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Kennametal Inc

Kennametal Inc

KMT
$33.74USD↓-5.04%-1.79 today

MARKET CAP

2.6B

P/E (TTM)

17.6x

FWD P/E

8.5x

DAY RANGE

$32 – $34

52W RANGE

$18
$44

AI Summary

Stalk
Sell NowMedium

Stage 4 decline confirmed by support failure and distribution volume supports a medium-term bearish bias. Price is trading below down-sloping 9, 21, and 50 EMAs on strong sell pressure with no immediate signs of exhaustion. A near-term bounce could emerge around the rising 200 DMA support, but until structural repair is evident, rallies into the broken support zone and EMA cluster represent preferred sell-entry points.

  • ↑Q3 FY26 revenue grew 22% YoY to $586M, driven by higher pricing and volumes
  • ↑Adjusted EPS jumped to $0.77 from $0.47, aligning with $3.75–$4.00 FY26 guidance
  • ↓Free cash flow plunged to $18M from $63M last year, straining liquidity
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Kennametal Inc. (NYSE: KMT) is a leading player in the industrial manufacturing sector, specializing in engineered materials primarily for aerospace, defense, energy, and general engineering markets. The company gains a competitive edge through its focus on metal cutting solutions and infrastructure capabilities, particularly amidst current dynamics in tungsten supply and geopolitical considerations. Kennametal seeks to capitalize on strategic growth initiatives that align well with rising demands in its core markets, even as it navigates cyclical challenges.

Bull says

  • ↑Q3 FY26 revenue grew 22% YoY to $586M, driven by higher pricing and volumes
  • ↑Adjusted EPS jumped to $0.77 from $0.47, aligning with $3.75–$4.00 FY26 guidance
  • ↑Infrastructure sales climbed 29% YoY, reflecting strong aerospace and energy demand recovery
  • ↑Rising tungsten prices boost pricing power, supporting margin resilience amid cost inflation
  • ↑High earnings yield, strong momentum, robust liquidity and solid quality metrics underpin valuation
  • ↑Inclusion in Russell Growth indices expected to lift liquidity and investor interest

Bear says

  • ↓Free cash flow plunged to $18M from $63M last year, straining liquidity
  • ↓Operating cash flow down to $70M YTD from $130M, pressuring working capital
  • ↓Weak profitability and stagnant revenue growth raise cost management and growth concerns
  • ↓Institutional skepticism evident as high ownership exposure signals major investor unease
  • ↓Competitive pricing pressure risks margin erosion once tungsten market stabilizes
  • ↓Inflationary and labor cost pressures may further compress margins long term

Investment themes with KMT

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q3 2025 · Mgmt. Guidance

Updated 06-14-2026neutral

Transcript signals

Bull points

  • We also achieved approximately $6 million of restructuring savings in the quarter. We are on pace to achieve the $15 million run rate savings we committed to in January.
  • increased 7% propelled by defense project wins in infrastructure
  • adjusted EPS increased to 47 cents compared to 30 cents in the prior year quarter, fueled mainly from restructuring benefits, the absence of price raw headwinds, and the advanced manufacturing tax credit, which helped to increase profitability.

Bear points

  • Sales decreased 6% year over year, with metal cutting sales declining 4% organically and infrastructure declining 2% organically. We saw broad yet modest weakness across our three regions, with EMEA, as expected, remaining the slowest market, down 4% on a constant currency basis.
  • we have tightened our fiscal 25 full year sales outlook to reflect the latest forecasts of the specific market drivers and general market conditions.
  • the pressure is primarily in EMEA, with a slight slowdown in the Americas.
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