Kennametal Inc. filed an earnings release reporting fiscal 2027 first quarter results for the period ended September 30, 2026, disclosing record first quarter diluted EPS of $3.48 and sales of $768 million, with the announcement made on November 4, 2026.

Key Highlights

  • Record first quarter diluted EPS: Earnings per diluted share reached $3.48, described by the company as a record for a first quarter.
  • Sales of $768 million: Total sales increased 54 percent from $498 million in the prior year quarter, reflecting organic sales growth of 54 percent.
  • Operating income of $379 million: Operating margin was 49.4 percent, compared to $38 million, or 7.5 percent margin, in the prior year quarter.
  • Negative free operating cash flow: Year-to-date free operating cash flow was negative $212 million, compared to negative $5 million in the prior year period, driven primarily by working capital requirements related to tungsten price increases.
  • Raised full year adjusted EPS outlook: The company raised its FY27 full year adjusted EPS expectation to $5.00 - $6.00, while reiterating its full year sales outlook of $3.33 - $3.45 billion.
  • Quarterly dividend declared: The Board of Directors declared a quarterly cash dividend of $0.20 per share, payable November 23, 2026 to shareholders of record as of November 9, 2026.
  • Steady-state adjusted EBITDA margin target: The company confirmed a 16 to 19 percent adjusted EBITDA margin profile beyond FY27, assuming tungsten remains at current levels.

Kennametal Q1 FY27 Results: Tungsten Pricing Drives Operating Income Surge

Kennametal Inc. (NYSE:KMT) reported fiscal 2027 first quarter results on November 4, 2026, covering the period ended September 30, 2026. According to the filing, total sales reached $768 million, up 54 percent from $498 million in the prior year quarter, with organic sales growth also at 54 percent. Operating income rose to $379 million, a 49.4 percent margin, from $38 million, or 7.5 percent margin, a year earlier. The company attributed the operating income increase primarily to "the favorable timing of raw material-related pricing compared to costs of approximately $323 million," along with non-raw material-related pricing and tariff income, higher Metal Cutting volumes, an approximately $4 million advanced manufacturing production credit under the Inflation Reduction Act within the Infrastructure segment, and approximately $3 million in incremental year-over-year restructuring savings.

At the segment level, the filing reported Metal Cutting sales of $398 million, up 28 percent from $311 million, with operating income of $118 million, or 29.7 percent margin. Infrastructure sales reached $370 million, up 98 percent from $187 million, with operating income of $262 million, or 70.7 percent margin. The Infrastructure segment's gain was driven by approximately $258 million in favorable raw material-related pricing timing. Partially offsetting factors across segments included an impairment of an equity investment of approximately $5 million, a charge of approximately $5 million related to the write-off of certain fixed assets, higher compensation costs, and tariffs and general inflation.

On the cash flow side, the company disclosed year-to-date net cash flow from operating activities of negative $201 million, compared to positive $17 million in the prior year period. The company attributed this decline to "working capital requirements, including increased inventory values resulting from unprecedented tungsten price increases, as well as advance payments made to certain suppliers to secure raw material supply." For the second quarter of FY27, the company guided for sales of $785 - $815 million and adjusted EPS of $1.20 - $1.50. The company noted that forward-looking statements are subject to risks and uncertainties, including macroeconomic changes, inflation, tariffs, and other factors described in its cautionary language.

What Was Disclosed

Kennametal disclosed fiscal Q1 FY27 earnings results for the period ended September 30, 2026, including sales of $768 million, record first quarter diluted EPS of $3.48, a raised full year adjusted EPS outlook of $5.00 - $6.00, and a quarterly dividend of $0.20 per share.