Kennametal 2026 Q1 Earnings Revenue Rises 3.3% as Net Income Grows 5.0%

Kennametal (KMT) reported fiscal 2026 Q1 earnings on Nov 6, 2025, delivering revenue of $497.97 million, a 3.3% year-over-year increase, and EPS of $0.31, up 10.7%. The company raised its full-year guidance, projecting $2.1–$2.2 billion in revenue and EPS of $1.35–$1.65. Shares surged 13% post-earnings, reflecting optimism over its improved outlook and resilient performance.

Revenue

Kennametal’s revenue growth was driven by strong demand in key segments. The Metal Cutting division, its largest contributor, reported $310.63 million in sales, reflecting a 5% year-over-year increase. Meanwhile, the Infrastructure segment added $187.35 million, up 1% from the prior year, despite a 3% drag from divestitures. Currency exchange benefits and pricing strategies further supported top-line expansion.

Earnings/Net Income

The company’s profitability strengthened, with net income rising 5.0% to $24.63 million and EPS climbing to $0.31. The EPS growth of 10.7% and net income increase highlight Kennametal’s ability to leverage cost savings and operational efficiencies, outpacing its 2025 Q1 results.

Post-Earnings Price Action Review

Kennametal’s stock surged 13% in early trading following the earnings release, driven by the company’s raised guidance and better-than-expected results. The shares gained 1.88% on the day, 16.81% for the week, and 22.46% month-to-date, reflecting investor confidence in its strategic execution and long-term outlook. Analysts noted the improved margins and robust revenue performance as key catalysts for the rally.

Guidance

Kennametal updated its FY 2026 guidance, targeting revenue of $2.1–$2.2 billion and EPS of $1.35–$1.65, well above the previous consensus of $1.10. The company attributed the optimism to its cost-cutting initiatives and favorable market dynamics in industrial tools and infrastructure.

Additional News

Kennametal announced a quarterly dividend of $0.20 per share, yielding 3.6% annually. UBS raised its price target to $21.00 from $19.00, while Zacks upgraded the stock to “hold” from “strong sell.” Analysts also highlighted the company’s $125 million cost-saving plan by 2028 as a key differentiator.

Article Polishing

The earnings report underscores Kennametal’s operational resilience amid macroeconomic uncertainties. With robust revenue growth, improved profitability, and a raised guidance, the company appears well-positioned to capitalize on its strategic initiatives. Investors should monitor its progress toward $125 million in cost savings and the sustainability of its current momentum.

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