Overview

• U.S. industrial tooling firm's fiscal Q3 sales rose 22%, beating analyst expectations

• Adjusted EPS for fiscal Q3 climbed, beating analyst expectations

• Company raised full-year sales and adjusted EPS outlook, citing higher tungsten prices and volumes

Outlook

• Kennametal raises full-year 2026 sales outlook to $2.33-$2.35 bln

• Company expects full-year 2026 adjusted EPS of $3.75-$4.00

Result Drivers

• VOLUME GROWTH - Higher sales and production volumes contributed to improved results, supported by growth initiatives and improving end markets

• PRICING AND TARIFFS - Pricing and tariff surcharges in Metal Cutting segment boosted operating income

Company press release: ID:nPn1YtlPCa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "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 $37.50, about 0% above its May 5 closing price of $37.51

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 19 three months ago

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