Kennametal Announces Fiscal 2026 Third Quarter Results

Rhea-AI Summary

Kennametal (NYSE: KMT) reported fiscal 2026 third quarter results for the period ended March 31, 2026, with sales of $593 million (+22% reported, +19% organic), operating income $79 million (13.4% margin) and EPS $0.75 (adjusted EPS $0.77). The company raised full-year sales and adjusted EPS outlook to $2.33–$2.35B and $3.75–$4.00. Kennametal cited strong tungsten prices, higher volumes, and restructuring savings; year-to-date operating cash flow and FOCF declined due to inventory buildup from rising tungsten costs. Quarterly dividend of $0.20 per share declared.

AI-generated analysis. Not financial advice.

Positive

• Sales +22% to $593 million year-over-year
• Operating income +80% to $79 million (13.4% margin)
• EPS +85% to $0.75; adjusted EPS $0.77 (+65%)
• Raised full-year outlook: Sales $2.33–$2.35B and Adjusted EPS $3.75–$4.00
• Declared quarterly dividend of $0.20 per share

Negative

• Year-to-date operating cash flow down to $70M from $130M due to inventory increases
• Year-to-date free operating cash flow down to $18M from $63M
• Inventory buildup driven by unprecedented tungsten price rise increased working capital
• Divestiture reduced reported sales by ~2–5% in segments (noted impact)

News Market Reaction – KMT

+15.36%

7 alerts

+15.36% News Effect

+12.1% Peak in 35 min

+$381M Valuation Impact

$2.86B Market Cap

3.05K Volume

On the day this news was published, KMT gained 15.36%, reflecting a significant positive market reaction. Argus tracked a peak move of +12.1% during that session. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $381M to the company's valuation, bringing the market cap to $2.86B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q3 FY26 Sales: $593 million Q3 FY26 EPS: $0.75 Q3 FY26 Adjusted EPS: $0.77 +5 more

8 metrics

Q3 FY26 Sales $593 million Up 22% year-over-year; 19% organic growth

Q3 FY26 EPS $0.75 Earnings per diluted share, up 85% vs prior year

Q3 FY26 Adjusted EPS $0.77 Adjusted EPS, up 65% vs prior year

Q3 Operating Margin 13.4% Operating income $79M vs 9.1% margin prior year

FY26 Sales Outlook $2.33–$2.35 billion Raised full-year sales guidance range

FY26 Adjusted EPS Outlook $3.75–$4.00 Raised full-year adjusted EPS guidance range

YTD Free Operating Cash Flow $18 million Down from $63M in prior year period

Quarterly Dividend $0.20 per share Payable May 26, 2026 to holders of record May 12, 2026

Market Reality Check

Price: $34.01 Vol: Volume 1,168,585 is 1.13x...

normal vol

$34.01 Last Close

Volume Volume 1,168,585 is 1.13x the 20-day average of 1,031,043, indicating moderately elevated trading interest ahead of the report. normal

Technical Price at $37.51 is trading above the 200-day moving average of $29.49 and about 10.75% below the 52-week high of $42.03.

Peers on Argus

KMT gained 2.04% with peers like HLMN (+2.38%), TKR (+1.46%) and LECO (+1.01%) a...

KMT gained 2.04% with peers like HLMN (+2.38%), TKR (+1.46%) and LECO (+1.01%) also positive. However, no peers appeared in the momentum scanner, suggesting the move was more stock-specific around this earnings release than a broad sector rotation.

Historical Context

5 past events · Latest: Apr 15 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Apr 15	Earnings call notice	Neutral	-2.8%	Announced date and hosts for upcoming Q3 FY26 earnings call and webcast.
Mar 09	Award recognition	Neutral	+2.8%	Executive honored with 2026 STEP Ahead Award highlighting leadership in manufacturing.
Feb 24	Customer program launch	Neutral	+2.7%	Launched global “Machinist of the Year” program to recognize long‑time machinist customers.
Feb 24	Conference attendance	Neutral	+2.7%	Planned participation in J.P. Morgan Industrials Conference with CFO and IR leadership.
Feb 17	Conference attendance	Neutral	-1.3%	Announced attendance at Loop Capital Conference to engage investors and highlight strategy.

Pattern Detected

Recent headlines have been mainly informational (conferences, programs, awards) with modest single-digit price moves, showing no strong pattern of overreaction to routine news.

Recent Company History

Over the last few months, Kennametal’s news flow has focused on investor outreach and corporate positioning rather than major financial surprises. Events included multiple conference appearances (Feb 17–24, 2026), launch of the global “Machinist of the Year” program, and recognition of leadership via the STEP Ahead Award. A call announcement on Apr 15, 2026 preceded today’s detailed Q3 results. Price reactions to these items ranged from small gains to modest declines, indicating measured market responses to non-earnings updates.

Market Pulse Summary

The stock surged +15.4% in the session following this news. A strong positive reaction aligns with K...

Analysis

The stock surged +15.4% in the session following this news. A strong positive reaction aligns with Kennametal’s Q3 FY26 results, which showed sales of $593 million, EPS of $0.75 and adjusted EPS of $0.77, all up sharply year-over-year, alongside higher margins. The company also raised full-year sales guidance to $2.33–$2.35 billion and adjusted EPS to $3.75–$4.00. Investors may weigh this against weaker year-to-date free operating cash flow of $18 million versus $63 million and recent insider net selling when assessing durability of any outsized move.

Key Terms

adjusted operating income, adjusted eps, free operating cash flow, non-gaap financial measures, +3 more

7 terms

adjusted operating income financial

"Adjusted operating income was $82 million, or 13.8 percent margin"

Adjusted operating income is a company's profit from its main activities, excluding certain one-time or unusual costs and gains. It helps investors see how well the business is performing in its normal operations, without distractions from rare events or expenses. This way, they get a clearer picture of the company’s true profitability.

adjusted eps financial

"Earnings per diluted share (EPS) of $0.75 and adjusted EPS of $0.77"

Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.

free operating cash flow financial

"Year-to-date free operating cash flow (FOCF) was $18 million compared to $63 million"

Free operating cash flow is the cash a business generates from its normal operations after paying for the upkeep and replacement of the equipment, buildings, or other assets needed to run the business. Think of it like the money left in your household after paying for groceries and necessary home repairs — cash available for growth, debt repayment, dividends, or savings. Investors watch it because it shows how much real, spendable cash the company produces beyond day‑to‑day running costs.

non-gaap financial measures financial

"This earnings release contains non-GAAP financial measures."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

forward-looking statements regulatory

"Certain statements in this release may be forward-looking in nature, or "forward-looking statements""

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

inflation reduction act regulatory

"normalized advanced manufacturing production credit under the Inflation Reduction Act"

The inflation reduction act is a law designed to lower the overall increase in prices for goods and services in an economy, helping to keep the cost of living more stable. For investors, it matters because reducing inflation can lead to a healthier economy, potentially making investments safer and more predictable by preventing prices from rising too quickly.

advanced manufacturing production credit regulatory

"net effect of approximately $8 million from a normalized advanced manufacturing production credit"

A government tax incentive that pays companies by the amount they produce of certain qualifying advanced products—often clean-energy components or high-tech parts—to encourage domestic manufacturing. For investors, it can raise a maker’s profit per unit and improve cash flow like a per-item rebate, making manufacturers more competitive and potentially boosting valuation, but its value depends on meeting eligibility rules and on future policy changes.

AI-generated analysis. Not financial advice.

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• Sales of $593 million increased 22 percent and 19 percent on a reported and organic basis, respectively
• Operating income of $79 million and adjusted operating income of $82 million, up 80 percent and 64 percent, respectively
• Earnings per diluted share (EPS) of $0.75 and adjusted EPS of $0.77, up 85 percent and 65 percent, respectively
• Company raises annual sales and adjusted EPS Outlook

PITTSBURGH, May 6, 2026 /PRNewswire/ -- Kennametal Inc. (NYSE: KMT) (the "Company") today reported results for its fiscal 2026 third quarter ended March 31, 2026.

"Our third quarter results exceeded the high end of our sales and adjusted EPS Outlook, primarily due to the unprecedented rise in tungsten pricing and stronger volume," said Sanjay Chowbey, President and CEO.

Chowbey added: "Our team is advancing volume momentum from improving end markets, pursuing share gains through growth initiatives, and executing on opportunities in a dynamic tungsten market. Additionally, we are actively managing our tungsten supply chain and executing our strategy to drive long-term shareholder value."

Fiscal 2026 Third Quarter Financial Highlights

Sales of $593 million increased 22 percent from $486 million in the prior year quarter, reflecting organic sales growth of 19 percent and a favorable currency exchange effect of 5 percent, partially offset by a divestiture effect of 2 percent.

Operating income was $79 million, or 13.4 percent margin, compared to $44 million, or 9.1 percent margin, in the prior year quarter. The increase in operating income was driven by the favorable timing of pricing compared to raw material costs of approximately $39 million within the Infrastructure segment, pricing and tariff surcharges within the Metal Cutting segment, higher sales and production volumes, incremental year-over-year restructuring savings of approximately $7 million, favorable foreign currency exchange of approximately $4 million and a decrease in restructuring and related charges of approximately $3 million. These factors were partially offset by higher compensation costs, tariffs and general inflation, the net effect of approximately $8 million from a normalized advanced manufacturing production credit under the Inflation Reduction Act in the current quarter within the Infrastructure segment, and higher raw material costs in the Metal Cutting segment. Adjusted operating income was $82 million, or 13.8 percent margin, in the current quarter, compared to $50 million, or 10.3 percent margin, in the prior year quarter.

Year-to-date net cash flow from operating activities was $70 million compared to $130 million in the prior year period. The change in net cash flow from operating activities was driven primarily by working capital changes including an increase in inventory largely due to the unprecedented rise in tungsten prices, partially offset by higher net income in the current year period. Year-to-date free operating cash flow (FOCF) was $18 million compared to $63 million in the prior year period. The decrease in FOCF was driven primarily by working capital changes including an increase in inventory, partially offset by higher net income and lower net capital expenditures in the current year period.

Outlook

The Company's expectations for sales and adjusted EPS for the full fiscal year 2026 are as follows:

• Sales expected to be $2.33 - $2.35 billion
• Adjusted EPS is expected to be $3.75 - $4.00

The Company will provide more details regarding its Outlook during its quarterly earnings conference call.

Segment Results

Metal Cutting sales of $358 million increased 18 percent from $304 million in the prior year quarter, reflecting organic sales growth of 12 percent and a favorable currency exchange effect of 6 percent. Operating income was $38 million, or 10.7 percent margin, compared to $25 million, or 8.2 percent margin, in the prior year quarter. The increase in operating income was driven by pricing and tariff surcharges, higher sales and production volumes, incremental year-over-year restructuring savings of approximately $5 million, favorable foreign currency exchange of approximately $3 million and a decrease in restructuring and related charges of approximately $2 million. These factors were partially offset by higher compensation costs, tariffs and general inflation and higher raw material costs. Adjusted operating income was $40 million, or 11.2 percent margin, in the current quarter, compared to $29 million, or 9.6 percent margin, in the prior year quarter.

Infrastructure sales of $235 million increased 29 percent from $182 million in the prior year quarter, reflecting organic sales growth of 30 percent and a favorable currency exchange effect of 4 percent, partially offset by a divestiture effect of 5 percent. Operating income was $42 million, or 18.1 percent margin, compared to $19 million, or 10.7 percent margin, in the prior year quarter. The increase in operating income was driven by the favorable timing of pricing compared to raw material costs of approximately $39 million and incremental year-over-year restructuring savings of approximately $2 million. These factors were partially offset by the net effect of approximately $8 million from a normalized advanced manufacturing production credit under the Inflation Reduction Act in the current quarter, higher compensation costs and general inflation. Adjusted operating income was $43 million, or 18.3 percent margin, in the current quarter, compared to $21 million, or 11.5 percent margin, in the prior year quarter.

Dividend Declared

Kennametal announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share. The dividend is payable on May 26, 2026 to shareholders of record as of the close of business on May 12, 2026.

Conference Call and Webcast

The Company will host a conference call to discuss its third quarter fiscal 2026 results on Wednesday, May 6, 2026 at 9:30 a.m. Eastern Time. The conference call will be broadcast via real-time audio on Kennametal's investor relations website at https://investors.kennametal.com/ - click "Event" (located in the blue Quarterly Earnings block).

This earnings release contains non-GAAP financial measures. Reconciliations and descriptions of all non-GAAP financial measures are set forth in the tables that follow.

Certain statements in this release may be forward-looking in nature, or "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements that do not relate strictly to historical or current facts. For example, statements about Kennametal's outlook for sales and adjusted EPS for the full year of fiscal 2026 and our expectations regarding future growth and financial performance are forward-looking statements. Any forward-looking statements are based on current knowledge, expectations and estimates that involve inherent risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, our actual results could vary materially from our current expectations. There are a number of factors that could cause our actual results to differ from those indicated in the forward-looking statements. They include: uncertainties related to changes in macroeconomic and/or global conditions, including as a result of increased inflation, tariffs, and Russia's invasion of Ukraine and the resulting sanctions on Russia; the conflicts in the Middle East; other economic recession; our ability to achieve all anticipated benefits of restructuring initiatives; Commercial Excellence growth initiatives, Operational Excellence initiatives, our foreign operations and international markets, such as currency exchange rates, different regulatory environments, trade barriers, exchange controls, and social and political instability, including the conflicts in Ukraine and the Middle East; changes in the regulatory environment in which we operate, including environmental, health and safety regulations; potential for future goodwill and other intangible asset impairment charges; our ability to protect and defend our intellectual property; continuity of information technology infrastructure; competition; our ability to retain our management and employees; demands on management resources; availability and cost of the raw materials we use to manufacture our products, including tungsten; product liability claims; integrating acquisitions and achieving the expected savings and synergies; global or regional catastrophic events; demand for and market acceptance of our products; business divestitures; energy costs; commodity prices; labor relations; and implementation of environmental remediation matters. Many of these risks and other risks are more fully described in Kennametal's latest annual report on Form 10-K and its other periodic filings with the Securities and Exchange Commission. We can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments.

About Kennametal

With over 85 years as an industrial technology leader, Kennametal Inc. delivers productivity to customers through materials science, tooling and wear-resistant solutions. Customers across aerospace and defense, earthworks, energy, general engineering and transportation turn to Kennametal to help them manufacture with precision and efficiency. Every day approximately 8,100 employees are helping customers in nearly 100 countries stay competitive. Kennametal generated $2 billion in revenues in fiscal 2025. Learn more at www.kennametal.com. Follow @Kennametal: Instagram, Facebook, LinkedIn and YouTube.

 

FINANCIAL HIGHLIGHTS
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
	Three Months Ended March 31,			Nine Months Ended March 31,
(in thousands, except per share amounts)	2026		2025	2026		2025
Sales	$  592,585		$  486,399	$ 1,620,084		$ 1,450,398
Cost of goods sold	384,607		330,034	1,083,686		997,993
Gross profit	207,978		156,365	536,398		452,405
Operating expense	124,046		104,013	353,377		324,975
Restructuring and other charges, net	2,115		5,589	6,232		7,535
Amortization of intangibles	2,387		2,703	7,138		8,142
Operating income	79,430		44,060	169,651		111,753
Interest expense	6,264		6,213	18,539		18,705
Other income, net	(6,546)		(5,454)	(10,964)		(8,589)
Income before income taxes	79,712		43,301	162,076		101,637
Provision for income taxes	18,589		10,219	41,124		26,052
Net income	61,123		33,082	120,952		75,585
Less: Net income attributable to noncontrolling interests	2,894		1,600	5,540		4,052
Net income attributable to Kennametal	$    58,229		$    31,482	$  115,412		$    71,533
PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS
Basic earnings per share	$       0.76		$       0.41	$       1.51		$       0.92
Diluted earnings per share	$       0.75		$       0.41	$       1.49		$       0.91
Basic weighted average shares outstanding	76,264		77,037	76,195		77,614
Diluted weighted average shares outstanding	77,758		77,651	77,231		78,208

 

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)	March 31, 2026		June 30, 2025
ASSETS
Cash and cash equivalents	$                106,850		$         140,540
Accounts receivable, net	334,429		295,401
Inventories	747,346		538,237
Other current assets	89,452		65,092
Total current assets	1,278,077		1,039,270
Property, plant and equipment, net	857,911		919,914
Goodwill and other intangible assets, net	340,231		349,935
Other assets	254,528		236,293
Total assets	$              2,730,747		$       2,545,412
LIABILITIES
Revolving and other lines of credit and notes payable	$                  16,750		$               977
Accounts payable	263,068		195,929
Other current liabilities	256,251		225,423
Total current liabilities	536,069		422,329
Long-term debt	597,394		596,788
Other liabilities	198,912		201,647
Total liabilities	1,332,375		1,220,764
KENNAMETAL SHAREHOLDERS' EQUITY	1,354,734		1,283,979
NONCONTROLLING INTERESTS	43,638		40,669
Total liabilities and equity	$              2,730,747		$       2,545,412

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
	Nine Months Ended March 31,
(in thousands)	2026		2025
OPERATING ACTIVITIES
Net income	$  120,952		$   75,585
Adjustments to reconcile to cash from operations:
Depreciation	100,441		93,279
Amortization	7,138		8,142
Stock-based compensation expense	26,015		18,329
Restructuring and other charges, net	6,232		7,535
Deferred income taxes	(2,394)		(1,917)
Gain on insurance recoveries	—		(7,500)
Other	1,976		817
Changes in certain assets and liabilities:
Accounts receivable	(42,512)		10,516
Inventories	(215,973)		(41,269)
Other current assets	(25,328)		(1,398)
Accounts payable and accrued liabilities	101,717		(14,140)
Accrued income taxes	2,723		(11,668)
Accrued pension and postretirement benefits	(840)		(5,023)
Other	(10,466)		(1,558)
Net cash flow provided by operating activities	69,681		129,730
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(53,680)		(67,506)
Disposals of property, plant and equipment	1,662		460
Proceeds from insurance recoveries	—		7,193
Other	391		(202)
Net cash flow used in investing activities	(51,627)		(60,055)
FINANCING ACTIVITIES
Net increase in notes payable	360		944
Net increase in revolving and other lines of credit	15,300		10,200
Purchase of capital stock	(10,068)		(55,081)
The effect of employee benefit and stock plans and dividend reinvestment	(7,954)		(6,570)
Cash dividends paid to Shareholders	(45,605)		(46,604)
Other	(2,181)		(915)
Net cash flow used in financing activities	(50,148)		(98,026)
Effect of exchange rate changes on cash and cash equivalents	(1,596)		(2,153)
CASH AND CASH EQUIVALENTS
Net decrease in cash and cash equivalents	(33,690)		(30,504)
Cash and cash equivalents, beginning of period	140,540		127,971
Cash and cash equivalents, end of period	$  106,850		$   97,467

 

SEGMENT DATA (UNAUDITED)	Three Months Ended March 31,			Nine Months Ended March 31,
(in thousands)	2026		2025	2026		2025
Sales:
Metal Cutting	$    357,907		$    304,349	$    999,591		$    899,035
Infrastructure	234,678		182,050	620,493		551,363
Total sales	$    592,585		$    486,399	$  1,620,084		$  1,450,398
Sales By Geographic Region:
Americas	$    298,272		$    240,361	$    811,035		$    713,341
EMEA	173,991		151,262	483,553		442,689
Asia Pacific	120,322		94,776	325,496		294,368
Total sales	$    592,585		$    486,399	$  1,620,084		$  1,450,398
Operating income:
Metal Cutting	$      38,125		$      24,900	$      89,447		$      65,308
Infrastructure	42,471		19,423	82,512		47,770
Corporate (1)	(1,166)		(263)	(2,308)		(1,325)
Total operating income	$      79,430		$      44,060	$    169,651		$    111,753

(1) Represents unallocated corporate expenses.

NON-GAAP RECONCILIATIONS (UNAUDITED)

In addition to reported results under generally accepted accounting principles in the United States of America (GAAP), the following financial highlight tables include, where appropriate, a reconciliation of adjusted results including: operating income and margin; net income attributable to Kennametal; diluted EPS; Metal Cutting operating income and margin; Infrastructure operating income and margin; FOCF; and consolidated and segment organic sales growth (all of which are non-GAAP financial measures), to the most directly comparable GAAP financial measures. Adjustments for the three months ended March 31, 2026 include restructuring and related charges and differences in projected annual tax rates. Adjustments for the three months ended March 31, 2025 include restructuring and related charges and differences in projected annual tax rates. For those adjustments that are presented 'net of tax', the tax effect of the adjustment can be derived by calculating the difference between the pre-tax and the post-tax adjustments presented. The tax effect on adjustments is calculated by preparing an overall tax calculation including the adjustments and then a tax calculation excluding the adjustments. The difference between these calculations results in the tax impact of the adjustments.

Management believes that presentation of these non-GAAP financial measures provides useful information about the results of operations of the Company for the current and past periods. Management believes that investors should have available the same information that management uses to assess operating performance, determine compensation and assess the capital structure of the Company. These non-GAAP financial measures should not be considered in isolation or as a substitute for the most comparable GAAP financial measures. Investors are cautioned that non-GAAP financial measures used by management may not be comparable to non-GAAP financial measures used by other companies. Reconciliations and descriptions of all non-GAAP financial measures are set forth in the disclosures below.

Reconciliations to the most directly comparable GAAP financial measures for the following forward-looking non-GAAP financial measures for the full fiscal year of 2026 have not been provided, including but not limited to, adjusted EPS. The most comparable GAAP financial measure is diluted EPS. Because the non-GAAP financial measures on a forward-looking basis are subject to uncertainty and variability as they are dependent on many factors - including, but not limited to, the effect of foreign currency exchange fluctuations, impacts from potential acquisitions or divestitures, gains or losses on the potential sale of businesses or other assets, restructuring costs, asset impairment charges, gains or losses from early extinguishment of debt, the tax impact of the items above and the impact of tax law changes or other tax matters - reconciliations to the most directly comparable forward-looking GAAP financial measures are not available without unreasonable effort.

THREE MONTHS ENDED MARCH 31, 2026 (UNAUDITED)
(in thousands, except percents and per share data)	Sales	Operating income	Net income(2)	Diluted EPS
Reported results	$     592,585	$    79,430	$      58,229	$          0.75
Reported operating margin		13.4 %
Restructuring and related charges	—	2,391	1,976	0.02
Differences in projected annual tax rates	—	—	30	—
Adjusted results	$     592,585	$    81,821	$      60,235	$          0.77
Adjusted operating margin		13.8 %

(2) Attributable to Kennametal.

 

THREE MONTHS ENDED MARCH 31, 2026 (UNAUDITED)
	Metal Cutting		Infrastructure
(in thousands, except percents)	Sales	Operating income	Sales	Operating income
Reported results	$   357,907	$  38,125	$   234,678	$  42,471
Reported operating margin		10.7 %		18.1 %
Restructuring and related charges	—	1,948	—	443
Adjusted results	$   357,907	$  40,073	$   234,678	$  42,914
Adjusted operating margin		11.2 %		18.3 %

 

THREE MONTHS ENDED MARCH 31, 2025 (UNAUDITED)
(in thousands, except percents and per share data)	Sales	Operating income	Net income(2)	Diluted EPS
Reported results	$     486,399	$    44,060	$      31,482	$          0.41
Reported operating margin		9.1 %
Restructuring and related charges	—	5,840	4,709	0.06
Differences in projected annual tax rates	—	—	146	—
Adjusted results	$     486,399	$    49,900	$      36,337	$          0.47
Adjusted operating margin		10.3 %

(2) Attributable to Kennametal.

 

THREE MONTHS ENDED MARCH 31, 2025 (UNAUDITED)
	Metal Cutting		Infrastructure
(in thousands, except percents)	Sales	Operating income	Sales	Operating income
Reported results	$   304,349	$  24,900	$   182,050	$  19,423
Reported operating margin		8.2 %		10.7 %
Restructuring and related charges	—	4,320	—	1,520
Adjusted results	$   304,349	$  29,220	$   182,050	$  20,943
Adjusted operating margin		9.6 %		11.5 %

Free Operating Cash Flow (FOCF)

FOCF is a non-GAAP financial measure and is defined by the Company as net cash flow provided by operating activities (which is the most directly comparable GAAP financial measure) less capital expenditures plus proceeds from disposals of fixed assets. Management considers FOCF to be an important indicator of the Company's cash generating capability because it better represents cash generated from operations that can be used for dividends, debt repayment, strategic initiatives (such as acquisitions) and other investing and financing activities.

FREE OPERATING CASH FLOW (UNAUDITED)		Nine Months Ended March 31,
(in thousands)		2026		2025
Net cash flow provided by operating activities		$     69,681		$   129,730
Purchases of property, plant and equipment		(53,680)		(67,506)
Disposals of property, plant and equipment		1,662		460
Free operating cash flow		$     17,663		$     62,684

Organic Sales Growth

Organic sales growth is a non-GAAP financial measure of sales growth (which is the most directly comparable GAAP measure) excluding the effects of acquisitions, divestitures, business days and foreign currency exchange from year-over-year comparisons. Management believes this measure provides investors with a supplemental understanding of underlying sales trends by providing sales growth on a consistent basis. Management reports organic sales growth at the consolidated and segment levels.

ORGANIC SALES GROWTH (UNAUDITED)
Three Months Ended March 31, 2026		Metal Cutting		Infrastructure		Total
Organic sales growth		12 %		30 %		19 %
Foreign currency exchange effect (3)		6		4		5
Business days effect (4)		—		—		—
Divestiture effect (5)		—		(5)		(2)
Sales growth		18 %		29 %		22 %

(3) Foreign currency exchange effect is calculated by dividing the difference between current period sales and current period sales at prior period foreign exchange rates by prior period sales.

(4) Business days effect is calculated by dividing the year-over-year change in weighted average working days (based on mix of sales by country) by prior period weighted average working days.

(5) Divestiture effect is calculated by dividing prior period sales attributable to divested businesses by prior period sales.

 

View original content:https://www.prnewswire.com/news-releases/kennametal-announces-fiscal-2026-third-quarter-results-302763324.html

SOURCE Kennametal Inc.

FAQ

What were Kennametal (KMT) fiscal Q3 2026 sales and how do they compare year-over-year?

Sales were $593 million in fiscal Q3 2026, up 22% year-over-year. According to Kennametal, organic sales rose 19% and a favorable currency effect added about 5%, partly offset by a 2% divestiture impact.

How did Kennametal (KMT) earnings per share perform in fiscal Q3 2026?

Reported EPS was $0.75 and adjusted EPS was $0.77 for Q3. According to Kennametal, adjusted EPS rose about 65% year-over-year, driven by pricing, volume growth, and restructuring savings.

What guidance did Kennametal (KMT) provide for full-year fiscal 2026 sales and adjusted EPS?

Kennametal updated full-year guidance to $2.33–$2.35 billion in sales and $3.75–$4.00 in adjusted EPS. According to Kennametal, more details will be provided on the quarterly earnings call.

Why did Kennametal (KMT) report lower operating cash flow year-to-date despite higher net income?

Year-to-date operating cash flow fell to $70M mainly due to increased inventory from rising tungsten prices. According to Kennametal, higher working capital needs offset the benefit of higher net income.

What drove Kennametal's (KMT) margin improvement in fiscal Q3 2026?

Margin improvement was driven by favorable timing of pricing versus raw material costs, pricing and tariff surcharges, higher volumes, and restructuring savings. According to Kennametal, tungsten pricing and volume gains materially contributed to results.

When is Kennametal (KMT) paying the declared dividend and who is eligible?

A quarterly cash dividend of $0.20 per share is payable May 26, 2026 to shareholders of record as of May 12, 2026. According to Kennametal, the Board declared the dividend on the reporting date.