Kennametal Q4 Earnings Call Highlights

Kennametal reported a strong fiscal fourth quarter and full-year 2026, with organic sales up 42% in Q4 and adjusted EPS jumping to $2.96 from $0.34, helped by pricing actions, tariff surcharges, higher volumes and favorable tungsten-cost timing. Full-year organic sales rose 19% and adjusted EPS increased to $4.57, while EBITDA margin expanded to 26.9%. Management highlighted strength in aerospace and defense, energy, mining and AI data-center-related projects, but also flagged working-capital pressure from tungsten costs. For fiscal 2027, Kennametal guided to sales of $3.33 billion to $3.45 billion and adjusted EPS of $4.15 to $5.15, implying continued growth but with timing-related earnings benefits easing in the second half. The stock’s main takeaway is that earnings momentum remains solid, but cash flow may stay pressured until tungsten costs normalize.