Kennametal Inc. (KMT) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, KMT's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200 ...

Core Insights - Kennametal Inc. reported better-than-expected first-quarter financial results, with adjusted earnings of 34 cents per share, surpassing market estimates of 23 cents per share [1] - The company's sales reached $497.974 million, exceeding expectations of $476.934 million [1] - Following the earnings announcement, Kennametal raised its FY26 guidance above estimates [1] Financial Performance - Adjusted earnings per share (EPS) for the first quarter were 34 cents, beating the expected 23 cents [1] - Sales for the quarter were $497.974 million, compared to the anticipated $476.934 million [1] Market Reaction - Following the earnings report, Kennametal shares increased by 1.3%, trading at $26.40 [2] - Analysts adjusted their price targets for Kennametal after the earnings announcement [2] Analyst Ratings - Barclays analyst Julian Mitchell maintained an Equal-Weight rating on Kennametal and raised the price target from $22 to $25 [4] - JP Morgan analyst Tami Zakaria maintained an Underweight rating while also increasing the price target from $22 to $25 [4]

Kennametal Inc. (NYSE:KMT) reported better-than-expected first-quarter financial results and raised its FY26 guidance above estimates, after the closing bell on Wednesday.Kennametal posted adjusted earnings of 34 cents per share, beating market estimates of 23 cents per share. The company's sales came in at $497.974 million versus expectations of $476.934 million.“Our first quarter started off strong with share gains and modest end market improvements compared to our previous expectations, resulting in sale ...

Kennametal (KMT) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.Analysts' growing optimism on the earnings prospects of this engineered products maker is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings ...

Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Has ADT (ADT) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.ADT is a member of the Industrial Products sector. This group includes 186 individual stocks and currently holds a Zacks Sector Rank of #13. The Zacks Sector Rank considers 16 different gr ...

Key Takeaways Kennametal's Q1 adjusted EPS rose 18% year over year to $0.34, topping estimates.Quarterly sales grew 3% to $498 million, led by strength in the Americas and EMEA.FY26 guidance was raised, with sales seen at $2.10-$2.17B and EPS at $1.35-$1.65.Kennametal Inc. (KMT) reported first-quarter fiscal 2026 (ended Sept. 30, 2025) adjusted earnings of 34 cents per share, which surpassed the Zacks Consensus Estimate of 24 cents. The bottom line increased 18% from the year-ago figure.KMT’s Revenue Detail ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Kennametal (KMT) Analysis - Kennametal (KMT) has shown significant recent price momentum, with a four-week price change of 17.4%, indicating growing investor interest [4] - KMT has gained 17.6% over the past 12 weeks, with a beta of 1.5, suggesting it moves 50% more than the market in either direction [5] - KMT holds a Momentum Score of A, indicating a favorable entry point for investors looking to capitalize on its momentum [6] Group 3: Earnings Estimates and Valuation - KMT has seen upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - The stock is trading at a Price-to-Sales ratio of 0.97, suggesting it is undervalued, as investors pay only 97 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides KMT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify winning stock picks based on various investing styles [9]

Financial Performance - Sales for the three months ended September 30, 2025, were $497.974 million, an increase of 3.1% compared to $481.948 million in the same period of 2024[14]. - Gross profit for the same period was $154.550 million, up from $151.009 million, reflecting a gross margin of approximately 31.0%[14]. - Net income attributable to Kennametal for the three months ended September 30, 2025, was $23.298 million, representing a 5.3% increase from $22.123 million in 2024[14]. - Basic earnings per share increased to $0.31 for the three months ended September 30, 2025, compared to $0.28 in the prior year[14]. - The company reported a total comprehensive income of $24.202 million for the three months ended September 30, 2025, compared to $57.807 million in 2024[15]. - Operating income for the total segments was $38.203 million, an increase from $36.556 million in the previous year, with Metal Cutting contributing $21.564 million and Infrastructure $16.639 million[63]. - The company reported a net income before income taxes of $33.695 million for the three months ended September 30, 2025, compared to $31.372 million in the same period of 2024, reflecting a growth of 7.4%[63]. - The company recorded a net income of $24.6 million for the three months ended September 30, 2025[56]. - Basic earnings per share for the three months ended September 30, 2025, was calculated using a weighted average of 76,128 thousand shares outstanding[55]. Assets and Liabilities - Total assets as of September 30, 2025, were $2.519 billion, a decrease from $2.545 billion as of June 30, 2025[16]. - The company had $1.284 billion in total equity attributable to Kennametal shareholders as of September 30, 2025, slightly up from $1.284 billion at the end of the previous quarter[16]. - Total equity as of September 30, 2025, was $1,325.6 million, a slight decrease from $1,324.6 million as of June 30, 2025[56]. - As of September 30, 2025, total debt was $598.4 million, with no borrowings outstanding under the $700.0 million revolving credit facility[100]. - The company’s obligations under the supplier finance program increased to $25.0 million as of September 30, 2025, from $17.3 million as of June 30, 2025[21]. - Environmental liabilities accrued as of September 30, 2025, totaled $11.0 million, with $1.4 million classified as current[49]. Cash Flow and Investments - Cash and cash equivalents decreased to $103.497 million from $140.540 million at the end of the previous quarter[17]. - Net cash flow provided by operating activities was $17.487 million, down from $45.746 million in the same period of 2024[17]. - Cash flow used in investing activities was $22.7 million for the three months ended September 30, 2025, compared to $20.0 million in the prior year period, primarily due to capital expenditures of $23.0 million[106]. - Cash flow used in financing activities was $31.1 million for the three months ended September 30, 2025, which included $15.1 million in dividends paid and $10.0 million in common shares repurchased[108]. - The company returned $25.1 million to shareholders through share repurchases and dividends during the three months ended September 30, 2025[75]. Segment Performance - The Metal Cutting segment generated sales of $310.625 million, up from $296.900 million in the prior year, while the Infrastructure segment saw sales increase to $187.349 million from $185.048 million[62]. - Metal Cutting segment sales were $310.6 million, a 5% increase from the prior year, while Infrastructure segment sales were $187.3 million, a 1% increase[86]. - Operating margin for the Metal Cutting segment was 6.9%, down from 8.0% in the prior year, while the Infrastructure segment's operating margin improved to 8.9% from 6.9%[87][91]. - The General Engineering end market represented 44% of total sales, followed by Transportation at 16%, Aerospace & Defense at 13%, and Energy at 13%[64]. Market and Regional Performance - The Americas accounted for 50% of total sales, while Europe, the Middle East, and Africa (EMEA) contributed 31%, and Asia Pacific made up 19%[63]. - Constant currency end market sales growth for the Aerospace & Defense sector was 16% for the three months ended September 30, 2025[120]. - Americas region reported a constant currency sales growth of 6% for the three months ended September 30, 2025[121]. - EMEA region experienced a constant currency sales growth of 1%, while Asia Pacific saw a decline of 1%[121]. - Total regional sales growth was reported at 4%, with a decline of 6% in the Americas and a growth of 5% in EMEA[121]. - Infrastructure segment showed a constant currency sales growth of 7%, with a decline of 3% in EMEA[121]. Legal and Compliance - The company is currently involved in litigation with MachiningCloud, Inc., which is seeking over $330 million in damages, although the outcome remains uncertain[60]. - The company is involved in ongoing legal proceedings, but believes the ultimate liability will not materially affect its financial position[127]. - The company's disclosure controls and procedures were evaluated as effective as of September 30, 2025[123]. - No changes in internal control over financial reporting occurred during the most recent fiscal quarter[124]. - The company expects no material impact from the One Big Beautiful Bill Act (OBBBA) on its consolidated financial statements for the current fiscal year[53]. Other Financial Metrics - The effective income tax rate for the three months ended September 30, 2025, was 26.9%, compared to 25.2% for the same period in 2024[52]. - The company recorded total restructuring and related charges of $15.6 million through September 30, 2025, compared to a target of approximately $25 million[33]. - For the three months ended September 30, 2025, the net periodic pension expense was $1.75 million, an increase from $1.01 million in the same period of 2024[40]. - The fair value of derivatives designated as hedging instruments was $11,000 as of September 30, 2025, compared to a liability of $(9,000) as of June 30, 2025[27]. - The company recorded a net loss of $3,000 related to currency forward contracts for the three months ended September 30, 2025, compared to a gain of $14,000 in the same period of 2024[28].

Financial Data and Key Metrics Changes - Sales increased by 3% organically year over year, marking the first quarter of organic growth in two years [6][11] - Adjusted EPS rose to $0.34 compared to $0.29 in the prior year quarter [6][12] - Adjusted EBITDA margin improved to 15.3% from 14.3% in the prior year quarter [7][12] - Cash from operating activities was $17 million compared to $46 million in the prior year period, while free operating cash flow was negative $5 million compared to positive $21 million [7][17] Business Line Data and Key Metrics Changes - Metal cutting sales were up 5% year over year, with 3% organic growth [14] - Infrastructure sales increased 3% organically, with reported sales growth of 1% [15] - Aerospace and defense grew 20%, earthworks grew 5%, energy increased 1%, general engineering was flat, and transportation declined 1% [11][15] Market Data and Key Metrics Changes - Sales in the Americas increased 7%, EMEA was flat, and sales decreased 1% in Asia-Pacific [11] - Transportation market outlook improved slightly, while aerospace and defense expectations are strengthening due to recovery from supply chain challenges [8][11] Company Strategy and Development Direction - The company is focusing on strategic growth initiatives, particularly in power generation and infrastructure [4][9] - There is a commitment to offsetting tariff impacts through product moves, supply chain optimization, and pricing actions [5][6] - The company is exploring ways to strengthen its portfolio while monitoring external drivers such as trade and monetary policies [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term value creation despite potential external challenges [22] - The outlook for FY26 sales is projected to be between $2.1 billion and $2.17 billion, with adjusted EPS expected in the range of $1.35-$1.65 [19][21] - The company anticipates a modest improvement in market conditions and pricing actions to address rising costs [19][21] Other Important Information - The company returned $25 million to shareholders through share repurchases and dividends [18] - The adjusted tax rate for the year is now projected at 27% [19] Q&A Session Summary Question: Can you clarify the end market outlook and what is driving the material uplift? - Management noted that project wins, share gains, and APT-related price increases are driving the uplift across end markets [26][30] Question: What is the market share dynamic and how are you addressing tungsten price increases? - The share gain is driven by innovative solutions, commercial excellence, and operational performance, with confidence that customers will continue to prefer their products despite higher tungsten prices [31][36] Question: How much of the $250 million TAM from engines is volume versus pricing? - The $250 million includes both volume and pricing dynamics, with a projected growth rate of 10% for the next few years [41][42] Question: What is driving the improved outlook for the energy end market? - The energy outlook improved due to APT-related price increases and stable oil and gas market conditions [43][44] Question: Can you discuss the dynamics of price cost impact in your guidance? - The guidance reflects positive price raw dynamics, with expectations for neutrality in Q4 unless tungsten prices change [70][71]

Financial Performance - Sales reached $498 million, reflecting 3% organic growth[4] - Adjusted EBITDA was $76 million with a 153% margin[4] - Adjusted EPS stood at $034, compared to $029 in the prior year[4, 11] - The company returned $25 million to shareholders through $10 million in share repurchases and $15 million in dividends[4, 11] Segment and Regional Growth - Metal Cutting and Infrastructure segments both experienced 3% organic growth[11] - Americas region saw a 7% sales growth in constant currency[11] - Aerospace & Defense sector experienced a 20% sales growth[11] Outlook and Restructuring - The company is on track to deliver approximately $35 million in restructuring savings[37, 40] - FY26 sales are projected to be between $210 billion and $217 billion[37] - Adjusted EPS for FY26 is expected to be in the range of $135 to $165[37] Balance Sheet - Net debt was $4949 million[32] - Free Operating Cash Flow (FOCF) was $(5) million[4] - Primary Working Capital as a percentage of sales was approximately 32%[35, 37]