• Kennametal (NYSE:KMT) reported quarterly results with revenue above internal expectations.
• The company raised its full-year revenue and adjusted EPS guidance following the quarter.
• Management cited pricing actions and new project wins in aerospace, energy, and mining as key supports.
• Restructuring efforts and cost improvements were noted as contributors to the updated outlook.

Kennametal, a supplier of tooling and wear resistant solutions for industrial customers, is seeing traction across aerospace, energy, and mining projects. These are areas where customers often prioritize reliability and productivity, which can support demand for high performance cutting tools and engineered components. Pricing actions have helped the company address higher input costs while still securing new business.

For investors, the combination of recent results, updated guidance, and new project wins indicates that management is progressing on its current plan. The revised outlook and contract activity also make future updates on order trends, pricing, and margins important data points to monitor over the year.

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Kennametal’s quarterly update points to a company using pricing power and cost work to support earnings, with sales of US$529.53 million and net income of US$33.89 million for the quarter, alongside raised fiscal 2026 sales guidance of US$2.19b to US$2.25b. For investors watching industrial tools suppliers such as Sandvik or MSC Industrial, this mix of volume support, aerospace and mining wins, and higher guidance can be read as a signal that customer spending in these end-markets is holding up reasonably well.

Kennametal narrative, tungsten pricing and restructuring story

The new guidance and better earnings slot neatly into the existing Kennametal narratives that focus on tungsten driven pricing, restructuring savings and exposure to long-cycle themes like energy transition and AI data centers. They do not settle the debate between more cautious and more optimistic views, but they give investors fresh data on how pricing actions, cost savings and aerospace or energy project wins are feeding into reported sales and profit.

Risks and rewards to keep in mind

• Pricing actions that support revenue and margins while tungsten costs are high, alongside project wins in aerospace, energy and mining, give some evidence that Kennametal can secure higher value work.
• Restructuring and footprint consolidation, plus a maintained US$0.20 per share dividend, point to a focus on cost discipline and returning cash to shareholders.
• The company’s reliance on pricing to offset raw material inflation, especially tungsten, leaves investors exposed to any future pressure on price increases or changes in commodity trends.
• Analysts have highlighted execution risk if end-markets like transportation and general engineering soften again, or if expected restructuring savings and volume recovery do not come through as planned.

What to watch next

From here, you may want to watch whether Kennametal’s quarterly sales stay within or above its guidance ranges, how margins track against higher tungsten costs, and what management says about order trends in aerospace, energy and mining relative to peers such as Sandvik and MSC Industrial. If you want a broader sense of how different investors are interpreting these results and the tungsten story, take a look at the community narratives for Kennametal on this dedicated page.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.