Here's Why You Should Consider Investing in Kennametal Stock Now

Kennametal Inc. KMT is well-poised for growth in the coming quarters, courtesy of strength across its segments. The company's efforts to reward its shareholders handsomely add to its appeal.

In the past six months, this Zacks Rank #1 (Strong Buy) company’s shares have surged 83.3% compared with the industry’s 5.5% growth.

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Business Strength: Solid momentum in KMT’s several end markets is aiding the Metal Cutting segment. This includes an increase in aerospace original equipment manufacturer build rates in the Americas region, easing supply-chain pressures in the EMEA region and robust U.S. and international defense spending volumes. Also, strength in the energy market, supported by data center power generation wins, and signs of recovery in the general engineering market, bode well for the segment.

The Infrastructure segment’s performance is supported by strength in the aerospace & defense and general engineering markets, and a focus on improving customer service levels. Solid momentum in the earthworks market, driven by higher mining activity and new project wins in the Americas region, also augurs well.

Well-Diversified Portfolio: Kennametal is poised to gain from its well-diversified portfolio and investments in product development. Some notable products introduced by the company are TopSwiss Inserts, HARVI TE Duo-Lock, KSEM ST Line, Through Coolant ER Collets, FV Geometry Inserts and Chip Fan. Also, it remains focused on strategic partnerships and investing in manufacturing facilities to boost growth. For instance, in May 2025, Kennametal invested in Toolpath Labs, an emerging leader in AI-powered computer-aided manufacturing (CAM) software. The collaboration enabled Kennametal to expand its suite of digital capabilities and offerings for its manufacturing customers worldwide. Earlier, KMT also launched a metal cutting inserts manufacturing facility in Bengaluru, India, which bolstered its capability to cater to the increasing demand for existing and new product lines.

Shareholder-Friendly Policies: The company remains committed to rewarding its shareholders through dividend payments and share buybacks. In the first six months of fiscal 2026 (ended December 2025), Kennametal distributed dividends worth $30.4 million and repurchased shares worth $10.1 million. In February 2024, KMT’s board of directors authorized another repurchase program worth $200 million, which is valid for three years. Since the inception of this share repurchase program, the company has repurchased shares worth $70 million.

Northbound Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for KMT’s fiscal 2026 (ending June 2026) earnings has been revised 65.2% upward.

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Some other top-ranked companies are discussed below.

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Flowserve’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 17.3%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2026 earnings has increased 4.6%.

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In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 1.4%.

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In the past 60 days, the Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 2.2%.

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Parker-Hannifin Corporation (PH): Free Stock Analysis Report

Flowserve Corporation (FLS): Free Stock Analysis Report

Nordson Corporation (NDSN): Free Stock Analysis Report

Kennametal Inc. (KMT): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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