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KMTBullishEarningsnews
High materiality9/10

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.

  • Q4 sales $736.6M, up 43% YoY; organic +42%.
  • Q4 EPS $2.91; adjusted $2.96; FY26 EPS $4.42; adjusted $4.57.
  • FY27 Outlook: Q1 sales $745–$775M; adj EPS $2.50–$2.80; FY27 sales $3.33–$3.45B; capex ~$85M.
  • Dividend declared: $0.20/share; payable Aug 25, 2026.
  • Tungsten pricing drove margin expansion amid higher working capital.

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