Core Insights - Kennametal Inc. reported strong first-quarter results for fiscal 2026, with sales and adjusted EPS exceeding expectations, driven by market share gains and modest improvements in end markets [1][2]. Financial Highlights - Sales reached $498 million, a 3% increase from $482 million in the same quarter last year, with organic sales growth of 3% and a favorable currency exchange effect of 1%, partially offset by a divestiture effect of 1% [2][7]. - Operating income was $38 million, maintaining a 7.5% margin, compared to $36 million in the prior year quarter. Adjusted operating income increased to $41 million, or 8.2% margin, from $37 million, or 7.6% margin, in the previous year [3][7]. - Earnings per diluted share (EPS) were $0.30, an 8% increase year-over-year, while adjusted EPS rose 18% to $0.34 [7]. Cash Flow and Capital Management - Year-to-date net cash flow from operating activities was $17 million, down from $46 million in the prior year, primarily due to working capital changes, including increased inventory [4]. - Free operating cash flow (FOCF) was negative $5 million, compared to positive $21 million in the prior year, driven by similar working capital changes [4][26]. Segment Performance - Metal Cutting sales were $311 million, up 5% from $297 million, with operating income of $22 million and a 6.9% margin, down from 8.0% margin in the prior year [6][19]. - Infrastructure sales increased 1% to $187 million, with operating income rising to $17 million and an 8.9% margin, compared to 6.9% margin in the previous year [10][19]. Shareholder Returns - The company returned approximately $25 million to shareholders, including $10 million in share repurchases and $15 million in dividends [7]. Outlook - The company expects second-quarter sales to be between $500 million and $520 million, with adjusted EPS anticipated to be between $0.30 and $0.40. For the full fiscal year, sales are projected to be between $2.100 billion and $2.170 billion, with adjusted EPS expected to range from $1.35 to $1.65 [8].