KMT KENNAMETAL INC
Price Chart
Executive Summary
Kennametal reported a massive beat for fiscal Q3 2026, with EPS of $0.75 (GAAP) / $0.77 (adjusted) crushing the $0.67 consensus, and revenue of $592.6M topping the $568.1M estimate. The company raised its full-year sales outlook to $2.33-$2.35B and adjusted EPS to $3.75-$4.00, driven by unprecedented tungsten pricing and strong volume. This marks a second consecutive beat and guidance raise, signaling accelerating momentum in both Metal Cutting and Infrastructure segments.
Key Financial Metrics
Actionable Insight
The massive guidance raise (adjusted EPS midpoint $3.875 vs prior $2.25, +72%) is the key catalyst — it implies H2 acceleration and strong tungsten tailwinds. Watch for the earnings call at 9:30 AM ET for details on tungsten supply chain management and end-market demand sustainability. The stock should gap up significantly; consider taking profits if it gaps >15% given the low historical win rate for high-impact scores in this segment.
Key Facts
- Q3 FY2026 revenue $592.6M, +22% YoY (organic +19%), vs consensus $568.1M
- GAAP diluted EPS $0.75, +83% YoY; adjusted EPS $0.77, +64% YoY, vs consensus $0.67
- Operating income $79.4M (13.4% margin), +80% YoY; adjusted OI $81.8M (13.8% margin), +64% YoY
- Full-year FY2026 guidance raised: sales $2.33-$2.35B (from $2.19-$2.25B), adjusted EPS $3.75-$4.00 (from $2.05-$2.45)
- Infrastructure segment sales +29% YoY (organic +30%), driven by $39M favorable pricing vs raw material costs
- Metal Cutting segment sales +18% YoY (organic +12%), driven by pricing/tariff surcharges and higher volumes
- Year-to-date FOCF $17.7M vs $62.7M prior year, impacted by working capital build from tungsten price surge
- Quarterly dividend maintained at $0.20/share
Financial Impact
EPS beat of $0.08 (+11.9%) on consensus $0.67; revenue beat of $24.5M (+4.3%) on consensus $568.1M
Risk Factors
- Unprecedented tungsten price surge may reverse, compressing margins in future quarters
- Year-to-date FOCF declined 72% to $17.7M due to working capital build from higher tungsten prices
- Inventory ballooned 39% to $747M from June 2025, raising working capital risk
- Only 7% of analysts rate the stock a Buy, suggesting limited institutional conviction
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-030882 |
| Document: kmt-20260506.htm | 0001628280-26-030882 |
| Document: 0001628280-26-030882-index-headers.html | 0001628280-26-030882 |
| Document: 0001628280-26-030882-index.html | 0001628280-26-030882 |
| Document: 0001628280-26-030882.txt | 0001628280-26-030882 |
| 8-K Data (Synthetic) | 0001628280-26-030882 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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Jun 9, 2026
3d ago
|
Insider Cluster
| $34.08 awaiting T+1 | awaiting T+1 | — | $34.98 (+2.64%) |
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Jun 2, 2026
10d ago
|
8-K
| $32.67 $32.90 | ▲ +0.70% | ▲ +0.30% | $34.98 (+7.07%) |
|
May 28, 2026
15d ago
|
8-K
| $32.80 $31.74 | ▼ −3.23% | ▼ −3.49% | $34.98 (+6.65%) |
|
May 27, 2026
16d ago
|
8-K
| $33.66 $32.80 | ▼ −2.56% | ▼ −2.80% | $34.98 (+3.92%) |
|
May 19, 2026
24d ago
|
8-K
| $34.58 $35.76 | ▲ +3.41% | ▲ +2.37% | $34.98 (+1.16%) |
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May 6, 2026
5w ago
|
8-K
| $43.04 $41.49 | ▼ −3.61% | ▼ −3.27% | $34.98 (−18.72%) |
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May 1, 2026
6w ago
|
8-K
| $38.26 $36.76 | ▼ −3.93% | ▼ −3.59% | $34.98 (−8.58%) |
US Market Status
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