KMT
Kennametal Inc.28.87
-0.26-0.89%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q2 '26
Tungsten details, volume cadence clarified
Q&A unpacked tungsten dynamics, detailing mid-single-digit January hikes sparking Q2's $13M buy-ahead, a three-month list-price lag in Metal Cutting, and diversified supply via recycling, Bolivia, and no non-China dependence to ensure access. Ex-buy ahead, volumes trended from Q1's -1% to Q2 flat and Q3 +1%, backing FY26's flat-to-+3% call. Competitive wins leaned on engineering but noted price sensitivity in Earthworks. Tariff surcharges stay flexible, ready to drop if trade eases. Volumes are inflecting up. Management stayed bullish on pricing offset and restructuring runway into FY27.
Key Stats
Market Cap
2.20BP/E (TTM)
24.06Basic EPS (TTM)
1.20Dividend Yield
0.03%Recent Filings
8-K
Q2 sales up 10%, raises outlook
Kennametal posted Q2 fiscal 2026 sales of $530 million, up 10% organically, with operating income surging 66% to $53 million (9.9% margin) on pricing beats raw material costs and restructuring savings. Adjusted EPS hit $0.47, topping prior outlook. It raised full-year sales to $2.190-$2.250 billion and adjusted EPS to $2.05-$2.45. Cash flow dipped on inventory builds.
10-Q
Q2 FY2026 results
Kennametal posted Q2 sales of $529.5M, up 10% y/y from $482.1M, with Metal Cutting (+11%) and Infrastructure (+8%) both accelerating on pricing, volumes, and Aerospace & Defense strength; gross margin hit 32.8% from 30.1%. Operating income jumped to $52.7M (+66% y/y), diluted EPS $0.44 (reconciles to 77.1M shares). YTD operating cash flow $72.6M topped $35.7M capex (FCF $36.9M derived); cash $129.3M, $650M revolver availability, total debt $598.6M. Restructuring hit $18.6M total through Q2, aiding savings. Ongoing tariffs pose cost risks.
8-K
Kennametal refinances $650M revolver
Kennametal secured a $650M unsecured revolving credit facility on November 17, 2025, replacing its prior agreement; it matures November 17, 2030, with $300M multicurrency sublimit, $50M L/C sublimit, and $100M swingline capacity. Yet covenants cap leverage at 3.75:1, stepping to 4.25:1 post-qualified acquisition. Locked in five-year liquidity.
10-Q
Q1 FY2026 results
Kennametal posted Q1 FY2026 sales of $498M, up 3% y/y from $482M, with Metal Cutting (+5%) and Infrastructure (+1%) both gaining traction amid Aerospace & Defense strength. Operating income edged to $37.6M from $36.0M at steady 7.5% margins, fueled by pricing yet pressured by inflation and restructuring charges; diluted EPS rose to $0.30 from $0.28, matching 76.8M shares. Cash fell to $103M q/q on inventory builds, but $700M revolver sits untapped with covenants met; free cash flow not disclosed in the 10-Q. Returned $25M to shareholders via buybacks and dividends. Ongoing restructuring weighs on near-term costs.
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