The massive guidance raise (adjusted EPS midpoint $3.875 vs prior $2.25, +72%) is the key catalyst — it implies H2 acceleration and strong tungsten tailwinds. Watch for the earnings call at 9:30 AM ET for details on tungsten supply chain management and end-market demand sustainability. The stock should gap up significantly; consider taking profits if it gaps >15% given the low historical win rate for high-impact scores in this segment.
Price Chart
Executive Summary
Kennametal reported a massive beat for fiscal Q3 2026, with EPS of $0.75 (GAAP) / $0.77 (adjusted) crushing the $0.67 consensus, and revenue of $592.6M topping the $568.1M estimate. The company raised its full-year sales outlook to $2.33-$2.35B and adjusted EPS to $3.75-$4.00, driven by unprecedented tungsten pricing and strong volume. This marks a second consecutive beat and guidance raise, signaling accelerating momentum in both Metal Cutting and Infrastructure segments.
Key Financial Metrics
Key Facts
- Q3 FY2026 revenue $592.6M, +22% YoY (organic +19%), vs consensus $568.1M
- GAAP diluted EPS $0.75, +83% YoY; adjusted EPS $0.77, +64% YoY, vs consensus $0.67
- Operating income $79.4M (13.4% margin), +80% YoY; adjusted OI $81.8M (13.8% margin), +64% YoY
- Full-year FY2026 guidance raised: sales $2.33-$2.35B (from $2.19-$2.25B), adjusted EPS $3.75-$4.00 (from $2.05-$2.45)
- Infrastructure segment sales +29% YoY (organic +30%), driven by $39M favorable pricing vs raw material costs
- Metal Cutting segment sales +18% YoY (organic +12%), driven by pricing/tariff surcharges and higher volumes
- Year-to-date FOCF $17.7M vs $62.7M prior year, impacted by working capital build from tungsten price surge
- Quarterly dividend maintained at $0.20/share
Financial Impact
EPS beat of $0.08 (+11.9%) on consensus $0.67; revenue beat of $24.5M (+4.3%) on consensus $568.1M
Risk Factors
- Unprecedented tungsten price surge may reverse, compressing margins in future quarters
- Year-to-date FOCF declined 72% to $17.7M due to working capital build from higher tungsten prices
- Inventory ballooned 39% to $747M from June 2025, raising working capital risk
- Only 7% of analysts rate the stock a Buy, suggesting limited institutional conviction
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-030882 |
| Document: kmt-20260506.htm | 0001628280-26-030882 |
| Document: 0001628280-26-030882-index-headers.html | 0001628280-26-030882 |
| Document: 0001628280-26-030882-index.html | 0001628280-26-030882 |
| Document: 0001628280-26-030882.txt | 0001628280-26-030882 |
| 8-K Data (Synthetic) | 0001628280-26-030882 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 11, 2026 21d ago | Insider Cluster | $29.44 $29.77 | ▲ +1.12% | ▲ +1.34% | $32.60 (+10.73%) |
Sep 9, 2026 23d ago | Insider Cluster | $29.64 $29.70 | ▲ +0.20% | ▲ +0.86% | $32.60 (+9.99%) |
Aug 5, 2026 8w ago | 8-K | $34.16 $30.78 | ▼ −9.89% | ▼ −10.25% | $32.60 (−4.57%) |
Jul 28, 2026 9w ago | 8-K | $33.55 $34.16 | ▲ +1.82% | ▼ −3.71% | $32.60 (−2.83%) |
Jul 15, 2026 11w ago | Press Release | $34.76 $34.73 | ▼ −0.09% | ▲ +0.89% | $32.60 (−6.21%) |
Jun 30, 2026 13w ago | 8-K | $35.05 $34.22 | ▼ −2.37% | ▼ −2.97% | $32.60 (−6.99%) |
Jun 9, 2026 16w ago | Insider Cluster | $34.01 $35.55 | ▲ +4.53% | ▲ +2.12% | $32.60 (−4.15%) |
Jun 2, 2026 17w ago | 8-K | $32.67 $33.30 | ▲ +1.93% | ▲ +5.75% | $32.60 (−0.21%) |
May 28, 2026 18w ago | 8-K | $32.80 $32.63 | ▼ −0.52% | ▲ +2.01% | $32.60 (−0.61%) |
May 27, 2026 18w ago | 8-K | $33.66 $32.67 | ▼ −2.94% | ▼ −2.89% | $32.60 (−3.15%) |
US Market Status
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