Kennametal (NYSE:KMT) Releases FY 2026 Earnings Guidance

Key Points

• Kennametal has updated its FY 2026 earnings guidance, projecting earnings per share (EPS) between 0.900-1.300, significantly lower than the consensus estimate of 1.426.
• The company also provided revenue guidance of $2.0 billion-$2.1 billion, aligning with the consensus revenue estimate of $2.0 billion.
• Kennametal recently declared a quarterly dividend of $0.20, which results in an annualized yield of 3.9%.

Kennametal (NYSE:KMT - Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 0.900-1.300 for the period, compared to the consensus earnings per share estimate of 1.426. The company issued revenue guidance of $2.0 billion-$2.1 billion, compared to the consensus revenue estimate of $2.0 billion.

Kennametal Stock Up 1.3%

Shares of NYSE KMT traded up $0.25 during midday trading on Friday, reaching $20.22. The company's stock had a trading volume of 3,065,317 shares, compared to its average volume of 1,235,702. The stock has a 50 day simple moving average of $23.34 and a 200-day simple moving average of $21.98. The company has a current ratio of 2.46, a quick ratio of 1.10 and a debt-to-equity ratio of 0.45. Kennametal has a fifty-two week low of $17.30 and a fifty-two week high of $32.18. The stock has a market capitalization of $1.54 billion, a price-to-earnings ratio of 16.85, a PEG ratio of 2.69 and a beta of 1.44.

Kennametal (NYSE:KMT - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The industrial products company reported $0.34 EPS for the quarter, missing the consensus estimate of $0.40 by ($0.06). Kennametal had a net margin of 4.73% and a return on equity of 8.09%. The company had revenue of $516.45 million for the quarter, compared to analyst estimates of $527.52 million. During the same period last year, the company posted $0.49 earnings per share. The business's revenue for the quarter was down 4.9% on a year-over-year basis. Equities research analysts predict that Kennametal will post 1.17 earnings per share for the current year.

Kennametal Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, August 26th. Stockholders of record on Tuesday, August 12th will be issued a dividend of $0.20 per share. The ex-dividend date of this dividend is Tuesday, August 12th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 4.0%. Kennametal's dividend payout ratio (DPR) is currently 57.55%.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on KMT shares. Loop Capital reaffirmed a "hold" rating and issued a $24.00 target price (up previously from $21.00) on shares of Kennametal in a report on Wednesday, June 25th. JPMorgan Chase & Co. reduced their target price on Kennametal from $23.00 to $20.00 and set an "underweight" rating on the stock in a report on Thursday. Barclays raised their target price on Kennametal from $22.00 to $24.00 and gave the company an "equal weight" rating in a report on Monday, May 12th. Morgan Stanley raised their target price on Kennametal from $20.00 to $21.00 and gave the company an "equal weight" rating in a report on Monday, May 12th. Finally, Wall Street Zen raised Kennametal from a "hold" rating to a "buy" rating in a report on Friday, May 16th. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $24.50.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in KMT. Jane Street Group LLC boosted its holdings in Kennametal by 39.3% during the 1st quarter. Jane Street Group LLC now owns 229,903 shares of the industrial products company's stock valued at $4,897,000 after acquiring an additional 64,907 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Kennametal by 13.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 240,556 shares of the industrial products company's stock valued at $5,124,000 after buying an additional 28,020 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Kennametal by 4.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 46,307 shares of the industrial products company's stock worth $986,000 after buying an additional 2,013 shares during the last quarter. Finally, Royal Bank of Canada increased its position in Kennametal by 17.7% during the 1st quarter. Royal Bank of Canada now owns 30,474 shares of the industrial products company's stock valued at $649,000 after purchasing an additional 4,578 shares during the period.

About Kennametal

Kennametal Inc engages in development and application of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide. The company operates through two segments, Metal Cutting and Infrastructure.