Kennametal Announces Fiscal 2027 First Quarter Results

Pricing timing supported quarterly profit, while higher tungsten inventory values and supplier advances absorbed operating cash.

Rhea-AI Summary

Kennametal (NYSE: KMT) reported fiscal 2027 first-quarter sales of $768 million, up 54 percent on both a reported and organic basis. For the quarter ended September 30, 2026, diluted earnings per share rose to $3.48 from $0.30. Operating income reached $379 million, with a 49.4 percent margin versus 7.5 percent a year earlier, including approximately $323 million from favorable timing of raw material-related pricing versus costs.

Operating cash flow turned negative at $201 million, as higher tungsten inventory values and supplier advances absorbed cash. Kennametal reiterated fiscal 2027 sales expectations of $3.33–$3.45 billion and raised adjusted EPS expectations to $5.00–$6.00. Second-quarter adjusted EPS is expected at $1.20–$1.50 on sales of $785–$815 million. Beyond fiscal 2027, the company expects a 16–19 percent adjusted EBITDA margin, a profit measure excluding certain expenses, assuming steady-state tungsten prices at current levels.

17 points · 3 major

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1 major · 10 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointApproximately $323 million of favorable raw material pricing-versus-cost timing supported first-quarter operating income. 14% of market cap
• Major point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 adjusted EPS expectations increased to $5.00–$6.00; sales expectations remain $3.33–$3.45 billion.
• Major point$500 million in term debt borrowings provided funding during the first quarter. 21% of market cap
• Moderate pointFirst-quarter sales of $768 million increased 54 percent year over year, including 54 percent organic growth.
• Moderate pointDiluted EPS of $3.48 rose from $0.30 in the prior-year quarter.
• Moderate pointOperating income of $379 million increased from $38 million; margin rose to 49.4 percent from 7.5 percent.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Second-quarter outlook calls for $785–$815 million sales and $1.20–$1.50 adjusted EPS.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 free operating cash flow is expected at approximately 20 percent of adjusted net income.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Beyond fiscal 2027, Kennametal expects 16–19 percent adjusted EBITDA margin at steady-state current tungsten prices.

8 minor points

• Minor pointMetal Cutting sales of $398 million rose 28 percent, with 29 percent organic growth.
• Minor pointMetal Cutting operating income of $118 million increased from $22 million; margin reached 29.7 percent versus 6.9 percent.
• Minor pointInfrastructure sales of $370 million rose 98 percent, including 97 percent organic growth.
• Minor pointInfrastructure operating income of $262 million increased from $17 million; margin reached 70.7 percent versus 8.9 percent.
• Minor pointApproximately $4 million of incremental advanced manufacturing production credit benefited Infrastructure operating income.
• Minor pointApproximately $3 million in incremental year-over-year restructuring savings supported quarterly operating income.
• Minor pointCapital expenditures of $10.804 million declined from $22.982 million in the prior-year quarter.
• Minor pointCash and cash equivalents of $272.758 million increased from $95.791 million at June 30, 2026.

Negative

• Major pointLong-term debt reached $1,094.084 million, versus $685.280 million at June 30, 2026.
• Moderate pointOperating cash flow was negative $201 million, versus positive $17 million in the prior-year period.
• Minor pointFree operating cash flow was negative $212 million, compared with negative $5 million a year earlier.
• Minor pointWorking capital requirements increased with higher tungsten inventory values and supplier advances to secure raw materials.
• Minor pointInterest expense increased to $11.472 million from $6.186 million in the prior-year quarter.

5 minor points

• Minor pointApproximately $5 million equity-investment impairment reduced first-quarter operating income.
• Minor pointApproximately $5 million fixed-asset write-off reduced first-quarter operating income.
• Minor pointInfrastructure sales and production volumes declined, partially offsetting pricing-related operating income benefits.
• Minor pointTariffs, general inflation and higher compensation costs partially offset first-quarter operating income gains.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 capital spending is expected to be approximately $85 million.

News Explained

Shareholders on the November 9, 2026 record date are scheduled to receive a cash payment of $0.20 per share on November 23.

Kennametal reported fiscal 2027 first-quarter results; its cash-flow statement records term-debt borrowings of $500,000 thousand and repayments of $90,616 thousand, while long-term debt stood at $1,094,084 thousand on September 30, 2026, compared with $685,280 thousand on June 30, 2026.

The board declared a quarterly cash dividend of $0.20 per share, payable on November 23, 2026 to shareholders of record at the close of business on November 9, 2026.

Key Figures

Quarterly sales: $768 million; increased 54% Diluted EPS: $3.48 FY27 sales outlook: $3.33–$3.45 billion +4 more

Quarterly sales

$768 million; increased 54%

Fiscal 2027 first quarter, year over year

Diluted EPS

$3.48

Fiscal 2027 first quarter; record first-quarter earnings per share

FY27 sales outlook

$3.33–$3.45 billion

Full-year outlook reiterated

FY27 adjusted EPS outlook

$5.00–$6.00

Full-year outlook raised

Operating cash flow

Negative $201 million

Year to date, compared with positive $17 million in the prior-year period

Adjusted EBITDA margin profile

16–19%

Steady-state tungsten environment beyond FY27

Quarterly cash dividend

$0.20 per share

Declared by the board

Historical Context

1 past event · Latest: Aug 05

1 event

1. Aug 05

   earnings report

   24h Move

   -5.3%

   Prior FY27 adjusted EPS outlook was $4.15–$5.15; the current release raises it to $5.00–$6.00.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda margin, free operating cash flow, organic sales growth, non-gaap financial measures

4 terms

adjusted ebitda margin financial

"16 to 19 percent adjusted EBITDA margin profile"

Adjusted EBITDA margin shows how much profit a company makes from its core operations, expressed as a percentage of its total revenue, after removing certain one-time or unusual expenses and income. It helps investors understand the company's true earning ability from regular business activities, making it easier to compare performance over time or with other companies. Think of it as measuring the efficiency of a business in turning sales into profits, excluding irregular adjustments.

free operating cash flow financial

"Year-to-date free operating cash flow (FOCF) was negative $212 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.

organic sales growth financial

"reflecting organic sales growth of 54 percent"

Organic sales growth measures how much a company’s revenue rises from its regular business activity — like selling more products, charging higher prices, or selling to more customers — without counting money from buying other businesses or one-time currency effects. Investors watch it because it shows whether demand and the company’s core operations are genuinely getting stronger, similar to judging a garden by how much the plants you planted yourself are growing rather than by adding bought potted plants.

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.

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• Sales of $768 million increased 54 percent on both a reported and organic basis
• Operating income of $379 million and record first quarter earnings per diluted share (EPS) of $3.48
• Reiterates FY27 full year sales Outlook and raises FY27 full year adjusted EPS
• Confirms commitment of 16 to 19 percent adjusted EBITDA margin profile beyond FY27, assumes tungsten stays at current levels

PITTSBURGH, Nov. 4, 2026 /PRNewswire/ -- Kennametal Inc. (NYSE: KMT) (the "Company") today reported results for its fiscal 2027 first quarter ended September 30, 2026.

"We delivered excellent first quarter results, with sales up 54 percent and record first quarter diluted EPS of $3.48, driven primarily by the favorable timing of raw material-related pricing compared to costs and stronger Metal Cutting volumes," said Sanjay Chowbey, President and Chief Executive Officer.

"This performance reinforces our confidence in the fiscal 2027 sales Outlook and higher full year EPS expectations. Looking beyond fiscal 2027, improving markets and execution on our strategic growth initiatives position us well for continued growth. In a steady-state tungsten environment, we expect to deliver a 16 to 19 percent adjusted EBITDA margin profile while generating strong free operating cash flow and attractive returns on invested capital."

Fiscal 2027 First Quarter Financial Highlights

Sales of $768 million increased 54 percent from $498 million in the prior year quarter, reflecting organic sales growth of 54 percent.

Operating income was $379 million, or 49.4 percent margin, compared to $38 million, or 7.5 percent margin, in the prior year quarter. The increase in operating income was driven by the favorable timing of raw material-related pricing compared to costs of approximately $323 million, non-raw material-related pricing and tariff income, higher sales and production volumes in Metal Cutting, an incremental benefit of approximately $4 million from an advanced manufacturing production credit under the Inflation Reduction Act within the Infrastructure segment, and incremental year-over-year restructuring savings of approximately $3 million. These factors were partially offset by tariffs and general inflation, higher compensation costs, an impairment of an equity investment of approximately $5 million and a charge of approximately $5 million related to the write-off of certain fixed assets in the current quarter. Operating income was not adjusted in the current quarter, whereas adjusted operating income was $41 million, or 8.2 percent margin, in the prior year quarter.

Year-to-date net cash flow from operating activities was negative $201 million compared to positive $17 million in the prior year period. The decline was driven primarily by working capital requirements, including increased inventory values resulting from unprecedented tungsten price increases, as well as advance payments made to certain suppliers to secure raw material supply. These working capital requirements were partially offset by higher net income during the year. Year-to-date free operating cash flow (FOCF) was negative $212 million compared to negative $5 million in the prior year period. The decrease in FOCF was driven primarily by the aforementioned working capital requirements, partially offset by higher net income and lower capital expenditures compared to the prior year period.

FY27 Outlook

The Company's expectations for the second quarter of fiscal 2027 and the full year are as follows:

Quarterly Outlook:

• Sales expected to be $785 - $815 million; foreign exchange anticipated to be neutral compared to the second quarter of fiscal 2026
• Adjusted EPS is expected to be $1.20 - $1.50

Annual Outlook:

• Sales expected to be $3.33 - $3.45 billion; foreign exchange anticipated to be neutral compared to the fiscal 2026
• Adjusted EPS is expected to be $5.00 - $6.00
• Free operating cash flow of approximately 20 percent of adjusted net income
• Capital spending expected to be approximately $85 million

The Company will provide more details regarding its FY27 Outlook during its quarterly earnings conference call.

Steady-State Tungsten Environment

The Company is providing an updated view of its longer-term financial profile in a steady-state tungsten price environment, using the financial targets presented at its September 2023 Investor Day as a baseline.

Over the past four years, the Company has demonstrated an ability to target growth opportunities in Aerospace & Defense, Hybrid / EV powertrains and power generation to sustainably capture market share. While we continue to gain traction on growth initiatives, overall market conditions have been improving over the past year and the Company's underlying market and strategic growth assumptions remain largely unchanged from Investor Day.

At the current elevated tungsten prices levels, which have increased eightfold since the 2023 Investor Day, the Company expects to be able to achieve adjusted EBITDA margin of 16 to 19 percent in a steady-state tungsten environment.

Return on Invested Capital (ROIC) and Free Operating Cash Flow (FOCF) performance are expected to be consistent with those previously communicated targets.

Segment Results

Metal Cutting sales of $398 million increased 28 percent from $311 million in the prior year quarter, reflecting organic sales growth of 29 percent, partially offset by an unfavorable business days effect of 1 percent. Operating income was $118 million, or 29.7 percent margin, compared to $22 million, or 6.9 percent margin, in the prior year quarter. The increase in operating income was driven by the favorable timing of raw material-related pricing compared to costs of approximately $65 million, non-raw material-related pricing and tariff income, higher sales and production volumes and incremental year-over-year restructuring savings of approximately $2 million. These factors were partially offset by an impairment of an equity investment of approximately $5 million, higher compensation costs, and tariffs and general inflation in the current quarter. Operating income was not adjusted in the current quarter, whereas adjusted operating income was $25 million, or 8.0 percent margin, in the prior year quarter.

Infrastructure sales of $370 million increased 98 percent from $187 million in the prior year quarter, reflecting organic sales growth of 97 percent and a favorable currency exchange effect of 1 percent. Operating income was $262 million, or 70.7 percent margin, compared to $17 million, or 8.9 percent margin, in the prior year quarter. The increase in operating income was driven by the favorable timing of raw material-related pricing compared to costs of approximately $258 million, non-raw material-related pricing, and an incremental benefit of approximately $4 million from an advanced manufacturing production credit under the Inflation Reduction Act. These factors were partially offset by lower sales and production volumes, tariffs and general inflation, higher compensation costs, and a charge of approximately $3 million related to the write-off of certain fixed assets in the current quarter. Operating income was not adjusted in the current quarter, whereas adjusted operating income was $17 million, or 8.8 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 November 23, 2026 to shareholders of record as of the close of business on November 9, 2026.

Conference Call and Webcast

The Company will host a conference call to discuss its first quarter fiscal 2027 results on Wednesday, November 4, 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, adjusted EPS, adjusted net income and FOCF for the second quarter and full year of fiscal 2027, our expectations regarding performance in a steady-state tungsten environment and longer-term financial targets, 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 $2.4 billion in revenues in fiscal 2026. Learn more at www.kennametal.com. Follow @Kennametal: Instagram, Facebook, LinkedIn and YouTube.

FINANCIAL HIGHLIGHTS

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
	Three Months Ended September 30,
(in thousands, except per share amounts)	2026		2025
Sales	$  768,193		$  497,974
Cost of goods sold	254,622		343,424
Gross profit	513,571		154,550
Operating expense	126,814		113,028
Restructuring and other charges, net	5,356		1,589
Amortization of intangibles	2,150		2,374
Operating income	379,251		37,559
Interest expense	11,472		6,186
Other expense (income), net	11,063		(2,322)
Income before income taxes	356,716		33,695
Provision for income taxes	82,258		9,064
Net income	274,458		24,631
Less: Net income attributable to noncontrolling interests	2,873		1,333
Net income attributable to Kennametal	$  271,585		$    23,298
PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS
Basic earnings per share	$       3.55		$       0.31
Diluted earnings per share	$       3.48		$       0.30
Basic weighted average shares outstanding	76,590		76,128
Diluted weighted average shares outstanding	78,120		76,829

 

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)	September 30, 2026		June 30, 2026
ASSETS
Cash and cash equivalents	$                272,758		$           95,791
Accounts receivable, net	429,863		408,438
Inventories	1,615,986		1,108,450
Other current assets	200,768		159,092
Total current assets	2,519,375		1,771,771
Property, plant and equipment, net	820,070		843,584
Goodwill and other intangible assets, net	331,265		335,099
Other assets	209,528		216,298
Total assets	$              3,880,238		$       3,166,752
LIABILITIES
Revolving and other lines of credit and notes payable	$                  39,951		$           32,170
Accounts payable	387,122		369,841
Other current liabilities	303,767		274,697
Total current liabilities	730,840		676,708
Long-term debt	1,094,084		685,280
Other liabilities	187,324		191,327
Total liabilities	2,012,248		1,553,315
KENNAMETAL SHAREHOLDERS' EQUITY	1,823,135		1,569,844
NONCONTROLLING INTERESTS	44,855		43,593
Total liabilities and equity	$              3,880,238		$       3,166,752

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
	Three Months Ended September 30,
(in thousands)	2026		2025
OPERATING ACTIVITIES
Net income	$  274,458		$   24,631
Adjustments to reconcile to cash from operations:
Depreciation	31,656		32,671
Amortization of intangible assets	2,150		2,374
Stock-based compensation expense	10,876		8,239
Amortization of capitalized information technology costs	8,371		5,904
Restructuring and other charges, net	5,356		1,589
Deferred income taxes	184		7
Other	6,273		817
Changes in certain assets and liabilities:
Accounts receivable	(22,106)		7,026
Inventories	(515,964)		(28,027)
Other current assets	(51,186)		(16,707)
Accounts payable and accrued liabilities	(13,060)		(13,547)
Accrued income taxes	57,913		(2,937)
Accrued pension and postretirement benefits	487		(281)
Other	3,333		(4,272)
Net cash flow (used in) provided by operating activities	(201,259)		17,487
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(10,804)		(22,982)
Disposals of property, plant and equipment	409		14
Other	(2,893)		262
Net cash flow used in investing activities	(13,288)		(22,706)
FINANCING ACTIVITIES
Net increase in notes payable	28,133		421
Net decrease in revolving and other lines of credit	(20,000)		—
Term debt borrowings	500,000		—
Term debt repayments	(90,616)		—
Purchase of capital stock	(38)		(10,030)
The effect of employee benefit and stock plans and dividend reinvestment	(11,051)		(6,327)
Cash dividends paid to Shareholders	(15,242)		(15,136)
Other	(76)		(3)
Net cash flow provided by (used in) financing activities	391,110		(31,075)
Effect of exchange rate changes on cash and cash equivalents	404		(749)
CASH AND CASH EQUIVALENTS
Net increase (decrease) in cash and cash equivalents	176,967		(37,043)
Cash and cash equivalents, beginning of period	95,791		140,540
Cash and cash equivalents, end of period	$  272,758		$  103,497

 

SEGMENT DATA (UNAUDITED)	Three Months Ended September 30,
(in thousands)	2026		2025
Sales:
Metal Cutting	$    398,155		$    310,625
Infrastructure	370,038		187,349
Total sales	$    768,193		$    497,974
Sales By Geographic Region:
Americas	$    436,539		$    247,597
EMEA	204,512		153,284
Asia Pacific	127,142		97,093
Total sales	$    768,193		$    497,974
Operating income:
Metal Cutting	$    118,337		$      21,564
Infrastructure	261,723		16,639
Corporate (1)	(809)		(644)
Total operating income	$    379,251		$      37,559
(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. There were no adjustments for the three months ended September 30, 2026. Adjustments for the three months ended September 30, 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 second quarter and full fiscal year of 2027 and the Company's longer-term financial targets have not been provided, including but not limited to, FOCF, adjusted net income, adjusted EBITDA margin and adjusted EPS. The most comparable GAAP financial measures are net cash flow from operating activities, net income attributable to Kennametal and EPS, respectively. 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 SEPTEMBER 30, 2025 (UNAUDITED)
(in thousands, except percents and per share data)	Sales	Operating income	Net income(2)	Diluted EPS
Reported results	$     497,974	$    37,559	$      23,298	$         0.30
Reported operating margin		7.5 %
Restructuring and related charges	—	3,188	2,590	0.04
Differences in projected annual tax rates	—	—	367	—
Adjusted results	$     497,974	$    40,747	$      26,255	$         0.34
Adjusted operating margin		8.2 %
(2) Attributable to Kennametal.

 

THREE MONTHS ENDED SEPTEMBER 30, 2025 (UNAUDITED)
	Metal Cutting		Infrastructure
(in thousands, except percents)	Sales	Operating income	Sales	Operating income
Reported results	$  310,625	$  21,564	$   187,349	$  16,639
Reported operating margin		6.9 %		8.9 %
Restructuring and related charges	—	3,312	—	(126)
Adjusted results	$  310,625	$  24,876	$   187,349	$  16,513
Adjusted operating margin		8.0 %		8.8 %

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)		Three Months Ended September 30,
(in thousands)		2026		2025
Net cash flow (used in) provided by operating activities		$  (201,259)		$     17,487
Purchases of property, plant and equipment		(10,804)		(22,982)
Disposals of property, plant and equipment		409		14
Free operating cash flow		$  (211,654)		$     (5,481)

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 September 30, 2026		Metal Cutting		Infrastructure		Total
Organic sales growth		29 %		97 %		54 %
Foreign currency exchange effect (3)		—		1		—
Business days effect (4)		(1)		—		—
Sales growth		28 %		98 %		54 %

(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.

 

View original content:https://www.prnewswire.com/news-releases/kennametal-announces-fiscal-2027-first-quarter-results-302928390.html

SOURCE Kennametal Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Kennametal's fiscal 2027 first-quarter earnings and sales?

Kennametal reported $3.48 diluted EPS and $768 million in sales for the quarter ended September 30, 2026. Diluted EPS was $0.30 in the prior-year quarter, while sales increased 54 percent on both a reported and organic basis.

What is Kennametal's fiscal 2027 earnings outlook?

Kennametal expects fiscal 2027 adjusted EPS of $5.00–$6.00 and sales of $3.33–$3.45 billion. The company raised its adjusted EPS outlook and reiterated its sales outlook. Free operating cash flow is expected to be approximately 20 percent of adjusted net income.

When will Kennametal pay its quarterly dividend?

Kennametal will pay its $0.20-per-share quarterly cash dividend on November 23, 2026, to shareholders of record at the close of business on November 9, 2026.