the topic of several analyst reports. Barclays upped their price target on Kennametal from $25.00 to $28.00 and gave the stock an “equal weight” rating in a research note on Wednesday, January 7th. The Goldman Sachs Group reaffirmed a “sell” rating and set a $28.00 price objective on shares of Kennametal in a report on Tuesday, January 27th. UBS Group raised their price target on Kennametal from $28.00 to $32.00 and gave the company a “neutral” rating in a report on Monday, January 12th. Zacks Research upgraded Kennametal from a “hold” rating to a “strong-buy” rating in a report on Wednesday, November 12th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Kennametal from $25.00 to $37.00 and gave the stock an “underweight” rating in a research note on Wednesday, January 14th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $29.67.

Key Headlines Impacting Kennametal

Here are the key news stories impacting Kennametal this week:

• Positive Sentiment: Q2 results beat consensus — EPS $0.47 vs. $0.35 estimate and revenue $529.5M vs. $514.7M; sales rose ~10% year-over-year and adjusted operating income jumped materially. Management highlighted stronger volume and pricing drivers. Kennametal Announces Fiscal 2026 Second Quarter Results
• Positive Sentiment: Company materially raised FY2026 guidance to EPS $2.05–$2.45 (consensus ~$1.64) and revenue $2.2B–$2.3B (consensus ~$2.1B), giving investors a clearer, higher-growth outlook. That guidance lift is a primary catalyst for the rally. Earnings & Guidance Details
• Positive Sentiment: Analyst coverage and headlines quickly reflected the beat + upgraded outlook, supporting momentum in the shares. Shares Climb After Q2 Beat
• Neutral Sentiment: Q3 (fiscal) guidance set at EPS $0.50–$0.60 and revenue $545M–$565M (slightly above consensus) — indicates continued near-term strength but with a wide range. Quarterly Slide Deck
• Neutral Sentiment: Management said part of the sales upside was driven by customer buy-ahead related to tungsten pricing and modest end?market improvement — a positive for near-term revenue but potentially less durable if inventory patterns normalize. Company Release
• Neutral Sentiment: Coverage pieces and earnings snapshots (Zacks, Yahoo) provide deeper metric analysis and capital-allocation discussion (dividend vs. reinvestment). Useful for investors judging sustainability vs. valuation. Zacks Earnings Coverage
• Negative Sentiment: Valuation and margin context: KMT trades at a relatively elevated P/E (background ~31.7) with modest net margin (~4.8%), so upside depends on whether above?consensus guidance reflects sustainable demand rather than temporary inventory effects. Market Data & Metrics

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.