Kennametal Inc. (KMT)
NYSE:KMT
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Kennametal
(NYSE:KMT)
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Rating:65Neutral
Price Target:
$37.00
▲(2.55% Upside)
Action:ReiteratedDate:02/05/26
The score is driven primarily by steady (but not accelerating) financial performance and constructive guidance/language on pricing, outlook, and liquidity. This is tempered by overbought technical conditions and a less compelling valuation, with tungsten-driven working-capital pressure a notable near-term risk.
Positive Factors
Repeat consumables revenue
Kennametal's core metal‑cutting products are consumables that wear and require regular replacement. That creates predictable, recurring demand and sticky customer relationships across manufacturing end markets, supporting stable revenue streams and resilience versus one‑off sales.
Negative Factors
Tungsten price volatility
Sharp, sustained tungsten price moves materially increase input cost uncertainty and create timing mismatches between cost incidence and price realization. That volatility is structural risk for a hard‑materials business, pressuring margins, elevating working capital needs, and making multi‑period planning and forecasting harder.
Read all positive and negative factors
Positive Factors
Negative Factors
Repeat consumables revenue
Kennametal's core metal‑cutting products are consumables that wear and require regular replacement. That creates predictable, recurring demand and sticky customer relationships across manufacturing end markets, supporting stable revenue streams and resilience versus one‑off sales.
Read all positive factors
Kennametal (KMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.75B
Dividend Yield2.74%
Average Volume (3M)1.59M
Price to Earnings (P/E)16.1
Beta (1Y)0.80
Revenue Growth-2.63%
EPS Growth-4.46%
CountryUS
Employees8,400
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)0.47
Shares Outstanding76,198,790
10 Day Avg. Volume1,320,085
30 Day Avg. Volume1,589,970
Financial Highlights & Ratios
PEG Ratio-1.55
Price to Book (P/B)1.38
Price to Sales (P/S)0.90
P/FCF Ratio14.86
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue1.61
Enterprise Value/Gross Profit5.16
Enterprise Value/Ebitda11.48
Forecast
1Y Price Target
$36.07Price Target Upside-0.03% Downside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)2.3
Revenue Forecast (FY)$2.23B
Kennametal Business Overview & Revenue Model
Company Description
Kennametal Inc. engages in development and application of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures c...
How the Company Makes Money
Kennametal makes money primarily by selling industrial consumables and engineered products to manufacturers and other end users, with revenue largely tied to production activity and machining demand. Key revenue streams include: (1) Metal-cutting ...
Kennametal Key Performance Indicators (KPIs)
Kennametal Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call presents a generally positive operational and financial picture: management raised full‑year sales guidance, expects meaningful price realization (~11% FY, ~13% Q3) and sizable EPS timing benefits (≈$0.95 YoY), and maintains strong liquidity (~$779M available). At the same time, significant tungsten price volatility has created working capital pressure and some timing distortions to volumes (Q2 buy‑ahead) and deferred some EMEA savings into later periods. The positive impacts from pricing, cost actions, commercial wins, and a healthy balance sheet outweigh the near‑term headwinds related to raw‑material volatility and restructuring timing.Positive Updates
Raised Full-Year Sales Outlook
FY2026 sales guidance increased to $2.19B–$2.25B, reflecting additional pricing actions tied to rising tungsten costs and an expected net price and tariff surcharge of ~11% with ~2% FX tailwind.
Negative Updates
Severe Tungsten Price Volatility
Tungsten prices surged materially (management referenced up ~33% year‑to‑date in discussion and a sharp January move of nearly $340), creating working capital pressure, accelerating price surcharges, and adding uncertainty about future raw‑material cost dynamics.
Read all updates
Q2-2026 Updates
Positive
Negative
Raised Full-Year Sales Outlook
FY2026 sales guidance increased to $2.19B–$2.25B, reflecting additional pricing actions tied to rising tungsten costs and an expected net price and tariff surcharge of ~11% with ~2% FX tailwind.
Read all positive updates
Company Guidance
Management updated FY‑2026 guidance to sales of $2.19–$2.25 billion, volume flat to +3%, net price plus tariff surcharge of ~11% and an approximate 2% FX tailwind, with adjusted EPS of about $2.45–$2.50 (including ~ $0.95 of year‑over‑year benefit from timing of price/raw material costs); they said D&A, FX and pension assumptions are unchanged, capex is unchanged, free operating cash flow is expected to be ~60% of adjusted net income, and the range reflects $30 million of EMEA restructuring savings. For Q3 they guide sales of $545–$565 million, volumes −4% to 0% (adjusted for Q2 buy‑ahead of roughly $13 million the midpoint would be +1%), price/tariff realization ≈13%, FX +5%, and adjusted EPS $0.50–$0.60 (including ~ $0.30 benefit from PriceRock timing; last year’s Q3 included a $0.13 advanced‑manufacturing tax‑credit benefit). On the balance sheet they have a $650 million revolver maturing November 2030, combined cash and revolver availability of ~ $779 million at quarter‑end and remain well within covenants; the outlook incorporates additional pricing actions in response to sharply higher tungsten costs (January list actions were mid‑single digits) and assumes tungsten stabilizes from current elevated levels.Kennametal Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
72
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.03B | 1.97B | 2.05B | 2.08B | 2.01B | 1.84B |
| Gross Profit | 632.05M | 598.07M | 627.09M | 646.44M | 647.98M | 552.48M |
| EBITDA | 284.46M | 293.43M | 305.61M | 322.14M | 364.32M | 237.52M |
| Net Income | 110.26M | 93.13M | 109.32M | 118.46M | 144.62M | 54.43M |
Balance Sheet | ||||||
| Total Assets | 2.60B | 2.55B | 2.50B | 2.55B | 2.57B | 2.67B |
| Cash, Cash Equivalents and Short-Term Investments | 129.32M | 140.54M | 127.97M | 106.02M | 85.59M | 154.05M |
| Total Debt | 644.39M | 643.36M | 645.75M | 639.42M | 663.28M | 651.49M |
| Total Liabilities | 1.24B | 1.22B | 1.22B | 1.23B | 1.28B | 1.30B |
| Stockholders Equity | 1.32B | 1.28B | 1.25B | 1.28B | 1.25B | 1.33B |
Cash Flow | ||||||
| Free Cash Flow | 99.33M | 119.35M | 169.55M | 163.56M | 84.52M | 108.38M |
| Operating Cash Flow | 180.03M | 208.32M | 277.11M | 257.94M | 181.44M | 235.68M |
| Investing Cash Flow | -59.02M | -61.83M | -109.43M | -89.23M | -94.94M | -122.98M |
| Financing Cash Flow | -115.46M | -133.92M | -141.75M | -143.11M | -150.74M | -574.25M |
Kennametal Technical Analysis
Neutral
36.08
Price Trends
37.48
Negative
32.69
Positive
27.33
Positive
Market Momentum
-0.64
Positive
44.99
Neutral
44.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KMT, the sentiment is Neutral. The current price of 36.08 is below the 20-day moving average (MA) of 37.73, below the 50-day MA of 37.48, and above the 200-day MA of 27.33, indicating a neutral trend. The MACD of -0.64 indicates Positive momentum. The RSI at 44.99 is Neutral, neither overbought nor oversold. The STOCH value of 44.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KMT.
Kennametal Risk Analysis
Kennametal disclosed 9 risk factors in its most recent earnings report. Kennametal reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kennametal Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $16.83B | 53.36 | 8.53% | ― | 8.27% | 19.06% | |
78 Outperform | $18.64B | 17.98 | 17.70% | 2.52% | 0.24% | -1.85% | |
72 Outperform | $13.59B | 25.51 | 37.15% | 1.22% | 3.27% | 10.89% | |
72 Outperform | $6.78B | 20.35 | 9.35% | 1.61% | -1.01% | -12.13% | |
65 Neutral | $2.75B | 16.15 | 8.61% | 2.74% | -2.63% | -4.46% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $10.67B | 28.82 | 4.47% | 4.42% | -1.40% | ― |
* Industrials Sector Average
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Kennametal Corporate Events
Dividends
Kennametal Board Declares Quarterly Cash Dividend for Shareholders
Positive
Jan 30, 2026
On January 27, 2026, Kennametal Inc.’s board of directors declared a quarterly cash dividend of $0.20 per share, payable on February 24, 2026, to shareholders of record at the close of business on February 10, 2026. The dividend declaration ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.