📈 Price History

Ratio Health

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📊 Sector Averages

About

Kennametal Inc. engages in development and application of tungsten carbides, ceramics, and hard materials and solutions worldwide.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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⭐ Superinvestors Holding KMT

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Manager	Shares	Value	% of Fund	Period
Steve Cohen Point72 Asset Management	298.0K	$10.8M	0.01%	Mar 2026
Cathie Wood ARK Investment Management	2.5K	$89K	0.00%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific ~ Volatile 4 quarters analysed

Q4 2025

Cautious

Management repeatedly emphasized 'continued broad market weakness' and 'eight quarters' of headwinds, while detailing aggressive restructuring actions. The tone is measured, acknowledging challenges but expressing confidence in self-help measures.

Q1 2026

Confident Specific

The CEO described the quarter as 'strong' and 'solid', highlighting that sales and adjusted EPS exceeded the prior outlook. Specific year-over-year growth percentages (3% organic sales, $0.34 vs $0.29 EPS) and margin improvements (15.3% vs 14.3% EBITDA margin) were cited.

Q2 2026

Confident Specific

Management expressed confidence through phrases like 'strong second quarter', 'exceeded our expectations', and 'pleased with this quarter's results', backed by specific metrics such as 10% organic sales growth and 17.1% Adjusted EBITDA margin.

Q3 2026 latest

Confident Specific

Management repeatedly used phrases like 'strong third quarter', 'exceeded our sales and EPS outlook', and 'confident in our plan'. They gave specific details on tungsten price dynamics, volume recovery trajectories, and share gains, indicating a positive but data-backed stance.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis appears stronger after this call. Kennametal demonstrated another quarter of above-consensus results, driven by pricing power in a rising tungsten environment and tangible share gains in aerospace, defense, and energy. The vertical integration and secure tungsten sourcing are clear competitive advantages that are winning orders from constrained competitors. However, cash flow remains pressured by working capital tied to tungsten inventory, and management is pausing buybacks until tungsten stabilizes. The shift to prioritize growth over restructuring may delay some margin improvement but capitalises on a unique window. Key next quarter watchpoints: whether the 35% Q4 price realisation sticks, any signs of tungsten price softening in China, and the ability to convert temporary share gains into permanent accounts. The early FY27 framing suggests a first-half benefit from carryover pricing, but normalised earnings in the back half. Overall, the cyclical recovery and strategic execution support a constructive view, but working capital and buyback absence temper near-term cash returns.

AI-generated concall tone analysis · Updated 2026-06-09 · Not investment advice

🎙 Management Tone Confident Specific ~ Volatile 4 quarters Full tone analysis in Intelligence →

📊 MIXED Kennametal Q3 FY2026 organic sales up 19%, EPS $0.77, raises full-year guidance on pricing and volume

Revenue & Profitability

Q3 fiscal 2026 adjusted EPS was $0.77, up from $0.47 in the prior year quarter. Organic sales grew 19% year-over-year, with reported sales up 22%. Full-year adjusted EPS guidance was raised to a range of $3.75-$4.00. Year-to-date free operating cash flow was $18 million, down from $63 million in the prior year due to higher working capital from rising tungsten prices.

Outlook

Management sees continued market recovery, with transportation estimates slightly improved and energy sentiment turning cautiously optimistic. Infrastructure Earthworks and Metal Cutting aerospace & defense remain strong. However, the broader industrial production environment is uneven, with EMEA lagging. The tungsten price environment is expected to remain elevated in the near term, creating both opportunities and challenges.

Growth Drivers

Growth is driven by share gains in aerospace & defense across both segments, energy growth from AI power generation initiatives, and Earthworks volume gains from construction and mining. The company is also capitalizing on a window of opportunity from the tight tungsten supply, where competitors are turning away orders, allowing Kennametal to win business and shape its portfolio toward higher-margin solutions. General engineering is seeing new customer wins through promotional campaigns and digital improvements.

Balance Sheet & CapEx

Full-year capital expenditure guidance is approximately $85 million, down from $67 million in the prior year period. The company is prioritizing growth opportunities over restructuring initiatives in the near term, shifting the timeline for planned facility closures. Free operating cash flow is expected to be approximately -30% of adjusted net income for fiscal 2026 due to working capital pressure from the rise in tungsten costs.

Margins

Q3 adjusted EBITDA margin was 20.8%, up from 17.9% in the prior year, driven by favorable price/raw material timing in Infrastructure and pricing actions in Metal Cutting. Adjusted operating margin for Infrastructure was 18.3% (up 680 bps) and for Metal Cutting was 11.2% (up 160 bps). The company expects further margin improvement in Q4 from price raw benefits, with restructuring savings of $7 million in the quarter contributing to operating leverage.

Key Risks

The primary risk is the unprecedented nine-fold increase in tungsten prices, which creates working capital pressure and may temporarily compress free cash flow. Other risks include tariffs and general inflation, higher compensation costs, and the potential for tungsten price volatility to reverse. Management flagged the uncertain nature of export controls and supply constraints, and noted that the conflict in the Middle East is not included in the outlook. Competitive pressure and macro uncertainty in EMEA were also cited.

Generated by AI · Q3 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q4 2026 Q4 2026 2026-08-05

Strong FY 2026 results featured 19% organic sales growth and record margins, driven by price realization, strategic wins in aerospace, defense, and energy, and disciplined cost actions. FY 2027 guidance anticipates continued growth, with volume up 1%-4% and robust liquidity.

Q3 2026 Q3 2026 2026-05-06

Q3 delivered strong sales and EPS growth, driven by price realization, volume gains, and strategic share capture amid unprecedented tungsten price increases. FY26 outlook was raised, with continued margin expansion and working capital pressure expected due to tungsten volatility.

Q2 2026 Q2 2026 2026-02-04

Second quarter results exceeded expectations with 10% organic sales growth and higher margins, driven by pricing actions and restructuring savings. Full-year sales and EPS outlooks were raised, reflecting strong execution and resilience amid volatile tungsten prices.

Q1 2026 Q1 2026 2025-11-05

First quarter saw 3% organic sales growth, margin improvement, and raised full-year guidance, driven by project wins, pricing actions, and restructuring savings. Key end markets like aerospace, defense, and power generation showed strength, while cash flow was impacted by higher tungsten costs.

Q4 2025 Q4 2025 2025-08-06

Sales and earnings declined year-over-year amid broad market softness, with restructuring and cost actions partially offsetting lower volumes. FY26 guidance anticipates flat to slightly lower volumes, margin improvement from cost savings, and continued growth in aerospace and defense.

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