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Kennametal Inc. Announces Robust Financial Performance in Third Quarter of Fiscal 2026

Kennametal Inc. (NYSE: KMT) has unveiled its third quarter results for the fiscal year 2026, reflecting significant sales growth and robust operational performance. The quarter, ending March 31, showcased a notable increase in sales, achieving approximately $593 million, a 22% increase compared to the same period last year. This surge is attributed to both organic growth of 19% and a 5% favorable currency exchange effect, showcasing the resilience of the company's diverse operational model.

Key Financial Highlights

Sanjay Chowbey, President and CEO of Kennametal, remarked that the company exceeded expectations, mainly due to a substantial rise in tungsten prices and improved sales volume. Here are the key highlights from the third quarter:

• - Operating Income: The operating income reached $79 million with an adjusted operating income of $82 million, reflecting an increase of 80% and 64%, respectively. This improvement was driven by strategic pricing advantages and increased production volumes.
• - Earnings Per Share (EPS): The diluted earnings per share amplified to $0.75, showing an 85% increase year-over-year, with adjusted EPS reaching $0.77, up 65% from last year.

Operational Insights

The growth trajectory was not only a product of favorable market conditions but also of strategic initiatives. The company has focused on enhancing its operational efficiencies and capturing market share in a highly competitive environment. Chowbey elaborated, "Our team is driving forward with volume momentum from revitalized end markets, actively seeking share gains through various growth initiatives." These strategies are particularly crucial in the face of ongoing challenges stemming from inflation and supply chain disruptions.

Segment Performance

Diving deeper into the results:

• - Metal Cutting: Generated $358 million in sales, an 18% increase year-over-year, aided by a 12% organic sales growth and a 6% favorable currency impact. The operating income increased to $38 million, marking a margin of 10.7%.
• - Infrastructure: This segment displayed an extraordinary 29% growth, recording sales of $235 million with a 30% organic growth rate. Operating income surged to $42 million, highlighting an impressive 18.1% margin.

Future Outlook

Looking ahead, Kennametal maintains an optimistic projection for the remainder of fiscal 2026. The company anticipates total sales between $2.33 billion and $2.35 billion, with adjusted EPS expected to be in the range of $3.75 to $4.00. These revised forecasts reflect not only current market trends but also the company's commitment to pushing forward with its operational strategies and optimizing its production capabilities.

Dividend Increase

In a show of confidence in its financial health, Kennametal's Board of Directors declared a quarterly cash dividend of $0.20 per share, payable on May 26, 2026, to shareholders on record as of May 12, 2026.

Conference Call

Kennametal will host a conference call on May 6, 2026, at 9:30 AM ET, to discuss these results further and provide insights into future strategies. This will be accessible through the company's investor relations website.

As Kennametal continues to innovate and adapt to the dynamic industrial landscape, the third quarter results vividly illustrate the company's efficiency and competitiveness. With resilient growth trends and strategic initiatives in place, the outlook remains largely positive for this industry stalwart as it seeks to further enhance shareholder value.