Kennametal (NYSE:KMT) Hits New 1-Year High Following Earnings Beat

Key Points

• Kennametal posted Q3 EPS of $0.77 (vs. $0.68 consensus) and revenue of $592.6M (+21.8% YoY), driving the stock to a new 52‑week high.
• Management raised FY‑2026 guidance to $3.75–$4.00 EPS and revenue to roughly $2.3–2.4B, though executives noted part of the upside was aided by an “unprecedented” rise in tungsten prices, which may be transitory.
• The company declared a quarterly dividend of $0.20 (ex‑dividend/record date May 12; payable May 26), implying a 1.8% yield and a payout ratio of about 55.9%.

Kennametal Inc. (NYSE:KMT - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $43.81 and last traded at $43.2550, with a volume of 3433028 shares. The stock had previously closed at $37.51.

The industrial products company reported $0.77 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.68 by $0.09. The company had revenue of $592.59 million during the quarter, compared to the consensus estimate of $568.03 million. Kennametal had a return on equity of 9.46% and a net margin of 5.43%.Kennametal's revenue for the quarter was up 21.8% on a year-over-year basis. During the same period in the previous year, the business earned $0.47 EPS. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS.

Kennametal Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, May 26th. Investors of record on Tuesday, May 12th will be paid a dividend of $0.20 per share. The ex-dividend date is Tuesday, May 12th. This represents a $0.80 annualized dividend and a yield of 1.8%. Kennametal's payout ratio is presently 55.94%.

Key Kennametal News

Here are the key news stories impacting Kennametal this week:

• Positive Sentiment: Q3 results beat estimates — GAAP/adjusted EPS of $0.77 (vs. $0.68 consensus) and revenue of $592.6M, up ~22% year‑over‑year, showing solid top‑line growth and margin expansion. KMT Beats Q3 Earnings (Zacks)
• Positive Sentiment: Management raised FY‑2026 guidance sharply to $3.75–$4.00 EPS (consensus ~2.44) and revenue guidance to ~$2.3–2.4B, signaling stronger-than-expected full‑year performance and giving investors more conviction in forward earnings. Kennametal Q3 Release (PR Newswire)
• Positive Sentiment: Operational improvement — operating income of $79M (adjusted $82M) and adjusted EPS growth reflect leverage from higher volumes and mix, suggesting sustained margin recovery if volumes persist. Q3 Results Detail (PR Newswire)
• Neutral Sentiment: Management attributed part of the upside to an “unprecedented” rise in tungsten pricing — a favorable but potentially transitory factor; investors should assess sustainability once commodity dynamics normalize. CEO Commentary (PR Newswire)
• Neutral Sentiment: Full earnings call transcript is available for deeper color on end‑market strength (aerospace, industrial) and working‑capital dynamics — useful for gauging durability of guidance. Earnings Call Transcript (Seeking Alpha)
• Negative Sentiment: Valuation/volatility risk — KMT’s trailing P/E (~30) and a beta >1 imply the stock already prices in improvement; a reversal in commodity tailwinds or weaker volumes could trigger downside. KMT Stock Profile (MarketBeat)

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Morgan Stanley raised their price objective on shares of Kennametal from $29.00 to $36.00 and gave the stock an "equal weight" rating in a report on Tuesday, February 10th. Barclays upped their target price on shares of Kennametal from $28.00 to $40.00 and gave the company an "equal weight" rating in a report on Monday, February 9th. Weiss Ratings raised shares of Kennametal from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, April 29th. UBS Group lifted their price target on shares of Kennametal from $32.00 to $39.00 and gave the stock a "neutral" rating in a research note on Thursday, February 5th. Finally, JPMorgan Chase & Co. upped their price objective on shares of Kennametal from $25.00 to $37.00 and gave the company an "underweight" rating in a research note on Wednesday, January 14th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $34.67.

Insider Activity at Kennametal

In other Kennametal news, VP Carlonda R. Reilly sold 13,410 shares of the business's stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $36.31, for a total value of $486,917.10. Following the completion of the sale, the vice president owned 38,746 shares in the company, valued at approximately $1,406,867.26. The trade was a 25.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP John Wayne Witt sold 5,060 shares of the stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $38.29, for a total value of $193,747.40. Following the completion of the sale, the vice president directly owned 1,634 shares of the company's stock, valued at $62,565.86. The trade was a 75.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.43% of the company's stock.

Institutional Trading of Kennametal

Large investors have recently bought and sold shares of the business. Kohmann Bosshard Financial Services LLC acquired a new position in Kennametal in the fourth quarter valued at $28,000. Rockefeller Capital Management L.P. boosted its stake in shares of Kennametal by 3,600.0% during the fourth quarter. Rockefeller Capital Management L.P. now owns 999 shares of the industrial products company's stock worth $28,000 after buying an additional 972 shares during the period. Hantz Financial Services Inc. grew its holdings in shares of Kennametal by 350.2% during the third quarter. Hantz Financial Services Inc. now owns 1,373 shares of the industrial products company's stock worth $29,000 after buying an additional 1,068 shares during the last quarter. Danske Bank A S purchased a new position in shares of Kennametal during the fourth quarter worth about $31,000. Finally, Headlands Technologies LLC increased its position in Kennametal by 80.7% in the 2nd quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company's stock valued at $35,000 after acquiring an additional 682 shares during the period.

Kennametal Price Performance

The company has a 50-day moving average of $38.17 and a 200-day moving average of $32.97. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.14 and a current ratio of 2.55. The stock has a market cap of $3.30 billion, a price-to-earnings ratio of 30.25, a PEG ratio of 0.59 and a beta of 1.44.

Kennametal Company Profile

Kennametal Inc is a global industrial technology company that designs and manufactures advanced materials, tooling systems, and engineered components for a range of demanding applications. Its solutions support precision metalworking, earthmoving, and wear-resistant environments, catering to customers seeking enhanced productivity, longer tool life, and reduced operating costs.

The company's product portfolio spans indexable cutting tools, solid round tools, tool holders, metalworking fluid systems, wear parts, ceramics and composites, and custom-engineered components.

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