Core Insights - Kennametal Inc. reported strong second quarter results for fiscal 2026, with sales and adjusted EPS exceeding expectations, driven by volume increases and a favorable tungsten pricing environment [1][2] Financial Highlights - Sales reached $530 million, a 10% increase from $482 million in the same quarter last year, with organic sales growth of 10% and a favorable currency exchange effect of 1%, partially offset by a divestiture effect of 1% [2][7] - Operating income was $53 million, representing a margin of 9.9%, compared to $32 million and a margin of 6.6% in the prior year quarter, driven by favorable pricing and higher sales volumes [3][7] - Adjusted operating income was $56 million, or 10.5% margin, up from $33 million and 6.9% margin in the prior year [3][7] - Earnings per diluted share (EPS) were $0.44, up 92% from $0.23, while adjusted EPS was $0.47, an increase of 89% from $0.25 [7] Cash Flow and Capital Expenditures - Year-to-date net cash flow from operating activities was $73 million, down from $101 million in the prior year, primarily due to working capital changes [4] - Year-to-date free operating cash flow (FOCF) was $38 million, compared to $57 million in the prior year, also driven by working capital changes [4][27] Segment Performance - Metal Cutting sales were $331 million, an 11% increase from $298 million, with operating income of $30 million and a margin of 9.0%, up from 5.6% [9][20] - Infrastructure sales were $198 million, an 8% increase from $184 million, with operating income of $23 million and a margin of 11.8%, up from 8.5% [10][20] Outlook - The company expects third quarter sales to be between $545 million and $565 million, with adjusted EPS projected to be between $0.50 and $0.60 [8] - For the full fiscal year, sales are expected to be between $2.190 billion and $2.250 billion, with adjusted EPS projected to be between $2.05 and $2.45 [8] Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.20 per share, payable on February 24, 2026, to shareholders of record as of February 10, 2026 [11]

Core Insights - The Zacks Industrial Products sector is expected to face a year-over-year earnings decline of 2.1% in Q4 2025, contrasting with a 3% growth in the previous quarter, while revenues are projected to increase by 10.5% [3] Industry Overview - The Industrial Products sector is experiencing challenges due to ongoing weakness in the manufacturing sector, with the Manufacturing PMI indicating contraction for ten consecutive months [5] - The New Orders Index has also shown a decline, with readings of 48.7%, 47.3%, and 47.4% for October, November, and December respectively [6] - Inflationary pressures, labor market slack, supply-chain disruptions, and cautious consumer spending are impacting the sector's performance [7] Positive Factors - Companies involved in commercial and defense aerospace markets are benefiting from strong aftermarket and OEM demand, supported by robust air travel and government backing [8] - Resilience in nondurables, business supplies, and food & beverage markets is expected to positively influence the sector's results [8] Earnings Estimates and Stock Performance - Kennametal Inc. (KMT) is projected to report a 40% year-over-year increase in Q4 EPS, driven by strength in the Metal Cutting segment and increased defense spending [12][13] - Mueller Water Products, Inc. (MWA) is expected to see an 8% year-over-year increase in earnings, supported by solid demand across its product lines and manufacturing efficiencies [14][15] - Trimble Inc. (TRMB) anticipates a 7.9% year-over-year increase in earnings, benefiting from strong growth in recurring revenue streams and customer adoption of digital solutions [16][17]

Core Insights - Kennametal Inc. will participate in the Barclays 43rd Annual Industrial Select Conference in Miami, highlighting its engagement with investors and industry stakeholders [1] - The company has over 85 years of experience as an industrial technology leader, focusing on materials science, tooling, and wear-resistant solutions [1] - Kennametal serves various sectors including aerospace and defense, earthworks, energy, general engineering, and transportation, emphasizing its role in enhancing manufacturing precision and efficiency [1] - The company reported nearly $2 billion in revenues for fiscal 2025, indicating strong financial performance [1] Company Overview - Kennametal employs approximately 8,100 individuals across nearly 100 countries, showcasing its global presence and workforce [1] - The company is committed to delivering productivity to its customers through innovative solutions in industrial technology [1]

Core Viewpoint - Kennametal (KMT) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][10] Earnings Estimate Revisions - The current-quarter earnings estimate is $0.35 per share, reflecting a year-over-year increase of +40.0% [6] - Over the past 30 days, one estimate has been revised upward with no negative revisions, leading to a 12.5% increase in the Zacks Consensus Estimate for the current quarter [6] - For the full year, the expected earnings are $1.51 per share, representing a year-over-year change of +12.7% [7] - In the last month, two estimates have been raised with no negative revisions, resulting in a 6.34% increase in the consensus estimate for the current year [8] Zacks Rank and Performance - Kennametal currently holds a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance based on favorable estimate revisions [9] - Historically, Zacks Rank 1 stocks have generated an average annual return of +25% since 2008, demonstrating a strong correlation between earnings estimate revisions and stock price movements [3][9] Stock Performance - Over the past four weeks, Kennametal shares have increased by 21.6%, suggesting positive investor sentiment driven by the company's earnings growth prospects [10]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Kennametal (KMT) - Kennametal currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3] - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4] Performance Metrics - KMT shares have increased by 6% over the past week, outperforming the Zacks Manufacturing - Tools & Related Products industry, which rose by 4.32% [6] - Over the past month, KMT's price change is 21.56%, significantly higher than the industry's 11.54% [6] - In the last quarter, KMT shares have surged by 51.91%, and over the past year, they have gained 41.52%, while the S&P 500 has only moved 4.41% and 18.09%, respectively [7] Trading Volume - KMT's average 20-day trading volume is 785,138 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, two earnings estimates for KMT have been revised upwards, increasing the consensus estimate from $1.35 to $1.51 [10] - For the next fiscal year, one estimate has moved up, with no downward revisions during the same period [10] Conclusion - Given the strong performance metrics and positive earnings outlook, KMT is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling option for near-term investment [12]

Core Viewpoint - Kennametal (KMT) shares experienced an 8.3% increase, closing at $33.28, driven by notable trading volume and positive market sentiment [1] Group 1: Company Performance - The rally in Kennametal's stock is attributed to optimism regarding its performance in aerospace & defense, energy, and general engineering markets [2] - The company is expected to report quarterly earnings of $0.35 per share, reflecting a year-over-year increase of 40%, with revenues projected at $509.48 million, a 5.7% rise from the previous year [3] - The consensus EPS estimate for Kennametal has been revised 3.4% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [4] Group 2: Industry Context - Kennametal is part of the Zacks Manufacturing - Tools & Related Products industry, where Stanley Black & Decker (SWK) also operates [4] - Stanley Black & Decker's consensus EPS estimate has increased by 3.6% to $1.27, although this represents a 14.8% decline compared to the previous year [5]

Core Viewpoint - Kennametal Inc. will host its second quarter fiscal year 2026 earnings call on February 4, 2026, with details available on the company's website before market opening [1][2]. 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 manufacture with precision and efficiency [1]. - Kennametal employs approximately 8,100 people and operates in nearly 100 countries [1]. - The company generated nearly $2 billion in revenues in fiscal 2025 [1]. Earnings Call Details - The earnings call is scheduled for February 4, 2026, at 9:00 am ET, hosted by Sanjay Chowbey, President and CEO, and Patrick Watson, Vice President and CFO [3]. - The conference call will be available via real-time audio on Kennametal's investor relations website [3].

Core Insights - U.S. stocks exhibited mixed performance, with the Dow Jones index declining by approximately 250 points on Tuesday [1] - Moderna Inc experienced a significant increase in share price following updates on its business and pipeline at the 44th Annual J.P. Morgan Healthcare Conference [1] Moderna Inc - Moderna anticipates 2025 revenue of around $1.9 billion, which is $100 million higher than the midpoint previously communicated during its third-quarter earnings call [2] - The company has improved its expected GAAP operating expenses for 2025 by $200 million and raised its projected year-end cash balance to approximately $8.1 billion [2] - Shares of Moderna surged by 12.8% to $38.20 on Tuesday [2] Other Notable Stocks - TryHard Holdings Ltd saw its shares jump by 69.3% to $39.11 after announcing a binding collaboration agreement with Carnegie Hill Capital Partners to establish a Hong Kong-based investment fund and a $10 million share repurchase program [3] - TTM Technologies Inc gained 20.2% to $93.59, while Wheels Up Experience Inc rose 19.2% to $1.19 [3] - Kosmos Energy Ltd increased by 16.4% to $1.20 following plans for a $350 million Nordic bond offering [3] - Other companies with notable gains include T1 Energy Inc (up 15.2% to $8.32), Structure Therapeutics Inc (up 15% to $79.75), and Canadian Solar Inc (up 13.5% to $22.98) after closing a $230 million convertible senior notes offering [3] - Posco Holdings Inc rose by 12.5% to $60.55, and Warby Parker Inc increased by 10.5% to $29.36 due to reports of increased demand for Meta's Ray-Ban glasses [3] - Option Care Health Inc gained 10.2% to $35.33 after reporting preliminary Q4 and FY25 financial results [3] - Kennametal Inc saw an 8.4% increase to $33.32 following an upgrade from Jefferies analyst Stephen Volkmann [3] - Intel Corp rose by 8% to $47.56 after an upgrade from KeyBanc, while Roblox Corp gained 8% to $82.93 with a maintained Overweight rating from Morgan Stanley [3] - Advanced Micro Devices Inc jumped 6.6% to $221.30 after an upgrade from KeyBanc [3]

Core Insights - Kennametal Inc. has announced a new integration with Hexagon's cloud-based Tool Library, enhancing access to verified digital tooling data for machinists [1][3] - The collaboration aims to deliver faster and smarter machining solutions by combining Kennametal's tooling expertise with Hexagon's advanced Computer-Aided Manufacturing (CAM) technology [1][3] Company Overview - Kennametal Inc. has over 85 years of experience as an industrial technology leader, focusing on materials science, tooling, and wear-resistant solutions [5] - The company generated $2 billion in revenues in fiscal 2025 and employs approximately 8,100 people across nearly 100 countries [5] Integration Details - The integration allows machinists to import Kennametal tooling data into Hexagon's WORKNC CAM software, which reduces setup time and improves machining accuracy [2][3] - Currently, the integration supports solid carbide drills and end mills, with plans for expansion to additional CAM systems and product lines in the future [3] Hexagon Overview - Hexagon is a global leader in measurement technologies, providing solutions that ensure productivity, quality, safety, and sustainability across various industries [4] - The company has approximately 24,800 employees in 50 countries and reported net sales of approximately 5.4 billion EUR [4]

Core Insights - Kennametal Inc. (KMT) is positioned to benefit from strong momentum in its end markets, a robust product portfolio, product innovations, and shareholder-friendly policies [1][9] - The company has a market capitalization of $2.1 billion and has seen its stock rise by 24.2% over the past six months, outperforming the industry growth of 3.5% [1] Business Strength - The Metal Cutting segment has shown strength with a 3% year-over-year revenue increase in the first quarter of fiscal 2026, driven by higher OEM build rates in aerospace and robust defense spending [3] - The Infrastructure segment is recovering due to increased mining activity and new project wins in the Americas, contributing to an optimistic revenue outlook for fiscal 2026, projected between $2.10 billion and $2.17 billion, up from earlier estimates of $1.95 billion to $2.05 billion [4] Strong Product Portfolio - Kennametal benefits from a diversified product portfolio and ongoing investments in product development, with notable new products including TopSwiss Inserts, HARVI TE Duo-Lock, and others [5] - The company is also focused on strategic partnerships and manufacturing investments, such as its collaboration with Toolpath Labs to enhance digital capabilities in manufacturing [6] Shareholder-Friendly Policies - Kennametal is committed to returning value to shareholders through dividends and share repurchases, distributing $15.1 million in dividends and repurchasing $10 million in shares in the first three months of fiscal 2026 [7] - In fiscal 2025, the company distributed a total of $61.9 million in dividends and repurchased shares worth $60 million, with a new $200 million repurchase program authorized in February 2024 [10] Estimate Revisions - The Zacks Consensus Estimate for KMT's fiscal 2026 earnings has increased by 25% in the past 60 days, while the estimate for fiscal 2027 has been revised upward by 16.4% [10]