Kennametal beats Q1 sales estimates, raises forecast

Kennametal

05/11/2025 11:37

Overview

Kennametal fiscal Q1 sales grow 3%, beating analyst expectations

Adjusted EPS for fiscal Q1 beats consensus, rising 18% to $0.34

Company raises annual sales and adjusted EPS outlook

Outlook

Company expects Q2 sales of $500 mln to $520 mln, with a 2% FX tailwind

Kennametal projects FY sales of $2.100 bln to $2.170 bln

Company anticipates FY adjusted EPS of $1.35 to $1.65

Result Drivers

SALES GROWTH - Sales increased 3% due to organic growth and favorable currency exchange effects, despite divestiture impact

OPERATING INCOME DRIVERS - Increase in operating income driven by pricing, tariff surcharges, and restructuring savings, offset by higher costs and inflation

SEGMENT PERFORMANCE - Metal Cutting sales rose 5% due to organic growth and currency effects; Infrastructure sales up 1% with similar growth factors, offset by divestitures

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$497.97 mln
$476.93 mln (7 Analysts)
Q1 Adjusted EPS
Beat
$0.34
$0.23 (8 Analysts)
Q1 EPS
$0.30
Q1 Net Income
$24.63 mln
Q1 Gross Profit
$154.55 mln
Q1 Operating Income
$37.55 mln
Q1 Pretax Profit
$33.69 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 6 "hold" and 3 "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

Wall Street's median 12-month price target for Kennametal Inc is $21.50, about 2.8% below its November 4 closing price of $22.11

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn9YWg1Ma

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)