Kennametal delivers 2026 beat; guides FY27 with tungsten-driven growth
Aug 5, 2026, 6:33 AM EDT1 sourcesAI-analyzed
Why it may matterVerify against the original reporting
The earnings beat, record non-GAAP margins, and constructive FY27 guidance, plus tangible end-market wins, support a near-term positive price response. However, tungsten-price-driven working-capital needs and potential raw-material cost volatility add a cautionary read for cash flow sensitivity.
AI summary
What happened, with direct paths to the underlying reporting
Kennametal posted a strong fiscal 2026, with Q4 sales of about $736.6 million, up 43% year over year and organic growth of 42%. Adjusted EPS reached a record $2.96 for the quarter and $4.57 for the year. For FY27, the company issued a constructive Outlook, guiding Q1 sales of $745–$775 million and full-year sales of $3.33–$3.45 billion, with adjusted EPS of $4.15–$5.15 and roughly 20% FOCF. The stance reflects volume gains in Aerospace & Defense, Energy and Earthworks and the tungsten-price environment shaping pricing and cash flow dynamics.
Dividend declared: $0.20/share; payable Aug 25, 2026.
Tungsten pricing drove margin expansion amid higher working capital.
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