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KMT earnings analysis

10-Q · Filed November 4, 2026 · Our reading of the company's report

The latest report

Kennametal reported a strong adjusted EPS result of $3.48 versus the $2.65 consensus estimate, but revenue of $768.193 million modestly missed the $772.426 million estimate. Profitability benefited materially from…

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Kennametal reported a strong adjusted EPS result of $3.48 versus the $2.65 consensus estimate, but revenue of $768.193 million modestly missed the $772.426 million estimate. Profitability benefited materially from approximately $323 million of favorable raw-material pricing timing, while FOCF fell to negative $211.654 million because of inventory-driven working capital. Management raised FY27 adjusted EPS guidance to $5.00-$6.00 but reiterated sales guidance of $3.33-$3.45 billion, leaving the overall trend neutral because the earnings strength was paired with weak cash conversion and a substantial temporary benefit.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

49% Gross margin Operating margin Nov 2024 Nov 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish Aug 2024 Nov 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$3.48
Gross margin
49.0%
Segment
Infrastructure: segment growth was reported, but exact segment revenue was not provided.
Segment
Other segment revenue figures: not provided.

What stood out

  • Large EPS beat despite revenue miss

    Adjusted EPS was $3.48, exceeding the $2.65 consensus estimate by $0.83, while revenue was $768.193 million versus the $772.426 million estimate.

  • Raw-material timing lifted margin

    Gross margin reached approximately 49%, supported by approximately $323 million of favorable raw-material pricing timing, according to management's discussion of the quarter.

  • Infrastructure led segment growth

    Infrastructure was identified as a growth driver, although the filing extract does not provide the segment's dollar revenue or growth rate.

  • EPS outlook raised

    FY27 adjusted EPS guidance was raised to $5.00-$6.00, while sales guidance was maintained at $3.33-$3.45 billion.

  • Defined capital allocation outlook

    Management expects FY27 capital spending of approximately $85 million and FOCF of approximately 20% of adjusted net income.

What to watch

  • Large one-time margin benefit

    The approximately $323 million favorable raw-material pricing timing benefit is unusually large relative to quarterly profitability and may not recur, creating a risk to future margins.

  • Working capital consumed cash

    FOCF was negative $211.654 million, primarily reflecting inventory-driven working-capital use, despite reported adjusted EPS of $3.48.

  • New ERP controls transition

    SAP S/4HANA implementation was completed across global operations during the quarter ended September 30, 2026, resulting in a material change to internal controls over financial reporting and creating execution and reporting risks during the transition.

Management's outlook

Mixed update: FY27 adjusted EPS guidance was raised to $5.00-$6.00, while FY27 sales guidance was reiterated at $3.33-$3.45 billion. FY27 FOCF is expected to be approximately 20% of adjusted net income, with capital spending of approximately $85 million.

Earlier filings 4

10-K · August 12, 2026

Kennametal delivered a substantial fiscal 2026 recovery, with revenue up 20%, gross margin at 41.2%, and diluted EPS of $4.42, led particularly by Infrastructure and broad Aerospace & Defense, Earthworks, and Energy…

10-Q · May 6, 2026

Kennametal reported strong third-quarter results, with revenue of $592.6 million, exceeding estimates of $567.8 million, and earnings per share (EPS) of $0.77, surpassing expectations of $0.67. This reflects a continued…

10-Q · February 4, 2026

Kennametal reported Q2 sales of $529.5 million (up 10% y/y) and diluted EPS of $0.44 (vs. $0.23 prior year), with gross margin improving to 32.8% and operating margin to 9.9%. Both reportable segments (Metal Cutting and…

10-Q · November 5, 2025

Kennametal reported quarterly sales of $497,974,000, up 3% from $481,948,000 a year earlier, with operating income of $37,559,000 (7.5% operating margin, unchanged YoY) and diluted EPS of $0.30 versus $0.28 in the prior…

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