Kennametal Reports Significant Q1 FY27 Revenue Growth Driven by Aerospace and Defense
Kennametal (KMT) reported strong first-quarter fiscal 2027 results, highlighted by a 54% increase in sales to $768 million. The company saw massive growth in its Metal Cutting segment, which rose 29% organically due to robust demand in the aerospace, defense, and energy sectors. Operating income surged to $379 million, representing a significant margin expansion compared to the previous year. However, the results were tempered by challenges in the Infrastructure segment, which saw a low double-digit volume decline caused by price sensitivity in energy/earthworks and a mining slowdown in China. Additionally, high tungsten prices have significantly impacted liquidity, leading to negative free operating cash flow of $212 million and a temporary pause in the company's share repurchase program.
Topics: aerospace and defense eps operating income revenue growth tungsten pricing