Earnings Releases·Nov 4, 2026, 6:48 AM ET

Kennametal — Fiscal 2027 Q1 Earnings Summary

**Financial Results:** Sales surged 54% YoY to $768 million, while operating income jumped to $379 million (49.4% margin) from $38 million (7.5% margin) in the prior year quarter; diluted EPS reached $3.48 versus $0.30, driven primarily by favorable raw material pricing timing.
**Guidance Update:** The company raised full-year FY27 adjusted EPS guidance to $5.00–$6.00 and reiterated the sales outlook of $3.33–$3.45 billion, with Q2 FY27 sales expected between $785 million and $815 million.
**Capital & Balance Sheet:** Long-term debt increased to $1.1 billion and inventories rose to $1.62 billion due to unprecedented tungsten price increases, resulting in negative year-to-date operating cash flow of $201 million despite a cash balance increase to $272.8 million.
**Strategic Outlook:** Management confirmed a commitment to a 16%–19% adjusted EBITDA margin profile beyond FY27 assuming stable tungsten prices and highlighted growth initiatives targeting Aerospace & Defense, Hybrid/EV powertrains, and power generation sectors.