Kennametal Q4 sales beat estimates on higher tungsten prices

Kennametal

05/08/2026 11:42

Overview
US industrial tooling maker's Q4 sales rose 43%, beating analyst expectations
Adjusted EPS for Q4 reached $2.96, beating analyst consensus
Company says results driven by volume growth, pricing actions and cost improvements

Outlook
Kennametal expects Q1 sales of $745 mln to $775 mln with neutral FX impact
Company sees Q1 adjusted EPS of $2.50 to $2.80
Kennametal forecasts FY27 sales of $3.33 bln to $3.45 bln and adjusted EPS of $4.15 to $5.15

Result Drivers
VOLUME GROWTH - Co said higher sales volumes from improving market conditions and strategic initiatives drove Q4 results
PRICING ACTIONS - Co said decisive pricing actions in response to unprecedented tungsten prices contributed to record adjusted EPS
COST IMPROVEMENTS - Co said cost improvement efforts, including restructuring savings and tariff surcharges, supported operating income

Company press release: ID:nPn8ZTQ1ga

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$736.61 mln
$725.76 mln (7 Analysts)
Q4 Adjusted EPS
Beat
$2.96
$2.30 (8 Analysts)
Q4 EPS
 
$2.91
 
Q4 Net Income
 
$229.46 mln
 
Q4 Gross Profit
 
$433.56 mln
 
Q4 Operating Income
 
$302.88 mln
 
Q4 Pretax Profit
 
$299.25 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 $34.00, about 5.7% below its August 4 closing price of $36.06
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads
Aug 4 - Timken Q2 sales beat on higher volumes and pricing
Aug 4 - Germany's DMG Mori H1 revenue rises on firm demand, lifts 2026 outlook
Aug 3 - Metallus Q2 sales beat estimates on shipment growth

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