Kennametal Reports Record Earnings Amid Cash Flow Concerns
Kennametal (NYSE:KMT) reported strong fiscal 2026 fourth-quarter results, with sales rising 43% to $737 million and adjusted earnings per share hitting a record $2.96 for the quarter. The company's operating margins surged significantly compared to the prior year, driven by improved performance in both its Metal Cutting and Infrastructure segments. Despite these gains, Kennametal faced cash flow challenges, with net cash from operations turning negative at -$4 million for fiscal 2026—down sharply from $208 million a year earlier. The company attributed this to increased working capital needs due to rising tungsten prices and advance supplier payments. Looking ahead, the firm provided guidance of annual sales between $3.33 billion and $3.45 billion for fiscal 2027, but its wide EPS range ($4.15–$5.15) reflects uncertainty.
