Core Viewpoint - Kennametal Inc. will participate in the Loop Capital Conference in New York City on March 10, 2026, highlighting its ongoing engagement with investors and stakeholders [1]. Group 1: Company Overview - Kennametal Inc. has over 85 years of experience as an industrial technology leader, focusing on materials science, tooling, and wear-resistant solutions [1]. - The company serves customers in various sectors, including aerospace and defense, earthworks, energy, general engineering, and transportation, helping them achieve precision and efficiency in manufacturing [1]. - Approximately 8,100 employees work across nearly 100 countries to support customer competitiveness [1]. Group 2: Financial Performance - Kennametal generated nearly $2 billion in revenues during fiscal 2025, indicating a strong financial position [1].

Core Viewpoint - Kennametal (KMT) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook that may continue to drive stock gains [1][10]. Estimate Revisions - Analysts have shown growing optimism regarding Kennametal's earnings prospects, reflected in upward revisions of earnings estimates, which historically correlate with stock price movements [2]. - For the current quarter, Kennametal is expected to earn $0.57 per share, marking a year-over-year increase of +21.3%. The Zacks Consensus Estimate has risen by 15.15% over the last 30 days, with two estimates moving higher and no negative revisions [6]. - For the full year, the expected earnings per share is $2.23, representing a year-over-year change of +66.4%. The consensus estimate has increased by 39.17% due to three upward revisions and no negative changes [7][8]. Zacks Rank - Kennametal has achieved a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in raising earnings estimates, which is a reliable indicator for potential stock performance [9]. - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks averaging an annual return of +25% since 2008, suggesting that Kennametal may outperform the market [3]. Stock Performance - The stock has gained 16.4% over the past four weeks, driven by favorable estimate revisions and positive earnings growth prospects, making it a candidate for portfolio addition [10].

Core Insights - The company, Kennametal (KMT), reported a net profit growth of 0.24% year-over-year for the first three quarters of the fiscal year 2025 [1][2] Financial Performance - The cumulative net profit for the first three quarters of the company showed a year-over-year increase, with a growth rate of 0.24% [2]

Core Viewpoint - Investors are evaluating Kennametal (KMT) and Sandvik AB (SDVKY) for potential undervalued stock opportunities in the Manufacturing - Tools & Related Products sector [1] Group 1: Zacks Rank and Earnings Outlook - Kennametal has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while Sandvik AB has a Zacks Rank of 2 (Buy) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that KMT's earnings outlook is improving more significantly than SDVKY's [3] Group 2: Valuation Metrics - KMT has a forward P/E ratio of 22.19, compared to SDVKY's forward P/E of 26.53, indicating KMT may be undervalued relative to SDVKY [5] - KMT's PEG ratio is 0.84, while SDVKY's PEG ratio is 1.77, suggesting KMT offers better value when considering expected earnings growth [5] - KMT's P/B ratio is 2.26, significantly lower than SDVKY's P/B of 5.45, further supporting KMT's valuation advantage [6] Group 3: Value Grades - KMT has a Value grade of B, while SDVKY has a Value grade of D, indicating that KMT is perceived as a superior value option based on its earnings outlook and valuation metrics [6]

Market Overview - The S&P 500 and Nasdaq Composite declined by 0.1% and 1.9% respectively, while the Dow Jones Industrial Average increased by 2.5% last week, indicating a mixed performance across major indexes [1] - The divergence in market performance was attributed to a rotation in investor preferences rather than overall market weakness, with rising Treasury yields making high-valuation growth stocks less appealing [1] Sector Performance - Optimism regarding economic resilience led to increased buying in cyclically sensitive and defensive sectors, with industrials benefiting from infrastructure and manufacturing strength, financials gaining from higher yields, and energy rising with firmer oil prices [2] - This shift underscores a focus on earnings stability and tangible cash flows among investors [2] Zacks Research Performance - Kennametal Inc. (KMT) shares surged by 44.8% since being upgraded to a Zacks Rank 1 (Strong Buy) on December 8, outperforming the S&P 500's 0.7% increase [3] - Inventiva S.A. (IVA) also saw a return of 42.4% since its upgrade to Zacks Rank 1 on the same date [4] - An equal-weight portfolio of Zacks Rank 1 stocks outperformed the equal-weight S&P 500 index by 7 percentage points, returning 17.81% compared to 10.85% for the index [4] Zacks Recommendations - Clearway Energy, Inc. (CWENA) and Pursuit Attractions and Hospitality, Inc. (PRSU) saw share increases of 16.7% and 5.4% respectively since their upgrades to Outperform on December 10 and December 11 [6] - The Zacks Recommendation system aims to predict stock performance over the next 6 to 12 months, based on trends in earnings estimate revisions [7] Focus List and Portfolios - Celanese Corporation (CE) gained 32.9% over the past 12 weeks since being added to the Zacks Focus List, while Intellia Therapeutics, Inc. (NTLA) returned 29% over the same period [9] - The Zacks Focus List portfolio returned 22.1% in 2025, outperforming the S&P 500 index's 17.9% gain [10] - The Earnings Certain Admiral Portfolio (ECAP) returned -1.67% for 2025, underperforming the S&P 500 index's 17.9% gain, but had a return of 16.26% in 2024 compared to the S&P 500's 24.89% [14] Dividend Portfolio Performance - Illinois Tool Works Inc. (ITW) and Fastenal Company (FAST) returned 19.6% and 16.8% respectively over the past 12 weeks, benefiting from investor interest in quality dividend stocks amid market volatility [16] - The Earnings Certain Dividend Portfolio (ECDP) returned -0.6% for 2025, underperforming the Dividend Aristocrat ETF's 6.8% gain [17] Top 10 Stocks Performance - Monolithic Power Systems (MPWR) increased by 31.4% since January 5, 2026, compared to the S&P 500 Index's 1.1% increase [20] - The Top 10 portfolio has produced a cumulative return of 2,472.7% since 2012, significantly outperforming the S&P 500 index's 561.6% return [21]

Core Viewpoint - Goldman Sachs has set a price target of $32 for Kennametal, indicating a potential decrease of approximately -20.87% from its current trading price of around $40.50 [1][4] Group 1: Stock Performance - Kennametal's current stock price is $40.50, reflecting an increase of 5.80% or $2.22 from previous trading [1] - The stock has experienced significant volatility, trading between $37.86 and $40.69 on the day, with a yearly high of $40.90 and a low of $17.30 [1][2] Group 2: Market Capitalization and Trading Volume - The company's market capitalization is approximately $3.08 billion, with a trading volume of 270,730 shares on the NYSE [2] Group 3: Growth Potential - Kennametal's strong financial growth and favorable Growth Score from Zacks suggest it is well-suited for growth investors, supported by a top Zacks Rank indicating strong growth prospects [2][3] - Despite the price target set by Goldman Sachs, Kennametal's above-average growth in financials positions it to potentially outperform the market, making it appealing for investors seeking exceptional returns [3]

Company Overview - Kennametal Inc. is a manufacturer, marketer, and distributor of high-speed metal cutting tools, tooling systems, and wear-resistant parts, serving various industries including machine tools, transportation, aerospace, and oil and gas exploration [11]. Investment Highlights - Kennametal has a Zacks Rank of 1 (Strong Buy) and a VGM Score of B, indicating strong potential for investment [12]. - The company has a Momentum Style Score of A, with shares increasing by 27.5% over the past four weeks [12]. - For fiscal 2026, three analysts have revised their earnings estimates upwards, with the Zacks Consensus Estimate rising by $0.25 to $1.60 per share [12]. - Kennametal has an average earnings surprise of +35.4%, showcasing its ability to exceed earnings expectations [12]. Conclusion - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, Kennametal is positioned as a strong candidate for investors [13].

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Kennametal (KMT) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - Kennametal's historical EPS growth rate stands at 6.9%, but projected EPS growth for the current year is significantly higher at 19.4%, surpassing the industry average of 11.9% [4]. - The importance of double-digit earnings growth is emphasized as a key indicator of strong future prospects and potential stock price increases [3]. Group 2: Asset Utilization - The asset utilization ratio for Kennametal is 0.8, indicating that the company generates $0.8 in sales for every dollar in assets, which is above the industry average of 0.76, showcasing greater efficiency [5]. Group 3: Sales Growth - Kennametal's sales are projected to grow by 5.6% this year, compared to the industry average of 4.5%, highlighting its competitive position in terms of sales growth [6]. Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Kennametal have been revised upward, with the Zacks Consensus Estimate increasing by 58.5% over the past month, indicating positive momentum [8]. - A positive trend in earnings estimate revisions is correlated with near-term stock price movements, reinforcing the stock's attractiveness [7]. Group 5: Overall Assessment - Kennametal has achieved a Growth Score of B and holds a Zacks Rank 1 (Strong Buy), suggesting it is a potential outperformer and a solid choice for growth investors [10].

Core Insights - Kennametal Inc. (KMT) reported adjusted earnings of 47 cents per share for Q2 FY26, exceeding the Zacks Consensus Estimate of 35 cents, marking an 89% increase year-over-year [1] - The company generated revenues of $530 million, a 10% increase from the previous year, surpassing the Zacks Consensus Estimate of $516.1 million [2] Revenue Details - Revenues from American operations rose 13% year-over-year to $265.2 million, while Europe, the Middle East, and Africa contributed $156.3 million, up 7%, and Asia Pacific sales increased 7% to $108.1 million [3] - The Metal Cutting segment reported revenues of $331.1 million, an 11% increase year-over-year, with organic revenues growing 9% [3] - The Infrastructure segment's revenues totaled $198.5 million, up 8% year-over-year, with organic revenues increasing 11% [4] Margin Profile - Cost of goods sold increased by 5.5% year-over-year to $355.7 million, while gross profit rose 19.9% to $173.9 million, resulting in a gross margin of 32.8% [5] - Operating income increased 66.3% year-over-year to $52.7 million, with an operating margin of 9.9%, up 330 basis points [6] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of Q2 FY26 were $129.3 million, down from $140.5 million at the end of FY25, while long-term debt slightly increased to $597.2 million [7] - Net cash generated from operating activities in the first six months of FY26 was $72.6 million, compared to $100.9 million in the same period last year [8] Dividend and Guidance - The board approved a quarterly cash dividend of 20 cents per share, payable on February 24, 2026 [11] - The updated fiscal 2026 outlook projects sales between $2.19 billion and $2.25 billion, with adjusted EPS expected to be in the range of $2.05 to $2.45 [12] Future Expectations - For Q3 FY26, sales are anticipated to be between $545 million and $565 million, with adjusted EPS expected in the range of 50 to 60 cents [13]

Core Viewpoint - Kennametal reported strong fiscal second-quarter results for 2026, driven by higher sales volumes, pricing actions related to high tungsten costs, and restructuring savings, leading to improved profitability metrics [4][7]. Financial Performance - The company achieved an adjusted EBITDA margin of 17.1%, up from 13.9% year-over-year, and adjusted EPS increased to $0.47 from $0.25 [1][7]. - Organic sales growth was reported at 10% year-over-year, marking the second consecutive quarter of organic growth [2][7]. - Management raised fiscal 2026 sales guidance to $2.19–2.25 billion and adjusted EPS to $2.05–2.45, with Q3 sales expected between $545–565 million and EPS between $0.50–0.60 [5][19]. Market Dynamics - The company noted that tungsten prices have increased approximately 33% year-to-date, impacting working capital and inventory levels [6][12]. - Customer buy-ahead contributed significantly to sales, with Metal Cutting generating about $10 million tied to this effect [11]. Segment Performance - Sales growth was led by Infrastructure (+11%) and Metal Cutting (+9%), with total sales rising 10% year-over-year [8][10]. - By end market, aerospace and defense grew 23%, earthworks rose 18%, and general engineering increased 8% [9]. Strategic Outlook - The company highlighted power generation and electricity demand as a multi-year growth opportunity, projecting a 3% annual growth in electricity demand through 2030 [15]. - Kennametal is positioned to capitalize on trends in gas turbines and combustion engines, with projected growth rates of 15% and 10% CAGR, respectively [16]. Cash Flow and Capital Management - Year-to-date free operating cash flow decreased to $38 million from $57 million, primarily due to working capital changes related to higher tungsten prices [17]. - The company returned $15 million through dividends but paused share repurchases due to increased working capital needs [18].