Kennametal Posts Record Q4 Adjusted EPS of $2.96 and Issues Strong FY27 Outlook
KMT has more than doubled off its 52-week low of $17.62.
Summary
Fiscal Q4 2026 results featured a 43% sales jump and record adjusted EPS of $2.96. The company issued fiscal 2027 guidance for sales of $3.33-$3.45 billion and adjusted EPS of $4.15-$5.15, both above consensus.
Key Events · Earnings and Guidance · KMT
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Record Q4 Earnings
Driven by favorable tungsten pricing and volume growth, sales climbed 43% year-over-year to $737 million, while adjusted EPS hit a quarterly record of $2.96.
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Strong FY27 Guidance
Reflecting confidence in end-market demand, the company expects fiscal 2027 sales of $3.33-$3.45 billion and adjusted EPS of $4.15-$5.15, both above consensus estimates.
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Cash Flow Pressure
Free operating cash flow swung to negative $79 million for fiscal 2026, down from positive $121 million a year ago, as working capital absorbed higher raw material costs and supplier advances.
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Dividend Maintained
The board declared a quarterly cash dividend of $0.20 per share, payable August 25, 2026 to shareholders of record August 11, 2026.
Analysis · KMT · Technology
A standout quarter saw sales surge 43% to $737 million and adjusted EPS reach a record $2.96, fueled by favorable tungsten pricing and volume growth. The fiscal 2027 guidance, well above current analyst expectations, signals confidence in sustained momentum. However, free cash flow turned sharply negative due to working capital tied to raw material costs—a key risk to monitor.
At the time of this filing, KMT was trading at $37.53 on NYSE in the Technology sector, with a market capitalization of approximately $2.7B. The 52-week trading range was $17.62 to $43.81. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.