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]