Kennametal Q4 sales, adjusted EPS fall short of expectations

Kennametal

06/08/2025 11:52

Overview

Kennametal Q4 sales fall 5% to $516 mln, missing analyst expectations

Adjusted EPS for Q4 at $0.34, below analyst estimates, per LSEG data

Co achieved $65 mln in annualized run-rate pre-tax savings since FY24

Outlook

Kennametal expects Q1 sales of $465-$485 mln

Company anticipates FY26 sales of $1.95-$2.05 bln

Kennametal projects Q1 adjusted EPS of $0.20-$0.30

Company forecasts FY26 adjusted EPS of $0.90-$1.30

Result Drivers

MARKET SOFTNESS - Persistent market softness impacted sales, per CEO Sanjay Chowbey

TARIFF IMPACTS - Increased tariffs contributed to lower operating income

RESTRUCTURING SAVINGS - Achieved $65 mln annualized run-rate pre-tax savings since FY24

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Miss
$516.45 mln
$527.90 mln (8 Analysts)
Q4 Adjusted EPS
Miss
$0.34
$0.39 (9 Analysts)
Q4 EPS
$0.28
Q4 Net Income
$23.12 mln
Q4 Gross Profit
$145.66 mln
Q4 Operating Income
$31.37 mln
Q4 Pretax Profit
$30.37 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and 4 "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 $22.50, about 11.7% below its August 5 closing price of $25.13

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nPn65gR3ga

(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.)